Document:

EX-10.2

 Exhibit 10.2 
 PS BUSINESS PARKS, INC. 
 2012 EQUITY AND PERFORMANCE-BASED INCENTIVE
COMPENSATION PLAN 
 FORM OF NON-QUALIFIED SHARE OPTION AGREEMENT 

This Share Option Agreement (the “Option Agreement”) is made as of the
            day of             , 200__, (the “Grant Date”), by and between PS Business Parks, Inc. (the
“Company”) and             , an employee of the Company, one of its Subsidiaries or a Service Provider (the “Optionee”). Capitalized terms not otherwise defined herein
shall have the meanings ascribed to them in the Company’s 2012 Equity and Performance-Based Incentive Compensation Plan (the “Plan”). 
 WHEREAS, the Board of Directors of the Company (the “Board”) has duly adopted, and the shareholders of the Company have duly approved, the Plan, which provides for the grant to employees of the
Company and its Subsidiaries and Service Providers of options for the purchase of shares of the Company’s common stock, par value $.01 per share (the “Common Shares”), which may be granted from time to time as the Committee so
determines; 
 WHEREAS, the Company has determined that it is desirable and in its best interests to grant to the Optionee,
pursuant to the Plan, options to purchase a certain number of Common Shares as compensation for services rendered to the Company, and/or in order to provide the Optionee with an incentive to advance the interests of the Company, all according to the
terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the parties hereto do hereby agree as follows: 
 1. GRANT OF OPTION. 

Subject to the terms of the Plan (the terms of which are incorporated by reference herein), the Company hereby grants to the Optionee the
right and option (the “Option”) to purchase from the Company, on the terms and subject to the conditions hereinafter set forth,             Common Shares. This Option shall not
constitute an incentive shares option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 

2. PRICE. 
 The
purchase price (the “Option Price”) of the Common Shares subject to the Option evidenced by this Option Agreement is $            per share (the Fair Market Value on the Grant
Date). 
 3. EXERCISE OF OPTION. 
 Except as otherwise provided herein, the Option granted pursuant to this Option Agreement shall be subject to exercise as follows: 

 3.1 Time of Exercise of Option. 

The Optionee may exercise the Option (subject to the limitations on exercise set forth in the Plan or in this Option Agreement), in
installments as determined by the Committee as follows: [            ]. The foregoing installments, to the extent not exercised, shall accumulate and be exercisable, in whole or in
part, at any time and from time to time, after becoming exercisable and prior to the termination of the Option; provided, that no single exercise of the Option shall be for less than 100 shares, unless the number of shares purchased is the
total number at the time available for purchase under this Option. 
 3.2 Exercise by Optionee. 

During the lifetime of the Optionee, only the Optionee (or, in the event of the Optionee’s legal incapacity or incompetency, the
Optionee’s guardian or legal representative) or a person or entity to whom the Optionee has transferred the Option in accordance with Section 6 hereof may exercise the Option. 

3.3 Term of Option. 
 The Option shall have a term of [            ]years, subject to earlier termination in accordance with this Option Agreement or the terms
of the Plan as determined by the Committee. 
 3.4 Limitations on Exercise of Option. 

In no event may the Option be exercised, in whole or in part, after ten years following the Grant Date, or after the occurrence of an
event referred to in Section 8 below which results in termination of the Option. In no event may the Option be exercised for a fractional Share. 
 3.5 Termination of Employment or Other Relationship. 
 Subject to Sections 3.6 and
3.7 hereof, upon the termination of (i) the employment of the Optionee by the Company or any Subsidiary or Service Provider, or (ii) a Service Provider’s relationship with the Company, the Optionee shall have the right at any time
within 30 days after such termination and prior to termination of the Option pursuant to Section 3.4 above, to exercise, in whole or in part, any Option held by such Optionee at the date of such termination, to the extent such Option was
exercisable immediately prior to such termination. 
 3.6 Rights in the Event of Death. 

