Document:

exv10w7

 

Exhibit 10.7

PARTNERSHIP REORGANIZATION AGREEMENT

               PARTNERSHIP REORGANIZATION AGREEMENT (this “Agreement”), dated as of July
30, 2004 among High Tide LLC, an Ohio limited liability company (“High Tide”)
that has elected to be treated as a corporation for federal income tax purposes
and that has elected to be treated as a S corporation for federal income tax
purposes, Amsdell Partners, Inc., an Ohio corporation (“Partnership GP”) and
the general partner of the Partnership (as defined below), and Amsdell Holdings
I, Inc, an Ohio corporation (“Holdings” and (i) together with High Tide, the
“Limited Partners,” and (ii) together with High Tide and Partnership GP, the
“Partners”), and Acquiport/Amsdell I Limited Partnership, a Delaware limited
partnership (the “Partnership”).

RECITALS

               WHEREAS, High Tide, which currently is the owner of substantially all of
the limited partnership interests in the Partnership, has determined that it is
in the best interests of High Tide to pursue an initial public offering
transaction in which High Tide would sell equity to the public and raise
significant additional capital (the “IPO”), with the IPO to be consummated
following a reorganization of High Tide as a Maryland real estate investment
trust through a merger of High Tide into U-Store-It Trust, a wholly-owned
subsidiary of High Tide (“USI”);

               WHEREAS, High Tide also has been advised that the IPO would more likely be
successful if the Partnership were to be reorganized from its current
structure, with its Amended and Restated Agreement of Limited Partnership,
dated as of October 10, 2000 (as amended, the “Existing Partnership
Agreement”), being amended as set forth in the form of Second Amended and
Restated Agreement of Limited Partnership attached hereto as Exhibit A;
and

               WHEREAS, the Partners, in order to facilitate the IPO, have agreed that
the Existing Partnership Agreement be amended as set forth substantially in the
form of Second Amended and Restated Agreement of Limited Partnership attached
hereto as Exhibit A.

               NOW, THEREFORE, in consideration of the foregoing, and of the
representations, warranties, covenants and agreements contained herein, the
parties hereto hereby agree as follows:

ARTICLE 1

PARTNERSHIP AMENDMENT TRANSACTION;

CLOSING; CLOSING DELIVERIES

               1.1.     PARTNERSHIP AMENDMENT TRANSACTION. Subject to the terms and
conditions of this Agreement, at the Closing (as defined below) each

 

 

of the
Partners shall enter into an amendment and restatement of the Existing
Partnership Agreement substantially in the form attached hereto as Exhibit
A, with such further changes as may be proposed by Partnership GP and not
materially adversely affecting any of the Limited Partners (the “New
Partnership Agreement”) (such transaction, the “Partnership Amendment
Transaction”).

               1.2.     THE CLOSING. Subject to the terms and conditions of this Agreement,
the closing of the Partnership Amendment Transaction (the “Closing”) shall take
place (a) at the offices of Hogan & Hartson L.L.P., 555 Thirteenth Street,
N.W., Washington, D.C., 20004, on the day upon which all of the conditions to
the Partnership Amendment Transaction shall have been satisfied or waived in
writing, or (b) at such other time, date or place as the Partners may agree.
The date on which the Closing occurs is hereinafter referred to as the “Closing
Date.”

               1.3.     CLOSING DELIVERIES. At the Closing:

               (a)      Partnership GP shall execute and deliver the following:

                         (i) a duly executed New Partnership Agreement; and

                         (ii) such documents and certificates as any party may reasonably request
to reflect the parties’ intentions pursuant hereto.

               (b)     Each of the Limited Partners shall execute and deliver the following:

                         (i) a duly executed Limited Partner Acceptance substantially in the form
attached hereto as Exhibit B; and

                         (ii) such documents and certificates as any party may reasonably request
to reflect the parties’ intentions pursuant hereto.

