Document:

Registration Rights Agreement

 Exhibit 10.1 
  
 REGISTRATION RIGHTS AGREEMENT 
  

BY AND AMONG 
  
 EXTRA SPACE STORAGE INC. 
  
 AND 
  
 CERTAIN PERSONS

  
 LISTED ON SCHEDULE 1 HERETO 
  
 dated as of 
  
 August [    ], 2004 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 SECTION 1.
	  	DEFINITIONS	  	1
			
	 SECTION 2.
	  	SHELF REGISTRATIONS	  	3
			
	 SECTION 3.
	  	BLACK-OUT PERIODS	  	4
			
	 SECTION 4.
	  	REGISTRATION PROCEDURES	  	4
			
	 SECTION 5.
	  	INDEMNIFICATION	  	7
			
	 SECTION 6.
	  	MARKET STAND-OFF AGREEMENT.	  	9
			
	 SECTION 7.
	  	COVENANTS RELATING TO RULE 144	  	9
			
	 SECTION 8.
	  	MISCELLANEOUS	  	10

  

 -i- 

 REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of August
    , 2004, is made and entered into by and among Extra Space Storage Inc., a Maryland corporation (the “Company”), and certain persons listed on Schedule 1 hereto (such persons, in their
capacity as holders of Registrable Securities, the “Holders” and each the “Holder”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in Section 1 hereto.

  
 WITNESSETH: 
  
 WHEREAS, the Company and certain members of Extra Space Storage LLC, a
Delaware limited liability company (“ESS LLC”), listed under paragraph (a) of Schedule 1 hereto (the “Members”) in connection with the initial public offering of the Company have entered into an
Exchange and Subscription Agreement, dated as of August     , 2004, pursuant to which such Members subscribed for (i) shares of common stock, par value $.01 per share, of the Company (such subscribed shares in the
aggregate, the “Common Shares”), and (ii) contingent conversion shares, par value $.01 per share, of the Company (such subscribed shares in the aggregate, the “CC Shares”) and pursuant to which the
Company agreed that the Company shall issue to the Members the Common Shares and the CC Shares; and 
  
 WHEREAS, Extra Space Storage LP, a Delaware limited partnership (“ESS OP”), and certain persons listed under paragraph (b) of
Schedule 1 hereto in connection with the initial public offering of the Company have entered into certain contribution agreements, pursuant to which such persons contributed their membership interests in, and other rights with respect to, ESS
LLC and certain subsidiaries and joint ventures of ESS LLC in exchange for (i) operating partnership units of ESS OP exchangeable, under certain circumstances, into the Common Shares on a one-for-one basis (such exchanged units in the aggregate, the
“OP Units”) and (ii) contingent conversion units of ESS OP (such exchanged units in the aggregate, the “CC Units”); and 
  
 WHEREAS, the Company desires to enter into this Agreement with the Holders in order to grant the Holders the registration
rights contained herein. 
  
 NOW, THEREFORE, in consideration of
the premises and the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 Section 1. Definitions. As used in this Agreement, the following
terms shall have the following meanings: 
  
 “Affiliate” shall mean, when used with reference to a specified Person, (i) any Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the
specified Person; (ii) any Person who, from time to time, is a member of the Immediate Family of a specified Person; (iii) any Person who, from time to time, is an officer or director or manager of a specified Person; or (iv) any Person who,
directly or indirectly, is the beneficial owner of 50% or more of any class of equity securities or other ownership interests of the specified Person, or of which the specified Person is directly or indirectly the owner of 50% or more of any class
of equity securities or other ownership interests. 

 “Agreement” shall mean this Registration Rights Agreement as originally executed
and as amended, supplemented or restated from time to time. 
  
 “Board” shall mean the Board of Directors of the Company. 
  
 “Business Day” shall mean each day other than a Saturday, a Sunday or any other day on which banking institutions in the State of New York are authorized or obligated by law or executive order
to be closed. 
  
 “Common Shares” shall
have the meaning set forth in the Recitals hereof. 
  
 “OP Units” shall have the meaning set forth in the Recitals hereof. 
  
 “CC Shares” shall have the meaning set forth in the Recitals hereof. 
  
 “CC Units” shall have the meaning set forth in the Recitals hereof. 
  
 “Commission” shall mean the Securities and Exchange
Commission and any successor thereto. 
  
 “Company” shall have the meaning set forth in the introductory paragraph hereof. 
  
 “Control” (including the terms “Controlling,” “Controlled by” and
“under common Control with”) shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person through the ownership of Voting Power, by contract or
otherwise. 
  
 “ESS LLC” shall have the
meaning set forth in the introductory paragraph hereof. 
  
 “ESS OP” shall have the meaning set forth in the Recitals hereof. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any corresponding provision of succeeding law) and
the rules and regulations thereunder. 
  
 “Holder” shall mean each holder of the Common Shares, CC Shares, OP Units and/or CC Units, listed in Schedule 1 hereto, in his, her or its capacity as a holder of Registrable Securities. For purposes of this
Agreement, the Company may deem and treat the registered holder of a Registrable Security as the Holder and absolute owner thereof, unless notified to the contrary in writing by the registered Holder thereof. 
  
 “IPO” means an underwritten initial public offering
by the Company of the Common Shares pursuant to an effective registration statement filed with the Commission under the Securities Act, or any comparable document under any similar federal statute then in force. 
  
 “Market Value” shall mean, as of any date, the
average closing price of the Registrable Securities on the principal national securities exchange or national quotation system in which the Registrable Securities are admitted for trading or quotation over the ten trading days preceding such date,
or if closing prices are not available, the average of the averages of the closing bid and asked prices over such period on such exchange or system. 
  
 “Members” shall have the meaning set forth in the Recitals hereof. 
  
 “Person” shall mean any individual, partnership, corporation, limited liability company, joint
venture, association, trust, unincorporated organization or other governmental or legal entity. 
  

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 “Public Offering” shall mean any offering of Registrable Securities to the public
pursuant to an effective registration statement filed with the Commission under the Securities Act, or any comparable document under any similar federal statute then in force. 
  
 “Registrable Securities” shall mean at any time a class of equity securities of the Company or of a
successor to the entire business of the Company which (i) are (A) the Common Shares and (B) the Common Shares that may be acquired by the Holders in connection with the exercise by such Holders of the exchange rights associated with the CC Shares
and OP Units and (ii) are of a class of securities that are listed for trading on a national securities exchange; provided, however, such Registrable Securities shall cease to be Registrable Securities when (A) a registration statement
with respect to the sale of such Registrable Securities shall have become effective under the Securities Act and all such Registrable Securities shall have been disposed of in accordance with such registration statement, (B) such Registrable
Securities shall have been sold in accordance with Rule 144 (or any successor provision) under the Securities Act, (C) such Registrable Securities become eligible to be publicly sold without limitation as to amount or manner of sale pursuant to Rule
144(k) (or any successor provision) under the Securities Act, or (D) such Registrable Securities have ceased to be outstanding. 
  
 “Registration Expenses” shall mean (i) the fees and disbursements of counsel and independent public accountants for the Company
incurred in connection with the Company’s performance of or compliance with this Agreement, including the expenses of any special audits or “comfort” letters required by or incident to such performance and compliance, and any premiums
and other costs of policies of insurance obtained by the Company against liabilities arising out of the sale of any securities and (ii) all registration, filing and stock exchange fees, all fees and expenses of complying with securities or
“blue sky” laws, all fees and expenses of custodians, transfer agents and registrars, all printing expenses, messenger and delivery expenses and any fees and disbursements of one common counsel retained by a majority of the Registrable
Securities; provided, however, “Registration Expenses” shall not include any out-of-pocket expenses of the Holders, transfer taxes, underwriting or brokerage commissions or discounts associated with effecting any sales
of Registrable Securities that may be offered, which expenses shall be borne by each Holder of Registrable Securities on a pro rata basis with respect to the Registrable Securities so sold. 
  
 “Securities Act” shall mean the Securities Act of
1933, as amended (or any successor corresponding provision of succeeding law), and the rules and regulations thereunder. 
  
 “Shelf Registration Statement” shall have the meaning set forth in Section 2(a) hereof. 
  
 “Stand-Off Period” shall have the meaning set forth
in Section 6 hereof. 
  
 “Voting
Power” shall mean voting securities or other voting interests ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of board members or Persons performing substantially
equivalent tasks and responsibilities with respect to a particular entity. 
  
 Section 2. Shelf Registrations. 
  
 a. Shelf Registration. The Company agrees to use commerically reasonable efforts to file with the Commission no later than 14 months following the completion of the IPO and during a period of time that the issuer of the Registrable
Securities is eligible to use Form S-3 (or any similar or successor form), a registration statement under the Securities Act on Form S-3 (or any similar or successor form) for the offering on a continuous or delayed basis in the future covering
resales of the Registrable Securities (the “Shelf Registration Statement”), and will use commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as

  

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 practicable thereafter. The Shelf Registration Statement shall be on an appropriate form and the registration statement
and any form of prospectus included therein (or prospectus supplement relating thereto) shall reflect the plan of distribution or method of sale as the Holders may from time to time notify the Company. 
  
 b. Effectiveness. The Company shall use commercially reasonable
efforts to keep the Shelf Registration Statement continuously effective for the period beginning on the date on which the Shelf Registration Statement is declared effective and ending on the date that all of the Registrable Securities registered
under the Shelf Registration Statement cease to be Registrable Securities. During the period that the Shelf Registration Statement is effective, the Company shall supplement or make amendments to the Shelf Registration Statement, if required by the
Securities Act or if reasonably requested by the Holders (whether or not required by the form on which the securities are being registered), including to reflect any specific plan of distribution or method of sale, and shall use its commercially
reasonable efforts to have such supplements and amendments declared effective, if required, as soon as practicable after filing. 
  
 Section 3. Black-Out Periods. 
  
 Notwithstanding anything herein to the contrary, the Company shall have the right, exercisable from time to time by delivery of a notice authorized by the
Board, on not more than two occasions in any 12-month period, to require the Holders not to sell pursuant to a registration statement or similar document under the Securities Act filed pursuant to Section 2 or to suspend the effectiveness
thereof if at the time of the delivery of such notice, the Board has considered a plan to engage no later than 60 days following the date of such notice in a firm commitment underwritten public offering or if the Board has reasonably and in good
faith determined that such registration and offering, continued effectiveness or sale would materially interfere with any material transaction involving the Company; provided, however, that in no event shall the black-out period extend
for more than 60 days on any such occasion. The Company, as soon as practicable, shall (i) give the Holders prompt written notice in the event that the Company has suspended sales of Registrable Securities pursuant to this Section 3, (ii)
give the Holders prompt written notice of the completion of such offering or material transaction and (iii) promptly file any amendment necessary for any registration statement or prospectus of the Holders in connection with the completion of such
event. 
  
 Each Holder agrees by acquisition of the Registrable
Securities that upon receipt of any notice from the Company of the happening of any event of the kind described in this Section 3, such Holder will forthwith discontinue its disposition of Registrable Securities pursuant to the registration
statement relating to such Registrable Securities until such Holder’s receipt of the notice of completion of such event. 
  