If the Optionee dies while employed by the Company, a Subsidiary or a Service Provider, or while serving as a Service Provider, the
executors or administrators or legatees or distributees of the Optionee’s estate shall have the right, at any time within one year after the date of the Optionee’s death and prior to termination of the Option pursuant to Section 3.4
above, to exercise the Option with respect to all shares subject to the Option, whether or not the Option was exercisable immediately prior to the Optionee’s death. 

  
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 3.7 Rights in the Event of Disability. 

If the Optionee terminates employment with the Company, a Subsidiary, or a Service Provider, or if the Optionee ceases to be a Service
Provider, by reason of the permanent and total disability of the Optionee, then the Optionee shall have the right, for a period of one year after such termination and prior to termination of the Option pursuant to Section 3.4 above, to exercise
the Option to the extent such Option was exercisable immediately prior to such termination or becomes exercisable within such one year period pursuant to Section 3.1 above. Whether termination of employment or service is to be considered by
reason of permanent and total disability for purposes of this Option Agreement shall be determined by the Committee, which determination shall be final and conclusive. 
 3.8 Reduction in Number of Shares Subject to Option. 
 The number of Common Shares
which may be purchased upon exercise of the Option pursuant to this Section 3 shall be reduced by the number of shares previously purchased upon exercise of the Option pursuant to this Section 3. 

4. METHOD OF EXERCISE OF OPTION. 
 The Option may be exercised to the extent that it has become exercisable hereunder by (a) exercise through the Company’s approved broker for such exercises, or (b) delivery to the Company
on any business day, at its principal office addressed to the attention of the Committee, of written notice of exercise, which notice shall specify the number of shares for which the Option is being exercised, and shall be accompanied by payment in
full of the Option Price of the shares for which the Option is being exercised. Payment of the Option Price for the Common Shares purchased pursuant to the exercise of the Option shall be made (a) in cash or by check payable to the order of the
Company; (b) through the tender to the Company of Common Shares, which shares shall be valued, for purposes of determining the extent to which the Option Price has been paid thereby, at their Fair Market Value on the date of exercise; or
(c) by a combination of the methods described in (a) and (b). Payment in full of the Option Price need not accompany the written notice of exercise provided the notice directs that the Common Shares certificate or certificates for the
shares for which the Option is exercised be delivered to the Company approved broker for such exercises as the agent for the Optionee and, at the time such Common Shares are delivered, the broker tenders to the Company cash (or cash equivalents
acceptable to the Company) equal to the Option Price plus the amount, if any, of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to the exercise of the Option. An attempt to exercise the Option
granted other than as set forth above shall be invalid and of no force or effect. Promptly after the exercise of the Option and the payment in full of the Option Price of the Common Shares covered thereby, the Optionee shall be entitled to, as
applicable, (a) the issuance of a certificate for Common Shares or certificates evidencing the Optionee’s ownership of such shares or (b) direct registration for such shares or (c) electronic transfer of such shares to a
Company-approved broker. 

  
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 5. PARACHUTE LIMITATIONS. 

Notwithstanding any other provision of this Option Agreement or of any other agreement, contract, or understanding heretofore or
hereafter entered into by a Optionee with the Company or any Subsidiary, except an agreement, contract or understanding hereafter entered into that expressly modifies or excludes application of this paragraph (an “Other Agreement”), and
notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Optionee (including groups or classes of participants or beneficiaries of which the Optionee is a member), whether or not
such compensation is deferred, is in cash, or is in the form of a benefit to or for the Optionee (a “Benefit Arrangement”), if the Optionee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any
Option held by that Optionee and any right to receive any payment or other benefit under this Option Agreement shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into
account all other rights, payments, or benefits to or for the Optionee under this Option Agreement, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Optionee under this Option Agreement to be considered a
“parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Optionee from the Company under this Option Agreement, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Optionee without causing any such payment or
benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting, payment, or benefit under this Option Agreement, in conjunction with all other rights, payments, or benefits to or for the Optionee
under any Other Agreement or any Benefit Arrangement would cause the Optionee to be considered to have received a Parachute Payment under this Option Agreement that would have the effect of decreasing the after-tax amount received by the Optionee as
described in clause (ii) of the preceding sentence, then the Optionee shall have the right, in the Optionee’s sole discretion, to designate those rights, payments, or benefits under this Option Agreement, any Other Agreements, and any
Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Optionee under this Option Agreement be deemed to be a Parachute Payment. 

