Document:

exv10w1

 

Exhibit 10.1

PS BUSINESS PARKS, L.P.

AMENDMENT TO AGREEMENT OF LIMITED

PARTNERSHIP RELATING TO

7.20% SERIES M 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 May 2, 2005 (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 3,000,000 Depositary Shares each representing
1/1000th of a share of the General Partner’s preferred stock designated as the “7.20% Cumulative
Preferred Stock, Series M” (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:

          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 M Preferred Units (as
defined below), $25.00 per Series M Preferred Unit, plus the amount of any accumulated and unpaid
Priority Return (as defined below) with respect to such Series M Preferred Unit, whether or not
declared, minus any distributions in excess of the Priority Return that has accrued with respect to
such Series M 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 M Preferred Units
with respect to distributions and rights upon voluntary or involuntary liquidation, winding-up or
dissolution of the Partnership, including the 9 1/2% Series D Cumulative Redeemable Preferred Units
(the “Series D Preferred Units”), the 9 1/4% Series E Cumulative Redeemable Preferred Units (the
“Series E Preferred Units”), the 8 3/4% Series F Cumulative Redeemable Preferred Units (the “Series F
Preferred Units”), the 7.95% Series G Cumulative Redeemable Preferred Units (the “Series G
Preferred Units”), the 7.000% Series H Cumulative Redeemable Preferred Units (the “Series H
Preferred Units”), the 6.875% Series I Cumulative Redeemable Preferred Units (the “Series I
Preferred Units”), the 7.50% Series J Cumulative Redeemable Preferred Units (the “Series J
Preferred Units”), the 7.950% Series K Cumulative Redeemable Preferred Units (the “Series K
Preferred Units”), the 7.60% Series L Cumulative Redeemable Preferred Units (the “Series L
Preferred Units”), and the 8 7/8% Series Y Cumulative Redeemable Preferred
Units (the “Series Y Preferred Units”). Notwithstanding the differing allocation rights set forth
in Section 4 below that apply to the Series D, F, H, I, K, L and M Preferred Units (as compared to
the Series E, G, J and Y Preferred Units), for purposes of this Amendment those Series D, F, H, I,
K, L and M Preferred Units and any future series of preferred units that rank in parity with those
series also shall be considered Parity Preferred Units to the Series E, G, J and Y Preferred Units.

          (c) “Priority Return” means an amount equal to 7.20% per annum, of the Liquidation
Preference per Series M Preferred Unit, commencing on the date of issuance of such Series M
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 M Preferred Unit Distribution Payment Date (as defined
below).

          Creation of Series M 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 “7.20% Series M Cumulative Redeemable
Preferred Units” (the “Series M Preferred
Units”) is hereby established effective as of May 2,
2005. The number of Series M Preferred Units shall be 3,000,000. The Holders of Series M
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 M 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).

          (c) Construction. The Series M 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 7.20% Cumulative Preferred Stock, Series M, and as such, the Series M 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.

          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 M 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 M
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
June 30, 2005 and (ii) in the event of a redemption of Series M Preferred Units (each a “Series M
Preferred Unit Distribution Payment Date”). If any date on which distributions are to be made on
the Series M 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 M
Preferred Units will be made to the holders of record of the Series M 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 M 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 M 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 M 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 M Preferred Units will accumulate as of the Series M
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 M Preferred Unit Distribution Payment Date, to holders of record of
the Series M 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.

          (d) Priority as to Distributions. Subject to the provisions of Article 13 of the
Partnership Agreement:

          (i) So long as any Series M 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 M 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 M Preferred Units, any Parity Preferred Units or any Junior Units, unless, in each case,
all distributions accumulated on all Series M 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 M 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 M Preferred Units, all
distributions authorized and declared on the Series M 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 M 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 M 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 M 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.

          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 D, F, H, I, K, L and M Preferred Units
shall first be allocated an

 

 

amount of gross income equal to the Priority Return distributed to such holders in
such taxable year, and (2) subject to any prior allocation of Profit pursuant to the
loss chargeback set forth in Section 6.1(a)(ii)(B) below, the holders of Series E,
G, J and Y Preferred Units shall then be allocated an amount of Profit equal to the
Priority Return distributed to such holders either in such taxable year or in prior
taxable years to the extent that such distributions have not previously been matched
with an allocation of Profit pursuant to this Section 6.1(a)(ii)(A)(2).

(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 D, E, F, G, H,
I, J, K, L, M and Y 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 D, E, F, G, H, I, J, K, L, M
and Y 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.

(C) Upon liquidation of the Partnership or the interest of the holders of Series D,
E, F, G, H, I, J, K, L, M or Y Preferred Units in the Partnership: (1) items of
gross income or deduction shall first be allocated to the holders of Series D, F, H,
I, K, L and M 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, and (2) an amount of Profit or Loss shall then be
allocated to the holders of Series E, G, J and Y 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.”