 
Section 4. Registration Procedures. 
  
 a. In connection with the filing of any registration statement as provided in this Agreement, the Company shall use commercially reasonable efforts to, as expeditiously as reasonably practicable: 
  
 (i) prepare and file with the Commission the requisite
registration statement (including a prospectus therein and any supplement thereto) to effect such registration and use its commercially reasonable efforts to cause such registration statement to become effective; provided, however,
that before filing such registration statement or any amendments or supplements thereto, the Company will furnish copies of all such documents proposed to be filed to counsel for the sellers of Registrable Securities covered by such registration
statement and provide reasonable time for such sellers and their counsel to comment upon such documents if so requested by a Holder; 
  

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 (ii) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration and to comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by such registration statement during the period in which such registration statement is required to be kept effective; 
  
 (iii) furnish to each Holder of the securities being registered, without charge, such number of conformed copies of such registration
statement and of each such amendment and supplement thereto (in each case including all exhibits) other than those which are being incorporated into such registration statement by reference, such number of copies of the prospectus contained in such
registration statements (including each complete prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act in conformity with the requirements of the Securities Act, and such other documents,
including documents incorporated by reference, as the Holders may reasonably request; 
  
 (iv) register or qualify all Registrable Securities under such other securities or “blue sky” laws of such jurisdictions as the
Holders and the underwriters of the securities being registered, if any, shall reasonably request, to keep such registration or qualification in effect for so long as such registration statement remains in effect, and take any other action which may
be reasonably necessary or advisable to enable the Holders to consummate the disposition in such jurisdiction of the securities owned by the Holders, except that the Company shall not for any such purpose be required to qualify generally to do
business as a foreign company or to register as a broker or dealer in any jurisdiction where it would not otherwise be required to qualify but for this Section 4(a)(iv), or to consent to general service of process in any such jurisdiction, or to be
subject to any material tax obligation in any such jurisdiction where it is not then so subject; 
  
 (v) immediately notify the Holders at any time when the Company becomes aware that a prospectus relating thereto is required to be
delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and, at the request of the Holders, promptly prepare and furnish to the Holders a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made; 
  
 (vi) comply or continue to comply in all material respects with the Securities Act and the Exchange Act and
with all applicable rules and regulations of the Commission thereunder so as to enable any Holder to sell its Registrable Securities pursuant to Rule 144 promulgated under the Securities Act, as further agreed to in Section 6 hereof;

  
 (vii) make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of at least 12 months, but not more than 18 months, beginning with the first calendar month after the effective date of such registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act; 
  

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 (viii) provide a transfer agent and registrar for all Registrable Securities covered by
such registration statement not later than the effective date of such registration statement; 
  
 (ix) cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to
be sold and not bearing any Securities Act legend; and enable certificates for such Registrable Securities to be issued for such number of shares and registered in such names as the Holders may reasonably request in writing at least two Business
Days prior to any sale of Registrable Securities; 
  
 (x) list all Registrable Securities covered by such registration statement on any securities exchange or national quotation system on which any such class of securities is then listed or quoted and cause to be satisfied all requirements and
conditions of such securities exchange or national quotation system to the listing or quoting of such securities that are reasonably within the control of the Company including, without limitation, registering the applicable class of Registrable
Securities under the Exchange Act, if appropriate, and using commercially reasonable efforts to cause such registration to become effective pursuant to the rules of the Commission; 
  
 (xi) in connection with any sale, transfer or other disposition by any Holder of any Registrable Securities
pursuant to Rule 144 promulgated under the Securities Act, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold and not bearing any Securities Act legend, and
enable certificates for such Registrable Securities to be for such number of shares and registered in such name as the Holders may reasonably request in writing at least three Business Days prior to any sale of Registrable Securities; 
  
 (xii) notify each Holder, promptly after it shall receive
notice thereof, of the time when such registration statement, or any post-effective amendments to the registration statement, shall have become effective, or a supplement to any prospectus forming part of such registration statement has been filed
or when any document is filed with the Commission which would be incorporated by reference into the prospectus; 
  
 (xiii) notify each Holder of any request by the Commission for the amendment or supplement of such registration statement or prospectus
for additional information; and 
  
 (xiv) advise
each Holder, promptly after it shall receive notice or obtain knowledge thereof, of (A) the issuance of any stop order, injunction or other order or requirement by the Commission suspending the effectiveness of such registration statement or the
initiation or threatening of any proceeding for such purpose and use all commercially reasonable efforts to prevent the issuance of any stop order, injunction or other order or requirement or to obtain its withdrawal if such stop order, injunction
or other order or requirement should be issued, (B) the suspension of the registration of the subject shares of the Registrable Securities in any state jurisdiction and (C) the removal of any such stop order, injunction or other order or requirement
or proceeding or the lifting of any such suspension. 
  
 b. In
connection with the filing of any registration statement covering Registrable Securities, each Holder shall furnish in writing to the Company such information regarding such Holder (and any of its Affiliates), the Registrable Securities to be sold,
the intended method of distribution of such Registrable Securities and such other information requested by the Company as is necessary or advisable for inclusion in the registration statement relating to such offering pursuant to the Securities

  

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 Act. Such writing shall expressly state that it is being furnished to the Company for use in the preparation of a
registration statement, preliminary prospectus, supplementary prospectus, final prospectus or amendment or supplement thereto, as the case may be. 
  
 Each Holder agrees by acquisition of the Registrable Securities that (i) upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 4(a)(v), such Holder will forthwith discontinue its disposition of Registrable Securities pursuant to the registration statement relating to such Registrable Securities until such Holder’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 4(a)(v); (ii) upon receipt of any notice from the Company of the happening of any event of the kind described in clause (A) of Section 4(a)(xiv), such Holder will
discontinue its disposition of Registrable Securities pursuant to such registration statement until such Holder’s receipt of the notice described in clause (C) of Section 4(a)(xiv); and (iii) upon receipt of any notice from the Company
of the happening of any event of the kind described in clause (B) of Section 4(a)(xiv), such Holder will discontinue its disposition of Registrable Securities pursuant to such registration statement in the applicable state jurisdiction(s) until such
Holder’s receipt of the notice described in clause (C) of Section 4(a)(xiv). 
  
 Section 5. Indemnification. 
  
 a. Indemnification by the Company. The Company agrees to indemnify and hold harmless each Holder, its partners, officers, directors, trustees, stockholders, employees, agents and investment advisers, and each Person, if any, who
controls such Holder within the meaning of the Securities Act or the Exchange Act, together with the partners, officers, directors, trustees, stockholders, employees, agents and investment advisers of such controlling person, against any losses,
claims, damages, and expenses (including, without limitation, reasonable attorneys’ fees), joint or several, to which the Holders or any such indemnitees may become subject under the Securities Act or otherwise, insofar as such losses, claims,
damages, liabilities and expenses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration
statement under which such Registrable Securities were registered and sold under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or arising out of or
based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or any violation of the
Securities Act or state securities laws or rules thereunder by the Company relating to any action or inaction by the Company in connection with such registration, and the Company will reimburse each Holder for any reasonable legal or any other
expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, liability, action or proceedings; provided, however, that the Company shall not be liable in any such case to the extent that any
such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement or alleged statement or omission or alleged omission made in such registration statement, any such
preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company by any Holder specifically stating that it is for use in the preparation
thereof; and provided, further, that the Company shall not be liable to the Holders or any other Person who controls such Holder within the meaning of the Securities Act or the Exchange Act in any such case to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of such Person’s failure to send or give a copy of the final prospectus or supplement to the Persons asserting an untrue statement or alleged
untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such final prospectus or supplement. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of the Holders or any such controlling Person and shall survive the transfer of such securities by the Holders. 
  

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 b. Indemnification by the Holders. Each Holder agrees to indemnify and hold harmless (in the same
manner and to the same extent as set forth in Section 5(a)) the Company, each member of the Board, each officer, employee, agent and investment adviser of the Company and each other Person, if any, who controls any of the foregoing within the
meaning of the Securities Act or the Exchange Act, with respect to any untrue statement or alleged untrue statement of a material fact in or omission or alleged omission to state a material fact from such registration statement, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, if such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company by such Holder regarding such Holder giving such indemnification specifically stating that it is for use in the preparation of such registration statement, preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any such Board member, officer, employee, agent, investment adviser or
controlling Person and shall survive the transfer of such securities by any Holder. The obligation of a Holder to indemnify will be several and not joint, among the Holders of Registrable Securities and the liability of each such Holder of
Registrable Securities will be in proportion to and limited in all events to the net amount received by such Holder from the sale of Registrable Securities pursuant to such registration statement. 
  
 c. Notices of Claims, etc. Promptly after receipt by an indemnified
party of notice of the commencement of any action or proceeding involving a claim referred to in the preceding paragraphs of this Section 5, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to the latter of the commencement of such action; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 5, except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, unless in such
indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, the indemnifying party shall be entitled to assume the defense thereof, for itself, if
applicable, together with any other indemnified party similarly notified, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to the
indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof. 
  
 d. Indemnification Payments. To the extent that the indemnifying party does not assume the defense of an action brought against the indemnified
party as provided in Section 5(c), the indemnified party (or parties if there is more than one) shall be entitled to the reasonable legal expenses of common counsel for the indemnified party (or parties). In such event, however, the
indemnifying party will not be liable for any settlement effected without the written consent of such indemnifying party, which consent shall not be unreasonably withheld. The indemnification required by this Section 5 shall be made by
periodic payments of the amount thereof during the course of an investigation or defense, as and when bills are received or expense, loss, damage or liability is incurred. The indemnifying party shall not settle any claim without the consent of the
indemnified party unless such settlement involves a complete release of such indemnified party without any admission of liability by the indemnified party. 
  
 e. Contribution. If, for any reason, the foregoing indemnity is unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of the expense, loss, damage or liability, (i) in 
  

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 such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the
indemnified party on the other (determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission) or (ii) if the allocation provided by subclause (i) above is not permitted by applicable law or provides a
lesser sum to the indemnified party than the amount hereinafter calculated, in the proportion as is appropriate to reflect not only the relative fault of the indemnifying party and the indemnified party, but also the relative benefits received by
the indemnifying party on the one hand and the indemnified party on the other, as well as any other relevant equitable considerations. No indemnified party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any indemnifying party who was not guilty of such fraudulent misrepresentation, and the liability for contribution of each Holder of Registrable Securities will be in proportion to and limited in all
events to the net amount received by such Holder from the sale of Registrable Securities pursuant to such registration statement. 
  
 Section 6. Market Stand-Off Agreement. Each Holder hereby agrees that it shall not, to the extent requested by the Company or an underwriter of
securities of the Company, directly or indirectly sell, offer to sell (including without limitation any short sale), grant any option or otherwise transfer or dispose of any Registrable Securities (other than to donees or partners of the Holder who
agree to be similarly bound) within seven days prior to and for up to 90 days following the effective date of a registration statement of the Company filed under the Securities Act or the date of an underwriting agreement with respect to an
underwritten public offering of the Company’s securities (the “Stand-Off Period”); provided, however, that: 
  
 a. with respect to the Stand-Off Period, such agreement shall not be applicable to the Registrable Securities to be sold on the Holder’s behalf to
the public in an underwritten offering pursuant to such registration statement; 
  
 b. all executive officers and directors of the Company then holding Common Stock of the Company shall enter into similar agreements; 
  
 c. the Company shall use commercially reasonable efforts to obtain similar agreements from each 5% or greater shareholder of
the Company; and 
  
 d. the Holders shall be allowed any
concession or proportionate release allowed to any (i) officer, (ii) director or (iii) other 5% or greater shareholder of the Company that entered into similar agreements. 
  