6. LIMITATIONS ON TRANSFER. 
 The Option is not transferable by the Optionee, other than by will or the laws of descent and distribution in the event of death of the Optionee, and except that the Optionee may transfer the Option in
whole or in part to (i) the spouse, children (including step-children and adopted children) or grandchildren of the Optionee (“Family Members”), (ii) a Company for the exclusive benefit of one or more Family Members, or
(iii) a partnership of which the Optionee and/or one or more Family Members are the only partners, provided that the transferee, in connection with the transfer, agrees in writing to be bound by all of the terms of this Option Agreement and the
Plan and further agrees not to transfer the Option other than by will or the laws of descent and distribution in the event of the death of the transferee. Following any transfer permitted by this Section 6, the transferee shall have all of the
rights of the Optionee hereunder, and the Option shall be exercisable by the transferee only to the extent that the Option would have been exercisable by the Optionee had the Option not been transferred. The Option shall not be pledged or
hypothecated (by operation of law or otherwise) or subject to execution, attachment or similar processes. 
 7. RIGHTS AS
SHAREHOLDER. 
 Neither the Optionee, nor any executor, administrator, distributee or legatee of the Optionee’s estate, nor
any transferee hereof shall be, or have any of the rights or privileges of, a shareholder of the Company in respect of any Common Shares issuable hereunder unless and until such shares have been fully paid and certificates representing such shares
have been endorsed, transferred and delivered, and the name of the Optionee (or of such personal representative, administrator, distributee or legatee of the Optionee’s estate, or of such transferee) has been entered as the shareholder of
record on the books of the Company. 

  
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 8. EFFECT OF CHANGES IN CAPITALIZATION. 

8.1 Changes in Shares. 
 If the number of outstanding Common Shares is increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any
recapitalization, reclassification, share split, reverse split, combination of shares, exchange of shares, share dividend or other distribution payable in capital shares, or other increase or decrease in such shares effected without receipt of
consideration by the Company occurring after the date the Option is granted, a proportionate and appropriate adjustment shall be made by the Company in the number and kind of shares subject to the Option, so that the proportionate interest of the
Optionee immediately following such event shall, to the extent practicable, be the same as immediately prior to such event. Any such adjustment in the Option shall not change the total Option Price with respect to shares subject to the unexercised
portion of the Option but shall include a corresponding proportionate adjustment in the Option Price per share. In the event of a spin-off by the Company of the shares of a subsidiary, a share dividend for which the Company will claim a dividends
paid deduction under Section 561 of the Code (or any successor provision), or a pro rata distribution to all shareholders of other assets of the Company, the Committee may, but shall not be required to, make appropriate adjustments to
(i) the number and kind of shares or other assets for which the Option is exercisable and (ii) the per-share exercise price of the Option. 
 8.2 Reorganization in Which the Company Is the Surviving Entity and in Which No Change of Control Occurs. 
 Subject to Section 8.3 hereof, if the Company shall be the surviving entity in any reorganization, merger or consolidation of the Company with one or more other entities, the Option shall pertain to
and apply to the securities to which a holder of the number of shares subject to the Option would have been entitled immediately following such reorganization, merger or consolidation, with a corresponding proportionate adjustment of the Option
Price per share so that the aggregate Option Price thereafter shall be the same as the aggregate Option Price immediately prior to such reorganization, merger or consolidation. 

