Document:

Exhibit

EXHIBIT 10.3
IRON MOUNTAIN INCORPORATED
Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan
Performance Unit Agreement
This Performance Unit Agreement and the associated grant award information (the “Customizing Information”), which Customizing Information is provided in written form or is available in electronic form from the recordkeeper for the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan, as amended and in effect from time to time (the “Plan”), is made as of the date shown as the “Grant Date” in the Customizing Information (the “Grant Date”) by and between Iron Mountain Incorporated, a Delaware corporation (the “Company”), and the individual identified in the Customizing Information (the “Recipient”).  This instrument and the Customizing Information are collectively referred to as the “Performance Unit Agreement.”
WITNESSETH THAT:
WHEREAS, the Company has instituted the Plan; and
WHEREAS, the Compensation Committee (the “Committee”) has authorized the grant of performance units with respect to the Company’s Common Stock (“Stock”) upon the terms and conditions set forth below and pursuant to the Plan, a copy of which is incorporated herein; and
WHEREAS, the Recipient acknowledges that he or she has carefully read this Performance Unit Agreement and agrees, as provided in Section 18(a) below, that the terms and conditions of the Performance Unit Agreement reflect the entire understanding between himself or herself and the Company regarding this performance unit award (and the Recipient has not relied upon any statement or promise other than the terms and conditions of the Performance Unit Agreement with respect to this performance unit award);
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Recipient agree as follows.
1.  Grant.  Subject to the terms of the Plan and this Performance Unit Agreement, the Company hereby conditionally grants to the Recipient that number of performance units equal to the corresponding number of shares of the Company’s Stock (the “Underlying Shares”) shown in the Customizing Information under “Performance Units Granted.”
The grant described in the preceding paragraph is contingent upon the satisfaction of the “Performance Criteria” over the “Performance Period,” each as shown in the Customizing Information.  The Committee shall determine whether such Performance Criteria have been satisfied.
2.    Adjustment to Award.  The number of Performance Units Granted may be increased or decreased, including to zero, based on the “Performance Matrix” shown in the Customizing Information.  Whether any adjustment based on the Performance Matrix is made shall be determined in the sole discretion of the Committee and the “Adjusted Performance Units 

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Granted” (“PUs”) in the Customizing Information shall be updated to reflect any such adjustment.
3.    Vesting.
(a)    In General.  If the Recipient remains in an employment, contractual or other service relationship with the Company (“Relationship”) as of the “Vesting Date” specified in the Customizing Information, and the Recipient as of such date is not in violation of any confidentiality, inventions and/or non-competition agreement with the Company, the PUs shall vest on such date.  For the avoidance of doubt, except as otherwise provided pursuant to the terms of the Plan and Section 3(b), if the Recipient’s Relationship with the Company is terminated by the Company or by the Recipient for any reason, whether voluntarily or involuntarily, no PUs granted pursuant to this Performance Unit Agreement shall vest under any circumstances on and after the date of such termination.
(b)    Retirement Provision.  Notwithstanding Section 3(a), if the Recipient terminates employment on or after attaining age fifty-five (55) and completing ten (10) Years of Credited Service, the Recipient shall become vested in his or her PUs in accordance with the following schedule:
        Date Relationship Terminates            Vesting Percentage
On or after first (1st) anniversary of Grant Date        33.3%
On or after second (2nd) anniversary of Grant Date        66.6%
On or after third (3rd) anniversary of Grant Date        100%
In the event a Recipient becomes partially or fully vested under this Section 3(b), in no event shall any PUs vested as a result of this Section 3(b) be delivered until the Vesting Date, nor shall any PUs vested as a result of this Section 3(b) be delivered if the Recipient as of the date of delivery is in violation of any confidentiality, inventions and/or non-competition agreement with the Company.  For purposes of this Section 3(b), a Recipient shall be treated as having terminated from employment if he satisfies the definition of Termination of Employment under the Iron Mountain Incorporated Executive Deferred Compensation Plan, and Years of Credited Service shall be calculated on the same basis as “Years of Credited Service” under The Iron Mountain Companies 401(k) Plan or any successor thereto.
(c)    Committee Discretion.  In the event the Relationship is terminated for any reason and except as otherwise provided in Section 3(b), (i) the Recipient’s right to vest in any PUs will, except as provided in Section 9(c) of the Plan, terminate as of the date of the termination of the Relationship (and will not be extended by any notice period mandated under local law) and (ii) the Committee shall have the exclusive discretion to determine when the Relationship has terminated for purposes of this PU (including when the Recipient is no longer considered to be providing active service while on a leave of absence).
(d)    Special Definition of Company.  For purposes of this Section 3, the term “Company” refers to the Company as defined in the last sentence of Section 1 of the Plan.
4.    Dividend Equivalents.  A Recipient shall be credited with dividend equivalents equal to the dividends the Recipient would have received if the Recipient had been the actual 