 In order to enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the
certificates representing the Registrable Securities subject to this Section 6 and to impose stop transfer instructions with respect to the Registrable Securities and such other Common Shares of each Holder (and the Common Shares or securities of
every other person subject to the foregoing restriction) until the end of such period. 
  
 Section 7. Covenants Relating To Rule 144. At such times as the Company becomes obligated to file reports in compliance with either Section 13 or 15(d) of the Exchange Act, the Company covenants that it will
file any reports required to be filed by it under the Securities Act and the Exchange Act and that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable Holders to sell
Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such rule 
  

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 may be amended from time to time or (b) any similar rule or regulation hereafter adopted by the Commission. Upon the
request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements. 
  
 Section 8. Miscellaneous. 
  
 a. Termination; Survival. The rights of each Holder under this Agreement shall terminate upon the date that all of the Registrable Securities held
by such Holder may be sold during any three-month period in a single transaction or series of transactions without volume limitations under Rule 144 (or any successor provision) under the Securities Act. Notwithstanding the foregoing, the
obligations of the parties under Section 5 and paragraphs (d), (e) and (g) of this Section 8 shall survive the termination of this Agreement. 
  
 b. Expenses. All Registration Expenses incurred in connection with any Shelf Registration under Section 2 shall be borne by the Company,
whether or not any registration statement related thereto becomes effective. 
  
 c. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been
signed by each of the parties and delivered to each of the other parties. 
  
 d. Applicable Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. The parties consent to the exclusive jurisdiction of the United States
District Court for the Southern District of New York in connection with any civil action concerning any controversy, dispute or claim arising out of or relating to this Agreement, or any other agreement contemplated by, or otherwise with respect to,
this Agreement or the breach hereof, unless such court would not have subject matter jurisdiction thereof, in which event the parties consent to the jurisdiction of the State of New York. The parties hereby waive and agree not to assert in any
litigation concerning this Agreement the doctrine of forum non conveniens. 
  
 e. Waiver Of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. 

 
 f. Prior Agreement; Construction; Entire Agreement. This Agreement,
including the exhibits and other documents referred to herein (which form a part hereof), constitutes the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings between the
parties, and all such prior agreements and understandings are merged herein and shall not survive the execution and delivery hereof. 
  
 g. Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or
sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service or be telecopier and shall be deemed given when so delivered by hand or, if mailed, three days after mailing (one Business Day in the case of
express mail or overnight courier service), addressed as follows: 
  

			
	 If to the Holder:
	 	To the address indicated for such Holder in Schedule 1 hereto.

  

 10 

			
	 If to the Company:
	 	 Extra Space Storage Inc.
 2795 E. Cottonwood Parkway, #400
 Salt Lake City, Utah 84121
 Attention: Charles Allen, Esq.
 Facsimile: 801-562-5579

		
	 	 	 with a copy to:
  

Clifford Chance US LLP
 31 West 52nd Street
 New York, New York 10019
 Attention: Jay L. Bernstein
 Facsimile: 212-878-8375

  
 h. Successors and
Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may assign its rights or obligations hereunder to
any successor to the Company’s business or with the prior written consent of Holders of a majority of the then outstanding Registrable Securities. Notwithstanding the foregoing, no assignee of the Company shall have any of the rights granted
under this Agreement until such assignee shall acknowledge its rights and obligations hereunder by a signed written agreement pursuant to which such assignee accepts such rights and obligations. 
  
 i. Headings. Headings are included solely for convenience of reference
and if there is any conflict between headings and the text of this Agreement, the text shall control. 
  
 j. Amendments And Waivers. The provisions of this Agreement may be amended or waived at any time only by the written agreement of the Company and
the Holders of a majority of the Registrable Securities; provided, however, that the provisions of this Agreement may not be amended or waived without the consent of the Holders of all the Registrable Securities adversely affected by
such amendment or waiver if such amendment or waiver adversely affects a portion of the Registrable Securities but does not so adversely affect all of the Registrable Securities; provided, further, that the provisions of the preceding
provision may not be amended or waived except in accordance with this sentence. Any waiver, permit, consent or approval of any kind or character on the part of any such Holders of any provision or condition of this Agreement must be made in writing
and shall be effective only to the extent specifically set forth in writing. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder of Registrable Securities and the Company. 
  
 k. Interpretation; Absence Of Presumption. For the purposes hereof,
(i) words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,” “herein,” and “herewith”
and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, paragraph or other references are to the Sections, paragraphs, or
other references to this Agreement unless otherwise specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires
or unless otherwise specified, (iv) the word “or” shall not be exclusive and (v) provisions shall apply, when appropriate, to successive events and transactions. 
  
 This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against
the party drafting or causing any instruments to be drafted. 
  

 12 

 l. Severability. If any provision of this Agreement shall be or shall be held or deemed by a final
order by a competent authority to be invalid, inoperative or unenforceable, such circumstance shall not have the effect of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable, but this Agreement shall
be construed as if such invalid, inoperative or unenforceable provision had never been contained herein so as to give full force and effect to the remaining such terms and provisions. 
  
 m. Specific Performance; Other Rights. The parties recognize that various other rights rendered under this Agreement
are unique and, accordingly, the parties shall, in addition to such other remedies as may be available to them at law or in equity, have the right to enforce the rights under this Agreement by actions for injunctive relief and specific performance.

  
 n. Further Assurances. In connection with this
Agreement, as well as all transactions and covenants contemplated by this Agreement, each party hereto agrees to execute and deliver or cause to be executed and delivered such additional documents and instruments and to perform or cause to be
performed such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions and covenants contemplated by this Agreement. 

 
 o. No Waiver. The waiver of any breach of any term or condition of
this Agreement shall not operate as a waiver of any other breach of such term or condition or of any other term or condition, nor shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision
hereof. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 12 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first
written above. 
  

			
	 EXTRA SPACE STORAGE INC.,
 a Maryland corporation

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	HOLDERS:
	
	 
	 Robert J. Agneta

	
	 
	 Dean A. Anderson

	
	 
	 Brooke Bentley

	
	 
	 Mary Bibry

	
	 
	 Andrea Bloom

	
	 
	 Robin Boswell

  

			
		
	 	 	 
	
	 
	 Teresa Lynn Buoncuore

	
	 
	 Robert L. Burns

	
	 
	 Freddy Casiano

	
	 
	 Jared Conley

	
	 
	 Monty J. Conrad

	
	 
	 Zachary T. Dickens

	
	 
	 Alexis Rebecca DiSabato

	
	 
	 Alex Engel

			
		
	 	 	 
	
	 
	 John Englar

	
	 
	 Kurt D. Erickson

	
	 
	 Sheri D. Fleischman

	
	 
	 Robin G. Glaser

	
	 
	 Curtis Graf

	
	 
	 David Grant

	
	 
	 James Hafen

	
	 
	 Jeffrey Hansen

	
	 
	 Russell Brent Hardy

			
		
	 	 	 
	
	 
	 Dayna Hathaway

	
	 
	 Garrett Holbrook

	
	 
	 Joseph F. Hood

	
	 
	 Scott J. Horsely

	
	 
	 Michael L. James

	
	 
	 Jamie Jensen

	
	 
	 Zelma Elizabeth Jensen

	
	 
	 Susan M. Kempton

			
		
	 	 	 
	
	 
	 Tiffany Knutson

	
	 
	 Todd A. Lucas

	
	 
	 Diane Manning

	
	 
	 Nicole Mardian

	
	 
	 Benjamin O. Markley

	
	 
	 Shelley Marie Matson

	
	 
	 Scott M. McIntosh

	
	 
	 Steven Mikal McKinnon

			
		
	 	 	 
	
	 
	 Michelle G. Mulick

	
	 
	 Melissa Nielsen

	
	 
	 Gayann Norton

	
	 
	 Paula M. Oliver

	
	 
	 Tricia Rakes

	
	 
	 Kerri L. Ramseyer

	
	 
	 Dennis M. Richardson

	
	 
	 Sandra Romero

	
	 
	 Brian G. Sheppard

			
		
	 	 	 
	
	 
	 Michael St. Clair

	
	 
	 James M. Stevens

	
	 
	 Peter Scott Stubbs

	
	 
	 Richard S. Tanner

	
	 
	 Gerald Valle

	
	 
	 David A. Vivancos

	
	 
	 Linda Webb

	
	 
	 Karl Wenger

			
		
	 	 	 
	
	 
	 Kenneth M. Woolley

	
	 
	 Daveco Extra, L.L.C.

	
	 
	 David Husman

	
	 
	 Michael Husman

	
	 
	Thomas T. Johnson and Marianne Johnson, trustees of the Johnson Family Trust
	
	 
	 Kirschner Family LP

	
	 
	 KLST 658 Venice, LLC

	
	 
	 KLST Partnership

	
	 
	 David Lackland

			
		
	 	 	 
	
	 
	 Liebes Family Properties, L.P.

	
	 
	Gerald Marks & Natalie Marks, trustees under the Gerald & Natalie L. Marks Living Trust
	
	 
	 Mort’s Associates

	
	 
	 Adam Sackler Trust

	
	 
	Robert J. Sokol and Phyllis Y. Sokol, Trustees of the Robert J. & Phyllis Y. Sokol Living Trust
	
	 
	 SSA Ventures, LLC

	
	 
	 Norm Tamkin, trustee of the Tamkin Living Trust

	
	 
	 Robert Tamkin & Nancy Tamkin Revocable Trust

	
	 
	 Ronald and Rochelle Tamkin Trust

			
		
	 	 	 
	
	 
	 Sandra Tamkin

	
	 
	 Steven Tamkin

	
	 
	 * Charles Allen, for himself and as attorney-in-fact for the individuals listed on Schedule A hereto.

 Schedule A 
 Olga Alexzanders 
 Timothy Arthurs 
 Kenneth R. Beck 
 K. Bruce Boucher 
 Deborah D. Bridges 
 Margaret W. Busse 
 Kent W. Christensen 
 DRS, LLC 
 Durham Capital, LLC 
 Anthony Fanticola & JoAnn Fanticola Family Limited Partnership 
 The Anthony Fanticola and JoAnn Fanticola Family Trust dated March 14, 1986, as amended and restated May 26, 2001 
 Stephen T. Foley 
 C. Ray and Roberta T. Graham as JTWROS 
 The High Family Trust dated 12/31/00 
 William E. Hoban 
 Ann Maureen King 
 The Kirk 101 Trust 
 The SFKC Kirk Charitable Remainder Unitrust 
 The Morton and Sally Ann Kirshner Trust 
 Krispen Family Holdings, L.C. 
 Mark M. Landes 
 Nat Landes 
 The John and Gail Liebes Trust 
 The Bessie Long Foster Family Trust 
 Rachel W. Mackay 
 Dwight Manley 
 Joshua Benegal Marks 
 Jonathan Bowles Marks 
 Terri T. Mitchell 
 Deborah A. Muse 
 M. Don Nelson 
 Paul Ohadi, Trustee 
 James L. Overturf 
 The Pecht Family Trust 
 Kenneth and Janet Perry 
 Roger B. Porter 
 David L. Rasmussen 
 Larendee B. Roos 
 Jonathan G. Ropner 
 Paul B. P. Ropner 
 The Allen B. Sackler Grantor Retained Annuity Trust # 1 
 The SBS Charitable Trust 
 Robert Strandt, Jr. 
 The Ronald and Rochelle Tamkin Trust 
 Tanner Storage LLC 
 Athelia S. Tanner 
 Mark S. and Ann E. Tanner 
 Richard F. Weggeland Family Trust 
 The Weiss Trust 

 Guy V. Whitworth 
 Woolley
Storage LLC 
 Athelia K. Woolley 
 Ginger Woolley 
 John T. Woolley 
 Kenneth T. Woolley 
 Roberta Woolley 
 Sarah Jane Woolley 
 Florence M. Yancey2004 Long Term Incentive Compensation Plan

 Exhibit 10.9 
  
 EXTRA SPACE STORAGE INC. 
  
