Document:

exv10w3

 

Exhibit 10.3

CONTRIBUTION AGREEMENT

(Vero Beach Property)

                THIS CONTRIBUTION AGREEMENT (this “Agreement”) is entered into as of July
30, 2004 by and between Acquiport/Amsdell I Limited Partnership (the “Operating
Partnership”) and Amsdell Holdings I, Inc. (the “Contributor”).

                WHEREAS, in connection with the initial public offering (the “IPO”) of the
common shares of U-Store-It Trust, a Maryland real estate investment trust
(“USI”), USI, the Operating Partnership and their affiliates will complete a
series of related corporate transactions (collectively with the IPO, the “IPO
Transactions”);

                WHEREAS, in connection with the IPO Transactions, the Contributor desires
to contribute to the Operating Partnership, and the Operating Partnership
desires to acquire, all of Contributor’s right, title and interest in certain
real estate property and related assets, in exchange for Class A units of
limited partnership interest (“Units”) in the Operating Partnership, on the
terms and subject to the conditions set forth herein; and

                WHEREAS, the Operating Partnership has agreed to assume certain
liabilities and obligations in connection with the contribution hereunder,
including certain mortgage indebtness encumbering said property in favor of The
Huntington National Bank.

                NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and conditions set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Operating
Partnership and the Contributor agree as follows:

ARTICLE I: CONTRIBUTION OF PROPERTY

               1.1       Contribution of the Property and the Assumed Liabilities.

                (a)      Subject to the terms and conditions hereof, the Contributor shall
contribute or otherwise transfer to the Operating Partnership, and the
Operating Partnership agrees to acquire and accept from the Contributor, at the
Closing (as hereinafter defined), all of the Contributor’s right, title and
interest in and to (i) that certain tract or parcel of land described on
Exhibit A attached hereto and made a part hereof, together with all and
singular the rights and appurtenances pertaining to such property, including
any right, title and interest of Contributor in and to adjacent streets, alleys
or rights-of-way (herein referred to collectively as the “Land”), (ii) the
buildings, structures, fixtures and other improvements on the Land (herein
referred to collectively as the “Improvements”), (iii) the tangible and
intangible personal property owned by the Contributor used or useful in
connection with the Contributor’s businesses being carried out on the Land and
the Improvements (the “Personal Property”), and (iv) each of the following:
(A) each lease and other occupancy agreement for any portion of the Land or the
Improvements (collectively, the “Leases”), including all deposits and escrows
held in connection therewith, (B) each management agreement in effect for all
or any portion of the

 

 

Land and Improvements (the “Management Contracts”), and (C) each other contract
of the Contributor relating to the Property (the “Other Contracts”), in each
case referred to in subsections (A) through (C), to be identified by the
Operating Partnership with the assistance of the Contributor as of the Closing.
All of the foregoing clauses (i) through (iv) above shall collectively shall
be known as the “Property”).

                (b)      Subject to the terms and conditions hereof, at the Closing, the
Operating Partnership shall assume and thereafter pay, honor, discharge and
perform, in accordance with their respective terms, all of the liabilities and
obligations of the Contributor or otherwise relating to the Property identified
on Schedule 1 hereto (the “Assumed Liabilities”).

Without limiting the foregoing, the Contributor and the Operating Partnership
hereby represent, warrant, acknowledge and agree that the Property shall be
conveyed, transferred and assigned by the Contributor, and shall be acquired,
accepted and held by the Operating Partnership, in each case, subject to the
continuation of any and all statutory or common law consensual or nonconsensual
mortgages, pledges, security interests, encumbrances, liens, rights of setoff,
claims or charges of any kind, including, without limitation, the Loan and the
Guaranty (as those terms are defined on Schedule 1).

                1.2      Contributor Exchange Amount.

                (a)      Units Delivered at Closing. Subject to the terms and
conditions of this Agreement, in exchange for the contribution of the Property
and for the assumption of the Assumed Liabilities, the Operating Partnership
shall issue to the Contributor, and upon execution and delivery of the Limited
Partner Acceptance (as defined below) by the Contributor, the Contributor shall
receive, at the Closing, a number of Units (rounded to the nearest whole Unit)
equal to the Contribution Unit Amount (as defined on Exhibit B), in a
transaction intended to qualify for nonrecognition of gain to the Contributor
pursuant to Section 721 of the Internal Revenue Code of 1986, as amended (the
“Code”). The rights of holders of the Units as of the Closing will be set
forth in the Second Amended and Restated Agreement of Limited Partnership of
the Operating Partnership, in substantially the form attached hereto as
Exhibit C, with such changes as may be proposed by the Operating
Partnership and not materially adversely affecting the Contributor (the
“Partnership Agreement”). The Contributor acknowledges and agrees that, with
respect to the Property, receipt of the Units in exchange for such Property
shall constitute receipt of the fair value of the Contributor’s interest in
such Property as of the Closing Date.

                (b)      Issuance of Units. At the Closing, the Operating Partnership
shall issue the Units to the Contributor (as determined pursuant to Section
1.2(a) above). The name of the Contributor and the number of Units issued to
the Contributor at the Closing shall be recorded in the books and records of
the Operating Partnership.

                (c)      Admission as a Limited Partner. Upon execution and delivery of
the Limited Partner Acceptance to the Partnership Agreement, attached hereto as
Exhibit D (the “Limited Partner Acceptance”), by the Contributor at the
Closing, and subject to the completion of the Closing, the Contributor shall be
admitted to the Operating Partnership

 

 

as a limited partner of the Operating Partnership and, as such, shall be
subject to, and bound by, the Partnership Agreement, including the power of
attorney granted therein and all the terms and conditions thereof.

ARTICLE II: REPRESENTATIONS, WARRANTIES AND COVENANTS OF CONTRIBUTOR

                As a material inducement to the Operating Partnership to enter into this
Agreement and to consummate the transactions contemplated hereby, the
Contributor hereby makes to the Operating Partnership each of the
representations, warranties and covenants set forth in this Article II. The
representations and warranties set forth in this Article II are true and
correct as of the date hereof.

                2.1      Title to the Property. Contributor owns the Property and,
except as set forth below, at the Closing will own the Property free and clear
of any claim, lien (including tax liens), option, charge, security interest,
mortgage, deed of trust, encumbrance, rights of assignment, purchase rights or
other rights of any nature whatsoever (collectively, “Encumbrances”), and has
or will have at the Closing full power and authority to convey the
Contributor’s interests in the Property, free and clear of any Encumbrances,
upon delivery of a deed of conveyance (and other appropriate instruments of
transfer) by the Contributor relating to the Property and receipt by it of the
consideration for such Property as herein provided, and the Operating
Partnership (or its designee) will acquire good and valid title thereto, free
and clear of any Encumbrance, in each case, except (i) Encumbrances created in
favor of the Operating Partnership by the transactions contemplated hereby,
(ii) Encumbrances listed on Schedule 2 hereto, and (iii) the Assumed
Liabilities (the foregoing clauses (i) through (iii) collectively shall be
known as the “Permitted Encumbrances”).

