Document:

Exhibit 10.2

PROMISSORY NOTE

	
  $100,000,000.00

  	
  June 25, 2007

  

 

For value received,  H.
James Knuppe and Barbara Knuppe (each hereinafter a “Borrower”
and collectively the “Borrowers”),
jointly and severally promise and agree to pay to the order of EXTRA SPACE
STORAGE LP, a Delaware limited partnership, for itself and its successors and
assigns (“Lender”), in lawful money of
the United States of America, the principal sum of ONE HUNDRED MILLION AND
NO/100 DOLLARS ($100,000,000.00), together with interest on the unpaid
outstanding balance owing hereunder at the rate or rates or in the amounts
computed as provided herein, together with all other amounts due Lender under
this Note, all payable in the manner and at the time or times provided herein.

1.             Interest
Rate/Interest-Only Payments Prior to Maturity/Off Set Against Preferred
Payments.  The outstanding balance of the amount due
hereunder shall bear interest from
the date set forth on this Note through and including the dates of payment at
the rate of four and eighty-five one hundredths percent (4.85%) per annum (the “Interest Rate”). 
Payments of interest-only on the Loan shall be payable quarterly on the
first day of July, October, January, and April during the term of the Loan
through the Maturity Date (as defined below). 
Interest shall be calculated on the basis of a 360-day year for the
actual number of days in the applicable period. 
All payments made under this Note shall be applied as follows: (i)
first, to fees, expenses, costs and other similar amounts then due and payable
to Lender, (ii) second, to accrued and unpaid interest on the principal balance
of the Note, (iii) third, to the payment of principal due in the month in which
the payment or prepayment is made, if any, (iv) fourth, to any other amounts
then due Lender hereunder; and (v) last, to the unpaid principal balance of
this Note.  Borrowers are the owners of
and expect to acquire in the future certain Series A Preferred Units in Lender
(the “Series A Units”) pursuant to which Borrowers are entitled to receive
preferred distributions from Lender. 
Borrowers and Lender agree that Lender will off set any amounts then due
and payable hereunder against the distributions payable to Borrowers, or either
of them, with respect to the Series A Units (whether now owned or hereafter
acquired by Borrowers or by either Borrower) and will pay any excess amounts to
Borrowers.  Furthermore, to the extent of
any amounts then due and owing, but unpaid, by Lender with respect to the
Series A Units, Borrowers may, at Borrowers’ option and notwithstanding any
assignment by Lender of Lender’s rights under this Note to any controlled
affiliate of Lender, set off such amounts against amounts then due and owing
under this Note.

2.             Maturity Date.  Unless extended by mutual agreement of
Borrowers and Lender or accelerated pursuant to the provisions of this Note,
Borrowers shall pay to Lender all principal and other amounts due and unpaid
hereunder on June 25, 2017 (the “Maturity Date).  Unless otherwise
specified in writing by Lender, all payments hereunder shall be paid to Lender
at 2795 E. Cottonwood Parkway, #400, Salt Lake City, Utah 84121.

3.             Acceleration/Remedies.  If:

(i)            Borrowers fail to make payment of any amount
due hereunder within ten (10) days after the same becomes due and payable; or

(ii)           any violation or breach of any provision of, or any event of default
under or breach of any provision of this Note (other than that listed in
Subsection 3(i) above, and if such violation or breach is not cured within ten
(10) days after Lender’s notice to
Borrowers, plus an additional thirty (30) days to cure such breach or default
if: (a) such failure does not involve the 

payment of a monetary obligation contained herein
or in the Pledge (as
defined below); (b) such failure cannot
reasonably be cured within ten (10) days; (c) Borrowers are diligently
undertaking to cure such default, and (d) Borrowers have provided Lender with
security reasonably satisfactory to Lender against any interruption of payment
or impairment of collateral as a result of such continuing failure;

(iii)          Either Borrower
exercises such Borrower’s right under the Second Amended and Restated Agreement
of Limited Partnership of Lender dated                  ,
2007 (the “Partnership Agreement”) to redeem
any or all of the Series A Units

then the entire principal sum remaining unpaid, together with all
interest thereon and any other sum payable under this Note, shall immediately,
without notice or demand from Lender, become due and payable.  In addition to the rights set forth in this
Section 3, and in addition to any other rights and remedies available to Lender
under applicable law, if any of the foregoing events shall occur, Lender shall
have the right to seek recourse under the Pledge, including, without
limitation, the right to execute on some or all of the Series A Units.