8.3 Reorganization, Sale of Assets or Sale of Shares Which Involves a Change of Control. 

Subject to the exceptions set forth in the last sentence of this Section 8.3, fifteen days prior to the scheduled consummation of a
Change of Control, the Option shall become immediately exercisable with respect to all shares subject to the Option and shall remain exercisable for a period of fifteen days. Any exercise of the Option during such fifteen-day period shall be
conditioned upon the consummation of the Change of Control and shall be effective only immediately before the consummation of the Change of Control. Upon consummation of any Change of Control, unless exercised the Option shall terminate. The
Committee shall send written notice of an event that will result in such a termination to the Optionee not later than the time at which the Company gives notice thereof to its shareholders. For purposes of this Section 8.3, a “Change of
Control” shall be deemed to occur upon (i) the dissolution or liquidation of the Company or upon a merger, consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity,
(ii) a sale of substantially all of the assets of the Company to another entity, or (iii) any transaction (including without limitation a merger or reorganization in which the Company is the surviving Company) which results in any person
or entity (other than B. Wayne Hughes and members of his family and their affiliates) owning 50% or more of the combined voting power of all classes of shares of the Company. This Section 8.3 shall not apply to any Change of Control to the
extent that (A) provision is made in writing in connection with such Change of Control for the assumption of the Option, or for the substitution for the Option of a new option covering the shares of a successor Company, or a parent, subsidiary
or affiliate thereof, with appropriate adjustments as to the number and kind of shares and exercise prices, in which event the Option shall continue in the manner and under the terms so provided or (B) a majority of the full Board determines
that such Change of Control shall not trigger application of the provisions of this Section 8.3. 

  
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 8.4 Adjustments. 
 Adjustments specified in this Section 8 relating to Common Shares or securities of the Company shall be made by the Committee, whose determination in that respect shall be final, binding and
conclusive. No fractional shares shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share. 

9. GENERAL RESTRICTIONS. 
 The Company shall not be required to sell or issue any Common Shares under the Option if the sale or issuance of such shares would constitute a violation by the individual exercising the Option or by the
Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing,
registration or qualification of any Common Shares subject to the Option upon any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in
connection with, the issuance or purchase of shares hereunder, the Option may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Option. Specifically, in connection with the Securities Act of 1933, upon notice of exercise of the Option, unless a registration statement
under such Act is in effect with respect to the shares covered by the Option, the Company shall not be required to sell or issue such shares unless the Committee has received evidence satisfactory to the Committee that the holder of the Option may
acquire such shares pursuant to an exemption from registration under such Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company shall not be obligated to take any affirmative action in order
to cause the exercise of the Option or the issuance of shares of Common Shares pursuant thereto to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that the Option shall
not be exercisable unless and until the shares covered by the Option are registered or are subject to an available exemption from registration, the exercise of the Option (under circumstances in which the laws of such jurisdiction apply) shall be
deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 

  
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 10. DISCLAIMER OF RIGHTS. 

No provision in this Option Agreement shall be construed to confer upon the Optionee the right to be employed by the Company or any
Subsidiary or Service Provider or to provide services to the Company, or to interfere in any way with the right and authority of the Company or any Subsidiary or Service Provider either to increase or decrease the compensation of the Optionee at any
time, or to terminate any employment or other relationship between the Optionee and the Company or any Subsidiary or Service Provider. 
 11. WITHHOLDING TAXES 
 Upon the request of the Company, a Subsidiary or a Service
Provider, the Optionee shall promptly pay to the Company, Subsidiary or Service Provider, or make arrangements satisfactory to the Company, Subsidiary or Service Provider regarding payment of, any federal, state or local taxes of any kind required
by law to be withheld as a result of the Optionee’s exercise of the Option. The Company, a Subsidiary or a Service Provider shall have the right to deduct from payments of any kind otherwise due to the Optionee any such taxes. The Optionee
shall make any such payments in cash or cash equivalents or, subject to the prior approval of the Committee, which may be withheld in the Committee’s sole discretion, the Optionee may elect to satisfy the withholding obligation, in whole or in
part, (i) by causing the Company, the Subsidiary or the Service Provider to withhold shares of Common Shares otherwise issuable to the Optionee pursuant to the Option or (ii) by delivering to the Company, the Subsidiary or the Service
Provider shares of Common Shares already owned by the Optionee. The Common Shares so delivered or withheld shall have an aggregate Fair Market Value equal to the applicable withholding obligations. The Optionee may deliver or have withheld only
Common Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. 
 12.
INTERPRETATION OF THIS OPTION AGREEMENT. 
 All decisions and interpretations made by the Committee with regard to any question
arising under the Plan or this Option Agreement shall be binding and conclusive on the Company and the Optionee and any other person entitled to exercise the Option as provided for herein. In the event that there is any inconsistency between the
provisions of this Option Agreement and of the Plan, the provisions of the Plan shall govern. 
 13. GOVERNING LAW. 