                2.2      Organization and Standing. Contributor is a corporation duly
organized, validly existing and in good standing under Ohio law, and has the
full and unrestricted corporate power and authority to own, operate its assets,
to carry on its business as currently conducted, to execute and deliver this
Agreement and to carry out the transactions contemplated hereby. The
Contributor is duly qualified to conduct business as a foreign corporation
where necessary and is in good standing in the states in which it is so
qualified.

                2.3      Authority. Contributor has full right, authority, power and
capacity (a) to enter into this Agreement and each agreement, document and
instrument to be executed and delivered by or on behalf of the Contributor
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver all of its interests
in the Property to the Operating Partnership (or its designee) in accordance
with this Agreement. This Agreement and each agreement, document and
instrument executed and delivered by or on behalf of the Contributor pursuant
to this Agreement constitutes, or when executed and delivered will constitute,
the legal, valid and binding obligation of the Contributor, each enforceable in
accordance with its respective terms.

                2.4      Litigation. There is no litigation or proceeding, either
judicial or administrative, pending or, to Contributor’s knowledge, threatened,
affecting all or any

 

 

portion of the Property or the Contributor’s ability to consummate the
transactions contemplated hereby. There is no outstanding order, writ,
injunction or decree of any court, government, governmental entity or authority
or arbitration against or affecting all or any portion of the Property, which
in any such case would impair the Contributor’s ability to enter into and
perform all of the Contributor’s obligations under this Agreement.

                2.5      No Agreements to Sell. Except to the extent contemplated or
referred to herein, Contributor is not currently a party to any agreement to
sell, transfer or otherwise encumber or dispose of the Property.

                2.6      Status as a United States Person. Contributor represents and
warrants that the Contributor is not a foreign person within the meaning of
Section 1445 of the Code (“Section 1445”). Contributor’s U.S. social security
number (in the case of an individual) or U.S. taxpayer identification number
(in the case of an entity) that has previously been provided to the Operating
Partnership is correct. Contributor’s home address (in the case of an
individual) or office address (in the case of an entity) is that most recent
address previously provided to the Operating Partnership. At the time of
Closing, Contributor shall provide to the Operating Partnership a certificate
of non-foreign status substantially in the form provided in Section
1.1445-5(b)(3)(D) of the Treasury regulations.

                2.7      No Insolvency Proceedings. No attachments, execution
proceedings, assignments for the benefit of creditors, insolvency, bankruptcy,
reorganization or other proceedings are pending or, to Contributor’s knowledge,
threatened against the Contributor, nor are any such proceedings contemplated
by the Contributor.

                2.8      No Brokers. Contributor represents that it has not entered
into, and covenants that it will not enter into, any agreement, arrangement or
understanding with any person or firm which will result in the obligation of
the Operating Partnership to pay any finder’s fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby.

                2.9      Conditional Nature of Transaction. Contributor acknowledges
and understands that it is a condition to the Operating Partnership’s
obligations to close the transactions contemplated hereby that the other IPO
Transactions shall have occurred (or are occurring simultaneously with the
Closing), that the occurrence of any of the other IPO Transactions is wholly
within the sole and absolute discretion of the Operating Partnership and its
affiliates, and that the Contributor has no right to require any of the other
IPO Transactions to occur, on any terms.

                2.10      Securities Law Matters; Transfer Restrictions.

                          (a)      Contributor acknowledges that the Operating Partnership intends the
offer and issuance of the Units to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”) and applicable state
securities laws by virtue of (i) the status of the Contributor as an
“accredited investor” within the meaning of the federal securities laws, and
(ii) Regulation D promulgated under Section 4(2) of the Securities Act
(“Regulation D”), and that the Operating Partnership will rely in part upon the
representations and warranties made by the Contributor in this Agreement in
making the determination that the offer and issuance of the Units qualify for

 

 

exemption under Rule 506 of Regulation D as an offer and sale only to
“accredited investors.”

                          (b)      Contributor is an “accredited investor” within the meaning of the
federal securities laws.

                          (c)      Contributor will acquire the Units for his or its own account and not
with a view to, or for sale in connection with, any “distribution” thereof
within the meaning of the Securities Act. Contributor does not intend or
anticipate that the Contributor will rely on this investment as a principal
source of income.

                          (d)      Contributor has sufficient knowledge and experience in financial, tax
and business matters to enable him to evaluate the merits and risks of
investment in the Units. Contributor has the ability to bear the economic risk
of acquiring the Units. Contributor acknowledges that (i) the transactions
contemplated by this Agreement involve complex tax consequences for the
Contributor, and the Contributor is relying solely on the advice of the
Contributor’s own tax advisors in evaluating such consequences, (ii) the
Operating Partnership has not made (nor shall it be deemed to have made) any
representations or warranties as to the tax consequences of such transaction to
the Contributor, and (iii) references in this Agreement to the intended tax
effect of the transactions contemplated hereby shall not be deemed to imply any
representation by Operating Partnership as to a particular tax effect that may
be obtained by the Contributor. The Contributor remains solely responsible for
all tax matters relating to the Contributor.

                          (e)      Contributor has been supplied with, or had access to, information to
which a reasonable investor would attach significance in making an investment
decision to acquire the Units and any other information the Contributor has
requested. The Contributor has had an opportunity to ask questions of, and
receive information and answers from, the Operating Partnership and USI
concerning the Operating Partnership, USI, the Units, the other IPO
Transactions and the Common Shares into which the Units may be redeemed, and to
assess and evaluate any information supplied to the Contributor by the
Operating Partnership or USI, and all such questions have been answered, and
all such information has been provided to the full satisfaction of the
Contributor.

                          (f)      The Contributor acknowledges that the Contributor is aware that there
are substantial restrictions on the transferability of the Units and that the
Units will not be registered under the Securities Act or any state securities
laws, and the Contributor has no right to require that they be so registered.
Contributor agrees that any Units it acquires will not be sold in the absence
of registration unless such sale is exempt from registration under the
Securities Act and applicable state securities laws. Contributor acknowledges
that the Contributor shall be responsible for compliance with all conditions on
transfer imposed by any securities authority and for any expenses incurred by
the Operating Partnership for legal or accounting services in connection with
reviewing such a proposed transfer or issuing opinions in connection therewith.