4.             Limitation of Interest
Rate.  If
any interest is contracted for, charged or received under this Note, or if all
of the principal balance shall be prepaid, so that under any of such
circumstances the amount of interest contracted for, charged or received under
this Note on the principal balance shall exceed the maximum amount of interest
permitted by applicable law, then in such event: (i) the provisions of this paragraph
shall govern and control; (ii) neither Borrowers nor any other person or entity
now or hereafter liable for the payment hereof shall be obligated to pay the
amount of such interest to the extent that it is in excess of the maximum
amount of interest permitted by applicable law; 
(iii) any such excess which may have been collected shall be either
applied as a credit against the then unpaid principal balance or refunded to
Borrowers, at the option of the Lender; and 
(iv) the effective rate of interest shall be automatically reduced to
the maximum lawful contract rate allowed under applicable law as now or
hereafter construed by the courts having jurisdiction thereof.  It is further agreed that without limitation
of the foregoing, all calculations of the rate of interest contracted for,
charged or received under this Note which are made for the purpose of
determining whether such rate exceeds the maximum lawful contract rate, shall
be made, to the extent permitted by applicable law, by amortizing, prorating,
allocating and spreading in equal parts during the period of the full stated
term of the indebtedness evidenced hereby, all interest at any time contracted
for, charged or received from Borrowers or otherwise by Lender in connection
with such indebtedness; provided, however, that if any applicable state law is
amended or the law of the United States of America preempts any applicable
state law, so that it becomes lawful for the Lender to receive a greater
interest per annum rate than is presently allowed, the Borrowers agree that, on
the effective date of such amendment or preemption, as the case may be, the
lawful maximum hereunder shall be increased to the maximum interest per annum
rate allowed by the amended state law or the law of the United States of
America.

5.             Waiver/Consent.  Borrowers, co-makers, sureties, endorsers and
guarantors, and each of them (each
such person, other than the Borrowers, an “Obligor”)
who may at any time become liable for the payment hereof jointly and severally
consent hereby to any and all extensions of time, renewals, waivers or
modifications of, and all substitutions or releases of, security or of any
party primarily or secondarily liable on this Note or any term and provision
thereof, which may be made, granted or consented to by Lender, and agree that
suit may be brought and maintained against any one or more of them, at the
election of Lender without joinder of any other as a party thereto, and that
Lender shall not be required first to foreclose, proceed against, or exhaust
any security hereof in order to enforce payment of this Note.  Borrowers and each Obligor hereby waives
presentment, demand for payment, notice of 

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nonpayment, protest, notice of protest, notice of dishonor, and all
other notices in connection herewith, as well as filing of suit (if permitted
by law) and diligence in collecting this Note or enforcing any of the security
hereof, and agrees to pay (if permitted by law) all expenses incurred in
collection, including Lender’s actual attorneys’ fees.

6.             Collateral.  This Note is secured by a pledge (the “Pledge”) by Borrowers of all Series
A Units of Lender that that are presently owned or are hereafter acquired by
either Borrower.

7.             Governing Law.  This Note has been executed and delivered in
and shall be construed in accordance with and governed by the laws of the State
of Utah and of the United States of America.

8.             Entire Agreement.  This
Note and the Pledge constitute the entire agreement of the Borrowers and Lender
with respect to the subject matter hereof and supersede all prior
understandings, agreements and representations, express or implied.

9.             No Waiver.  No delay or failure or
forbearance or other act of commission or omission on the part of Lender in
exercising any rights under this Note on default by either Borrower including,
without limitation, Lender’s right to accelerate, nor reinstatement of this
Note by Lender after such exercise, shall operate as a waiver of Lender’s right
to exercise such right or of any other right under this Note, or as a release
of any Borrower, for the same default or any other default, except to the
extent such waiver is in writing and signed by Lender and then only to the
extent specifically set forth in writing.

10.           Modification.  No
variation or modification of this Note, or any waiver of any of its provisions
or conditions, shall be valid unless in writing and signed by an authorized
representative of Borrowers and Lender. 
Any such waiver, consent, modification or change shall be effective only
in the specific instance and for the specific purpose given.

11.           Assignment.  Neither party may delegate its
duties or assign its rights under this Note without the other party’s prior,
written consent; provided, however, that notwithstanding the provisions of this
Paragraph 11, Lender shall have the right to assign its rights under this Note
to any controlled affiliate of Lender without the consent of Borrowers.