               (c)     The Partnership shall execute and deliver the following:

                         (i) the initial Partner Registry (as defined in the New Partnership
Agreement) reflecting the transactions contemplated by Article 2; and

                         (ii) such documents and certificates as any party may reasonably request
to reflect the parties’ intentions pursuant hereto.

ARTICLE 2

EFFECT ON PARTNERSHIP INTERESTS

               2.1     EFFECT ON PARTNERSHIP INTERESTS. At the Closing, and pursuant to the
terms of the New Partnership Agreement:

 

 

               (a)     Each Partner shall receive, through the amendment and restatement of
the Existing Partnership Agreement into the New Partnership Agreement effected
at the Closing, the number of Class A Units (the “New Partnership Units”) set
forth with respect to such Partner on Exhibit C, and the Partnership
shall issue such New Partnership Units under and pursuant to the New
Partnership Agreement.

               (b)     Each Prior Partnership Interest will no longer be outstanding and will
be canceled and retired and will cease to exist.

               2.2     EFFECT ON GENERAL PARTNERSHIP INTERESTS; REFLECT ON PARTNER REGISTRY.
At the Closing, and pursuant to the terms of the New Partnership Agreement:

               (a)     Under Section 4.1 of the New Partnership Agreement, 1,000 of the
Partnership Units (as defined in the New Partnership Agreement) issued to
Partnership GP as a result of the Partnership Amendment Transaction will be
deemed to be the Partnership Units of Partnership GP, as the General Partner
(as defined in the New Partnership Agreement), and will be the General
Partnership Interest (as defined in the New Partnership Agreement). All other
Partnership Units issued to Partnership GP will be deemed to be Limited
Partnership Interests (as defined in the New Partnership Agreement) and will be
held by Partnership GP in its capacity as a Limited Partner (as defined in the
New Partnership Agreement) of the Partnership.

               (b)     The initial Partner Registry of the Partnership immediately following
the Partnership Amendment Transaction will reflect the issuance of the New
Partnership Units and other matters set forth in this Article 2.

               (c)     No fractional New Partnership Units will be issued pursuant to the New
Partnership Agreement. The number of New Partnership Units issued to any
Partner shall be rounded down to the nearest whole New Partnership Unit.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

               3.1     REPRESENTATIONS AND WARRANTIES OF LIMITED PARTNERS. As a material
inducement to the Partnership to consummate the
transactions contemplated hereby, each Limited Partner hereby makes to the
Partnership the representations and warranties set forth in this Article 3.1,
which representations and warranties are true and correct as of the date
hereof.

               (a)     Organization and Standing. Such Limited Partner is a
corporation or limited liability company duly organized, validly existing and
in good standing under Ohio law, and has the full and unrestricted corporate or
limited

 

 

liability company power and authority to own, operate its assets, to
carry on its business as currently conducted, to execute and deliver this
Agreement and to carry out the transactions contemplated hereby. Such Limited
Partner is duly qualified to conduct business as a foreign corporation or
limited liability company where necessary and is in good standing in the states
in which it is so qualified.

               (b)     Authority. Such Limited Partner has all requisite corporate or
limited liability company power and authority to execute and deliver this
Agreement and to consummate the Partnership Amendment Transaction and the other
transactions contemplated hereby. The execution and delivery by such Limited
Partner of this Agreement and the consummation by such Limited Partner of the
Partnership Amendment Transaction and the other transactions contemplated
hereby have been duly authorized by all necessary corporate or limited
liability company action on the part of such Limited Partner. Such Limited
Partner has duly executed and delivered this Agreement, and this Agreement
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms.

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

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

               (f)     No Brokers. Such Limited Partner has not entered into, and
covenants that it will not enter into, any agreement, arrangement or
understanding with any person or firm which will result in the obligation of
such Limited Partner to pay any finder’s fee, brokerage commission or similar
payment in connection with the transactions contemplated hereby.