                          (g)      Contributor understands that no federal agency (including the
Securities and Exchange Commission) or state agency has made or will make any
finding

 

 

or determination as to the fairness of an investment in the Units (including as
to the Contribution Unit Amount or the value determined pursuant to Exhibit
B)).

                          (h)      Contributor understands that there is no established public, private
or other market for the Units acquired by the Contributor hereunder and it is
not anticipated that there will be any public, private or other market for such
Units in the foreseeable future.

                          (i)      Contributor understands that Rule 144 promulgated under the Securities
Act is not currently available with respect to the sale of Units.

               2.11      Carrying On in the Ordinary Course of Business. From the date
hereof to the Closing Date, the Contributor shall conduct its business in the
ordinary course in all material respects, except that the Contributor may (a)
take such actions and execute such documents as may be required to effectuate
the IPO Transactions, and (b) effect distributions of cash to its equity
holders.

               2.12      Reliance. Contributor acknowledges that it understands the meaning
and legal consequences of the representations and warranties in this Article
II, and that the Operating Partnership may rely upon such representations and
warranties in determining whether to enter into this Agreement. Contributor
agrees to indemnify, defend and hold harmless the Operating Partnership, USI,
and the officers, directors and affiliates thereof, and any employees or agents
of any of the foregoing, against any and all loss, liability, claim, damage or
expense whatsoever (including, but not limited to, any and all expenses,
including attorneys’ fees, reasonably incurred in investigating, preparing or
defending against any claim or litigation commenced or threatened) due to or
arising out of a breach of any such representations or warranties.

ARTICLE III: CONDITIONS TO CLOSING

                3.1      Conditions to the Operating Partnership’s Obligation to Close.
The obligation of the Operating Partnership to consummate the Closing is
subject to the fulfillment, at or prior to the Closing, of the following
conditions (unless such conditions are waived in writing by the Operating
Partnership):

                          (a)      Other IPO Transactions. The other IPO Transactions, in such
form(s) as the Operating Partnership, in its sole and absolute discretion,
shall have determined to be acceptable, shall have occurred (or are occurring
simultaneously with the Closing).

                          (b)      Representations and Warranties. The representations and
warranties made by the Contributor pursuant to this Agreement shall be true and
correct in all material respects when made, and on and as of the Closing Date,
as though such representations and warranties were made on the Closing Date.

                          (c)      Performance. The Contributor shall have performed and complied
with all agreements and covenants that the Contributor is required to perform
or comply with pursuant to this Agreement prior to the Closing in all material
respects.

 

 

                          (d)      Legal Proceedings. No action or proceeding by or before any
governmental authority shall have been instituted that is reasonably expected
to restrain, prohibit or invalidate the transactions contemplated by this
Agreement, other than an action or proceeding instituted by the Contributor.

                          (e)      Consents and Approvals. All necessary consents of governmental
and private parties to effect the transactions contemplated by this Agreement,
including, without limitation, consents of lenders, shall have been obtained.

                          (f)      Reliance on Regulation D. The Operating Partnership shall,
based on advice of its counsel, be reasonably satisfied that there shall not be
more than 35 “purchasers of securities” (as calculated pursuant to Rule 501 of
Regulation D) at the Closing and that such issuance and the contemplated
distribution of Units to the Contributor may be made without registration under
the Securities Act in reliance upon Regulation D.

                3.2      Conditions to the Contributor’s Obligation to Close. The
obligation of the Contributor to consummate the Closing is subject to the
fulfillment, at or prior to the Closing, of the following conditions (unless
such conditions are waived in writing by the Contributor):

                          (a)      Performance. The Operating Partnership shall have performed
and complied with all agreements and covenants that it is required to perform
or comply with pursuant to this Agreement prior to the Closing in all material
respects.

                          (b)      Legal Proceedings. No action or proceeding by or before any
governmental authority shall have been instituted that is reasonably expected
to restrain, prohibit or invalidate the transactions contemplated by this
Agreement, other than an action or proceeding instituted by the Operating
Partnership; provided, that the foregoing condition shall be deemed to have
been satisfied if the Operating Partnership shall have agreed to fully
indemnify the Contributor from any loss, liability, claim, damage or expense
arising out of the Contributor’s proceeding to close under this Agreement in
the face of any such action or proceeding.

                          (c)      Consents and Approvals. All necessary consents of governmental
and private parties to effect the transactions contemplated by this Agreement,
including, without limitation, consents of lenders, shall have been obtained;
provided, that the foregoing condition shall be deemed to have been satisfied
if the Operating Partnership shall have agreed to fully indemnify the
Contributor from any loss, liability, claim, damage or expense arising out of
the Contributor’s proceeding to close under this Agreement without having
obtained a necessary consent.

                          (d)      Registration Rights Agreement. At or prior to the Closing, USI
shall have entered into a registration rights agreement with the Contributor
providing the Contributor with registration rights that either, at USI’s
option, (i) register the issuance of USI common shares received upon redemption
of the Units issued pursuant to this Agreement, or (ii) register the resale of
USI common shares issuable upon redemption of the Units issued pursuant to this
Agreement, such registration rights agreement to contain

 

 

such other terms and conditions customary for a transaction of this type
(the “Registration Rights Agreement”).

ARTICLE IV: CLOSING

                4.1      Closing. The closing hereunder (the “Closing”) shall occur, at
the election of the Operating Partnership, (i) one business day prior to the
closing of the IPO, (ii) concurrently with the closing of the IPO, or (iii) one
business day following the closing of the IPO, which date the Operating
Partnership shall designate in writing to the Contributor at least five
business day prior to such date, at the same location as the closing of the
IPO, provided that the conditions for the Closing as set forth in Article III
hereof applicable to the transaction with the Contributor shall have occurred
(or have been waived by the party that benefits from such conditions), and this
Agreement shall not have been terminated pursuant to Article V hereof.