12.           Binding Effect. 
Subject to the immediately preceding paragraph, this Note and all of the
covenants, promises and agreements contained in it shall be binding on and
inure to the benefit of the respective legal and personal representatives,
devises, heirs, successors and assigns of each Borrower and Lender.

13.           Severability.  Any
provision in this Note which is in conflict with any statute, law or applicable
rule shall be deemed omitted, modified or altered to conform thereto.  Should any provision of this Note be deemed
invalid or unenforceable under applicable law, all of the remaining provisions
shall remain unchanged and in full force and effect.

14.           Joint and Several Obligations.  The
obligations of Borrowers under this Note are joint and several.

[Signatures on Following Page]

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Executed as of the date first written above.

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ H. James
  Knuppe

  	
   

  
	
   

  	
  H. James Knuppe

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Barbara
  Knuppe

  	
   

  
	
   

  	
  Barbara Knuppe

  

 

 4Exhibit
10.3

PLEDGE AGREEMENT

(Series A Preferred Units of Extra Space Storage LP)

THIS
PLEDGE AGREEMENT,  dated as of June 25,
2007 (“Pledge  Agreement”), is made by H. JAMES KNUPPE and BARBARA KNUPPE
(each hereinafter a “Pledgor”
and collectively the “Pledgors”), in favor of EXTRA SPACE
STORAGE LP,  a Delaware
limited partnership (“Lender”).  

Recitals:

A.            Lender
has made a loan in the amount of $100,000,000.00 to Pledgors.

B.            Pledgors
are the makers of a promissory note (the “Note”)
in favor of Lender and in the amount of $100,000,000.00.  

To induce the Lenders to accept the Note and to make
the loan evidenced thereby, Pledgors have agreed to enter into this Pledge
Agreement on the terms and conditions set forth below.

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

SECTION 1.         Definitions.  The
terms used in this Pledge Agreement and not otherwise defined shall have the
meanings set forth in the Note.  Except
for the terms defined in this Pledge Agreement or in the Note, all terms
defined in Article 8 or 9 of the Uniform Commercial Code of the State of Utah
(the “UCC”) that are used in this Pledge
Agreement shall have the meanings specified in such Articles of the UCC. 

SECTION 2.         Pledge of Series A
Units.

(a)           Pledge. 
As collateral security for the prompt and complete payment and
performance when due of the Note, each Pledgor does hereby pledge, assign and
transfer unto Lender and does hereby grant to Lender a continuing security
interest of first priority in all of the right, title and interest of such
Pledgor in, to and under the following (the “Pledged Collateral”):

(i)            all of such
Pledgor’s the certificated Series A Preferred Units (as defined in the Second
Amended and Restated Partnership Agreement of the Lender in effect on the
Closing Date, as amended from time to time (the “Partnership Agreement”)) of Lender now owned or hereafter
acquired by such Pledgor, and all voting rights and powers of ownership and
management in the Lender, including, without limitation, those arising under
the Partnership Agreement, and any options, warrants or other rights to
purchase such units at any time owned by such Pledgor including, without
limitation, all such units, options, warrants or other rights acquired by such
Pledgor in the future (collectively, the “Series A Units”),
and all cash, securities, distributions and other property at any time in the
future and from time to time received, receivable or otherwise distributed, in
respect of or in exchange for any or all of Series A Units;

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(ii)           all other claims of
any kind or nature, and any instruments, certificates, chattel paper or other
writings evidencing such claims, whether in contract or tort, and whether
arising by operation of law, consensual agreement or otherwise, at any time
acquired by such Pledgor in respect of any or all of the Pledged Collateral;
and

(iii)          to the extent not
included in the foregoing, all cash and non-cash proceeds, products, rents,
revenues, issues, profits, royalties, income, benefits, additions,
substitutions, replacements, and accessions of and to any and all of the
foregoing, including without limitation: (A) all rights of such Pledgor to
receive monies due and to become due under or pursuant to the Pledged
Collateral; (B) all rights of such Pledgor to receive any indemnity, warranty
or guarantee with respect to the Pledged Collateral; and (C) to the extent not
included in the foregoing, all additions to and replacements of the Pledged
Collateral and all proceeds receivable or received when any and all of the
Pledged Collateral is sold, collected, exchanged or otherwise disposed whether
voluntarily or involuntarily.