               (g)     Securities Laws Matters; Restriction on Transfer.

                         (i) Such Limited Partner acknowledges that the Partnership intends the
transactions contemplated hereby to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”) and applicable state
securities laws by virtue of (A) the status of such Limited Partner or each of
the equity holders of such Limited Partner as “accredited investors” within the
meaning of the federal securities laws, and (B) Section 4(2) of the Securities
Act, and that the

 

 

Partnership will rely in part upon the representations and
warranties made by such Limited Partner in this Agreement in making the
determination that the issuance of the New Partnership Units qualify for
exemption under Section 4(2) of the Securities Act.

                         (ii) Such Limited Partner or each of the equity holders of such Limited
Partner is an “accredited investor” within the meaning of the federal
securities laws.

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

                         (iv) Such Limited Partner and each of the equity holders of such Limited
Partner have been supplied with, or had access to, information to which a
reasonable investor would attach significance in making an investment decision
to acquire the New Partnership Units and any other information such Limited
Partner or each of the equity holders of such Limited Partner have requested.
Such Limited Partner and each of the equity holders of such Limited Partner
have had an opportunity to ask questions of, and receive information and
answers from, the Partnership concerning the Partnership and the New
Partnership Units, and to assess and evaluate any information supplied to them
by the Partnership, and all such questions have been answered, and all such
information has been provided to their respective full satisfaction.

                         (v) Such Limited Partner acknowledges that it is aware that there are
substantial restrictions on the transferability of the New Partnership Units
and that the New Partnership Units will not be registered under the Securities
Act or any state securities laws. Such Limited Partner agrees that any New
Partnership Units such Limited Partner acquires will not be sold in the absence
of registration unless such sale is exempt from registration under the
Securities Act and applicable state securities laws. Such Limited Partner
acknowledges that such Limited Partner shall be responsible for compliance with
all conditions on transfer imposed by any securities authority and for any
expenses incurred by the Partnership for legal or accounting services in
connection with reviewing such a proposed transfer or issuing opinions in
connection therewith.

                         (vi) Such Limited Partner and each of the equity holders of such Limited
Partner understand that no federal agency (including the Securities and
Exchange Commission) or state agency has made or will make any finding or
determination as to the fairness of an investment in the New Partnership Units.

               (h)     General Partner Representations. In connection with the
issuance of Partnership Units to Partnership GP, Partnership GP hereby makes
the

 

 

representations and warranties to set forth in this Section 3.1 as to
itself for the benefit of the Partnership.

               3.2     REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP. As a material
inducement to each of the Limited Partners to consummate the transactions
contemplated hereby, Partnership GP and the Partnership each hereby makes to
each Limited Partner each of the representations and warranties set forth in
this Article 3.2, which representations and warranties are true and correct as
of the date hereof.

               (a)     Organization and Standing. Such entity is (i) a corporation
duly organized, validly existing and in good standing under Ohio law (in the
case of Partnership GP) or (ii) a limited partnership duly organized, validly
existing and in good standing under Delaware law (in the case of the
Partnership, and in each case has the full and unrestricted power and authority
to own, operate its assets, to carry on its business as currently conducted, to
execute and deliver this Agreement and to carry out the transactions
contemplated hereby. Such entity is duly qualified to conduct business as a
foreign corporation or limited partnership where necessary and is in good
standing in the states in which it is so qualified.

               (b)     Authority. Such entity has all requisite power and authority
to execute and deliver this Agreement and to consummate the Partnership
Amendment Transaction and the other transactions contemplated hereby. The
execution and delivery by such entity of this Agreement and the consummation by
such entity of the Partnership Amendment Transaction and the other transactions
contemplated hereby have been duly authorized by all necessary action on the
part of such entity. Such entity has duly executed and delivered this
Agreement, and this Agreement constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

               (c)     Capital Structure. The New Partnership Units issued in the
Partnership Amendment Transaction will be duly authorized and validly issued.