 2004 LONG TERM INCENTIVE COMPENSATION PLAN 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	1.	  	DEFINITIONS	  	1
	2.	  	EFFECTIVE DATE AND TERMINATION OF PLAN	  	5
	3.	  	ADMINISTRATION OF PLAN	  	5
	4.	  	SHARES AND UNITS SUBJECT TO THE PLAN	  	6
	5.	  	PROVISIONS APPLICABLE TO STOCK OPTIONS	  	7
	6.	  	PROVISIONS APPLICABLE TO RESTRICTED STOCK	  	10
	7.	  	PROVISIONS APPLICABLE TO PHANTOM SHARES	  	12
	8.	  	PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS	  	15
	9.	  	OTHER STOCK-BASED AWARDS	  	16
	10.	  	PERFORMANCE GOALS	  	16
	11.	  	TAX WITHHOLDING	  	16
	12.	  	REGULATIONS AND APPROVALS	  	17
	13.	  	INTERPRETATION AND AMENDMENTS; OTHER RULES	  	18
	14.	  	CHANGES IN CAPITAL STRUCTURE	  	19
	15.	  	MISCELLANEOUS	  	20

  

 i 

 EXTRA SPACE STORAGE INC. 
  
 2004 LONG TERM INCENTIVE COMPENSATION PLAN 
  
 Extra Space Storage Inc., a self-administered and self-managed Maryland corporation, wishes to attract employees, Directors
and consultants to the Company and its Subsidiaries and induce employees, Directors and consultants to remain with the Company and its Subsidiaries, and encourage them to increase their efforts to make the Company’s business more successful
whether directly or through its Subsidiaries. In furtherance thereof, Extra Space Storage Inc. 2004 Long Term Incentive Compensation Plan is designed to provide equity-based incentives to employees, Directors and consultants of the Company and its
Subsidiaries. Awards under the Plan may be made to selected employees, Directors and consultants of the Company and its Subsidiaries in the form of Options, Restricted Stock, Phantom Shares, Dividend Equivalent Rights or other forms of equity-based
compensation. 
  
 1. DEFINITIONS. 
  
 Whenever used herein, the following terms shall have the meanings set forth
below: 
  
 “Articles of Amendment and Restatement” means
the Extra Space Storage Inc. Articles of Amendment and Restatement. 
  
 “Award,” except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock, Phantom Shares, Dividend Equivalent Rights and other
equity-based Awards as contemplated herein. 
  
 “Award
Agreement” means a written agreement in a form approved by the Committee to be entered into between the Company and the Participant as provided in Section 3. 
  
 “Beneficial Ownership” means ownership of Capital Stock by a Person who is or would be stated as an owner of such
Capital Stock either actually or constructively through the application of Section 544 of the Code, as modified by Sections 856(h)(1)(B) and 856(h)(3) of the Code. The terms “Beneficially Own” and “Beneficially Owns” shall have
the correlative meanings. 
  
 “Board” means the Board of
Directors of the Company. 
  
 “Capital Stock” means the
Common Stock, CCSs and preferred stock that may be issued pursuant to Article V of the Articles of Amendment and Restatement. 
  
 “Capital Stock Ownership Limit” means 7% (by value or by number of shares, whichever is more restrictive) of the outstanding Capital Stock of
the Company, excluding any such outstanding Capital Stock which is not treated as stock for federal income tax purposes. The number and value of shares of outstanding Capital Stock of the Company shall be determined by the Board in good faith, which
determination shall be conclusive for all purposes hereof. For purposes of applying the Capital Stock Ownership Limit with respect to a Person holding CCSs, such Person shall be treated as holding the number of shares of Common Stock into which the
CCSs held by such Person are convertible at such time. 
  
 “Cause” means, unless otherwise provided in the Participant’s Award Agreement, (i) engaging in (A) willful or gross misconduct or (B) willful or gross neglect, (ii) repeatedly failing to adhere to the directions of superiors
or the Board or the written policies and practices of the Company or its Subsidiaries or its affiliates, (iii) the commission of a felony or a crime of moral turpitude, or any crime 
  

 1 

 involving the Company or its Subsidiaries, or any affiliate thereof, (iv) fraud, misappropriation or embezzlement, (v) a
material breach of the Participant’s employment agreement (if any) with the Company or its Subsidiaries or its affiliates, or (vi) any illegal act detrimental to the Company or its Subsidiaries or its affiliates; provided, however, that, if at
any particular time the Participant is subject to an effective employment agreement with the Company, then, in lieu of the foregoing definition, “Cause” shall at that time have such meaning as may be specified in such employment agreement.

  
 “CCSs” means the non-voting contingent convertible
stock that may be issued pursuant to Article V of the Articles of Amendment and Restatement. 
  
 “Change in Control” means the happening of any of the following: 
  

	 	(i)	any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding (A) the Company, (B) any entity
controlling, controlled by or under common control with the Company, (C) any employee benefit plan of the Company or any entity described in clause (B), (D) with respect to any particular Participant, the Participant and any “group” (as
such term is used in Section 13(d)(3) of the Exchange Act) of which the Participant is a member), (E) Kenneth M. Woolley, his affiliates, associates and people acting in concert with any of the foregoing and (F) Spencer F. Kirk, his affiliates,
associates and people acting in concert with any of the foregoing, is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of
either (1) the combined voting power of the Company’s then outstanding securities or (2) the then outstanding Shares (in either such case other than as a result of an acquisition of securities directly from the Company); provided, however,
that, in no event shall a Change in Control be deemed to have occurred upon an initial public offering of the Common Stock under the Securities Act; or 

  

	 	(ii)	any consolidation or merger of the Company where the shareholders of the Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or
merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing cash or
securities in the consolidation or merger (or of its ultimate parent corporation, if any); or 

  

	 	(iii)	there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are
owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Company immediately prior to such sale or (B) the approval by shareholders of the Company of any plan or proposal for the liquidation or
dissolution of the Company; or 

  

	 	(iv)	the members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Directors”) cease for any reason other than due to death to
constitute at least a majority of the members of the Board; provided that any director whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the members of the Board then
still in office who were members of the Board at the beginning of such 24-calendar-month period, shall be deemed to be an Incumbent Director. 

  

 2 

 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the Committee appointed by the Board under
Section 3. 
  
 “Common Stock” means the Company’s
Common Stock, par value $.01 per share, either currently existing or authorized hereafter. 
  
 “Common Stock Ownership Limit” means 7% (by value or by number of shares, whichever is more restrictive) of the outstanding Common Stock. The number and value of shares of outstanding Common Stock shall be
determined by the Board in good faith, which determination shall be conclusive for all purposes hereof. For purposes of applying the Common Stock Ownership Limit with respect to a Person holding CCSs, such Person shall be treated as holding the
number of Shares into which the CCSs held by such Person are convertible at such time. 
  
 “Company” means the Extra Space Storage Inc., a Maryland corporation. 
  
 “Constructive Ownership” means ownership of any Capital Stock by a Person who is or would be treated as an owner of such Capital Stock either
actually or constructively through the application of Section 318 of the Code, modified by Section 856(d)(5) of the Code. The terms “Constructively Own” and “Constructively Owns” shall have the correlative meanings. 

 
 “Director” means a non-employee director of the Company or its
Subsidiaries. 
  
 “Disability” means the occurrence of
an event which would entitle an employee of the Company to the payment of disability income under one of the Company’s approved long-term disability income plans or, in the absence of such a plan, unless otherwise provided by the Committee in
the Participant’s Award Agreement, a disability which renders the Participant incapable of performing all of his or her material duties for a period of at least 180 consecutive or non-consecutive days during any consecutive twelve-month period.

  
 “Dividend Equivalent Right” means a right awarded
under Section 8 of the Plan to receive (or have credited) the equivalent value of dividends paid on Common Stock. 
  
 “Excepted Holder” means any shareholder of the Company for whom an Excepted Holder Ownership Limit is created by the Articles of Amendment and
Restatement or by the Board. 
  
 “Excepted Holder Ownership
Limit” means, with respect to any Excepted Holder, the percentage limit established by the Board pursuant to the Articles of Amendment and Restatement, or as other wise established by the Board in its discretion, subject in all cases to the
requirements, limitations and adjustment provisions set forth in the Articles of Amendment and Restatement. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a national stock
exchange, the closing sales price per Share on the exchange for the last preceding date on which there was a sale of Shares on such exchange, as determined by the Committee, (ii) if Shares are not then listed on a national stock exchange but are
then traded on an over-the-counter market, the average of the closing bid and asked prices for the Shares in such over-the-counter market for the last preceding date on which there was a sale of such Shares in such market, as determined by the
Committee, or (iii) if Shares are not then listed on a national stock exchange or traded on an over-the-counter market, such value as the Committee in its discretion may in good faith determine; provided that, where the Shares are 
  

 3 

 so listed or traded, the Committee may make such discretionary determinations where the Shares have not been traded for
10 trading days. 
  
 “Grantee” means an employee,
Director and consultant granted Restricted Stock, Phantom Shares or Dividend Equivalent Rights or such other equity-based Awards as may be granted pursuant to Section 9 hereunder. 
  
 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422(b) of the
Code. 
  
 “Non-Qualified Stock Option” means an Option
which is not an Incentive Stock Option. 
  
 “Option”
means the right to purchase, at a price and for the term fixed by the Committee in accordance with the Plan, and subject to such other limitations and restrictions in the Plan and the applicable Award Agreement, a number of Shares determined by the
Committee. 
  
 “Optionee” means an employee or Director
of, or consultant to, the Company to whom an Option is granted, or the Successors of the Optionee, as the context so requires. 
  
 “Option Price” means the exercise price per Share. 
  
 “Participant” means a Grantee or Optionee. 
  
 “Partnership Units” means any OP Units, Preferred Units, Junior Units or any other fractional share of the Partnership Interests as defined in,
and authorized pursuant to, the Agreement of Limited Partnership of Extra Space Storage LP, as amended from time to time, by and among ESS Holdings Business Trust I, a Massachusetts business trust and certain limited partners as set forth on Exhibit
A thereto. 
  