                4.2      Closing Deliveries by Contributor. At the Closing, the
Contributor shall execute and deliver to the Operating Partnership the
following:

                          (i)      a duly executed deed of conveyance, substantially in the form attached
hereto as Exhibit E, modified as necessary to conform to local
requirements, pursuant to which the Contributor shall grant and convey to the
Operating Partnership (or its designee) the Contributor’s right, title and
interests in the Land and Improvements, free and clear of Encumbrances, other
than Permitted Encumbrances;

                          (ii)      a duly executed Bill of Sale and Assignment and Assumption Agreement,
substantially in the form attached hereto as Exhibit F (“Assignment
Agreement”), pursuant to which (a) the Contributor shall assign and convey to
the Operating Partnership (or its designee) the Contributor’s right, title and
interests in (i) the Personal Property, the Leases, the Management Contracts
and the Other Contracts, free and clear of Encumbrances, other than the
Permitted Encumbrances, and (b) the Operating Partnership shall assume the
Assumed Liabilities;

                          (iii)      a Limited Partner Acceptance, substantially in the form attached
hereto as Exhibit D, duly executed by the Contributor;

                          (iv)      such documents and certificates as the Operating Partnership may
reasonably request (x) to establish the authority of the parties executing any
documents in connection with the Closing, (y) to reflect the parties’
intentions regarding the transfer of the Property and assumption of the Assumed
Liabilities, or (z) as may be reasonably required by the Operating
Partnership’s title insurer in connection with the issuance of a title
insurance policy for the Property; and

                          (v)      a non-foreign seller certification, substantially in the form attached
hereto as Exhibit G, executed by the Contributor.

                4.3      Closing Deliveries by The Operating Partnership. At the
Closing, the Operating Partnership shall execute and deliver to the Contributor
the following:

                          (i)      a duly executed Assignment Agreement; and

 

 

                          (ii)      a duly executed Registration Rights Agreement.

ARTICLE V: TERMINATION

                5.1      Termination by the Operating Partnership. The Operating
Partnership shall have the right to terminate this Agreement at any time
following the occurrence of any of the following events:

                          (i)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the IPO Transactions;

                          (ii)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the transfer of the Property on the
terms outlined herein;

                          (iii)      the determination that any representation or warranty of the
Contributor contained herein is no longer true or correct, and that such
representation or warranty cannot reasonably be expected to be true and correct
at the Closing; or

                          (iv)      at any time on or after February 15, 2005, for any reason.

                5.2      Termination by Contributor. The Contributor shall have the
right to terminate this Agreement at any time on or after February 15, 2005,
for any reason.

                5.3      Effect of Termination. Upon the termination of this Agreement
as to the Contributor pursuant to Section 5.1 or 5.2 hereof, neither the
Operating Partnership nor the Contributor shall have any liability to the other
in connection with the transactions contemplated hereby, or as a result of the
termination of this Agreement; provided, that the foregoing shall not relieve
the Operating Partnership or the Contributor of any liability as a result of a
breach of any of the terms of this Agreement.

ARTICLE VI: MISCELLANEOUS

                6.1      Closing Expenses and Transfer Taxes. Except as otherwise
specifically set forth in this Agreement, (a) the cost of the base title
policy, endorsements, reinsurance or coinsurance, all recording costs, all
escrow costs and other costs incurred in connection with the transactions
contemplated by this Agreement shall be paid by the Operating Partnership, and
(b) any and all transfer taxes and documentary stamp taxes incurred in
connection with the contribution of the Property shall be paid by the Operating
Partnership.

                6.2      Further Assurances. The Contributor shall execute and deliver
to the Operating Partnership all such other and further instruments and
documents and take or cause to be taken all such other and further actions as
the Operating Partnership may reasonably request in order to effect the
transactions contemplated by this Agreement, including instruments or documents
deemed necessary or desirable by the Operating Partnership to effect and
evidence the conveyance of the Property in accordance with the terms of this
Agreement.

 

 

                6.3      Amendment; Waiver. Any amendment hereto shall be effective
only if signed by all parties hereto. No waiver of any provisions of this
Agreement shall be valid unless in writing and signed by the party against whom
enforcement is sought.

                6.4      Entire Agreement; Counterparts; Applicable Law. This Agreement
shall (a) constitute the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to
the subject matter hereof, (b) may be executed in one or more counterparts,
each of which will be deemed an original and all of which shall constitute one
and the same instrument, and (c) shall be governed in all respects, including
validity, interpretation and effect, by the laws of the State of Delaware
without giving effect to the conflict of law provisions thereof.

                6.5      Assignability. This Agreement shall be binding upon, and shall
be enforceable by and inure to the benefit of, the parties hereto and their
respective heirs, legal representatives, successors and assigns; provided,
however, that this Agreement may not be assigned (except by operation of law)
by any party without the prior written consent of the other parties, and any
attempted assignment without such consent shall be void and of no effect. The
Contributor may designate any other person or entity to receive the Units to be
issued pursuant to this Agreement; provided, however, that upon any such
designation, the designee shall make to the Operating Partnership each of the
representations, warranties and covenants set forth in Section 2.10 hereof.

                6.6      Severability. If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of the void or unenforceable provision
and to execute any amendment, consent or agreement deemed necessary or
desirable by the Operating Partnership to effect such replacement.

                6.7      Equitable Remedies. The parties hereto agree that irreparable
damage would occur if any provision of this Agreement were not performed in
accordance with its specific terms or was otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof in any federal or state court located in the
State of Ohio (as to which the parties agree to submit to jurisdiction for the
purposes of such action), this being in addition to any other remedy to which
they are entitled at law or in equity.

                6.8      Attorneys’ Fees. In connection with any litigation or a court
proceeding arising out of this Agreement, the prevailing party shall be
entitled to recover all costs incurred, including reasonable attorneys’ fees
and legal assistants’ fees and costs whether incurred prior to trial, at trial,
or on appeal.

                6.9      Survival. It is the express intention and agreement of the
parties hereto that the representations, warranties and covenants of the
Contributor set forth in this Agreement shall survive the consummation of the
transactions contemplated hereby.

 

 

IN WITNESS WHEREOF, each of the parties hereto has executed and delivered
this Agreement, or caused the Agreement to be duly executed and delivered on
its behalf, as of the date first set forth above.

THE OPERATING PARTNERSHIP:

Acquiport/Amsdell I Limited Partnership

By: Amsdell Partners, Inc., its general partner

By: /s/ Robert J. Amsdell           

Name: Robert J. Amsdell

Title: President

CONTRIBUTOR:

Amsdell Holdings I, Inc.

By: /s/ Robert J. Amsdell           

Name: Robert J. Amsdell

Title: President

 

 

Exhibit B

CONTRIBUTION UNIT AMOUNT

The “Contribution Unit Amount” shall be equal to the following:

(GPV — AL)

IPO Price

Where:

“GPV” shall mean gross property value, which shall be: $831,000

“AL” shall equal the aggregate amount of the obligations referred to in clause
(1) of Schedule 1 to this Agreement (provided that such amount shall not
exceed, in the aggregate, the amount of the Loan allocable to the Property),
calculated as of the Closing.