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record owner of the Underlying Shares on each dividend record date on or after the Grant Date and through the date the Recipient receives a settlement pursuant to Section 5 below (the “Dividend Equivalent”).  If a dividend on the Stock is payable wholly or partially in Stock, the Dividend Equivalent representing that portion shall be in the form of additional PUs, credited on a one-for-one basis.  If a dividend on the Stock is payable wholly or partially in cash, the Dividend Equivalent representing that portion shall also be in the form of cash and a Recipient shall be treated as being credited with any cash dividends, without earnings, until settlement pursuant to Section 5 below.  If a dividend on Stock is payable wholly or partially in other than cash or Stock, the Committee may, in its discretion, provide for such Dividend Equivalents with respect to that portion as it deems appropriate under the circumstances.  Dividend Equivalents shall be subject to the same terms and conditions as the PUs originally awarded pursuant to this Performance Unit Agreement, and they shall vest (or, if applicable, be forfeited) as if they had been granted at the same time as the original PU.  Dividend Equivalents representing the cash portion of a dividend on Stock shall be settled in cash.
5.    Delivery of Underlying Shares or Cash Settlement.  With respect to any PUs that become vested pursuant to Section 3, the Company shall issue and deliver to the Recipient (a) the number of Underlying Shares equal to the number of vested PUs or an amount of cash equal to the Fair Market Value, as defined in the Plan, of such Underlying Shares as of the Vesting Date and (b) the amount (and in the form) due with respect to the Dividend Equivalents applicable to such Underlying Shares.  Delivery shall be made to the Recipient as soon as practicable following the Vesting Date but in no event later than the end of the year in which such Vesting Date occurs (or the fifteenth (15th) day of the third (3rd) month following the Vesting Date, if later).  Whether Underlying Shares, or the cash value thereof, shall be issued or paid at settlement shall be determined based on the “Form of Settlement” specified in the Customizing Information.
Any shares issued pursuant to this Performance Unit Agreement shall be issued, without issue or transfer tax, by (i) delivering a stock certificate or certificates for such shares out of theretofore authorized but unissued shares or treasury shares of its Stock as the Company may elect or (ii) issuance of shares of its Stock in book entry form; provided, however, that the time of such delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any applicable requirements of law.  Notwithstanding the preceding provisions of this Section 5, delivery of Underlying Shares shall be made, or the amount of cash equivalent thereto shall be paid, only if the required purchase price designated as the “Purchase Price” shown in the Customizing Information per underlying PU is paid to the Company by means of payment acceptable to the Company in accordance with the terms of the Plan.  If the Recipient fails to pay for or accept delivery of all of the shares, the right to shares of Stock provided pursuant to this PU may be terminated by the Company.
6.    Withholding Taxes.  The Recipient hereby agrees, as a condition of this award, to provide to the Company (or a subsidiary employing the Recipient, as applicable) an amount sufficient to satisfy the Company’s and/or subsidiary’s obligation to withhold any and all federal, state, local or provincial income tax, social security, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items or statutory withholdings related to the Plan (the ”Withholding Amount”), if any, by (a) authorizing the Company and/or any subsidiary employing the Recipient, as applicable, to withhold the Withholding Amount from the 

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Recipient’s cash compensation or (b) remitting the Withholding Amount to the Company (or a subsidiary employing the Recipient, as applicable) in cash; provided, however, that to the extent that the Withholding Amount is not provided by one or a combination of such methods, the Company may at its election withhold from the Underlying Shares and Dividend Equivalents that would otherwise be delivered that number of shares (and/or cash) having a Fair Market Value on the date of vesting sufficient to eliminate any deficiency in the Withholding Amount; and provided, further, that the Fair Market Value of Stock withheld shall not exceed an amount in excess of the minimum required withholding.  Regardless of any action that the Company and/or subsidiary takes with respect to any or all federal, state, local or provincial income tax, social security, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items or statutory withholdings related to the Recipient’s participation in the Plan, the Recipient acknowledges that he or she, and not the Company and/or any subsidiary, has the ultimate liability for any such items.  Further, if the Recipient becomes subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, the Recipient acknowledges that the Company and/or subsidiary may be required to withhold or account for such tax-related items in more than one jurisdiction.
7.    Non-assignability of PUs and Dividend Equivalents.  PUs and Dividend Equivalents shall not be assignable or transferable by the Recipient except by will or by the laws of descent and distribution or as permitted by the Committee in its discretion pursuant to the terms of the Plan.  During the life of the Recipient, delivery of shares of Stock or payment of cash as settlement of PUs and Dividend Equivalents shall be made only to the Recipient, to a conservator or guardian duly appointed for the Recipient by reason of the Recipient’s incapacity or to the person appointed by the Recipient in a durable power of attorney acceptable to the Company’s counsel.
8.    Compliance with Securities Act; Lock-Up Agreement.  The Company shall not be obligated to sell or issue any Underlying Shares or other securities in settlement of PUs and Dividend Equivalents hereunder unless the shares of Stock or other securities are at that time effectively registered or exempt from registration under the Securities Act and applicable state or provincial securities laws.  In the event shares or other securities shall be issued that shall not be so registered, the Recipient hereby represents, warrants and agrees that the Recipient will receive such shares or other securities for investment and not with a view to their resale or distribution, and will execute an appropriate investment letter satisfactory to the Company and its counsel.  The Recipient further hereby agrees that as a condition to the settlement of PUs and Dividend Equivalents, the Recipient will execute an agreement in a form acceptable to the Company to the effect that the shares shall be subject to any underwriter’s lock-up agreement in connection with a public offering of any securities of the Company that may from time to time apply to shares held by officers and employees of the Company, and such agreement or a successor agreement must be in full force and effect.
9.    Legends.  The Recipient hereby acknowledges that the stock certificate or certificates (or entries in the case of book entry form) evidencing shares of Stock or other securities issued pursuant to any settlement of an PU or Dividend Equivalent hereunder may bear a legend (or provide a restriction) setting forth the restrictions on their transferability described in Section 8 hereof, if such restrictions are then in effect.

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10.    Rights as Stockholder.  The Recipient shall have no rights as a stockholder with respect to any PUs, Dividend Equivalents or Underlying Shares until the date of issuance of a stock certificate (or appropriate entry is made in the case of book entry form) for Underlying Shares and any Dividend Equivalents.  Except as provided by Section 4, no adjustment shall be made for any rights for which the record date is prior to the date such stock certificate is issued (or appropriate entry is made in the case of book entry form), except to the extent the Committee so provides, pursuant to the terms of the Plan and upon such terms and conditions it may establish.
11.    Effect Upon Employment and Performance of Services.  Nothing in this Performance Unit Agreement or the Plan shall be construed to impose any obligation upon the Company or any subsidiary to employ or utilize the services of the Recipient or to retain the Recipient in its employ or to engage or retain the services of the Recipient.
12.    Time for Acceptance.  Unless the Recipient shall evidence acceptance of this Performance Unit Agreement by electronic or other means prescribed by the Committee within sixty (60) days after its delivery, the PUs and Dividend Equivalents shall be null and void (unless waived by the Committee).
13.    Right of Repayment.  In the event that the Recipient accepts employment with or provides services for a competitor of the Company within two (2) years after any settlement of PUs and Dividend Equivalents hereunder, the Recipient shall pay to the Company an amount equal to the excess of the Fair Market Value of the Underlying Shares as of the date of settlement (whether settled in cash or Stock) over the Purchase Price, if any, paid (or deemed paid) together with the value of any Dividend Equivalents; provided, however, that the Committee in its discretion may release the Recipient from the requirement to make such payment, if the Committee determines that the Recipient’s acceptance of such employment or performance of such services is not inimical to the best interests of the Company.  In accordance with applicable law, the Company may deduct the amount of payment due under the preceding sentence from any compensation or other amount payable by the Company to the Recipient.  For purposes of this Section 13, the term “Company” refers to the Company as defined in the last sentence of Section 1 of the Plan.
14.    Section 409A of the Internal Revenue Code.  The PUs and Dividend Equivalents granted hereunder are intended to avoid the potential adverse tax consequences to the Recipient of Section 409A of the Code, and the Committee may make such modifications to this Performance Unit Agreement as it deems necessary or advisable to avoid such adverse tax consequences.
15.    Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Recipient consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.
16.    Nature of Award.  By accepting this PU, the Recipient acknowledges, understands and agrees that:

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(a)    the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan and this Performance Unit Agreement;
(b)    the grant of this PU is voluntary and occasional and does not create any contractual or other right to receive future awards under the Plan or benefits in lieu of Plan awards, even if PUs or other Plan awards have been granted in the past;
(c)    all decisions with respect to future PU awards will be at the sole discretion of the Committee;
(d)    he or she is voluntarily participating in the Plan;
(e)    the future value of the Underlying Shares is unknown and cannot be predicted with certainty;
(f)    if the Recipient resides and/or works outside the United States, the following additional provisions shall apply:
(i)    this PU, including any Dividend Equivalents, and the Underlying Shares are not intended to replace any pension rights or compensation;
(ii)    this PU, including any Dividend Equivalents, and the Underlying Shares (including value attributable to each) do not constitute compensation of any kind for services of any kind rendered to the Company and/or any subsidiary thereof and are outside the scope of the Recipient’s employment contract, if any;
(iii)    this PU, including any Dividend Equivalents, and any Underlying Shares (including the value attributable to each) are not part of normal or expected compensation or salary, including, but not limited to, for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, service awards, pension or retirement or welfare benefits or similar payments unless such other arrangement explicitly provides to the contrary;
(iv)    no claim or entitlement to compensation or damages shall arise from forfeiture of the PU, including any Dividend Equivalents, resulting from the Recipient’s termination of the Relationship for any reason, and in consideration of this PU, including any Dividend Equivalents, the Recipient irrevocably agrees never to institute a claim against the Company and/or subsidiary, waives his or her ability to bring such claim and releases the Company and/or subsidiary from any claim; if, notwithstanding the foregoing, such claim is allowed by a court of competent jurisdiction, then by accepting this PU, including any Dividend Equivalents, the Recipient is deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims; and

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(g)    the Company shall not be liable for any foreign exchange rate fluctuation between the Recipient’s local currency and the United States dollar that may affect the value of this PU or any amounts due pursuant to the settlement of the PU or the subsequent sale of any Underlying Shares acquired upon settlement.
17.    Appendix.  Notwithstanding any provision in this Performance Unit Agreement, this PU shall be subject to any special terms and conditions set forth in any Appendix to this Performance Unit Agreement for the Recipient’s country of residence or in which the Recipient works.  Moreover, if the Recipient relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to the Recipient, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Performance Unit Agreement.
18.    General Provisions.
(a)    Amendment; Waivers.  This Performance Unit Agreement, including the Plan, contains the full and complete understanding and agreement of the parties hereto as to the subject matter hereof, and except as otherwise permitted by the express terms of the Plan and this Performance Unit Agreement and applicable law, it may not be modified or amended nor may any provision hereof be waived without a further written agreement duly signed by each of the parties; provided, however, that a modification or amendment that does not materially diminish the rights of the Recipient hereunder, as they may exist immediately before the effective date of the modification or amendment, shall be effective upon written notice of its provisions to the Recipient, to the extent permitted by applicable law.  The waiver by either of the parties hereto of any provision hereof in any instance shall not operate as a waiver of any other provision hereof or in any other instance.  The Recipient shall have the right to receive, upon request, a written confirmation from the Company of the Customizing Information.
(b)    Binding Effect.  This Performance Unit Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, representatives, successors and assigns.
(c)    Fractional PUs, Underlying Shares and Dividend Equivalents.  All fractional Underlying Shares and Dividend Equivalents settled in Stock resulting from the application of the Performance Matrix or the adjustment provisions contained in the Plan shall be rounded down to the nearest whole share.  If cash in lieu of Underlying Shares is delivered at settlement, or Dividend Equivalents are settled in cash, the amount paid shall be rounded down to the nearest penny.
(d)    Governing Law.  This Performance Unit Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to the principles of conflicts of law.
(e)    Construction.  This Performance Unit Agreement is to be construed in accordance with the terms of the Plan.  In case of any conflict between the Plan and this Performance Unit Agreement, the Plan shall control.  The titles of the sections of this Performance Unit Agreement and of the Plan are included for convenience only and shall not be construed as 

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modifying or affecting their provisions.  The masculine gender shall include both sexes; the singular shall include the plural and the plural the singular unless the context otherwise requires.  Capitalized terms not defined herein shall have the meanings given to them in the Plan.
(f)    Language. If the Recipient receives this Performance Unit Agreement, or any other document related to this PU and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
(g)    Data Privacy.  By entering into this Performance Unit Agreement and except as otherwise provided in any data transfer agreement entered into by the Company, the Recipient:  (i) authorizes the Company, and any agent of the Company administering the Plan or providing Plan recordkeeping services, to disclose to the Company such information and data as the Company shall request in order to facilitate the award of performance units and the administration of the Plan; (ii) waives any data privacy rights the Recipient may have with respect to such information; and (iii) authorizes the Company to store and transmit such information in electronic form.  For purposes of this Section 18(g), the term “Company” refers to the Company as defined in the last sentence of Section 1 of the Plan.
(h)    Notices.  Any notice in connection with this Performance Unit Agreement shall be deemed to have been properly delivered if it is delivered in the form specified by the Committee as follows:
To the Recipient:    Last address provided to the Company
To the Company:    Iron Mountain Incorporated
One Federal Street
Boston, Massachusetts 02110
Attn:  Chief Financial Officer
(i)    Version Number.  This document is Version 2 of the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan Performance Unit Agreement.