 “Person” means an individual,
corporation, partnership, limited liability company, estate, trust (including trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in
Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity; but does not include an underwriter acting in a capacity as such in a public offering of shares of
Capital Stock provided that the ownership of such shares of Capital Stock by such underwriter would not result in the Company being “closely held” within the meaning of Section 856(h) of the Code, or otherwise result in the Company failing
to qualify as a REIT. 
  
 “Phantom Share” means a right,
pursuant to the Plan, of the Grantee to payment of the Phantom Share Value. 
  
 “Phantom Share Value,” per Phantom Share, means the Fair Market Value of a Share or, if so provided by the Committee, such Fair Market Value to the extent in excess of a base value established by the
Committee at the time of grant. 
  
 “Plan” means the
Company’s 2004 Long Term Incentive Compensation Plan, as set forth herein and as the same may from time to time be amended. 
  
 “REIT” shall mean a real estate investment trust under Sections 856 through 860 of the Code. 
  
 “Restricted Stock” means an award of Shares that are subject to
restrictions hereunder. 
  

 4 

 “Retirement” means the Termination of Service of a Participant with the Company under
circumstances which would entitle an employee of the Company to an immediate pension under one of the Company’s approved retirement plans, or, in the absence of such a plan, unless otherwise provided by the Committee in the Participant’s
Award Agreement, the Termination of Service (other than for Cause) of a Participant on or after the Participant’s attainment of age 65 or on or after the Participant’s attainment of age 55 with five consecutive years of service with the
Company and or its Subsidiaries or its affiliates. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Settlement Date” means the date determined under Section 7.4(c). 
  
 “Shares” means shares of Common Stock of the Company. 
  

“Subsidiary” means any corporation (other than the Company), partnership or other entity at least 50% of the economic interest in the equity
of which is owned by the Company or by another subsidiary. 
  
 “Successor of the Optionee” means the legal representative of the estate of a deceased Optionee or the person or persons who shall acquire the right to exercise an Option by bequest or inheritance or by reason of the death of the
Optionee. 
  
 “Termination of Service” means a
Participant’s termination of employment or other service, as applicable, with the Company and its Subsidiaries. Cessation of service as an officer, or employee, Director and consultant shall not be treated as a Termination of Service if the
Participant continues without interruption to serve thereafter in another one (or more) of such other capacities. 
  
 2. EFFECTIVE DATE AND TERMINATION OF PLAN. 
  
 The effective date of the Plan is August     , 2004; provided, however, that the Plan shall not become effective unless and
until it is approved by the requisite percentage of the shareholders of the Company. The Plan shall terminate on, and no Award shall be granted hereunder on or after, the 10-year anniversary of the earlier of the approval of the Plan by (i) the
Board or (ii) the shareholders of the Company; provided, however, that the Board may at any time prior to that date terminate the Plan. 
  
 3. ADMINISTRATION OF PLAN. 
  
 (a) The Plan shall be administered by the Committee appointed by the Board. The Committee upon and after such time as it is covered by Section 16 of the
Exchange Act, shall consist of at least two individuals each of whom shall be a “nonemployee director” as defined in Rule 16b-3 as promulgated by the Securities and Exchange Commission (“Rule 16b-3”) under the Exchange Act and
shall, at such times as the Company is subject to Section 162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to Awards), qualify as “outside directors” for purposes of Section
162(m) of the Code; provided that no action taken by the Committee (including without limitation grants) shall be invalidated because any or all of the members of the Committee fails to satisfy the foregoing requirements of this sentence. The acts
of a majority of the members present at any meeting of the Committee at which a quorum is present, or acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee for purposes of the Plan. If and to the extent
applicable, no member of the Committee may act as to matters under the Plan specifically relating to such member. Notwithstanding the other foregoing provisions of this Section 3(a), any Award under the Plan to a person who is a member of the
Committee shall be made and administered by the Board. If no Committee is designated by the Board to act for these purposes, the Board shall have the rights and responsibilities of the Committee hereunder and under the Award Agreements. 

 

 5 

 (b) Subject to the provisions of the Plan, the Committee shall in its discretion as reflected by the
terms of the Award Agreements (i) authorize the granting of Awards to employees, Directors and consultants of the Company and its Subsidiaries; and (ii) determine the eligibility of an employee, Director or consultant to receive an Award, as well as
determine the number of Shares to be covered under any Award Agreement, considering the position and responsibilities of the employee, Director or consultant, the nature and value to the Company of the employee’s, Director’s or
consultant’s present and potential contribution to the success of the Company whether directly or through its Subsidiaries and such other factors as the Committee may deem relevant. 
  
 (c) The Award Agreement shall contain such other terms, provisions and conditions not inconsistent herewith as shall be
determined by the Committee. In the event that any Award Agreement or other agreement hereunder provides (without regard to this sentence) for the obligation of the Company or any affiliate thereof to purchase or repurchase Shares from a Participant
or any other person, then, notwithstanding the provisions of the Award Agreement or such other agreement, such obligation shall not apply to the extent that the purchase or repurchase would not be permitted under governing law. The Participant shall
take whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the
Participant pursuant to the express provisions of the Plan and the Award Agreement. 
  
 4. SHARES AND UNITS SUBJECT TO THE PLAN. 
  
 4.1
In General. 
  
 (a) Subject to Section 4.2, and subject to
adjustments as provided in Section 14, the total number of Shares subject to Options or other equity-based Awards granted under the Plan, Shares of Restricted Stock and Phantom Shares granted under the Plan, in the aggregate, may not exceed
8,000,000. Shares distributed under the Plan may be treasury Shares or authorized but unissued Shares. Any Shares that have been granted as Restricted Stock or that have been reserved for distribution in payment for Options, Phantom Shares or other
equity-based Awards under Section 9 but are later forfeited or for any other reason are not payable under the Plan may again be made the subject of Awards under the Plan. 
  
 (b) Shares subject to Dividend Equivalent Rights, other than Dividend Equivalent Rights based directly on the dividends
payable with respect to Shares subject to Options or the dividends payable on a number of Shares corresponding to the number of Phantom Shares awarded, shall be subject to the limitation of Section 4.1(a). If any Phantom Shares, Dividend Equivalent
Rights or other equity-based Awards under Section 9 are paid out in cash, then, notwithstanding the first sentence of Section 4.1(a) above, the underlying Shares may again be made the subject of Awards under the Plan. 
  
 (c) The certificates for Shares issued hereunder may include any legend which
the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the Award Agreement, or as the Committee may otherwise deem appropriate. 
  
 4.2 Options. 
  
 Subject to adjustments pursuant to Section 14, and subject to the last sentence of Section 4.1(a), Incentive Stock Options with respect to an aggregate of
no more than 8,000,000 Shares may be granted under the Plan. Subject to adjustments pursuant to Section 14, in no event may any Optionee receive Options for more than 2,000,000 Shares in any one year. The aggregate Fair Market Value, determined
as of the date an Option is granted, of the Common Stock for which any Optionee may be awarded Incentive Stock Options which are first exercisable by the Optionee during any calendar year under the 
  

 6 

 Plan (or any other stock option plan required to be taken into account under Section 422(d) of the Code) shall not exceed
$100,000. 
  
 4.3 Participation Limitation 
  
 (a) Limitation of Ownership. No Award shall be issued under the Plan to any
person who after such Award would Beneficially or Constructively Own Capital Stock of the Company in excess of the Common Stock Ownership Limit or the Capital Stock Ownership Limit, unless the foregoing restriction is expressly and specifically
waived by action of the independent Directors of the Board; provided, however, that an Excepted Holder would be permitted to Beneficially or Constructively Own Shares in excess of such limits provided that such Shares are not in excess of the
Excepted Holder Ownership Limit for such Excepted Holder. 
  
 (b)
No award shall be issued under the Plan to any person who after such Award would Beneficially or Constructively Own Shares in the Company that would result in the Company being “closely held” within the meaning of Section 856(h) of the
Code, or otherwise failing to qualify as a REIT (including but not limited to ownership that would result in the Company owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income
derived by the Company (either directly or indirectly through its Subsidiaries) from such tenant would cause the Company to fail to satisfy any of the gross income requirements of Section 856(c) of the Code). 
  
 5. PROVISIONS APPLICABLE TO STOCK OPTIONS. 
  
 5.1 Grant of Option. 
  
 Subject to the other terms of the Plan, the Committee shall, in its
discretion as reflected by the terms of the applicable Award Agreement: (i) determine and designate from time to time those employees, Directors and consultants of the Company and its Subsidiaries to whom Options are to be granted and the number of
Shares to be optioned to each employee, Director and consultant; (ii) determine whether to grant Options intended to be Incentive Stock Options, or to grant Non-Qualified Stock Options, or both (to the extent that any Option does not qualify as an
Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option); provided that Incentive Stock Options may only be granted to employees of the Company or a “subsidiary” of the Company (as defined below); (iii) determine
the time or times when and the manner and condition in which each Option shall be exercisable and the duration of the exercise period; (iv) designate each Option as one intended to be an Incentive Stock Option or as a Non-Qualified Stock Option; and
(v) determine or impose other conditions to the grant or exercise of Options under the Plan as it may deem appropriate. For purposes of Section 5.1(ii), the term “subsidiary” shall mean, any corporation (other than the Company) that is a
“subsidiary corporation” with respect to the Company under Section 424(f) of the Code. In the event the Company becomes a subsidiary of another company, the provisions hereof applicable to subsidiaries shall, unless otherwise determined by
the Committee, also be applicable to any company that is a “parent corporation” with respect to the Company under Section 424(e) of the Code. 
  
 5.2 Option Price. 
  
 The Option Price shall be determined by the Committee on the date the Option is granted and reflected in the Award Agreement, as the same may be amended
from time to time. Any particular Award Agreement may provide for different Option Prices for specified amounts of Shares subject to the Option. The Option Price with respect to each Incentive Stock Option, or other Option intended to qualify for
relief from the restrictions of Section 162(m) of the Code, shall not be less than 100% (or, for 
  

 7 

 Incentive Stock Options, 110%, in the case of an individual described in Section 422(b)(6) of the Code (relating to
certain 10% owners)) of the Fair Market Value of a Share on the day the Option is granted. 
  
 5.3 Period of Option and Vesting. 
  
 (a) Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its entirety upon the 10th anniversary of the date of grant or shall have such other term (which may be shorter, but not longer, in the case of Incentive Stock Options) as is set forth in the applicable Award Agreement (except
that, in the case of an individual described in Section 422(b)(6) of the Code (relating to certain 10% owners) who is granted an Incentive Stock Option, the term of such Option shall be no more than five years from the date of grant). The Option
shall also expire, be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder or under the Award Agreement. 
  
 (b) Each Option, to the extent that the Optionee has not had a Termination of Service and the Option has not otherwise lapsed, expired, terminated or been
forfeited, shall first become exercisable according to the terms and conditions set forth in the Award Agreement, as determined by the Committee at the time of grant. Unless otherwise determined by the Committee at the time of grant, such stock
options shall vest ratably, in annual installments, over a four-year period beginning on the date of grant. Unless otherwise provided in the Award Agreement, no Option (or portion thereof) shall ever be exercisable if the Optionee has a Termination
of Service before the time at which such Option would otherwise have become exercisable, and any Option that would otherwise become exercisable after such Termination of Service shall not become exercisable and shall be forfeited upon such
termination. Notwithstanding the foregoing provisions of this Section 5.3(b), Options exercisable pursuant to the schedule set forth by the Committee at the time of grant may be fully or more rapidly exercisable or otherwise vested at any time in
the discretion of the Committee. Upon and after the death of an Optionee, such Optionee’s Options, if and to the extent otherwise exercisable hereunder or under the applicable Award Agreement after the Optionee’s death, may be exercised by
the Successors of the Optionee. 
  