This Option Agreement is executed pursuant to and shall be governed by the laws of the State of California (but not including the choice
of law rules thereof). 
 14. BINDING EFFECT. 
 Subject to all restrictions provided for in this Option Agreement and by applicable law relating to assignment and transfer of this Option Agreement and the option provided for herein, this Option
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, transferees and assigns. 

  
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 15. NOTICE. 
 Any notice hereunder by the Optionee to the Company shall be in writing and shall be deemed duly given if mailed or delivered to the Company at its principal office, addressed to the attention of the
Corporate Secretary, or if so mailed or delivered to such other address as the Company may hereafter designate by notice to the Optionee. Any notice hereunder by the Company to the Optionee shall be in writing and shall be deemed duly given if
mailed or delivered to the Optionee at the address specified below by the Optionee for such purpose, or if so mailed or delivered to such other address as the Optionee may hereafter designate by written notice given to the Company. 

16. ENTIRE AGREEMENT. 
 This Option Agreement constitutes the entire agreement and supersedes all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. Neither
this Option Agreement nor any term hereof may be amended, waived, discharged or terminated except by a written instrument signed by the Company and the Optionee; provided, however, that the Company unilaterally may waive any provision
hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other
provision hereof. 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Option Agreement, or caused this Option
Agreement to be duly executed on their behalf, as of the day and year first above written. 
  

			
	PS BUSINESS PARKS, INC.
		
	By:	 	 
		 	Name:
		 	Title:
	
	 OPTIONEE:

		
	  	 	  
	Name:
	
	ADDRESS FOR NOTICE TO OPTIONEE:
		
	  	 	  
	Number                        
Street
		
	  	 	  
	City                           
     State                                    
 Zip Code

  
 8EX-10.3

 Exhibit 10.3 
 PS BUSINESS PARKS, INC. 
 2012 EQUITY AND PERFORMANCE-BASED INCENTIVE
COMPENSATION PLAN 
 FORM OF RESTRICTED SHARE UNIT AGREEMENT 

THIS RESTRICTED SHARE UNIT AGREEMENT is entered into as of             , by
and between PS Business Parks, Inc. (the “Company”), and             , an employee of the Company, a Subsidiary or a Service Provider (the “Grantee”). 

Recitals: 

WHEREAS, the PS Business Parks, Inc. 2012 Equity and Performance-Based Incentive Compensation Plan (the “Plan”) has been duly
approved by the Board of Companyees of the Company and the shareholders of the Company; 
 WHEREAS, under the Plan the Company
is authorized to issue, inter alia, Restricted Share Units relating to shares of common stock of the Company, par value $.01 per share (the “Shares”); and 
 WHEREAS, the Company desires to grant Restricted Share Units to the Grantee under the terms and conditions set forth below. 
 NOW, THEREFORE, in consideration of the mutual benefits hereinafter provided, and each intending to be legally bound, the Company and the Grantee hereby agree as follows: 

 

	1.	 	GRANT OF RESTRICTED SHARE UNITS. 

 The Company hereby grants to the Grantee             Restricted Share Units, subject to the terms of this Restricted Share Unit Agreement and
the Plan. The Grant Date of the Restricted Share Units is             . All terms and conditions of the Plan are hereby incorporated into this Agreement by reference and shall be deemed to
be part of this Agreement, without regard to whether such terms and conditions are not otherwise set forth in this Agreement. To the extent that any capitalized words used in this Agreement are not defined, they shall have the definitions stated for
them in the Plan. In the event that there is any inconsistency between the provisions of this Agreement and the provisions of the Plan, the provisions of the Plan shall govern. 