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IRON MOUNTAIN INCORPORATED
Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan
Performance Unit Agreement (Version 2)
Appendix 
Country-Specific Provisions
Terms and Conditions
This Appendix includes additional, or if so indicated replaces, certain terms and conditions that govern a PU granted under the Plan if a Recipient resides or works in one of the countries listed below.  Capitalized terms used but not defined in this Appendix have the meanings set forth in the Plan and/or the Performance Unit Agreement.
Notifications
The information contained herein is general in nature and may not apply to each particular Recipient’s situation and the Company is not in a position to assure a Recipient of any particular result.  Accordingly, the Recipient is advised to seek appropriate professional advice as to how the relevant laws in a particular country may apply to his or her situation.
If the Recipient is a citizen or resident of a country other than the one in which the Recipient is currently working, transfers employment or service location after the Grant Date, or is considered a resident of another country for local law purposes, the information contained herein may not apply to the Recipient, and the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply.
Australia
Vesting.  This provision replaces Section 3(b) of the Performance Unit Agreement:
Notwithstanding Section 3(a), if the Recipient terminates employment due to retirement on or after completing ten (10) Years of Credited Service, the Recipient shall become vested in his or her PUs in accordance with the following schedule:
        Date Relationship Terminates            Vesting Percentage
On or after first (1st) anniversary of Grant Date        33.3%
On or after second (2nd) anniversary of Grant Date        66.6%
On or after third (3rd) anniversary of Grant Date        100%
In the event a Recipient becomes partially or fully vested under this Section 3(b), in no event shall any PUs vested as a result of this Section 3(b) be delivered until the Vesting Date, nor shall any PUs vested as a result of this Section 3(b) be delivered if the Recipient as of the date of delivery is in violation of any confidentiality, inventions and/or non-competition agreement with the Company.  For purposes of this Section 3(b), a Recipient shall be treated as having terminated from employment due to retirement if he or she intends to permanently cease gainful employment in circumstances where he or she provides in good faith, a written declaration to that effect, and the Committee in its sole and absolute discretion accepts that statutory declaration, and in those circumstances, Years of Credited Service shall be calculated on the 

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same basis as “Years of Credited Service” under The Iron Mountain Companies 401(k) Plan or any successor thereto.
Belgium
Time for Acceptance.  This provision replaces Section 12 of the Performance Unit Agreement:
Unless the Recipient shall evidence written acceptance of this Performance Unit Agreement by electronic or other means prescribed by the Committee within sixty (60) days after its delivery, the PUs and Dividend Equivalents shall be null and void (unless waived by the Committee).
Hungary
Grant.  Any shares acquired under the Plan are deemed as privately placed under Act No. CXX of 2011 on the Capital Market.
Data Privacy.  This provision replaces Section 18(g) of the Performance Unit Agreement in its entirety:
The Recipient gives his or her consent to the Company for handling his or her personal data in accordance with the provisions of Act CXII of 2012 on the Information Autonomy and Freedom of Information, and to process the personal data only for the purposes of and to the extent it is necessary for fulfilling the Company’s rights or obligations deriving from the Recipient’s participation in the Plan.  In connection with this consent, the Company may forward the Recipient’s personal data to service providers that perform services for the Company in connection with bookkeeping and taxation.  The Recipient gives his or her consent that his or her personal data may be transferred abroad for the same purposes.  The Company is entitled to forward the personal data of the Recipient to an affiliate of the Company or that provides services to the Company in the scope of exercising the rights and performing the obligations arising from and/or connected to the Recipient’s participation in the Plan (especially its reporting and recording obligations).  The Recipient personal data may be forwarded to countries that do not offer the same level of protection as jurisdictions within the EEA.  Recipient, by entering into this Performance Unit Agreement, gives his or her express consent for the processing and forwarding of his or her data as defined in this Section.
The Netherlands
Effect Upon Employment and Performance of Services.  This provision supplements Section 11 of the Performance Unit Agreement:
PUs and Dividend Equivalents shall not form part of the employment or services conditions of the Recipient, nor shall they be treated (either at the time when it might apply or in any period prior thereto or any period thereafter) as remuneration for the purpose of pension arrangements nor shall they form any other employment or services related entitlement.  PUs and Dividend Equivalents shall not be included in the 

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calculation of a possible severance payment and the Recipient waives all rights (if any) that he or she may have in this regard.
Poland
Right of Repayment.  The right of repayment provided in Section 13 of this Performance Unit Agreement shall be subject to concluding a non-competition agreement, according to the relevant provisions of Polish law.
Governing Law.  This provision supplements Section 18(d) of the Performance Unit Agreement:
Any disputes resulting from this Performance Unit Agreement shall be settled exclusively by United States federal courts in the Commonwealth of Massachusetts.
Language.  This provision replaces Section 18(f) of the Performance Unit Agreement:
This Performance Unit Agreement was executed in two (2) identical counterparts, each in Polish and English versions, and one for each of the Company and the Recipient.  In the case of any discrepancy between the Polish and English version, the Polish version will prevail.
United Kingdom
Vesting.  This provision replaces the first sentence of Section 3(b) of the Performance Unit Agreement:
Notwithstanding Section 3(a), if the Recipient terminates employment due to retirement on or after attaining age fifty-five (55) (or such earlier age with the agreement of the Company) and after having completed ten (10) Years of Credited Service (or such shorter period of Credited Service as the Committee may, in its absolute discretion, permit for these purposes), the Recipient shall become vested in his or her PUs in accordance with the following schedule:
        Date Relationship Terminates            Vesting Percentage
On or after first (1st) anniversary of Grant Date        33.3%
On or after second (2nd) anniversary of Grant Date        66.6%
On or after third (3rd) anniversary of Grant Date        100%
Withholding Taxes.  This provision replaces Section 6 of the Performance Unit Agreement:
If a liability arises in connection with the award, holding, vesting or settlement of PUs and/or Dividend Equivalents under which the Company or any subsidiary employing the Recipient is obliged to account for the tax and/or primary social security contributions (otherwise known as employee’s National Insurance Contributions) (“Employee Tax Liability”), then:
(a)  If the PU and/or Dividend Equivalent is cash settled, the Company or the relevant subsidiary may withhold the Employee Tax Liability from the sum of cash due to the Recipient; or