 5.4 Exercisability Upon and
After Termination of Optionee. 
  
 (a) Subject to provisions
of the Award Agreement, in the event the Optionee has a Termination of Service other than by the Company or its Subsidiaries for Cause, other than by the Optionee for any reason, or other than by reason of death, Retirement or Disability, no
exercise of an Option may occur after the expiration of the three-month period to follow the termination, or if earlier, the expiration of the term of the Option as provided under Section 5.3(a); provided that, if the Optionee should die after the
Termination of Service, but while the Option is still in effect, the Option (if and to the extent otherwise exercisable by the Optionee at the time of death) may be exercised until the earlier of (i) one year from the date of the Termination of
Service of the Optionee, or (ii) the date on which the term of the Option expires in accordance with Section 5.3(a). 
  
 (b) Subject to provisions of the Award Agreement, in the event the Optionee has a Termination of Service on account of death, Disability or Retirement,
the Option may be exercised until the earlier of (i) one year from the date of the Termination of Service of the Optionee, or (ii) the date on which the term of the Option expires in accordance with Section 5.3. 
  
 (c) Notwithstanding any other provision hereof, unless otherwise provided in
the Award Agreement, if (i) the Optionee has a Termination of Service by the Company for Cause or (ii) the Optionee terminates employment with the Company and its Subsidiaries for any reason (other than on account of death, Retirement or Disability)
the Optionee’s Options, to the extent then unexercised, shall thereupon cease to be exercisable and shall be forfeited forthwith. 
  

 8 

 5.5 Exercise of Options. 
  
 (a) Subject to vesting, restrictions on exercisability and other restrictions provided for hereunder or otherwise imposed in
accordance herewith, an Option may be exercised, and payment in full of the aggregate Option Price made, by an Optionee only by written notice (in the form prescribed by the Committee) to the Company specifying the number of Shares to be purchased.

  
 (b) Without limiting the scope of the Committee’s
discretion hereunder, the Committee may impose such other restrictions on the exercise of Incentive Stock Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate. 
  
 (c) If Shares acquired upon exercise of an Incentive Stock Option are
disposed of in a disqualifying disposition within the meaning of Section 422 of the Code by an Optionee prior to the expiration of either two years from the date of grant of such Option or one year from the transfer of Shares to the Optionee
pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Optionee shall notify the Company in writing as soon as practicable thereafter of the date and terms of such
disposition and, if the Company (or any affiliate thereof) thereupon has a tax-withholding obligation, shall pay to the Company (or such affiliate) an amount equal to any withholding tax the Company (or affiliate) is required to pay as a result of
the disqualifying disposition. 
  
 5.6 Payment. 

 
 (a) The aggregate Option Price shall be paid in full upon the exercise of
the Option. Payment must be made by one of the following methods: 
  
 (i) a certified or bank cashier’s check; 
  
 (ii) other than as prohibited under Section 13(k) of the Exchange Act, the proceeds of a Company loan program or third-party sale program or a notice acceptable to the Committee given as consideration under such a
program, in each case if permitted by the Committee in its discretion, if such a program has been established and the Optionee is eligible to participate therein; 
  
 (iii) if approved by the Committee in its discretion, Shares of previously owned Common Stock, which have
been previously owned for more than six months, having an aggregate Fair Market Value on the date of exercise equal to the aggregate Option Price; 
  
 (iv) other than as prohibited under Section 13(k) of the Exchange Act, if approved by the Committee in its discretion, through the written
election of the Optionee to have Shares withheld by the Company from the Shares otherwise to be received, with such withheld Shares having an aggregate Fair Market Value on the date of exercise equal to the aggregate Option Price; or 
  
 (v) by any combination of such methods of payment or any
other method acceptable to the Committee in its discretion. 
  
 (b) Except in the case of Options exercised by certified or bank cashier’s check, the Committee may impose limitations and prohibitions on the exercise of Options as it deems appropriate, including, without limitation, any limitation
or prohibition designed to avoid accounting consequences which may result from the use of Common Stock as payment upon exercise of an Option. 
  

 9 

 (c) The Committee shall provide in the Award Agreement the extent (if any) to which an Option may be
exercised with respect to any fractional Share, including whether any fractional Shares resulting from an Optionee’s exercise may be paid in cash. 
  
 5.7 Stock Appreciation Rights. 
  
 The Committee, in its discretion, may also permit the Optionee to elect to exercise an Option by receiving a combination of Shares and cash, or, in the
discretion of the Committee, either Shares or cash, with an aggregate Fair Market Value (or, to the extent of payment in cash, in an amount) equal to the excess of the Fair Market Value of the Shares with respect to which the Option is being
exercised over the aggregate Option Price, as determined as of the day the Option is exercised. 
  
 5.8 Exercise by Successors. 
  
 An Option may be exercised, and payment in full of the aggregate Option Price made, by the Successors of the Optionee only by written notice (as may be
prescribed by the Committee) to the Company specifying the number of Shares to be purchased. Such notice shall state that the aggregate Option Price will be paid in full, or that the Option will be exercised as otherwise provided hereunder, in the
discretion of the Company or the Committee, if and as applicable. 
  
 5.9 Nontransferability of Option. 
  
 Except if
otherwise provided in the applicable Award Agreement, each Option granted under the Plan shall be nontransferable by the Optionee except by will or the laws of descent and distribution of the state wherein the Optionee is domiciled at the time of
his death; provided, however, that the Committee may (but need not) permit other transfers, where the Committee concludes that such transferability (i) does not result in accelerated U.S. federal income taxation, (ii) does not cause any Option
intended to be an Incentive Stock Option to fail to be described in Section 422(b) of the Code, and (iii) is otherwise appropriate and desirable. 
  
 5.10 Deferral. 
  
 The Committee may establish a program under which Participants will have Phantom Shares subject to Section 7 credited upon their exercise of Options,
rather than receiving Shares at that time. 
  
 6. PROVISIONS APPLICABLE TO
RESTRICTED STOCK. 
  
 6.1 Grant of Restricted Stock.

  
 (a) In connection with the grant of Restricted Stock, whether
or not performance goals (as provided for under Section 10) apply thereto, the Committee shall establish one or more vesting periods with respect to the shares of Restricted Stock granted, the length of which shall be determined in the discretion of
the Committee. Subject to the provisions of this Section 6, the applicable Agreement and the other provisions of the Plan, restrictions on Restricted Stock shall lapse if the Grantee satisfies all applicable employment or other service requirements
through the end of the applicable vesting period. 
  
 (b) Subject
to the other terms of the Plan, the Committee may, in its discretion as reflected by the terms of the applicable Award Agreement: (i) authorize the granting of Restricted Stock to employees, Directors and consultants of the Company and its
Subsidiaries; (ii) provide a specified purchase price for the Restricted Stock (whether or not the payment of a purchase price is required by any state law applicable to the Company); (iii) determine the restrictions applicable to Restricted Stock
and 
  

 10 

 (iv) determine or impose other conditions, including any applicable performance goals, to the grant of Restricted Stock
under the Plan as it may deem appropriate. 
  
 6.2
Certificates. 
  
 (a) In the discretion of the Committee,
each Grantee of Restricted Stock may be issued a stock certificate in respect of Shares of Restricted Stock awarded under the Plan. A “book entry” (by computerized or manual entry) shall be made in the records of the Company to evidence an
award of Restricted Stock, where no certificate is issued in the name of the Grantee. Each certificate, if any, shall be registered in the name of the Grantee and may include any legend which the Committee deems appropriate to reflect any
restrictions on transfer hereunder or under the Award Agreement, or as the Committee may otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a legend referring to the terms, conditions, and restrictions
applicable to such Award, substantially in the following form: 
  
 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE EXTRA SPACE STORAGE INC. 2004 LONG TERM INCENTIVE COMPENSATION PLAN AND AN AWARD
AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND EXTRA SPACE STORAGE INC. COPIES OF SUCH PLAN AND AWARD AGREEMENT ARE ON FILE IN THE OFFICES OF EXTRA SPACE STORAGE INC. AT 2795 EAST COTTONWOOD PARKWAY, SUITE 400, SALT LAKE CITY, UT 84121.

  
 (b) The Committee shall require that any stock certificates
evidencing such Shares be held in custody by the Company until the restrictions thereon shall have lapsed, and may in its discretion require that, as a condition of any Restricted Stock award, the Grantee shall have delivered to the Company a stock
power, endorsed in blank, relating to the stock covered by such Award. If and when such restrictions so lapse, any stock certificates shall be delivered by the Company to the Grantee or his or her designee. 
  
 6.3 Restrictions and Conditions. 
  
 Unless otherwise provided by the Committee, the Shares of Restricted Stock
awarded pursuant to the Plan shall be subject to the following restrictions and conditions: 
  
 (i) Subject to the provisions of the Plan and the Award Agreements, during a period commencing with the date of such Award and ending on
the date the period of forfeiture with respect to such Shares lapses, the Grantee shall not be permitted voluntarily or involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Shares of Restricted Stock awarded under the
Plan (or have such Shares attached or garnished). Subject to the provisions of the Award Agreements and clauses (iii) and (iv) below, the period of forfeiture with respect to Shares granted hereunder shall lapse as provided in the applicable Award
Agreement. Notwithstanding the foregoing, unless otherwise expressly provided by the Committee, the period of forfeiture with respect to such Shares shall only lapse as to whole Shares. 
  
 (ii) Except as provided in the foregoing clause (i), below in this clause (ii), or in Section 14, the
Grantee shall have, in respect of the Shares of Restricted Stock, all of the rights of 
  

 11 

 a shareholder of the Company, including the right to vote the Shares, and, except as provided below, the
right to receive any cash dividends. The Committee may provide in the Award Agreement that cash dividends on such Shares shall be held by the Company (unsegregated as a part of its general assets) until the period of forfeiture lapses (and forfeited
if the underlying Shares are forfeited), and paid over to the Grantee as soon as practicable after such period lapses (if not forfeited), or alternatively may provide for other treatment of such dividends (including without limitation the crediting
of Phantom Shares in respect of dividends or other deferral provisions). Certificates for Shares (not subject to restrictions hereunder) shall be delivered to the Grantee or his or her designee promptly after, and only after, the period of
forfeiture shall lapse without forfeiture in respect of such Shares of Restricted Stock. 
  
 (iii) Termination of Service, Except by Death, Retirement or Disability. Unless otherwise provided in the applicable Award Agreement, and
subject to clause (iv) below, if the Grantee has a Termination of Service for Cause or by the Grantee for any reason other than his or her death, Retirement or Disability, during the applicable period of forfeiture, then (A) all Restricted Stock
still subject to restriction shall thereupon, and with no further action, be forfeited by the Grantee, and (B) the Company shall pay to the Grantee as soon as practicable (and in no event more than 30 days) after such termination an amount equal to
the lesser of (x) the amount paid by the Grantee for such forfeited Restricted Stock as contemplated by Section 6.1, and (y) the Fair Market Value on the date of termination of the forfeited Restricted Stock. 
  