          Optional Redemption. The Series M 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 M Redemption
Price”). The Partnership will deliver into escrow
with an escrow agent acceptable to the Partnership and the holders of the Series M Preferred Units
being redeemed (the “Escrow Agent”) the Series M 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 M 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 M Redemption Price to the holders of the Series M 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 M Preferred
Units called for redemption, unless the Partnership defaults in the payment of the Series M
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 M 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 M Preferred Units.

          Voting Rights. Holders of the Series M 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 M Preferred Unit shall be treated as one
Partnership Unit.

          Transfer Restrictions. The holders of Series M Preferred Units shall be subject to all of the
provisions of Section 11 of the Partnership Agreement.

 

 

          No Conversion Rights. The holders of the Series M 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.

          No Sinking Fund. No sinking fund shall be established for the retirement or redemption of
Series M Preferred Units.

          Exhibit A to Partnership Agreement. In order to duly reflect the issuance of the Series M
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.

          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.]

 

 

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

	 	 	 	 	 
	 	PS BUSINESS PARKS, INC.

 	 
	 	By:  	/s/ Edward A. Stockx
 	 
	 	 	Name:  	Edward A. Stokx 	 
	 	 	Title:  	Executive Vice President and Chief Financial Officer 	 

 

 

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 7.20%
Series M Cumulative Redeemable Preferred Units (the “Amendment”), as further amended from time to
time;

     WHEREAS, the Retiring Partner owns ___of the 7.20% Series M Cumulative Redeemable Preferred
Units in the Partnership (the “Series M Preferred Units”); and

     WHEREAS, the Partnership desires to redeem the Series M Preferred Units of the Retiring
Partner, and the Retiring Partner desires to liquidate its Series M 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:

     Liquidation of Retiring Partner. In satisfaction of the terms and conditions set forth herein
and in the Amendment, the Retiring Partner’s Series M 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 M 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.

     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 M Preferred Units and the Series M 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.

     Representations and Warranties of the Partnership. The Partnership represents and warrants to
the Retiring Partner as follows:

          (e) 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.

          (f) 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.

          (g) 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.

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

     Indemnification.

          (i) 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.

          (j) 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.

	   	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.

	   	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:

 

 

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 7.20% Series M 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___, 7.20% Series M 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 7.20% Series M 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:<PAGE>

                                                                    EXHIBIT 10.1

                                NOBLE CORPORATION
                            SHORT TERM INCENTIVE PLAN

                              Revised: April 2005*

SECTION 1. PURPOSE

      The success of Noble Corporation ("Noble") and its subsidiaries
(collectively, unless the context otherwise requires, the "Company") is a result
of the efforts of all key employees. In order to focus each employee's efforts
on optimizing the Company's overall results, operationally and financially, the
Company maintains this Short Term Incentive Plan (the "Plan") to reward
employees for successful achievement of specific goals.

      An effective incentive plan should both align employee interests with
those of shareholders and motivate and influence employee behavior. Key
positions within the Company have the ability to make a positive contribution to
key factors that increase shareholder value. These factors can be quantified and
measured through achievement of various financial and operational targets, such
as safety, earnings per share and return on capital employed. The objectives of
using such targets in the formulation of the specific Company goals are to link
an employee's annual incentive award more closely to the creation of shareholder
wealth and to promote a culture of high performance and an environment of team
work.

SECTION 2. PARTICIPATION AND ELIGIBILITY

      Full-time employees in salary classifications 18N and higher who have
completed one year of service at the close of the Plan year are eligible for
consideration of a bonus under the Plan, subject to the discretion of the
Compensation Committee (the "Committee") of the Board of Directors (the "Board")
of Noble. Each such employee will be considered either a "corporate employee" or
a "division employee" for purposes of adjustment of such employee's target bonus
pursuant to Section 6. Full-time, non-exempt employees not in such salary
classifications who have completed one year of service at the close of the Plan
year are also eligible for consideration of a bonus under the Plan, subject to
the discretion of the Committee. The Plan year shall be the calendar year.

* Established in 1977

                                       1
<PAGE>

      To be eligible to receive a bonus payment with respect to a Plan year, the
person must be actively employed on the last day of such Plan year and must
continue to be employed through the date on which bonus payments for such Plan
year are made. The bonus for an employee with less than two years of service as
of the end of a Plan year will be prorated based upon the number of full months
employed, unless another manner of adjustment is determined by the Committee in
its discretion.

      In the event of death, disability or retirement, the employee or estate of
the former employee may receive a pro-rated payment from the Plan, at the
discretion of the Committee and the CEO. For purposes of the Plan, "disability"
means any termination of employment with the Company or an affiliate of the
Company because of a long-term or total disability, as determined by the
Committee and CEO, and "retirement" means a termination of employment with the
Company on a voluntary basis by a person if, immediately prior to such
termination of employment, the sum of the age and the number years of continuous
service of such person with the Company (or affiliate) is equal to or greater
than 60.