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(b)  If the PU and/or Dividend Equivalent is Stock settled, then unless the Recipient makes a payment of an amount equal to the Employee Tax Liability within seven (7) days of being notified by his or her employer or the Company of the amount of the Employee Tax Liability, the Company may sell sufficient of the shares of Common Stock resulting from the settlement of the PU and/or Dividend Equivalent on behalf of the Recipient and arrange payment to the subsidiary on which the Employee Tax Liability falls of an amount equal to the Employee Tax Liability out of the proceeds of sale by way of reimbursement to the relevant subsidiary.
Effect Upon Employment and Performance of Services.  This provision supplements Section 11 of the Performance Unit Agreement:
The Recipient shall have no entitlement to compensation or damages in consequence of the termination of his or her employment with the Company or any employing subsidiary for any reason whatsoever and whether or not in breach of contract, in so far as such entitlement arises or may arise from his or her ceasing to have rights under the PU as a result of such termination or from the loss or diminution in value of the same and, upon grant, the Recipient shall be deemed irrevocably to have waived such entitlement.

4Exhibit

Exhibit 10.1

KILROY REALTY CORPORATION 
2006 INCENTIVE AWARD PLAN 
RESTRICTED STOCK UNIT AGREEMENT

GRANT NOTICE

Pursuant to this Restricted Stock Unit Agreement dated January 9, 2016 (including Appendix A hereto, the “Agreement”), effective as of the Grant Date (as defined below), Kilroy Realty Corporation (the “Company”) hereby grants to Jeffrey C. Hawken (the “Participant”) the following award of Restricted Stock Units (“RSUs”), pursuant and subject to the terms and conditions of this Agreement and the Company’s 2006 Incentive Award Plan (and as may be amended from time to time, the “Plan”), the terms and conditions of which are hereby incorporated into this Agreement by reference. Each RSU is hereby granted in tandem with a corresponding Dividend Equivalent, as further described in Section 3 below. Except as otherwise expressly provided herein, all capitalized terms used in this Agreement shall have the meanings provided in the Plan. Subject to the terms and conditions of this Agreement, the principal features of this Award are as follows:
	
			
	Total Number of RSUs:
	33,910
	 

	Grant Date:
	January 9, 2016 (the "Grant Date")
	 

Vesting of RSUs:  The RSUs shall be divided for vesting purposes into two (2) fifty-percent (50%) components, the “Time-Vest RSUs” (rounded down to the nearest whole RSU) and the “Performance-Vest RSUs” (rounded up to the nearest whole RSU) which shall vest and become nonforfeitable, as follows:
(i)    Time-Vest RSUs.  The Time-Vest RSUs shall vest in substantially equal installments (rounded down to the nearest whole RSU until the last installment) on December 31 of each Performance Year, subject to and conditioned upon the Participant’s continued service as an Employee through the applicable Vesting Date.   
(ii)    Performance-Vest RSUs.  The Performance-Vest RSUs shall vest as to one-fourth (1/4th) of such RSUs per Performance Year (rounded down to the nearest whole RSU until the last Performance Year) if, with respect to the applicable Performance Year, the Company achieves either (A) the Annualized TSR Goal for such Performance Year or (B) the Relative Performance Goal, in either case, subject to and conditioned upon the Participant’s continued service as an Employee through the applicable Vesting Date associated with such performance goal; provided, that any Performance RSUs which do not vest in respect of a given Performance Year prior to 2019 shall remain outstanding and eligible to vest in any subsequent Performance Year during the Performance Period, and shall vest in a subsequent Performance Year if the Company achieves the Cumulative TSR Goal for such subsequent Performance Year, subject to and conditioned upon the Participant’s continued service as an Employee through the applicable Vesting Date associated with such performance goal.
(iii)    Accelerated Vesting in Connection With Qualifying Termination.  Notwithstanding the foregoing or anything contained herein to the contrary, and subject to the 

execution and delivery of a general release in accordance with the terms and conditions set forth in Section 11(b) of the Employment Agreement, the RSUs shall be subject to accelerated vesting as provided in the Employment Agreement. 
Certain Definitions.  For purposes of this performance requirement, the following definitions shall apply: 
“Annualized Aggregate Market Capitalization” means, as of any given date, an amount equal to the sum of (i) the aggregate Per Share Market Capitalization determined for all shares of Stock that are or were outstanding during the Performance Year for which such calculation is being performed, plus (ii) the sum of all dividends declared by the Company with respect to the Stock during the Performance Year for which such calculation is being performed. 
“Annualized TSR Goal” means, with respect to any Performance Year, the attainment of Annualized Aggregate Market Capitalization over any five (5) consecutive trading days during November or December of such Performance Year that exceeds the Annualized TSR Threshold at all times over the same five (5) consecutive trading days.
“Annualized TSR Threshold” means, as of any given date, the sum of the Per Share Annualized TSR Threshold through such date for all shares of Stock that are or were outstanding during the Performance Year for which such calculation is being performed. 
“Cumulative Aggregate Market Capitalization” means, as of any given date, an amount equal to the sum of (i) the aggregate Per Share Market Capitalization determined for all shares of Stock that are or were outstanding during the Performance Period through such date, plus (ii) the sum of all dividends declared by the Company with respect to the Stock during the period beginning on (and including) the Grant Date and ending on (and including) such date. 
“Cumulative TSR Goal” means, with respect to any Performance Year, the attainment of Cumulative Aggregate Market Capitalization over any five (5) consecutive trading days during November or December of such Performance Year that exceeds the Cumulative TSR Threshold at all times over the same five (5) consecutive trading days.
“Cumulative TSR Threshold” means, as of any given date, the sum of the Per Share Cumulative TSR Threshold determined for all shares of Stock that are or were outstanding during the Performance Period through such date.
“Employment Agreement” means that certain employment agreement by and between the Company and the Participant, as amended and restated effective December 31, 2015. 
“Per Share Annualized Baseline Capitalization Value” means, (i) with respect to each share of Stock that is issued and outstanding as of the first day of the Performance Year with respect to which such calculation is being made, the Stock’s trailing ten (10) trading-day average market closing price for the period ending on December 31 immediately prior to the first day of such Performance Year, or (ii) with respect to each share of Stock that is first issued or sold and becomes outstanding during such Performance Year (if any), the Fair Market Value of the Stock on the date on which such share of Stock is issued or sold and becomes outstanding.  