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

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

 

 

ARTICLE 4

CONDITIONS

               4.1     Conditions to Partnership GP’s and Partnership’s Obligations to
Effect the Partnership Amendment Transaction. The obligations of
Partnership GP and the Partnership to effect the Partnership Amendment
Transaction and the other transactions contemplated by this Agreement are
subject to the fulfillment, at or prior to the Closing, of the following
conditions (unless such conditions are waived in writing by Partnership GP and
the Partnership):

               (a)     IPO. The other transactions that Partnership GP and the
Partnership determine to be necessary or appropriate in connection with the
IPO, in such form(s) as Partnership GP and the Partnership, in their sole and
absolute discretion, shall have determined to be acceptable, shall have
occurred (or are occurring simultaneously with the Closing).

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

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

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

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

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

               4.2     Conditions to the Limited Partners’ Obligation to Effect the
Partnership Amendment Transaction. The obligation of each Limited Partner
to effect the Partnership Amendment Transaction and the other transactions

 

 

contemplated by this Agreement are subject to the fulfillment, at or prior to
the Closing, of the following conditions (unless such conditions are waived in
writing by such Limited Partner):

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

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

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

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

ARTICLE 5

TERMINATION

               5.1     TERMINATION AND ABADONMENT BY THE PARTNERSHIP. Partnership GP or the
Partnership shall have the right to terminate this Agreement and abandon the
Partnership Amendment Transaction at any time and for any reason on or after
February 15, 2005.

               5.2     TERMINATION AND ABADONMENT BY LIMITED PARTNER. Each Limited Partner
shall have the right to terminate this Agreement and abandon the Partnership
Amendment Transaction at any time and for any

 

 

reason on or after February 15,
2005.

               5.3     EFFECT OF TERMINATION AND ABANDONMENT. Upon the termination of this
Agreement and abandonment of the Partnership Amendment Transaction pursuant to
Section 5.1 or 5.2 hereof, this Agreement shall become void and have no effect,
and no party shall have any liability to the other in connection with the
transactions contemplated hereby, including the Partnership Amendment
Transaction, or as a result of the termination of this Agreement; provided,
that the foregoing shall not relieve a party of any liability as a result of a
breach of any of the terms of this Agreement.

ARTICLE 6

GENERAL PROVISIONS

               6.1     ENTIRE AGREEMENT. This Agreement, the Exhibits and any documents
delivered by the parties in connection herewith constitute the entire agreement
among the parties with respect to the subject matter hereof and supersede all
prior agreements and understandings among the parties with respect thereto. No
addition to or modification of any provision of this Agreement shall be binding
upon any party hereto unless made in writing and signed by all parties hereto.

               6.2     AMENDMENT. This Agreement may not be amended except by an instrument
in writing signed on behalf of each of the parties hereto.

               6.3     GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

               6.4     COUNTERPARTS. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all of the parties hereto.

               6.5     HEADINGS. Headings of the Articles and Sections of this Agreement are
for the convenience of the parties only, and shall be given no substantive or
interpretive effect whatsoever.

               6.6     INCORPORATION. All Exhibits attached hereto and referred to herein
are hereby incorporated herein and made a part hereof for all purposes as if
fully set forth herein.

               6.7     SEVERABILITY. Any term or provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering

 

 

invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of
this Agreement is so broad as to be unenforceable, the provision shall be
interpreted to be only so broad as is enforceable.

               6.8     WAIVER OF CONDITIONS. The conditions to each of the parties’
obligations to consummate the Partnership Amendment Transaction are for the
sole benefit of such party and may be waived by such party in whole or in part
to the extent permitted by applicable law.