(b)           Subsequently Acquired
Borrower Interests.  Any additional
Series A Units at any time or from time to time after the date hereof acquired
by either Pledgor (by purchase, distribution or otherwise) shall form part of
the Pledged Collateral and each Pledgor will, at the request of Lender: (i)
confirm the pledge of such Series A Units by such Pledgor; and (ii) promptly
take all such other actions as Lender directs are necessary or desirable to
perfect the security interest therein of Lender under any law (including,
without limitation, under the UCC).

(c)           Off Set of
Distributions from Series A Units. 
Pledgors are entitled to receive certain distributions from Lender with
respect to the Series A Units.  Each
Pledgor hereby agrees that any and all distributions that such Pledgor is
entitled to receive with respect to the Series A Units may be off set against
any amounts that are then due and owing under the Note.  The Lender agrees that it will pay any
amounts of distributions in excess of the amounts then due and owing under the
Note to Pledgors.

SECTION 3.         Representations and Warranties.  Each
Pledgor represent and warrant as of the date hereof as follows:

(a)           Pledgors is the sole owners of one hundred percent (100%)
of the Series A Units set forth on Exhibit A hereto. 

(b)           This Pledge Agreement has been duly executed and delivered
by each Pledgor and constitutes the legal, valid and binding obligation of each
Pledgor enforceable in accordance with its terms.

(c)           Neither the execution and delivery of this Pledge
Agreement nor compliance with any of the terms and provisions hereof (i)
conflicts with, breaches or contravenes any of either Pledgor’s contractual
obligations; or (ii) results in the creation or imposition of any liens (other
than those created hereunder) upon any of the property or assets of either
Pledgor under, or is a condition or event that constitutes (or that, upon
notice or lapse of time or both, would constitute) an event of default under
with respect to any contractual obligations of either Pledgor.

(d)           No consent of any other person and no authorization,
approval, or other action by, and no notice to or filing with, any person or
governmental authority is required 

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(i) for the pledge of the
Pledged Collateral by either Pledgor pursuant to this Pledge Agreement; (ii)
for the execution, delivery or performance of this Pledge Agreement by either
Pledgor; (iii) for the perfection or maintenance of the security interest
created hereby (including the first priority nature of such security interest);
or (iv) for the exercise by Lender of the voting or other rights provided for
in this Pledge Agreement or the remedies in respect of the Pledged Collateral
pursuant to this Pledge Agreement or as provided by any law, except those which
have been duly obtained or made and, in the case of the maintenance of
perfection, the filing of continuation statements under the UCC.  

(e)           Pledgors are the legal and beneficial owners of and have
good title to the Pledged Collateral, free and clear of all liens, except the
security interest created by this Pledge Agreement.  No effective financing statement or other
instrument similar in effect covering all or any part of the Pledged Collateral
and made, consented to or known by either Pledgor is on file in any recording
office, except such as may have been filed in favor of the Lender relating to
this Pledge Agreement.

(f)            Each Pledgor has the unconditional right to pledge the
Series A Units as herein provided.

(g)           Neither Pledgor is a party to any outstanding agreement,
option or contract to sell all or any portion of the Pledged Collateral.  No part of the Pledged Collateral is subject
to the terms of any agreement restricting the sale or transfer of such Pledged
Collateral, except for (1) the Partnership Agreement and (2) that certain Contribution
Agreement dated June 15, 2007, between and among certain affiliates of
Pledgors, Lender, and certain other parties. 

SECTION 4.         Covenants. Each Pledgor agrees that, until such time as
this Pledge Agreement shall cease to be in full force and effect according to
its terms:

(a)           Defense of Collateral.  Each Pledgor will defend the Pledged
Collateral against all claims and demands of all persons (other than Lender)
claiming an interest in any of the Pledged Collateral.  Each Pledgor will discharge or cause to be
discharged all liens on any or all of the Pledged Collateral, except for the
security interest under this Pledge Agreement.

(b)           Disposition of Collateral.  Prior to the payment in full of the Note,
neither Pledgor will (i) sell, assign (by operation of law or otherwise) or
otherwise dispose of any of the Pledged Collateral or (ii)  create or suffer to exist any lien upon or
with respect to any of the Pledged Collateral, except for the pledge,
hypothecation and security interest created by this Pledge Agreement.

(c)           Voting Rights. 
Each Pledgor shall exercise any and all management, voting and other
consensual rights pertaining to the Partnership Agreement in a manner
consistent with the terms of this Pledge Agreement and the Note.