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“Per Share Annualized TSR Threshold” means, as of any given date, with respect to each share of Stock that is or was outstanding during a Performance Year, an amount equal to the product obtained by multiplying (i) the Per Share Annualized Baseline Capitalization Value for such share of Stock, times (ii) a percentage equal to the sum of (A) 100 plus (B) the product of 7.5 times (X/Y), where “X” equals the number of days in the relevant Performance Year (including the date of measurement) during which such share of Stock has been (or was, as applicable), outstanding, and “Y” equals the number of days in such Performance Year.
“Per Share Cumulative Baseline Capitalization Value” means (i) with respect to each share of Stock that is issued and outstanding as of January 1, 2016, the Stock’s trailing ten (10) trading-day average market closing price for the period ending on December 31, 2015, or (ii) with respect to each share of Stock that is first issued or sold and becomes outstanding during the Performance Period (if any), the Fair Market Value of the Stock on the date on which such share of Stock is issued or sold and becomes outstanding.  
“Per Share Cumulative TSR Threshold” means, as of any given date, with respect to each share of Stock that is or was outstanding during the Performance Period, an amount equal to the product obtained by multiplying (i) the Per Share Cumulative Baseline Capitalization Value for such share of Stock, times (ii) a percentage equal to the sum of (A) 100 plus (B) the product of 30.0 times (X/1,461), where “X” equals the number of days in the Performance Period (including the date of measurement) during which such share of Stock has been (or was, as applicable) outstanding.
“Per Share Market Capitalization” means, as of any given date: (i) with respect to each share of Stock outstanding on such date, the Stock’s trailing ten (10) trading-day average market closing price ending on such date, or (ii) with respect to each share of Stock that was repurchased or redeemed by the Company and which ceased to be outstanding during the Performance Period (and prior to such date), the price per share of Stock at which such share of Stock was repurchased or redeemed by the Company, provided, that for purposes of calculating Annualized Aggregate Market Capitalization as of any date, any shares of Stock that were not outstanding at any point during the Performance Year with respect to which Per Share Annualized TSR Threshold is being calculated will be disregarded.
“Performance Period” means the period commencing on January 1, 2016 and ending on December 31, 2019.
“Performance Year” means each of calendar years 2016 through 2019.
“Qualifying Termination” means that the Participant’s service as an Employee is terminated by the Company without Cause, by the Participant for Good Reason or due to the Participant’s death or Disability (each capitalized termination trigger as defined in the Employment Agreement).
“Relative Performance Goal” means, with respect to a Performance Year, that the Company’s total shareholder return exceeds the total shareholder return for the SNL U.S. REIT Office Index (or any successor or replacement index thereto or therefor or, in the event there is no successor or replacement index to the SNL U.S. REIT Office Index, the Bloomberg REIT Office Property Index) during such Performance Year, calculated in a manner consistent with the annual total 

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shareholder return calculations under the SNL U.S. REIT Office Index (or any successor or replacement index or, in the event there is no successor or replacement index to the SNL U.S. REIT Office Index, the Bloomberg REIT Office Property Index).
“Vesting Date” means (i) with respect to Time-Vest RSUs, the December 31 of the applicable Performance Year, (ii) with respect to Performance-Vest RSUs, the first date on which the Committee determines that one or more performance vesting conditions applicable to such RSUs have been achieved by the Company, and (iii) with respect to all RSUs, any date on which accelerated vesting occurs with respect to such RSUs under the Employment Agreement.
Payment of RSUs: Vested RSUs shall be paid to the Participant in the form of shares of Stock as set forth in Section 6 of Appendix A attached hereto.  
Termination of RSUs/Dividend Equivalents: In the event that the Participant terminates as an Employee for any reason prior to the applicable Vesting Date, all RSUs that have not vested as of the date of such termination (after taking into consideration any accelerated vesting that may apply, if any) and all unpaid Dividend Equivalents associated with such RSUs shall thereupon automatically be forfeited by the Participant as of such date of termination without payment of any consideration therefor.
The Participant’s signature below indicates the Participant’s agreement with and understanding that this Award is subject to all of the terms and conditions contained in the Plan and in this Agreement (including Appendix A), and that, in the event that there are any inconsistencies between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control.  If the Participant is married, his or her spouse has signed the Consent of Spouse attached to this Agreement as Exhibit A.  In addition, by signing below, the Participant also agrees that the Company, in its sole discretion, may satisfy any withholding obligations in accordance with Section 7 of Appendix A hereto by (a) withholding Stock otherwise issuable to the Participant upon vesting of the RSUs, (b) instructing a broker on the Participant’s behalf to sell Stock otherwise issuable to the Participant upon vesting of the RSUs and submit the proceeds of such sale to the Company, or (c) using any other method permitted by Section 7 of Appendix A hereto or the Plan. THE PARTICIPANT FURTHER ACKNOWLEDGES THAT THE PARTICIPANT HAS READ AND UNDERSTANDS THE PLAN AND THIS AGREEMENT, INCLUDING APPENDIX A HERETO, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS GRANT OF RSUs AND DIVIDEND EQUIVALENTS.
[Signature Page Follows] 

4

	
					
	 
	KILROY REALTY CORPORATION,
a Maryland corporation 
	 
	PARTICIPANT:
	 

	 
	

/s/ Tyler H. Rose
	

	/s/ Jeffrey C. Hawken
	 

	 
	By:   Tyler H. Rose,
Executive Vice President and Chief Financial Officer

	 
	Jeffrey C. Hawken
	 

	 
	 
	 
	 
	 

	 
	KILROY REALTY CORPORATION,
a Maryland corporation
	 
	 
	 

	 
	

/s/ Joseph E. Magri
	 
	 
	 