“IPO Price” shall equal the issuance price per share of the common shares of
U-Store-It Trust at the IPO.exv10w4

 

Exhibit 10.4

CONTRIBUTION AGREEMENT

(Lakewood Property)

                THIS CONTRIBUTION AGREEMENT (this “Agreement”) is entered into as of July
30, 2004 by and between Acquiport/Amsdell I Limited Partnership (the “Operating
Partnership”) and Amsdell and Amsdell (the “Contributor”).

                WHEREAS, in connection with the initial public offering (the “IPO”) of the
common shares of U-Store-It Trust, a Maryland real estate investment trust
(“USI”), USI, the Operating Partnership and their affiliates will complete a
series of related corporate transactions (collectively with the IPO, the “IPO
Transactions”);

                WHEREAS, in connection with the IPO Transactions, the Contributor desires
to contribute to the Operating Partnership, and the Operating Partnership
desires to acquire, all of Contributor’s right, title and interest in certain
real estate property and related assets, in exchange for Class A units of
limited partnership interest (“Units”) in the Operating Partnership, on the
terms and subject to the conditions set forth herein; and

                WHEREAS, the Operating Partnership has agreed to assume certain
liabilities and obligations in connection with the contribution hereunder,
including certain mortgage indebtness encumbering said property in favor of
Charter One Bank, F.S.B. (the “Mortgage Lender”).

                NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and conditions set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Operating
Partnership and the Contributor agree as follows:

ARTICLE I: CONTRIBUTION OF PROPERTY

                1.1      Contribution of the Property and the Assumed Liabilities.

                (a)      Subject to the terms and conditions hereof, the Contributor shall
contribute or otherwise transfer to the Operating Partnership, and the
Operating Partnership agrees to acquire and accept from the Contributor, at the
Closing (as hereinafter defined), all of the Contributor’s right, title and
interest in and to (i) that certain tract or parcel of land described on
Exhibit A attached hereto and made a part hereof, together with all and
singular the rights and appurtenances pertaining to such property, including
any right, title and interest of Contributor in and to adjacent streets, alleys
or rights-of-way (herein referred to collectively as the “Land”), (ii) the
buildings, structures, fixtures and other improvements on the Land (herein
referred to collectively as the “Improvements”), (iii) the tangible and
intangible personal property owned by the Contributor used or useful in
connection with the Contributor’s businesses being carried out on the Land and
the Improvements (the “Personal Property”), and (iv) each of the following:
(A) each lease and other occupancy agreement for any portion of the Land or the
Improvements (collectively, the “Leases”), including all deposits and escrows
held in connection therewith, (B) each management agreement in effect for all
or any portion of the

 

 

Land and Improvements (the “Management Contracts”), and (C) each other contract
of the Contributor relating to the Property (the “Other Contracts”), in each
case referred to in subsections (A) through (C), to be identified by the
Operating Partnership with the assistance of the Contributor as of the Closing.
All of the foregoing clauses (i) through (iv) above shall collectively shall
be known as the “Property”).

                (b)      Subject to the terms and conditions hereof, at the Closing, the
Operating Partnership shall assume and thereafter pay, honor, discharge and
perform, in accordance with their respective terms, all of the liabilities and
obligations of the Contributor or otherwise relating to the Property identified
on Schedule 1 hereto (the “Assumed Liabilities”).

Without limiting the foregoing, the Contributor and the Operating Partnership
hereby represent, warrant, acknowledge and agree that the Property shall be
conveyed, transferred and assigned by the Contributor, and shall be acquired,
accepted and held by the Operating Partnership, in each case, subject to the
continuation of any and all statutory or common law consensual or nonconsensual
mortgages, pledges, security interests, encumbrances, liens, rights of setoff,
claims or charges of any kind of the Mortgage Lender existing at the time of
the Closing under the Mortgage Loan Documents (as defined in Schedule 1
hereto).

                1.2      Contributor Exchange Amount.

                (a)      Units Delivered at Closing. Subject to the terms and
conditions of this Agreement, in exchange for the contribution of the Property
and for the assumption of the Assumed Liabilities, the Operating Partnership
shall issue to the Contributor, and upon execution and delivery of the Limited
Partner Acceptance (as defined below) by the Contributor, the Contributor shall
receive, at the Closing, a number of Units (rounded to the nearest whole Unit)
equal to the Contribution Unit Amount (as defined on Exhibit B), in a
transaction intended to qualify for nonrecognition of gain to the Contributor
pursuant to Section 721 of the Internal Revenue Code of 1986, as amended (the
“Code”). The rights of holders of the Units as of the Closing will be set
forth in the Second Amended and Restated Agreement of Limited Partnership of
the Operating Partnership, in substantially the form attached hereto as
Exhibit C, with such changes as may be proposed by the Operating
Partnership and not materially adversely affecting the Contributor (the
“Partnership Agreement”). The Contributor acknowledges and agrees that, with
respect to the Property, receipt of the Units in exchange for such Property
shall constitute receipt of the fair value of the Contributor’s interest in
such Property as of the Closing Date.

                (b)      Issuance of Units. At the Closing, the Operating Partnership
shall issue the Units to the Contributor (as determined pursuant to Section
1.2(a) above). The name of the Contributor and the number of Units issued to
the Contributor at the Closing shall be recorded in the books and records of
the Operating Partnership.

                (c)      Admission as a Limited Partner. Upon execution and delivery of
the Limited Partner Acceptance to the Partnership Agreement, attached hereto as
Exhibit D (the “Limited Partner Acceptance”), by the Contributor at the
Closing, and subject to the

 

 

completion of the Closing, the Contributor shall be admitted to the
Operating Partnership as a limited partner of the Operating Partnership and, as
such, shall be subject to, and bound by, the Partnership Agreement, including
the power of attorney granted therein and all the terms and conditions thereof.

ARTICLE II: REPRESENTATIONS, WARRANTIES AND COVENANTS OF CONTRIBUTOR

                As a material inducement to the Operating Partnership to enter into this
Agreement and to consummate the transactions contemplated hereby, the
Contributor hereby makes to the Operating Partnership each of the
representations, warranties and covenants set forth in this Article II. The
representations and warranties set forth in this Article II are true and
correct as of the date hereof.