 

	2.	 	VESTING OF RESTRICTED SHARE UNITS. 

 2.1. Service Requirement. 
 Rights in respect of
[            ]% of the number of Restricted Share Units specified in Section 1 above shall vest on each of the
[            ] anniversary[ies] of the Grant Date, provided that the Grantee is in service on the applicable vesting date. As used herein, “service” shall mean service to the
Company, a Subsidiary or the Partnership as an employee, Companyee, consultant, service provider or independent contractor. For purposes of this Agreement, termination of service would not be deemed to occur if the Grantee, after terminating service
in one capacity, continues to provide service to the Company, any Subsidiary, the Partnership or any affiliate of the Company in another capacity. Termination of service is sometimes referred to below as termination of employment or other
relationship with the Company. As used herein, references to the “Company” shall be deemed to include its Subsidiaries and affiliates, including the Partnership. The period during which the Restricted Share Units have not vested and
therefore are subject to a substantial risk of forfeiture is referred to below as the Restricted Period. 

 2.2. Restrictions on Transfer. 

The Grantee may not sell, transfer, assign, pledge or otherwise encumber or dispose of the Restricted Share Units. 

2.3. Payment for Vested Restricted Share Units. 
 When a portion of the Restricted Share Units shall vest pursuant to Section 2.1, the Company shall, upon payment by the Grantee of the aggregate par value of the Shares represented by such Restricted
Share Units, deliver to the Grantee a certificate or electronic confirmation of ownership, as applicable, for the number of Shares represented by the Restricted Share Units which have vested. 

 

	3.	 	TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP. 

 Upon the termination of the Grantee’s employment or other relationship with the Company other than by reason of death or permanent and total disability, any Restricted Share Units held by the Grantee
that have not vested shall terminate immediately, and the Grantee shall forfeit any rights with respect to such Restricted Share Units. If the Grantee’s employment or other relationship with the Company is terminated because of his death, his
legal guardian, or the executor or administrator of the estate of the Grantee, or the person or persons to whom rights under the Restricted Share Unit Agreement have passed by bequest or inheritance, as the case may be, shall immediately be vested
in all Restricted Share Units that have not previously vested. If the Grantee’s employment or other relationship with the Company is terminated because of the Grantee’s permanent and total disability, the Grantee’s Restricted Share
Units shall continue to vest in accordance with the terms of this Agreement for a period of one year thereafter. At the end of such one-year period, any Restricted Share Units that have not vested shall terminate and shall be forfeited. 

 

	4.	 	DIVIDEND AND VOTING RIGHTS. 

 The Grantee shall have none of the rights of a shareholder with respect to the Restricted Share Units. The Grantee shall be entitled to receive, upon the Company’s payment of a cash dividend on its
outstanding Shares, a cash payment for each Restricted Share Unit held as of the record date for such dividend equal to the per-share dividend paid on the Shares. 
  

	5.	 	REQUIREMENTS OF LAW. 

 The
Company shall not be required to deliver any Shares under this Restricted Share Unit Agreement if the delivery of such Shares would constitute a violation by the Grantee or by the Company of any provision of any law or regulation of any governmental
authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or qualification of any Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the delivery of Shares hereunder, the Restricted Share Units shall not vest in whole or
in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company. Specifically in connection with the Securities Act of 1933 (as now in effect or
as hereafter amended), unless a registration statement under such Act is in effect with respect to the Shares, the Company shall not be required to deliver such Shares unless the Company has received evidence satisfactory to it that the Grantee may
acquire such Shares pursuant to an exemption from registration under such Act. Any determination in this connection by the Company shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any
securities covered hereby pursuant to the Securities Act of 1933 (as now in effect or as hereafter amended). The Company shall not be obligated to take any affirmative action in order to cause the delivery of Shares pursuant thereto to comply with
any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that the Restricted Share Units shall not vest unless and until the Shares are registered or are subject to an available exemption
from registration, the vesting of the Restricted Share Units (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

  
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	6.	 	WITHHOLDING OF TAXES. 