	 
	By:   Joseph E. Magri, 
Senior Vice President and Corporate Counsel
	 
	 
	 

    

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APPENDIX A
TERMS AND CONDITIONS OF 
RESTRICTED STOCK UNITS AND DIVIDEND EQUIVALENT RIGHTS

1.Grant.  The Company hereby grants to the Participant, effective as of the Grant Date, an aggregate Award with respect to the total number of RSUs set forth in the Grant Notice and corresponding Dividend Equivalents, subject to the terms and conditions contained in this Agreement and the Plan.
2.RSUs.  Each RSU that vests on an applicable Vesting Date shall represent the right to receive payment, in accordance with Section 6 below, of one share of Stock.  Unless and until an RSU vests, the Participant will have no right to payment in respect of any such RSU. Prior to actual payment in respect of any vested RSU, such RSU will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.
3.Dividend Equivalent Rights.  Each RSU granted hereunder is hereby granted in tandem with a corresponding Dividend Equivalent that shall remain outstanding from the Grant Date through the earlier to occur of (a) the termination or forfeiture for any reason of the RSU to which such Dividend Equivalent corresponds, or (b) the delivery to the Participant of the shares of Stock underlying the RSU to which such Dividend Equivalent corresponds. The Participant shall not be entitled to any payment under a Dividend Equivalent with respect to any dividend with a record date that occurs prior to the Grant Date or after the termination of such RSU for any reason, whether due to payment, forfeiture of the RSU or otherwise. Dividend Equivalents and any amounts that may become distributable in respect thereof shall be treated separately from the RSUs and the rights arising in connection therewith for purposes of the designation of time and form of payments required by Section 409A of the Code.
(a)Time-Vest RSUs. Each Dividend Equivalent linked to a Time-Vest RSU shall represent the right to receive the cash value of any cash dividend(s) that the Participant would have received in respect of the share of Stock underlying the RSU to which such Dividend Equivalent is linked, had such share of Stock been outstanding on the applicable dividend record date. Any amounts payable in respect of Dividend Equivalents linked to Time-Vest RSUs shall be paid in cash or cash equivalents as and when the cash dividends in respect of which such Dividend Equivalent payments arise are paid to holders of Common Stock, without regard to the vested status of the underlying Time-Vest RSUs.
(b)Performance-Vest RSUs. With respect to Performance-Vest RSUs, Dividend Equivalent payments shall be paid in cash or Stock (i) only with respect to that number of shares of Stock underlying Performance-Vest RSUs that vest in accordance herewith, (ii) with a value determined as if such shares of Stock underlying vested Performance-Vest RSUs (A) had been outstanding for the same portion of the Performance Period during which related Performance-Vest RSUs were outstanding, and (B) had received all dividend payments over such period in notional shares of Stock equal in value to the dividends declared over such period divided by the Fair Market Value on the applicable dividend declaration date (rounded to the nearest whole share of Stock), 

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and (iii) at such time as payment is made with respect to the RSU to which such Dividend Equivalent is linked. To the extent any Dividend Equivalents paid pursuant to this Section 3(b) are paid in cash, such notional shares of Stock shall be converted to a cash value based on the Fair Market Value on the day prior the date of payment of the RSU to which such Dividend Equivalent is linked. If the Performance-Vest RSU linked to a Dividend Equivalent fails to vest and is forfeited for any reason, then (x) the linked Dividend Equivalent shall be forfeited as well, (y) any amounts otherwise payable in respect of such Dividend Equivalent shall be forfeited without payment, and (z) the Company shall have no obligations in respect of such Dividend Equivalent.
4.Vesting and Forfeiture.  The RSUs (and, with respect to Performance-Vest RSUs, their corresponding Dividend Equivalents) shall vest in accordance with the vesting schedule provided in the Grant Notice to which this Appendix is attached.
5.Termination of RSUs and Dividend Equivalents.  Upon the Participant’s termination as an Employee, all RSUs that have not vested as of such termination (taking into consideration any vesting that may occur in connection with such termination) and all corresponding Dividend Equivalents shall automatically be forfeited and canceled without payment of consideration therefor. In addition, to the extent that any unvested Performance-Vest RSUs become ineligible to vest based on the Company’s 2019 performance, such Performance-Vest RSUs and their corresponding Dividend Equivalents shall automatically be forfeited upon the Company’s determination of the applicable 2019 performance results.  The RSUs and all corresponding Dividend Equivalents shall be subject to forfeiture and cancelation in accordance with Section 11(c) of the Employment Agreement and Section 6 of the Non-Competition, Non-Solicitation and Non-Disclosure Agreement, dated December 31, 2015, by and between the Company and the Participant (the “Non-Competition, Non-Solicitation and Non-Disclosure Agreement”).
6.Payment of RSUs.  As soon as administratively practicable following the vesting of any RSUs on an applicable Vesting Date in accordance with Section 4 above, but in no event later than thirty (30) days after the applicable Vesting Date, the Company shall deliver to the Participant (or any transferee permitted under Section 9 below) a number of shares of Stock (either by delivering one or more certificates for such shares of Stock or by entering such shares of Stock in book entry form, as determined by the Committee in its sole discretion) equal to the number of RSUs that vest on the applicable Vesting Date, unless such RSUs terminate prior to the given vesting date pursuant to Section 5 above. Notwithstanding the foregoing, in the event shares of Stock cannot be issued pursuant to Section 10.5 of the Plan or are delayed under Section 10 below, the shares of Stock shall be issued pursuant to the preceding sentence as soon as administratively practicable after the Committee determines that shares of Stock can again be issued in accordance with such Section. In no event shall any such delay in the issuance of shares of Stock impact the payment timing applicable to Dividend Equivalents payable in cash.
7.Tax Withholding.  The Company shall have the authority and the right to deduct, withhold or require a Participant or Beneficiary to remit to the Company an amount sufficient to satisfy federal, state, local and foreign taxes (including without limitation any income and employment tax obligations) required by law to be withheld with respect to any taxable event arising in connection with the RSUs and/or the Dividend Equivalents. To the extent that such 