                2.1      Title to the Property. Contributor owns the Property and,
except as set forth below, at the Closing will own the Property free and clear
of any claim, lien (including tax liens), option, charge, security interest,
mortgage, deed of trust, encumbrance, rights of assignment, purchase rights or
other rights of any nature whatsoever (collectively, “Encumbrances”), and has
or will have at the Closing full power and authority to convey the
Contributor’s interests in the Property, free and clear of any Encumbrances,
upon delivery of a deed of conveyance (and other appropriate instruments of
transfer) by the Contributor relating to the Property and receipt by it of the
consideration for such Property as herein provided, and the Operating
Partnership (or its designee) will acquire good and valid title thereto, free
and clear of any Encumbrance, in each case, except (i) Encumbrances created in
favor of the Operating Partnership by the transactions contemplated hereby,
(ii) Encumbrances listed on Schedule 2 hereto, and (iii) the Assumed
Liabilities (the foregoing clauses (i) through (iii) collectively shall be
known as the “Permitted Encumbrances”).

                2.2      Organization and Standing. Contributor is a corporation duly
organized, validly existing and in good standing under Ohio law, and has the
full and unrestricted corporate power and authority to own, operate its assets,
to carry on its business as currently conducted, to execute and deliver this
Agreement and to carry out the transactions contemplated hereby. The
Contributor is duly qualified to conduct business as a foreign corporation
where necessary and is in good standing in the states in which it is so
qualified.

                2.3      Authority. Contributor has full right, authority, power and
capacity (a) to enter into this Agreement and each agreement, document and
instrument to be executed and delivered by or on behalf of the Contributor
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver all of its interests
in the Property to the Operating Partnership (or its designee) in accordance
with this Agreement. This Agreement and each agreement, document and
instrument executed and delivered by or on behalf of the Contributor pursuant
to this Agreement constitutes, or when executed and delivered will constitute,
the legal, valid and binding obligation of the Contributor, each enforceable in
accordance with its respective terms.

 

 

                2.4      Litigation. There is no litigation or proceeding, either
judicial or administrative, pending or, to Contributor’s knowledge, threatened,
affecting all or any portion of the Property or the Contributor’s ability to
consummate the transactions contemplated hereby. There is no outstanding
order, writ, injunction or decree of any court, government, governmental entity
or authority or arbitration against or affecting all or any portion of the
Property, which in any such case would impair the Contributor’s ability to
enter into and perform all of the Contributor’s obligations under this
Agreement.

                2.5      No Agreements to Sell. Except to the extent contemplated or
referred to herein, Contributor is not currently a party to any agreement to
sell, transfer or otherwise encumber or dispose of the Property.

                2.6      Status as a United States Person. Contributor represents and
warrants that the Contributor is not a foreign person within the meaning of
Section 1445 of the Code (“Section 1445”). Contributor’s U.S. social security
number (in the case of an individual) or U.S. taxpayer identification number
(in the case of an entity) that has previously been provided to the Operating
Partnership is correct. Contributor’s home address (in the case of an
individual) or office address (in the case of an entity) is that most recent
address previously provided to the Operating Partnership. At the time of
Closing, Contributor shall provide to the Operating Partnership a certificate
of non-foreign status substantially in the form provided in Section
1.1445-5(b)(3)(D) of the Treasury regulations.

                2.7      No Insolvency Proceedings. No attachments, execution
proceedings, assignments for the benefit of creditors, insolvency, bankruptcy,
reorganization or other proceedings are pending or, to Contributor’s knowledge,
threatened against the Contributor, nor are any such proceedings contemplated
by the Contributor.

                2.8      No Brokers. Contributor represents that it has not entered
into, and covenants that it will not enter into, any agreement, arrangement or
understanding with any person or firm which will result in the obligation of
the Operating Partnership to pay any finder’s fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby.

                2.9      Conditional Nature of Transaction. Contributor acknowledges
and understands that it is a condition to the Operating Partnership’s
obligations to close the transactions contemplated hereby that the other IPO
Transactions shall have occurred (or are occurring simultaneously with the
Closing), that the occurrence of any of the other IPO Transactions is wholly
within the sole and absolute discretion of the Operating Partnership and its
affiliates, and that the Contributor has no right to require any of the other
IPO Transactions to occur, on any terms.

                2.10      Securities Law Matters; Transfer Restrictions.

                          (a)      Contributor acknowledges that the Operating Partnership intends the
offer and issuance of the Units to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”) and applicable state
securities laws by virtue of (i) the status of the Contributor as an
“accredited investor” within the meaning of the federal securities laws, and
(ii) Regulation D promulgated under Section 4(2) of the Securities Act
(“Regulation D”), and that the Operating Partnership will

 

 

rely in part upon the representations and warranties made by the
Contributor in this Agreement in making the determination that the offer and
issuance of the Units qualify for exemption under Rule 506 of Regulation D as
an offer and sale only to “accredited investors.”

                           (b)      Contributor is an “accredited investor” within the meaning of the
federal securities laws.

                           (c)      Contributor will acquire the Units for his or its own account and not
with a view to, or for sale in connection with, any “distribution” thereof
within the meaning of the Securities Act. Contributor does not intend or
anticipate that the Contributor will rely on this investment as a principal
source of income.

                           (d)      Contributor has sufficient knowledge and experience in financial, tax
and business matters to enable him to evaluate the merits and risks of
investment in the Units. Contributor has the ability to bear the economic risk
of acquiring the Units. Contributor acknowledges that (i) the transactions
contemplated by this Agreement involve complex tax consequences for the
Contributor, and the Contributor is relying solely on the advice of the
Contributor’s own tax advisors in evaluating such consequences, (ii) the
Operating Partnership has not made (nor shall it be deemed to have made) any
representations or warranties as to the tax consequences of such transaction to
the Contributor, and (iii) references in this Agreement to the intended tax
effect of the transactions contemplated hereby shall not be deemed to imply any
representation by Operating Partnership as to a particular tax effect that may
be obtained by the Contributor. The Contributor remains solely responsible for
all tax matters relating to the Contributor.

                           (e)      Contributor has been supplied with, or had access to, information to
which a reasonable investor would attach significance in making an investment
decision to acquire the Units and any other information the Contributor has
requested. The Contributor has had an opportunity to ask questions of, and
receive information and answers from, the Operating Partnership and USI
concerning the Operating Partnership, USI, the Units, the other IPO
Transactions and the Common Shares into which the Units may be redeemed, and to
assess and evaluate any information supplied to the Contributor by the
Operating Partnership or USI, and all such questions have been answered, and
all such information has been provided to the full satisfaction of the
Contributor.

                           (f)      The Contributor acknowledges that the Contributor is aware that there
are substantial restrictions on the transferability of the Units and that the
Units will not be registered under the Securities Act or any state securities
laws, and the Contributor has no right to require that they be so registered.
Contributor agrees that any Units it acquires will not be sold in the absence
of registration unless such sale is exempt from registration under the
Securities Act and applicable state securities laws. Contributor acknowledges
that the Contributor shall be responsible for compliance with all conditions on
transfer imposed by any securities authority and for any expenses incurred by
the Operating Partnership for legal or accounting services in connection with
reviewing such a proposed transfer or issuing opinions in connection therewith.