 (iv) Death, Disability or Retirement of Grantee. Unless
otherwise provided in the applicable Award Agreement, in the event the Grantee has a Termination of Service on account of his or her death, Disability or Retirement, or the Grantee has a Termination of Service by the Company for any reason other
than Cause, during the applicable period of forfeiture, then restrictions under the Plan will immediately lapse on all Restricted Stock granted to the applicable Grantee. 
  
 7. PROVISIONS APPLICABLE TO PHANTOM SHARES. 
  

7.1 Grant of Phantom Shares. 
  
 Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the applicable Award Agreement: (i) authorize
the granting of Phantom Shares to employees, Directors and consultants of the Company and its Subsidiaries and (ii) determine or impose other conditions to the grant of Phantom Shares under the Plan as it may deem appropriate. 
  
 7.2 Term. 
  
 The Committee may provide in an Award Agreement that any particular Phantom
Share shall expire at the end of a specified term. 
  
 7.3
Vesting. 
  
 Phantom Shares shall vest as provided in the
applicable Award Agreement. 
  
 7.4 Settlement of Phantom
Shares. 
  
 (a) Each vested and outstanding Phantom Share
shall be settled by the transfer to the Grantee of one Share; provided that, the Committee at the time of grant may provide that a Phantom Share may be settled (i) in cash at the applicable Phantom Share Value, (ii) in cash or by transfer of Shares
as elected by 
  

 12 

 the Grantee in accordance with procedures established by the Committee or (iii) in cash or by transfer of Shares as
elected by the Company. 
  
 (b) Each Phantom Share shall be
settled with a single-sum payment or distribution by the Company; provided that, with respect to Phantom Shares of a Grantee which have a common Settlement Date, the Committee may permit the Grantee to elect in accordance with procedures established
by the Committee to receive installment payments over a period not to exceed 10 years. 
  
 (c) (i) Unless otherwise provided in the applicable Award Agreement, the Settlement Date with respect to a Grantee is the first day of the month to follow the Grantee’s Termination of Service, provided that a
Grantee may elect, in accordance with procedures to be adopted by the Committee, that such Settlement Date will be deferred as elected by the Grantee to a time permitted by the Committee under procedures to be established by the Committee. Unless
otherwise determined by the Committee, elections under this Section 7.4(c)(i) must be made at least six months before, and in the year prior to the year in which, the Settlement Date would occur in the absence of such election. 
  
 (ii) Notwithstanding Section 7.4(c)(i), the Committee may
provide that distributions of Phantom Shares can be elected at any time in those cases in which the Phantom Share Value is determined by reference to Fair Market Value to the extent in excess of a base value, rather than by reference to unreduced
Fair Market Value. 
  
 (iii) Notwithstanding the
foregoing, the Settlement Date, if not earlier pursuant to this Section 7.4(c), is the date of the Grantee’s death. 
  
 (d) Notwithstanding the other provisions of this Section 7, in the event of a Change in Control, the Settlement Date shall be the date of such Change in
Control and all amounts due with respect to Phantom Shares to a Grantee hereunder shall be paid as soon as practicable (but in no event more than 30 days) after such Change in Control, unless such Grantee elects otherwise in accordance with
procedures established by the Committee. 
  
 (e) Notwithstanding
any other provision of the Plan, a Grantee may receive any amounts to be paid in installments as provided in Section 7.4(b) or deferred by the Grantee as provided in Section 7.4(c) in the event of an “Unforeseeable Emergency.” For these
purposes, an “Unforeseeable Emergency,” as determined by the Committee in its sole discretion, is a severe financial hardship to the Grantee resulting from a sudden and unexpected illness or accident of the Grantee or
“dependent,” as defined in Section 152(a) of the Code, of the Grantee, loss of the Grantee’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of
the Grantee. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved: 
  
 (i) through reimbursement or compensation by insurance or
otherwise, 
  
 (ii) by liquidation of the
Grantee’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or 
  
 (iii) by future cessation of the making of additional deferrals under Section 7.4(b) and (c). 
  

 13 

 Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home shall not
constitute an Unforeseeable Emergency. Distributions of amounts because of an Unforeseeable Emergency shall be permitted to the extent reasonably needed to satisfy the emergency need. 
  
 7.5 Other Phantom Share Provisions. 
  
 (a) Rights to payments with respect to Phantom Shares granted under the Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, attach or garnish, or levy or execute on any right to benefits payable hereunder, shall be void. 
  
 (b) A Grantee may designate in writing, on forms to be prescribed by the Committee, a beneficiary or beneficiaries to receive any payments payable after
his or her death and may amend or revoke such designation at any time. If no beneficiary designation is in effect at the time of a Grantee’s death, payments hereunder shall be made to the Grantee’s estate. If a Grantee with a vested
Phantom Share dies, such Phantom Share shall be settled and the Phantom Share Value in respect of such Phantom Shares paid, and any payments deferred pursuant to an election under Section 7.4(c) shall be accelerated and paid, as soon as practicable
(but no later than 60 days) after the date of death to such Grantee’s beneficiary or estate, as applicable. 
  
 (c) The Committee may establish a program under which distributions with respect to Phantom Shares may be deferred for periods in addition to those
otherwise contemplated by foregoing provisions of this Section 7. Such program may include, without limitation, provisions for the crediting of earnings and losses on unpaid amounts, and, if permitted by the Committee, provisions under which
Participants may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 
  
 (d) Phantom Shares (including for purposes of this Section 7.5(d) any accounts established to facilitate the implementation of Section 7.4(c)), are solely
a device for the measurement and determination of the amounts to be paid to a Grantee under the Plan. Each Grantee’s right in the Phantom Shares is limited to the right to receive payment, if any, as may herein be provided. The Phantom Shares
do not constitute Common Stock and shall not be treated as (or as giving rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a mere bookkeeping reserve to meet its obligations hereunder or a trust or
other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The right of any Grantee of Phantom Shares to receive
payments by virtue of participation in the Plan shall be no greater than the right of any unsecured general creditor of the Company. 
  
 (e) Notwithstanding any other provision of this Section 7, any fractional Phantom Share will be paid out in cash at the Phantom Share Value as of the
Settlement Date. 
  
 (f) Nothing contained in the Plan shall be
construed to give any Grantee any rights with respect to Shares or any ownership interest in the Company. Except as may be provided in accordance with Section 8, no provision of the Plan shall be interpreted to confer upon any Grantee any voting,
dividend or derivative or other similar rights with respect to any Phantom Share. 
  

 14 

 7.6 Claims Procedures. 
  
 (a) To the extent that the Plan is determined by the Committee to be subject to the Employee Retirement Income Security Act
of 1974, as amended, the Grantee, or his beneficiary hereunder or authorized representative, may file a claim for benefits with respect to Phantom Shares under the Plan by written communication to the Committee or its designee. A claim is not
considered filed until such communication is actually received. Within 90 days (or, if special circumstances require an extension of time for processing, 180 days, in which case notice of such special circumstances should be provided within the
initial 90-day period) after the filing of the claim, the Committee will either: 
  
 (i) approve the claim and take appropriate steps for satisfaction of the claim; or 
  
 (ii) if the claim is wholly or partially denied, advise the
claimant of such denial by furnishing to him a written notice of such denial setting forth (A) the specific reason or reasons for the denial; (B) specific reference to pertinent provisions of the Plan on which the denial is based and, if the denial
is based in whole or in part on any rule of construction or interpretation adopted by the Committee, a reference to such rule, a copy of which shall be provided to the claimant; (C) a description of any additional material or information necessary
for the claimant to perfect the claim and an explanation of the reasons why such material or information is necessary; and (D) a reference to this Section 7.6 as the provision setting forth the claims procedure under the Plan. 
  
 (b) The claimant may request a review of any denial of his claim by written
application to the Committee within 60 days after receipt of the notice of denial of such claim. Within 60 days (or, if special circumstances require an extension of time for processing, 120 days, in which case notice of such special circumstances
should be provided within the initial 60-day period) after receipt of written application for review, the Committee will provide the claimant with its decision in writing, including, if the claimant’s claim is not approved, specific reasons for
the decision and specific references to the Plan provisions on which the decision is based. 
  
 8. PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS. 
  
 8.1 Grant of Dividend Equivalent Rights. 
  
 Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the Award Agreements, authorize the granting
of Dividend Equivalent Rights to employees, Directors and consultants of the Company and its Subsidiaries based on the regular cash dividends declared on Common Stock, to be credited as of the dividend payment dates, during the period between the
date an Award is granted, and the date such Award is exercised, vests or expires, as determined by the Committee. Such Dividend Equivalent Rights shall be converted to cash or additional Shares by such formula and at such time and subject to such
limitation as may be determined by the Committee. With respect to Dividend Equivalent Rights granted with respect to Options intended to be qualified performance-based compensation for purposes of Section 162(m) of the Code, such Dividend Equivalent
Rights shall be payable regardless of whether such Option is exercised. If a Dividend Equivalent right is granted in respect of another Award hereunder, then, unless otherwise stated in the Award Agreement, in no event shall the Dividend Equivalent
Right be in effect for a period beyond the time during which the applicable portion of the underlying Award is in effect. 
  
 8.2 Certain Terms. 
  
 (a) The term of a Dividend Equivalent Right shall be set by the Committee in its discretion. 
  

 15 

 (b) Unless otherwise determined by the Committee, except as contemplated by Section 8.4, a Dividend
Equivalent Right is exercisable or payable only while the Participant is an employee, Director or consultant. 
  
 (c) Payment of the amount determined in accordance with Section 8.1 shall be in cash, in Common Stock or a combination of both, as determined by the
Committee. 
  
 (d) The Committee may impose such
employment-related conditions on the grant of a Dividend Equivalent Right as it deems appropriate in its discretion. 
  
 8.3 Other Types of Dividend Equivalent Rights. 
  
 The Committee may establish a program under which Dividend Equivalent Rights of a type not described in the foregoing provisions of this Section 8 may be
granted to Participants. For example, and without limitation, the Committee may grant a dividend equivalent right in respect of each Share subject to an Option or with respect to a Phantom Share, which right would consist of the right (subject to
Section 8.4) to receive a cash payment in an amount equal to the dividend distributions paid on a Share from time to time. 
  
 8.4 Deferral. 
  
 (a) The Committee may establish a program under which Participants (i) will have Phantom Shares credited, subject to the terms of Sections 7.4 and 7.5 as
though directly applicable with respect thereto, upon the granting of Dividend Equivalent Rights, or (ii) will have payments with respect to Dividend Equivalent Rights deferred. 
  
 (b) The Committee may establish a program under which distributions with respect to Dividend Equivalent Rights may be
deferred. Such program may include, without limitation, provisions for the crediting of earnings and losses on unpaid amounts, and, if permitted by the Committee, provisions under which Participants may select from among hypothetical investment
alternatives for such deferred amounts in accordance with procedures established by the Committee. 
  