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obligations arise at the time that the RSUs are paid to the Participant in shares of Stock, the Committee may, in its sole discretion and in satisfaction of the foregoing requirement, allow the Participant to elect to have the Company withhold shares of Stock otherwise issuable under this Agreement (or allow the return of shares of Stock) having a Fair Market Value equal to the sums required to be withheld, provided, that the number of shares of Stock which may be so withheld (or returned) with respect to a taxable event arising in connection with the RSUs and/or the Dividend Equivalents shall be limited to the number of shares which have a Fair Market Value on the date of withholding equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state and local income tax and payroll tax purposes that are applicable to such supplemental taxable income.
8.Rights as Stockholder.  Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Company in respect of any shares of Stock deliverable hereunder unless and until certificates representing such shares of Stock will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Participant or any person claiming under or through the Participant
9.Non-Transferability.  Neither the RSUs, the Dividend Equivalents nor any interest or right therein or part thereof shall be transferred, assigned, pledged or hypothecated by the Participant in any way in favor of any party other than the Company or the TRS, the Partnership or any Subsidiary (each, an “Affiliate”) (whether by operation of law or otherwise) and shall not be subjected to any lien, obligation or liability of the Participant to any party other than the Company or an Affiliate, other than by the laws of descent and distribution. Upon any attempt by the Participant to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale by the Participant under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby shall immediately become null and void. Notwithstanding the foregoing, the Company may assign any of its rights under this Agreement to single or multiple assignees and this Agreement shall inure to the benefit of the successors and assigns of the Company.
10.Distribution of Stock.  The Company shall not be required to record any shares of Stock in the name of the Participant in the books and records of the Company’s transfer agent, and the Company shall not be required to issue or deliver any certificate or certificates for any shares of Stock prior to the fulfillment of all of the following conditions: (a) the admission of such shares to listing on all stock exchanges on which the Company’s common stock is then listed, (b) the completion of any registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or other governmental regulatory body, which the Committee shall, in its sole and absolute discretion, deem necessary and advisable, and (c) the obtaining of any approval or other clearance from any state or federal governmental agency that the Committee shall, in its absolute discretion, determine to be necessary or advisable. In the event that the Company delays a distribution or payment in settlement of RSUs because it determines that the issuance of shares of Stock in settlement of such RSUs will violate Federal securities laws or other applicable law, such distribution or payment shall be made at the earliest date at which the Company reasonably determines that the making of such distribution or payment will not cause such violation, as 

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required by Treasury Regulation Section 1.409A-2(b)(7)(ii). No payment shall be delayed under this Section 10 if such delay will result in a violation of Section 409A of the Code.
11.No Right to Continued Service.  Nothing in the Plan or in this Agreement shall confer upon the Participant any right to continue as an Employee, Consultant, member of the Board, or other service provider of the Company or any Affiliate, or shall interfere with or restrict in any way the rights of the Company or any Affiliate, which are hereby expressly reserved, to discharge the Participant at any time for any reason whatsoever, with or without Cause (as defined in the Employment Agreement), except to the extent expressly provided otherwise in a written agreement between the Participant and the Company or any Affiliate.
12.Severability.  In the event that any provision in this Agreement is held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement, which shall remain in full force and effect.
13.Tax Consultation.  The Participant understands that he or she may suffer adverse tax consequences in connection with the RSUs and Dividend Equivalents granted pursuant to this Agreement. The Participant represents that the Participant has consulted with any tax consultants that he or she deems advisable in connection with the RSUs and the Dividend Equivalents and that the Participant is not relying on the Company for tax advice.
14.Amendment.  This Agreement may only be amended, modified or terminated by a writing executed by the Participant and by a duly authorized representative of the Company.
15.Adjustments.  The Participant acknowledges that the RSUs are subject to modification and termination in certain events as provided in this Agreement and Section 11 of the Plan.
16.Relationship to other Benefits.  Neither the RSUs, the Dividend Equivalents, nor payment in respect of the foregoing shall be taken into account in determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Affiliate.
17.Code Section 409A.  To the extent that the Committee determines that any RSUs and/or Dividend Equivalents may not be compliant with or exempt from Code Section 409A, the Committee may amend this Agreement in a manner intended to comply with the requirements of Code Section 409A or an exemption therefrom (including amendments with retroactive effect), or take any other actions as it deems necessary or appropriate to (a) comply with the requirements of Code Section 409A and/or (b) exempt the RSUs and/or the Dividend Equivalents from Code Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the RSUs. To the extent applicable, this Agreement shall be interpreted in accordance with the provisions of Code Section 409A.
18.Governing Law.  The laws of the State of Maryland shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

A-4

19.Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
20.Conformity to Securities Laws. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, as well as any applicable state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the RSUs and Dividend Equivalents are granted, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.
21.Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the Exchange Act, then the Plan, the RSUs and Dividend Equivalents, and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.
22.Entire Agreement. The Plan and this Agreement (including all exhibits and appendices hereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof.  Notwithstanding the foregoing provisions of this Section 22, the Non-Competition, Non-Solicitation and Non-Disclosure Agreement is outside the scope of the foregoing and shall continue in accordance with its terms and conditions.   
23.Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be subject to the provisions of Section 12(c) of the Employment Agreement.
24.Clawback.  The Participant agrees that all compensation paid or payable to the Participant pursuant to this Agreement shall be subject to (a) the provisions of any claw-back policy implemented by the Company to comply with applicable law or regulation (including stock exchange rules), including, without limitation, any claw-back policy adopted to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder, and (b) any other claw-back required by applicable law.
25.Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be given to the Participant shall be addressed to the Participant at the Participant’s last address (physical or electronic) reflected on the Company’s records. Any notice shall be deemed duly given when sent by reputable overnight courier or by certified mail (return receipt requested) through the United States Postal Service.

A-5

EXHIBIT A 

TO RESTRICTED STOCK UNIT GRANT NOTICE
CONSENT OF SPOUSE
I, ____________________, spouse of Jeffrey C. Hawken, have read and approve the foregoing Agreement. In consideration of issuing to my spouse the Restricted Stock Units and Dividend Equivalents set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement and any Restricted Stock Units, Dividend Equivalents, shares of Kilroy Realty Corporation or cash issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement.
Dated: _______________, _____            ________________________________
Signature of Spouse

Consent of Spouse Signature Page

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