 

 

                           (g)      Contributor understands that no federal agency (including the
Securities and Exchange Commission) or state agency has made or will make any
finding or determination as to the fairness of an investment in the Units
(including as to the Contribution Unit Amount or the value determined pursuant
to Exhibit B)).

                           (h)      Contributor understands that there is no established public, private
or other market for the Units acquired by the Contributor hereunder and it is
not anticipated that there will be any public, private or other market for such
Units in the foreseeable future.

                           (i)      Contributor understands that Rule 144 promulgated under the Securities
Act is not currently available with respect to the sale of Units.

                2.11       Carrying On in the Ordinary Course of Business. From the date
hereof to the Closing Date, the Contributor shall conduct its business in the
ordinary course in all material respects, except that the Contributor may (a)
take such actions and execute such documents as may be required to effectuate
the IPO Transactions, and (b) effect distributions of cash to its equity
holders.

                2.12      Reliance. Contributor acknowledges that it understands the meaning
and legal consequences of the representations and warranties in this Article
II, and that the Operating Partnership may rely upon such representations and
warranties in determining whether to enter into this Agreement. Contributor
agrees to indemnify, defend and hold harmless the Operating Partnership, USI,
and the officers, partners and affiliates thereof, and any employees or agents
of any of the foregoing, against any and all loss, liability, claim, damage or
expense whatsoever (including, but not limited to, any and all expenses,
including attorneys’ fees, reasonably incurred in investigating, preparing or
defending against any claim or litigation commenced or threatened) due to or
arising out of a breach of any such representations or warranties.

ARTICLE III: CONDITIONS TO CLOSING

                3.1      Conditions to the Operating Partnership’s Obligation to Close.
The obligation of the Operating Partnership to consummate the Closing is
subject to the fulfillment, at or prior to the Closing, of the following
conditions (unless such conditions are waived in writing by the Operating
Partnership):

                           (a)      Other IPO Transactions. The other IPO Transactions, in such
form(s) as the Operating Partnership, in its sole and absolute discretion,
shall have determined to be acceptable, shall have occurred (or are occurring
simultaneously with the Closing).

                           (b)      Representations and Warranties. The representations and
warranties made by the Contributor pursuant to this Agreement shall be true and
correct in all material respects when made, and on and as of the Closing Date,
as though such representations and warranties were made on the Closing Date.

 

 

                           (c)      Performance. The Contributor shall have performed and complied
with all agreements and covenants that the Contributor is required to perform
or comply with pursuant to this Agreement prior to the Closing in all material
respects.

                           (d)      Legal Proceedings. No action or proceeding by or before any
governmental authority shall have been instituted that is reasonably expected
to restrain, prohibit or invalidate the transactions contemplated by this
Agreement, other than an action or proceeding instituted by the Contributor.

                           (e)      Consents and Approvals. All necessary consents of governmental
and private parties to effect the transactions contemplated by this Agreement,
including, without limitation, consents of lenders, shall have been obtained.

                           (f)      Reliance on Regulation D. The Operating Partnership shall,
based on advice of its counsel, be reasonably satisfied that there shall not be
more than 35 “purchasers of securities” (as calculated pursuant to Rule 501 of
Regulation D) at the Closing and that such issuance and the contemplated
distribution of Units to the Contributor may be made without registration under
the Securities Act in reliance upon Regulation D.

                3.2      Conditions to the Contributor’s Obligation to Close. The
obligation of the Contributor to consummate the Closing is subject to the
fulfillment, at or prior to the Closing, of the following conditions (unless
such conditions are waived in writing by the Contributor):

                           (a)      Performance. The Operating Partnership shall have performed
and complied with all agreements and covenants that it is required to perform
or comply with pursuant to this Agreement prior to the Closing in all material
respects.

                           (b)      Legal Proceedings. No action or proceeding by or before any
governmental authority shall have been instituted that is reasonably expected
to restrain, prohibit or invalidate the transactions contemplated by this
Agreement, other than an action or proceeding instituted by the Operating
Partnership; provided, that the foregoing condition shall be deemed to have
been satisfied if the Operating Partnership shall have agreed to fully
indemnify the Contributor from any loss, liability, claim, damage or expense
arising out of the Contributor’s proceeding to close under this Agreement in
the face of any such action or proceeding.

                           (c)      Consents and Approvals. All necessary consents of governmental
and private parties to effect the transactions contemplated by this Agreement,
including, without limitation, consents of lenders, shall have been obtained;
provided, that the foregoing condition shall be deemed to have been satisfied
if the Operating Partnership shall have agreed to fully indemnify the
Contributor from any loss, liability, claim, damage or expense arising out of
the Contributor’s proceeding to close under this Agreement without having
obtained a necessary consent.

                           (d)      Registration Rights Agreement. At or prior to the Closing, USI
shall have entered into a registration rights agreement with the Contributor
providing the Contributor with registration rights that either, at USI’s
option, (i) register the issuance of

 

 

USI common shares received upon redemption of the Units issued pursuant to
this Agreement, or (ii) register the resale of USI common shares issuable upon
redemption of the Units issued pursuant to this Agreement, such registration
rights agreement to contain such other terms and conditions customary for a
transaction of this type (the “Registration Rights Agreement”).

ARTICLE IV: CLOSING

                4.1      Closing. The closing hereunder (the “Closing”) shall occur, at
the election of the Operating Partnership, (i) one business day prior to the
closing of the IPO, (ii) concurrently with the closing of the IPO, or (iii) one
business day following the closing of the IPO, which date the Operating
Partnership shall designate in writing to the Contributor at least five
business day prior to such date, at the same location as the closing of the
IPO, provided that the conditions for the Closing as set forth in Article III
hereof applicable to the transaction with the Contributor shall have occurred
(or have been waived by the party that benefits from such conditions), and this
Agreement shall not have been terminated pursuant to Article V hereof.