SECTION 5.         Continued Perfection of Security
Interest.  Each
Pledgor agrees that such Pledgor shall immediately deliver to Lender any and
all of the certificates evidencing the Pledged Collateral.  The certificates evidencing the Series A
Units shall be accompanied by, as appropriate, (i) if applicable and requested
by Lender, undated, duly executed stock powers or similar instrument endorsed
by each Pledgor either in blank or to Lender in a manner which Lender deems
satisfactory, and/or (ii) such other instruments or documents as Lender shall 

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reasonably request.  Each Pledgor agrees that it will not take any
actions or fail to perform any of its duties or obligations under this Pledge
Agreement that would cause Lender to cease to have a first priority perfected
security interest of the Pledged Collateral. 
Each Pledgor agrees, from time to time and at its expense, to promptly
execute and deliver all further instruments and documents, and take all further
action, that may be necessary, or that Lender may reasonably request in order
to perfect and protect the pledge, hypothecation and security interest granted
or purported to be granted hereby or to enable Lender to exercise and enforce
its rights and remedies hereunder with respect to the Pledged Collateral.  Pledgor hereby further authorizes Lender to
file one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the Pledged Collateral.

SECTION 6.         Obligations of Pledgor and Rights of
Lender.  Anything
herein to the contrary notwithstanding: (a) the exercise by Lender of any of
the rights hereunder shall not release either Pledgor from any of such
Pledgor’s duties or obligations under the Partnership Agreement; (b) Lender
shall have no obligation or liability under the Partnership Agreement or
otherwise by reason of this Pledge Agreement, nor shall Lender be obligated to
perform any of the obligations or duties of a Pledgor thereunder or to take any
action to collect or enforce any claim assigned hereunder; and (c) subject only
to any express provision hereof to the contrary, Pledgors shall be entitled to
exercise all voting and other rights and to enjoy all benefits attaching to the
Pledged Collateral unless and to the extent Lender has, after an Event of
Default has occurred and while it is continuing, given notice that such
entitlements have ceased and become vested in Lender.  If either Pledgor fails to perform any of
such Pledgor’s obligations under the Partnership Agreement, Lender may itself,
at such time as an Event of Default shall have occurred and be continuing,
perform, or cause performance of, such agreement, and the expenses of Lender
incurred in connection therewith shall be payable by Pledgors under this Pledge
Agreement.  The powers conferred on
Lender hereunder are solely to protect its interest in the Pledged Collateral
and shall not impose any duty upon it to exercise any such powers.  Except for the safe custody of any Pledged
Collateral in its possession and the accounting for moneys actually received by
it hereunder, Lender shall have no duty as to any Pledged Collateral or as to
the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Pledged Collateral and no such duties shall
be implied as arising hereunder.

SECTION 7.         Remedies.  At
any time after the occurrence of a default hereunder, or under the Note (an “Event of Default”), and so long as such
Event of Default is not cured, Lender has the right to do any or all of the
following:

(a)           Lender may exercise any and all rights and remedies of
each Pledgor under or in connection with the Partnership Agreement, or
otherwise in respect of the Pledged Collateral, including, without limitation,
the right to vote under the Partnership Agreement.

(b)           Upon receipt of written notice of such Event of Default
from Lender, all rights of each Pledgor to receive the distributions from the
Series A Units such Pledgor would otherwise be authorized to receive and
retain, shall cease for so long as such Event of Default is continuing, and all
such rights shall thereupon become vested in Lender who shall thereupon have
the sole right to receive and hold as Pledged Collateral such
distributions.  All distributions which
are received by either Pledgor contrary to the provisions of this Section shall
be received in trust for the benefit of Lender as security for the Note, shall
be segregated from other funds of such Pledgor, and shall be forthwith paid
over to Lender as Pledged Collateral in the same form as so received (with any
necessary endorsement).

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(c)           Lender may: (i) file any claims, commence, maintain,
settle or discontinue any actions, suits or other proceedings deemed by Lender
in its sole discretion necessary or advisable for the purpose of collecting
upon the Pledged Collateral; and (ii) execute any instrument and do all other
things deemed necessary and proper by Lender in its sole discretion to protect
and preserve and permit Lender to realize upon the Pledged Collateral and the
other rights contemplated thereby.