      In order to align the interests of the participants under the Plan with
shareholders, participants in pay grades 27 and higher ("Scheduled
Participants") will receive one-half of their bonus amount in Noble Corporation
ordinary shares ("Ordinary Shares"), until the ownership targets set forth in
Annex I are satisfied. Scheduled Participants may elect to receive up to 100
percent of their bonus amount in Ordinary Shares. So long as a Scheduled
Participant satisfies and maintains the ownership target applicable to such
Scheduled Participant under the Plan, such Scheduled Participant may elect to
receive up to 100 percent of his or her bonus amount in cash.

      The total bonus paid for a Plan year shall not be greater than the
aggregate bonus accruals for all participating offices and divisions for such
Plan year. If the accrual amount for a specific participating office or division
for a Plan year is greater than the bonus amount under the Plan for such office
or division, the excess accrual balance will not be distributed. If the accrual
amount for a specific participating office or division for a Plan year is less
than the bonus amount under the Plan, only the accrual balance will be
distributed.

      Should the Company not achieve positive net income for the year, no bonus
will be paid pursuant to the Plan.

                                       2
<PAGE>

SECTION 3. ADMINISTRATIVE PROCEDURES

      During the fourth quarter of each year, the Company will commence
preparation of budgets and forecasts for the succeeding Plan year. The Board
will approve the budget for the Plan year not later than March 31st of such Plan
year.

      Goals for a Plan year for each of the categories in Section 5 will be
approved by the Committee not later than the second quarter meeting of the Board
in such Plan year. The specific goals established for the Plan year will be set
forth in an Annex II to this Plan for such Plan year, and the Annex II hereto
for each Plan year shall be incorporated into and made a part of this Plan for
such Plan year.

      If, after the establishment of goals for a Plan year, the budget changes
substantially due to subsequent events, such as the acquisition or sale of
assets, then the Chief Executive Officer of Noble (the "CEO") shall, at his
discretion, recommend to the Committee the adjustment of the respective goals in
order that they may not be adversely impacted by such an event. Any such revised
goals shall be applicable to the Plan year from and after the time of their
approval.

SECTION 4. TARGET BONUS

      A target bonus is determinable for each full-time employee in salary
classification 18N or higher who has completed one year of service at the close
of a Plan year. The target bonus for an employee is an amount equal to the
employee's salary at the end of the Plan year multiplied times the target bonus
percentage assigned to such employee's salary classification. 50 percent of this
amount will be paid based on the achievement of the stated goals under the Plan,
as set forth on page 4, and 50 percent will be available at the discretion of
the Compensation Committee based on merit, individual and team performance and
additional selected criteria. Target bonus percentages range from five percent
to 75 percent based on salary classification, as follows:

<TABLE>
<CAPTION>
Salary Classification                           Target Bonus Percentage
---------------------                           -----------------------
<S>                                             <C>
   18N                                                     5%
   19N                                                    10%
   20N through 22N                                        15%
   23N                                                    20%
   24N through 25N                                        25%
   26N through 27N                                        30%
   28N through 29N                                        35%
   30C through 31C                                        45%
   32C through 34C                                        50%
   35C through 36C                                        55%
   37C                                                    90%
</TABLE>

                                       3
<PAGE>

SECTION 5. GOAL CATEGORIES AND WEIGHTINGS

      Goals for the following categories will be approved by the Committee for
each Plan year. Such goals will then be set forth in the Annex II to this Plan
for such Plan year. The relative weighting assigned to each goal will be as set
forth below subject to annual review by the Committee.

CORPORATE GOALS

<TABLE>
<CAPTION>
                                                             Assigned Weight
                                                             ---------------
<S>                                                          <C>
1.    Safety Results                                               40%
2.    Earnings per Share                                           30%
3.    Return on Capital Employed                                   30%
</TABLE>

OPERATING DIVISION GOALS

Gulf Coast Marine, Mexico, Middle East (including the Adriatic Sea and India),
West Africa, North Sea, Brazil and Hibernia:

<TABLE>
<S>                                                                <C>
1.    Safety Results                                               40%
2.    Earnings per Share                                           30%
3.    Return on Capital Employed                                   30%
</TABLE>

TECHNOLOGY GOALS

A.    Noble Technology Services Division
      (Noble Downhole Technology, Maurer Technology, NED)

<TABLE>
<S>                                                                <C>
1.    Commercialization of Products and Services                   50%
2.    Capital Budget                                               25%
3.    Earnings Before Interest, Taxes, Depreciation
        and Amortization (EBITDA)                                  25%
</TABLE>

B.    Triton Engineering Services Company*

<TABLE>
<S>                                                                <C>
1.    Net Income                                                   100%
</TABLE>

* At the discretion of the Compensation Committee, a maximum amount of 20-50% of
Triton's EBITDA will be paid out in STIP awards.