                4.2      Closing Deliveries by Contributor. At the Closing, the
Contributor shall execute and deliver to the Operating Partnership the
following:

                           (i)      a duly executed deed of conveyance, substantially in the form attached
hereto as Exhibit E, modified as necessary to conform to local
requirements, pursuant to which the Contributor shall grant and convey to the
Operating Partnership (or its designee) the Contributor’s right, title and
interests in the Land and Improvements, free and clear of Encumbrances, other
than Permitted Encumbrances;

                           (ii)      a duly executed Bill of Sale and Assignment and Assumption Agreement,
substantially in the form attached hereto as Exhibit F (“Assignment
Agreement”), pursuant to which (a) the Contributor shall assign and convey to
the Operating Partnership (or its designee) the Contributor’s right, title and
interests in (i) the Personal Property, the Leases, the Management Contracts
and the Other Contracts, free and clear of Encumbrances, other than the
Permitted Encumbrances, and (b) the Operating Partnership shall assume the
Assumed Liabilities;

                           (iii)      a Limited Partner Acceptance, substantially in the form attached
hereto as Exhibit D, duly executed by the Contributor;

                           (iv)      such documents and certificates as the Operating Partnership may
reasonably request (x) to establish the authority of the parties executing any
documents in connection with the Closing, (y) to reflect the parties’
intentions regarding the transfer of the Property and assumption of the Assumed
Liabilities, or (z) as may be reasonably required by the Operating
Partnership’s title insurer in connection with the issuance of a title
insurance policy for the Property; and

                           (v)      a non-foreign seller certification, substantially in the form attached
hereto as Exhibit G, executed by the Contributor.

 

 

                4.3      Closing Deliveries by The Operating Partnership. At the
Closing, the Operating Partnership shall execute and deliver to the Contributor
the following:

                           (i)      a duly executed Assignment Agreement; and

                           (ii)      a duly executed Registration Rights Agreement.

ARTICLE V: TERMINATION

                5.1      Termination by the Operating Partnership. The Operating
Partnership shall have the right to terminate this Agreement at any time
following the occurrence of any of the following events:

                           (i)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the IPO Transactions;

                           (ii)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the transfer of the Property on the
terms outlined herein;

                           (iii)      the determination that any representation or warranty of the
Contributor contained herein is no longer true or correct, and that such
representation or warranty cannot reasonably be expected to be true and correct
at the Closing; or

                           (iv)      at any time on or after February 15, 2005, for any reason.

                5.2      Termination by Contributor. The Contributor shall have the
right to terminate this Agreement at any time on or after February 15, 2005,
for any reason.

                5.3       Effect of Termination. Upon the termination of this Agreement
as to the Contributor pursuant to Section 5.1 or 5.2 hereof, neither the
Operating Partnership nor the Contributor shall have any liability to the other
in connection with the transactions contemplated hereby, or as a result of the
termination of this Agreement; provided, that the foregoing shall not relieve
the Operating Partnership or the Contributor of any liability as a result of a
breach of any of the terms of this Agreement.

ARTICLE VI: MISCELLANEOUS

                6.1      Closing Expenses and Transfer Taxes. Except as otherwise
specifically set forth in this Agreement, (a) the cost of the base title
policy, endorsements, reinsurance or coinsurance, all recording costs, all
escrow costs and other costs incurred in connection with the transactions
contemplated by this Agreement shall be paid by the Operating Partnership, and
(b) any and all transfer taxes and documentary stamp taxes incurred in
connection with the contribution of the Property shall be paid by the Operating
Partnership.

                6.2      Further Assurances. The Contributor shall execute and deliver
to the Operating Partnership all such other and further instruments and
documents and take or cause to be taken all such other and further actions as
the Operating Partnership may

 

 

reasonably request in order to effect the transactions contemplated by
this Agreement, including instruments or documents deemed necessary or
desirable by the Operating Partnership to effect and evidence the conveyance of
the Property in accordance with the terms of this Agreement.

                6.3      Amendment; Waiver. Any amendment hereto shall be effective
only if signed by all parties hereto. No waiver of any provisions of this
Agreement shall be valid unless in writing and signed by the party against whom
enforcement is sought.

                6.4      Entire Agreement; Counterparts; Applicable Law. This Agreement
shall (a) constitute the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to
the subject matter hereof, (b) may be executed in one or more counterparts,
each of which will be deemed an original and all of which shall constitute one
and the same instrument, and (c) shall be governed in all respects, including
validity, interpretation and effect, by the laws of the State of Delaware
without giving effect to the conflict of law provisions thereof.

                6.5      Assignability. This Agreement shall be binding upon, and shall
be enforceable by and inure to the benefit of, the parties hereto and their
respective heirs, legal representatives, successors and assigns; provided,
however, that this Agreement may not be assigned (except by operation of law)
by any party without the prior written consent of the other parties, and any
attempted assignment without such consent shall be void and of no effect. The
Contributor may designate any other person or entity to receive the Units to be
issued pursuant to this Agreement; provided, however, that upon any such
designation, the designee shall make to the Operating Partnership each of the
representations, warranties and covenants set forth in Section 2.10 hereof.

                6.6      Severability. If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of the void or unenforceable provision
and to execute any amendment, consent or agreement deemed necessary or
desirable by the Operating Partnership to effect such replacement.

                6.7      Equitable Remedies. The parties hereto agree that irreparable
damage would occur if any provision of this Agreement were not performed in
accordance with its specific terms or was otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof in any federal or state court located in the
State of Ohio (as to which the parties agree to submit to jurisdiction for the
purposes of such action), this being in addition to any other remedy to which
they are entitled at law or in equity.

                6.8      Attorneys’ Fees. In connection with any litigation or a court
proceeding arising out of this Agreement, the prevailing party shall be
entitled to recover

 

 

all costs incurred, including reasonable attorneys’ fees and legal
assistants’ fees and costs whether incurred prior to trial, at trial, or on
appeal.

                6.9      Survival. It is the express intention and agreement of the
parties hereto that the representations, warranties and covenants of the
Contributor set forth in this Agreement shall survive the consummation of the
transactions contemplated hereby.

 

 

IN WITNESS WHEREOF, each of the parties hereto has executed and delivered
this Agreement, or caused the Agreement to be duly executed and delivered on
its behalf, as of the date first set forth above.

THE OPERATING PARTNERSHIP:

Acquiport/Amsdell I Limited Partnership

By: Amsdell Partners, Inc., its general partner

By: /s/ Robert J. Amsdell 

Name: Robert J. Amsdell

Title: President

CONTRIBUTOR:

Amsdell and Amsdell

By: /s/ Robert J. Amsdell 

Name: Robert J. Amsdell

Title: General Partner

 

 

Exhibit B

CONTRIBUTION UNIT AMOUNT

The “Contribution Unit Amount” shall be equal to the following:

(GPV — AL)

IPO Price

Where:

“GPV” shall mean gross property value, which shall be: $4,990,000

“AL” shall equal the aggregate amount of the obligations referred to in clause
(1) of Schedule 1 to this Agreement, calculated as of the Closing.

“IPO Price” shall equal the issuance price per share of the common shares of
U-Store-It Trust at the IPO.

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