(d)           Lender may exercise in respect of the Pledged Collateral,
in addition to other rights and remedies provided for herein or otherwise
available to it, all the rights and remedies of a creditor upon default under
the UCC, and may also, without notice except as specified below, sell the
Pledged Collateral or any part thereof at public or  private sale, at any exchange, broker’s board
or at Lender’s offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as Lender may deem commercially
reasonable.  Each Pledgor agrees that, to
the extent notice of sale shall be required by law, at least ten (10) days’
notice to Pledgors of the time and place of any public sale or the time after
which any private sale is to be made shall (subject to applicable law)
constitute reasonable notification. 
Lender shall not be obligated to make any sale of Pledged Collateral
regardless of notice of sale having been given. 
Lender may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

(e)           Each Pledgor recognizes that in light of restrictions and
limitations under federal and state securities laws, Lender may, with respect
to any sale of Pledged Collateral, and to the extent commercially reasonable,
limit the purchasers to those who will agree to acquire Pledged Collateral for
their own account, for investment, and not with a view to the distribution or resale
thereof.  Each Pledgor acknowledges and
agrees that Lender, in a commercially reasonable manner: (i) may proceed to
make a sale without filing a registration statement for the purpose of
registering the Pledged Collateral under the federal or state securities laws;
and (ii) may approach and negotiate with any one or more possible purchasers to
effect such sale.  Each Pledgor
acknowledges and agrees that any such sale may result in prices less favorable
to the seller than if such sale were a public sale without such
restrictions.  Lender shall incur no
responsibility or liability for selling all or any part of the Pledged
Collateral at a price that Lender, in a commercially reasonable manner, may in
good faith deem reasonable under the circumstances.  The provisions of this section will apply
notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which Lender
sells.

(f)            All payments made under or in respect of the Pledged
Collateral and received by Lender as Pledged Collateral in accordance with the
provisions hereof may, in Lender’s sole discretion, be held as Pledged
Collateral for, and then or as soon thereafter as is reasonably practicable,
applied in whole or in part for the benefit of Lender, against all or any part
of the Note in accordance with the terms of the Note.  Any surplus of such payments held by Lender
and remaining after payment in full of all the Note shall be paid over to
Pledgors or to whomsoever else may be lawfully entitled to receive such
surplus.

SECTION 8.         Lender Appointed Attorney-in-Fact.  Each Pledgor
hereby appoints Lender as such Pledgor’s attorney-in-fact, with full authority
in the place and stead of such Pledgor and in the name of such Pledgor or
otherwise, from time to time in Lender’s sole discretion at any time after the
occurrence and during the continuance of an Event of Default to take any and
all actions authorized or permitted to be taken by Lender under this Pledge 

 5
 

Agreement or by law,
including but not limited to the power to take any action and to execute any
instrument which Lender, acting reasonably, may deem necessary or advisable to
accomplish the purposes of this Pledge Agreement, including, without
limitation, to ask for, demand, collect, sue for, recover, compound, receive
and give receipts for moneys due and to become due under or in connection with
the Pledged Collateral, to receive, endorse, and collect any drafts or other
instruments, documents and chattel paper in connection therewith, and to file
any claims or take any action or institute any proceedings which Lender may
deem to be necessary or desirable for the collection thereof.  Such appointment of Lender as Pledgor’s
attorney-in-fact is coupled with an interest and is irrevocable.

SECTION 9.         Security Interest Absolute.  The
obligations of Pledgors under this Pledge Agreement are joint and several.  The obligations of Lender under this Pledge
Agreement are independent of any guaranties, and a separate action or actions
may be brought and prosecuted against Lender to enforce this Pledge Agreement,
irrespective of whether any action is brought against a guarantor of the Note,
or whether another party or any guarantor of the Note is joined in any such
action or actions.  All rights of Lender
and the pledge, hypothecation and security interest hereunder, and all
obligations of Pledgor hereunder, shall be absolute and unconditional, to the
extent permitted by applicable law, irrespective of:

(a)           any lack of validity or enforceability of any other
agreement or instrument relating thereto;

(b)           any change in the time, manner or place of payment of or
in any other term of, all or any of the Note, or any other amendment or waiver
of or any consent to any departure from the Note;

(c)           any taking, exchange, release or non-perfection of any
other collateral, or any taking, release or amendment or waiver of, or consent
to departure from any guaranty, for the Note;

(d)           any manner of application of the Pledged Collateral, or
proceeds thereof, to the Note, or any manner of sale or other disposition of
any other collateral for the Note or any other assets of Pledgor; or

(e)           any other circumstances which might otherwise constitute a
defense available to, or a discharge of, Pledgor or a third party grantor of a
security interest.