 9. OTHER EQUITY-BASED AWARDS. 
  
 The Board shall have the right to grant other Awards having such terms and conditions as the Board may determine, including the grant of shares of Capital Stock based upon certain conditions, the grant of Partnership Units based upon
certain conditions and the grant of stock appreciation rights. 
  
 10.
PERFORMANCE GOALS. 
  
 The Committee, in its discretion, may
establish one or more performance goals as a precondition to the issuance or vesting of Awards, and (ii) provide, in connection with the establishment of the performance goals, for predetermined Awards to those Participants (who continue to meet all
applicable eligibility requirements) with respect to whom the applicable performance goals are satisfied. 
  
 11. TAX WITHHOLDING. 
  
 11.1 In General. 
  
 The Company shall be
entitled to withhold from any payments or deemed payments any amount of tax withholding determined by the Committee to be required by law. Without limiting the generality 
  

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 of the foregoing, the Committee may, in its discretion, require the Participant to pay to the Company at such time as the
Committee determines the amount that the Committee deems necessary to satisfy the Company’s obligation to withhold federal, state or local income or other taxes incurred by reason of (i) the exercise of any Option, (ii) the lapsing of any
restrictions applicable to any Restricted Stock, (iii) the receipt of a distribution in respect of Phantom Shares or Dividend Equivalent Rights or (iv) any other applicable income-recognition event (for example, an election under Section 83(b) of
the Code). 
  
 11.2 Share Withholding. 
  
 (a) Upon exercise of an Option, the Optionee may, if approved by the
Committee in its discretion, make a written election to have Shares then issued withheld by the Company from the Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the liability for such withholding taxes. In
the event that the Optionee makes, and the Committee permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes.
Where the exercise of an Option does not give rise to an obligation by the Company to withhold federal, state or local income or other taxes on the date of exercise, but may give rise to such an obligation in the future, the Committee may, in its
discretion, make such arrangements and impose such requirements as it deems necessary or appropriate. 
  
 (b) Upon lapsing of restrictions on Restricted Stock (or other income-recognition event), the Grantee may, if approved by the Committee in its discretion,
make a written election to have Shares withheld by the Company from the Shares otherwise to be released from restriction, or to deliver previously owned Shares (not subject to restrictions hereunder), in order to satisfy the liability for such
withholding taxes. In the event that the Grantee makes, and the Committee permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the applicable
withholding taxes. 
  
 (c) Upon the making of a distribution in
respect of Phantom Shares or Dividend Equivalent Rights, the Grantee may, if approved by the Committee in its discretion, make a written election to have amounts (which may include Shares) withheld by the Company from the distribution otherwise to
be made, or to deliver previously owned Shares (not subject to restrictions hereunder), in order to satisfy the liability for such withholding taxes. In the event that the Grantee makes, and the Committee permits, such an election, any Shares so
withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes. 
  
 11.3 Withholding Required. 
  
 Notwithstanding anything contained in the Plan or the Award Agreement to the contrary, the Participant’s satisfaction of any tax-withholding
requirements imposed by the Committee shall be a condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide Shares to the Participant and to the release of any restrictions as may otherwise be provided
hereunder, as applicable; and the applicable Option, Restricted Stock, Phantom Shares or Dividend Equivalent Rights shall be forfeited upon the failure of the Participant to satisfy such requirements with respect to, as applicable, (i) the exercise
of the Option, (ii) the lapsing of restrictions on the Restricted Stock (or other income-recognition event) or (iii) distributions in respect of any Phantom Share or Dividend Equivalent Right. 
  
 12. REGULATIONS AND APPROVALS. 
  
 (a) The obligation of the Company to sell Shares with respect to an Award
granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state 
  

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 securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or
appropriate by the Committee. 
  
 (b) The Committee may make such
changes to the Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Award. 
  
 (c) Each grant of Options, Restricted Stock, Phantom Shares (or issuance of Shares in respect thereof) or Dividend
Equivalent Rights (or issuance of Shares in respect thereof), or other Award under Section 9 (or issuance of Shares in respect thereof), is subject to the requirement that, if at any time the Committee determines, in its discretion, that the
listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the issuance of Options, Shares of Restricted Stock, Phantom Shares, Dividend Equivalent Rights, other Awards or other Shares, no payment shall be made, or Phantom Shares or Shares issued or grant of Restricted
Stock or other Award made, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions in a manner acceptable to the Committee. 
  
 (d) In the event that the disposition of stock acquired pursuant to the Plan
is not covered by a then current registration statement under the Securities Act, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required under the Securities Act, and the Committee
may require any individual receiving Shares pursuant to the Plan, as a condition precedent to receipt of such Shares, to represent to the Company in writing that such Shares are acquired for investment only and not with a view to distribution and
that such Shares will be disposed of only if registered for sale under the Securities Act or if there is an available exemption for such disposition. 
  
 (e) Notwithstanding any other provision of the Plan, the Company shall not be required to take or permit any action under the Plan or any Award Agreement
which, in the good-faith determination of the Company, would result in a material risk of a violation by the Company of Section 13(k) of the Exchange Act. 
  
 13. INTERPRETATION AND AMENDMENTS; OTHER RULES. 
  
 The Committee may make such rules and regulations and establish such procedures for the administration of the Plan as it deems appropriate. Without
limiting the generality of the foregoing, the Committee may (i) determine the extent, if any, to which Options, Phantom Shares or Shares (whether or not Shares of Restricted Stock) or Dividend Equivalent Rights shall be forfeited (whether or not
such forfeiture is expressly contemplated hereunder); (ii) interpret the Plan and the Award Agreements hereunder, with such interpretations to be conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law,
provided that the Committee’s interpretation shall not be entitled to deference on and after a Change in Control except to the extent that such interpretations are made exclusively by members of the Committee who are individuals who served as
Committee members before the Change in Control; and (iii) take any other actions and make any other determinations or decisions that it deems necessary or appropriate in connection with the Plan or the administration or interpretation thereof. In
the event of any dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan, the decision of the Committee, except as provided
in clause (ii) of the foregoing sentence, shall be final and binding upon all persons. Unless otherwise expressly provided hereunder, the Committee, with respect to any grant, may exercise its discretion hereunder at the time of the Award or
thereafter. No action which is otherwise permitted under or in connection with the Plan shall be prohibited hereunder 
  

 18 

 merely because it constitutes a repricing of an Award, and, in furtherance of the foregoing, the Committee is expressly
authorized and empowered, without limitation, to effect repricings that are consistent with the terms of the Plan. The Board may amend the Plan as it shall deem advisable, except that no amendment may adversely affect a Participant with respect to
an Award previously granted unless such amendments are required in order to comply with applicable laws; provided that the Board may not make any amendment in the Plan that would, if such amendment were not approved by the holders of the Common
Stock, cause the Plan to fail to comply with any requirement of applicable law or regulation, unless and until the approval of the holders of such Common Stock is obtained. 
  
 14. CHANGES IN CAPITAL STRUCTURE. 
  
 (a) If (i) the Company or its Subsidiaries shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of
shares, sale of all or substantially all of the assets or stock of the Company or its Subsidiaries or a transaction similar thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization or
other similar change in the capital structure of the Company or its Subsidiaries, or any distribution to holders of Common Stock other than cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Committee
necessitates action by way of adjusting the terms of the outstanding Awards, then: 
  
 (x) the maximum aggregate number of Shares which may be made subject to Options and Dividend Equivalent Rights under the Plan, the maximum
aggregate number and kind of Shares of Restricted Stock that may be granted under the Plan, and the maximum aggregate number of Phantom Shares and other Awards which may be granted under the Plan may be appropriately adjusted by the Committee in its
discretion; and 
  
 (y) the Committee shall take
any such action as in its judgment shall be necessary to maintain the Participants’ rights hereunder (including under their Award Agreements) with respect to Options, Phantom Shares and Dividend Equivalent Rights (and other Awards under Section
9), so that they are substantially proportionate to the rights existing in such Options, Phantom Shares and Dividend Equivalent Rights (and such other Awards under Section 9) prior to such event, including, without limitation, adjustments in (A) the
number of Options, Phantom Shares and Dividend Equivalent Rights (and other Awards under Section 9) granted, (B) the number and kind of shares or other property to be distributed in respect of Options, Phantom Shares and Dividend Equivalent Rights
(and other Awards under Section 9), (C) the Option Price and Phantom Share Value, and (D) performance-based criteria established in connection with Awards; provided that, in the discretion of the Committee, the foregoing clause (D) may also be
applied in the case of any event relating to a Subsidiary if the event would have been covered under this Section 14(a) had the event related to the Company. 
  
 (b) Any Shares or other securities distributed to a Grantee with respect to Restricted Stock or otherwise issued in substitution of Restricted Stock shall
be subject to the restrictions and requirements imposed by Section 6, including depositing the certificates therefor with the Company together with a stock power and bearing a legend as provided in Section 6.2(a). 
  
 (c) If the Company shall be consolidated or merged with another corporation
or other entity, each Grantee who has received Restricted Stock that is then subject to restrictions imposed by Section 6.3 may be required to deposit with the successor corporation the certificates for the stock or securities or the other property
that the Grantee is entitled to receive by reason of ownership of Restricted Stock in a manner consistent with Section 6.2(b), and such stock, securities or other property shall become subject to the restrictions and requirements imposed by Section
6.3, and the certificates therefor or other evidence thereof shall bear a legend similar in form and substance to the legend set forth in Section 6.2(a). 
  

 19 

 (d) If a Change in Control shall occur, then the Committee, as constituted immediately before the Change
in Control, may make such adjustments as it, in its discretion, determines are necessary or appropriate in light of the Change in Control, provided that the Committee determines that such adjustments do not have an adverse economic impact on the
Participant as determined at the time of the adjustments. 
  
 (e)
The judgment of the Committee with respect to any matter referred to in this Section 14 shall be conclusive and binding upon each Participant without the need for any amendment to the Plan. 
  
 15. MISCELLANEOUS. 
  
 15.1 No Rights to Employment or Other Service. 
  
 Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual any right to continue in the
employ or other service of the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries and its shareholders to terminate the individual’s employment or other service at any time. 
  
 15.2 No Fiduciary Relationship. 
  
 Nothing contained in the Plan (including without limitation Sections 7.5(c)
and 8.4, and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust or any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Committee, on the
one hand, and the Participant, the Company, its Subsidiaries or any other person or entity, on the other. 
  
 15.3 Notices. 
  
 All notices under the Plan shall be in writing, and if to the Company, shall be delivered to the Board or mailed to its principal office, addressed to the
attention of the Board; and if to the Participant, shall be delivered personally, sent by facsimile transmission or mailed to the Participant at the address appearing in the records of the Company. Such addresses may be changed at any time by
written notice to the other party given in accordance with this Section 15.3. 
  
 15.4 Exculpation and Indemnification. 
  
 The Company shall indemnify and hold harmless the members of the Board and the members of the Committee from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act or
omission to act in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, to the maximum extent permitted by law, other than such liabilities, costs and expenses as may result from the gross
negligence, bad faith, willful misconduct or criminal acts of such persons. 
  
 15.5 Captions. 
  
 The use
of captions in this Plan is for convenience. The captions are not intended to provide substantive rights. 
  

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 15.6 Governing Law. 
  
 THE PLAN SHALL BE GOVERNED BY THE LAWS OF MARYLAND WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. 
  

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