The Company, the Partnership and any Subsidiary shall have the right to deduct from payments of any kind otherwise due to the Grantee any
federal, state, or local taxes of any kind required by law to be withheld with respect to the termination of the Restricted Period with respect to the Restricted Share Units. At the termination of the Restricted Period, the Grantee shall pay to the
Company, the Partnership or the Subsidiary, as applicable, any amount that the Company, the Partnership or the Subsidiary may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company,
the Partnership or the Subsidiary, as applicable, which may be withheld by the Company, the Partnership or the Subsidiary in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by causing the
Company, the Partnership or the Subsidiary to withhold Shares otherwise deliverable or (ii) by delivering to the Company, the Partnership or the Subsidiary Shares already owned by the Grantee. The Shares so delivered or withheld shall have a
fair market value equal to such withholding obligations. The Fair Market Value of the Shares used to satisfy such withholding obligation shall be determined by the Company, the Partnership or the Subsidiary as of the date that the amount of tax to
be withheld is to be determined. A Grantee who has made an election pursuant to this Section 6 may satisfy his or her withholding obligation only with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other
similar requirements. 
  

	7.	 	PARACHUTE LIMITATIONS 

Notwithstanding any other provision of this Agreement or of any other agreement, contract, or understanding heretofore or hereafter
entered into by the Grantee and the Company, the Partnership or any Subsidiary, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this Section (the “Other
Agreements”), and notwithstanding any formal or informal plan or other arrangement heretofore or hereafter adopted by the Company (or the Partnership or any Subsidiary) for the direct or indirect compensation of the Grantee (including groups or
classes of participants or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a
“disqualified individual,” as defined in Section 280G(c) of the Code, the Restricted Share Units and any right to receive any payment or other benefit under this Agreement shall not become vested (i) to the extent that such right
to payment or benefit, taking into account all other rights, payments, or benefits to or for Grantee under the Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Agreement to be
considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts
received by the Grantee from the Company under this Agreement, the Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by Grantee without causing any such payment or benefit
to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, payment, or benefit under this Agreement, in conjunction with all other rights, payments, or benefits to or for the Grantee under the Plan, any Other
Agreement or any Benefit Arrangement would cause the Grantee to be considered to have received a Parachute Payment under this Agreement that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause
(ii) of the preceding sentence, then the Grantee shall have the right, in the Grantee’s sole discretion, to designate those rights, payments, or benefits under this Agreement, the Plan, any Other Agreements, and any Benefit Arrangements
that should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee under this Agreement be deemed to be a Parachute Payment. 

  
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	8.	 	DISCLAIMER OF RIGHTS. 

 No
provision of this Agreement shall be construed to confer upon the Grantee the right to be employed by the Company, the Partnership, any Subsidiary or any affiliate, or to interfere in any way with the right and authority of the Company, the
Partnership, any Subsidiary or any affiliate either to increase or decrease the compensation of the Grantee at any time, or to terminate any employment or other relationship between the Grantee and the Company, the Partnership, any Subsidiary, any
Service Provider or any affiliate of any of the foregoing. 
  

	9.	 	GOVERNING LAW. 

 This
Agreement shall be governed by the laws of the State of California (but not including the choice of law rules thereof). 
 IN
WITNESS WHEREOF, the parties hereto have caused this Restricted Share Unit Agreement to be duly executed as of the date first above written. 
  

			
	PS BUSINESS PARKS, INC.
		
	By:	 	 
		 	

  

			
	 GRANTEE:

		
		 	 
		 	

  
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