SECTION 10.       Amendments.  No
amendment or waiver of any provision of this Pledge Agreement nor consent to
any departure by any Pledgor therefrom shall in any event be effective unless
the same shall be in writing and signed by such Pledgor and Lender, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

SECTION 11.       Addresses for Notices.   Any
notice required or permitted to be given pursuant to the provisions of this
Pledge Agreement shall be in writing and shall be effective upon the earlier
of: (i) personal delivery, or (ii) three (3) business days after deposit in the
United States mail by certified mail, postage prepaid, and properly addressed
to the Party to be notified at the address set forth below or at such other
address as such party may designate by ten (10) days’ advance written notice to
the other Party hereto:

 6
 

 

	
  To the Borrower:

  	
  To Lender:

  
	
   

  	
   

  
	
  H. James and Barbara
  Knuppe

  	
  Extra Space
  Storage LP

  
	
   

  	
  2795 E.
  Cottonwood Parkway, #400

  
	
   

  	
  Salt Lake City,
  Utah 84121

  
	
   

  	
  Attn: Mr.
  Charles L. Allen

  

 

SECTION 12.       Continuing Assignment/Pledge
and Security Interest; Release.  This Pledge Agreement shall
create a continuing pledge, assignment of, hypothecation of and security
interest in the Pledged Collateral and shall: (a) remain in full force and
effect until the irrevocable payment in full of the Note; (b) be binding upon
Pledgors, their respective heirs, successors and assigns, provided, that
neither Pledgor may transfer or assign any or all of such Pledgor’s rights or
obligations hereunder without the prior written consent of Lender; and (c)
inure to the benefit of, and be enforceable by, Lender and its respective
successors, transferees and assigns. 
Without limiting the generality of the foregoing clause (c), Lender may
assign or otherwise transfer all or any portion of its rights in the Note, and
such assignee shall thereupon become vested with all the benefits in respect
thereof granted to Lender herein or otherwise. 
Except as provided otherwise in Section 17 below, this Pledge Agreement
and the security interest granted hereunder shall terminate on the date on the
Note has been satisfied in full and all obligations under the Note and this
Pledge Agreement have been performed. 
Lender shall thereupon reassign and redeliver (or cause to be reassigned
and redelivered) to Pledgors or such person(s) as Pledgors shall designate in
writing, against due execution and delivery by Pledgors or such person(s) of a
receipt therefor satisfactory to Lender in form and substance, the certificates
representing the Series A Units (if any) as are then held by Lender, together
with appropriate instruments of reassignment and release.  Any such reassignment shall be without
recourse to or warranty by Lender and at the expense of Pledgors.

SECTION 13.       Survival.  Each
of the representations and warranties shall survive the execution and delivery
of this Agreement and delivery of the Pledged Collateral to the Lender.

SECTION 14.       Severability.  Any
provision hereof that is judged prohibited or unenforceable shall, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.

SECTION 15.       Headings.  The
headings herein are included for convenience of reference only and shall be
ignored in the construction or interpretation hereof.

SECTION 16.       Governing Law.  This
agreement shall be governed by and construed in accordance with the laws of the
state of Utah.

SECTION 17.       Reinstatement.  This
Pledge Agreement shall continue to be effective or be reinstated, as the case
may be, if at any time any amount received by Lender in respect of the Note is
rescinded or must otherwise be restored or returned by Lender upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of either
Pledgor or upon the appointment of any intervenor or conservator of, or trustee
or similar official for, either Pledgor or any substantial part of such Pledgor’s
assets, or otherwise, all as though such payment has not been made.

SECTION 18.       Execution in Counterparts.  This
Pledge Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

 7

IN WITNESS WHEREOF, Pledgors
and Lender duly executed this Pledge Agreement as of the date first above
written.

	
   

  	
  PLEDGOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ H. James
  Knuppe

  	
   

  
	
   

  	
  H. JAMES KNUPPE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Barbara
  Knuppe

  	
   

  
	
   

  	
  BARBARA KNUPPE

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  EXTRA SPACE STORAGE LP, a
  Delaware 

  limited partnership

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  ESS HOLDINGS BUSINESS TRUST 

  I, a Massachusetts business trust, its 

  sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Charles L. Allen

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Charles L. Allen

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Trustee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]