                                       4
<PAGE>

SECTION 6. ADJUSTMENT OF TARGET BONUS

      The respective employee target bonuses determined pursuant to Section 4
for a Plan year are subject to adjustment as set forth in this Section to
reflect the levels of achievement of the specific, predetermined goals for such
Plan year. Any bonus multiplier achieved will be applied to the stated corporate
and division goals, pursuant to the terms of the Plan, and a maximum bonus
multiplier of 2.0 may be applied to the discretionary portion of the STIP award,
subject to the approval of the Committee and CEO, as stated in Section 7 of this
document.

      Corporate Employees. In order to promote cooperation between the corporate
      office and the divisions, the target bonus for a corporate employee will
      be weighted 25 percent for achievement of the corporate goals, 25 percent
      for the cumulative average achievement of the division goals and 50
      percent will be based on merit, individual and team performance and
      additional selected criteria, as determined by the Compensation Committee.

      Operating and Technology Division Employees. In order to promote
      cooperation among the operating and technology divisions and recognition
      by each division of its contribution to the Company's overall performance,
      the target bonus for a division employee will be weighted 25 percent for
      achievement of the applicable division goals, 25 percent for achievement
      of the corporate goals and 50 percent will be based on merit, individual
      and team performance and additional selected criteria, as determined by
      the Compensation Committee.

      Subject to the determination by the Board of a sufficient bonus pool for a
Plan year pursuant to Section 7, the bonus payable to an eligible employee in
salary classification 18N or higher will be an amount equal to such employee's
target bonus amount multiplied times the applicable multiplier determined under
the following schedule:

<TABLE>
<CAPTION>
       Combined Weighted                                Applicable Multiplier
Percentage of Goal Achievement                        to Calculate Bonus Payable
------------------------------                        --------------------------
<S>                                                   <C>
      Greater than 160%                                          2.00
             141 - 160%                                          1.75
             131 - 140%                                          1.50
             121 - 130%                                          1.40
             106 - 120%                                          1.20
              96 - 105%                                          1.00
              76 -  95%                                           .75
              65 -  75%                                           .50
              Below 65%                                           .00
</TABLE>

                                       5
<PAGE>

SECTION 7. ALLOCATION OF BONUS PAYABLE

      After the end of each Plan year, the Board, in its best business judgment,
will determine the total bonus pool for such Plan year, giving due consideration
to the aggregate target bonus amounts, overall Company performance, and levels
of attainment of the specific, predetermined corporate or division goals for
such Plan year. In determining overall Company performance, the Board will
consider the Company's performance in relation to both the predetermined
corporate and division goals and the prevailing market conditions in the
industry during the Plan year.

      The total bonus pool authorized by the Board for a Plan year may be an
amount equal to, less than, or greater than the aggregate amount of the bonuses
payable to all eligible employees in salary classifications 18N through 37C (the
"Aggregate Calculated Pool").

      All eligible employees in salary classifications 18N through 37C will
receive a bonus as calculated in accordance with Section 6, provided the Board
has determined and authorized a total bonus pool in an amount equal to or
greater than the Aggregate Calculated Pool. If the Board authorizes a total
bonus pool in an amount less than the Aggregate Calculated Pool, then the Board
shall also determine the percentage of such bonus pool (which may be any
percentage up to 100 percent) that shall be allocated to the eligible employees
in salary classifications 18N through 37C, and the bonuses otherwise payable to
such employees, subject to the last sentence of the next succeeding paragraph,
will be prorated accordingly based on the amount so allocated. In such event,
the percentage of the total bonus pool not so allocated, if any, shall be
available for payment to the eligible full-time, non-exempt employees not in
salary classifications 18N through 37C based upon merit. If the Board authorizes
a total bonus pool in an amount greater than the Aggregate Calculated Pool, then
the excess amount will be allocated to eligible full-time, non-exempt employees
not in salary classifications 18N through 37C, subject to the discretion of the
Committee. Managers having responsibility for recommending the allocation of
bonuses to eligible full-time, non-exempt employees not in salary
classifications 18N through 37C shall submit their recommended bonus based on
their performance and contributions to the Senior Vice President of
Administration and the CEO for review and approval.

      All bonus calculations, allocations and recommendations are subject to
review and approval by the Committee. Notwithstanding anything otherwise
contained in this Plan, the Committee and the CEO (and any delegated designee of
the CEO) shall have the authority to adjust individual bonus amounts as deemed
to be appropriate for any reason, including, but not limited to, company or
division performance, individual employee performance, employee conduct, etc.

                                       6

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