               6.9     NO THIRD-PARTY BENEFICIARIES. This Agreement is not intended to
confer upon any person other than the parties hereto any rights or remedies
hereunder. Notwithstanding the foregoing, this Agreement shall bind any
successor (by merger or otherwise) to any party hereto, and such successor
shall perform the obligations of such party as though it were an original party
hereto. Each Limited Partner may designate any other person or entity to
receive the New Partnership Units to be issued to such Limited Partner pursuant
to this Agreement; provided, however, that upon any such designation, the
designee shall make to Partnership GP and the Operating Partnership each of the
representations, warranties and covenants set forth in Section 3.1(g) hereof.

               6.10     NO AMENDMENT OF EXISTING PARTNERSHIP AGREEMENT. This Agreement shall
not amend or modify, or be deemed to effectuate any amendment or modification
of the Existing Partnership Agreement; it being understood that the amendments
and modifications of the Existing Partnership Agreement referred to herein
shall be effectuated pursuant to the terms of the New Partnership Agreement,
which will be entered into and become effective only upon the Closing and
subject to the terms and conditions set forth herein.

 

 

          IN WITNESS WHEREOF, the parties have executed this Agreement and caused
the same to be duly delivered on their behalf as of the day and year first
written above.

	 	 	 	 	 	 	 	 	 
	ATTEST:
	 	High Tide LLC	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By:

	 	/s/ Patricia A. Rocewicky
	 	By:
	 	/s/ Robert J. Amsdell
	 	(SEAL)
	

	 	
 
	 	 	 	
 	 	 
	

	 	Name: Patricia A. Rocewicky
	 	 	 	Name: Robert J. Amsdell	 	 
	

	 	Title:
	 	 	 	Title: Sole Manager	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	ATTEST:
	 	Amsdell Partners, Inc.	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By:

	 	/s/ Todd C. Amsdell
	 	By:
	 	/s/ Robert J. Amsdell
	 	(SEAL)
	

	 	
 
	 	 	 	
 	 	 
	

	 	Name: Todd C. Amsdell
	 	 	 	Name: Robert J. Amsdell	 	 
	

	 	Title: Secretary
	 	 	 	Title: President	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	ATTEST:
	 	Amsdell Holdings I, Inc.	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By:

	 	/s/ J. Christian Bartel
	 	By:
	 	/s/ Robert J. Amsdell
	 	(SEAL)
	

	 	
 
	 	 	 	
 	 	 
	

	 	Name: J. Christian Bartel
	 	 	 	Name: Robert J. Amsdell	 	 
	

	 	Title: Secretary
	 	 	 	Title: President	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	ATTEST:
	 	Acquiport/Amsdell I Limited Partnership	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	Amsdell Partners, Inc., general partner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 
	By:

	 	/s/ Todd C. Amsdell
	 	By:
	 	/s/ Robert J. Amsdell
	 	(SEAL)
	

	 	
 
	 	 	 	
 	 	 
	

	 	Name: Todd C. Amsdell
	 	 	 	Name: Robert J. Amsdell	 	 
	

	 	Title: Secretary
	 	 	 	Title: President	 	 

 

 

Exhibit C

UNIT AMOUNTS

Each of the Partners will receive the number of New Partnership Units set forth
with respect to such Partner below:

Amsdell Partners, Inc.: 0.03854 x Aggregate Equity Exchange Units

Amsdell Holdings I, Inc.: 0.05861 x Aggregate Equity Exchange Units

High Tide LLC: 0.90285 x Aggregate Equity Exchange Units + $18,660,000 / PPS

	 	 	 	 	 
	Where:
	 	 	 	 
	

	 	 	 	 
	Aggregate Equity Exchange Units

	 	=
	 	(EV — (PPOI + TC + AC)) / PPS
	EV

	 	=
	 	Enterprise Value
	PPOI

	 	=
	 	Pre-Public Offering Indebtedness
	TC

	 	=
	 	Transaction Costs
	AC

	 	=
	 	Acquisition Costs
	PPS

	 	=
	 	USI IPO Price Per Share

Definitions (to the extent not defined in the Agreement):

“Enterprise Value” means the sum, as of the Closing Date, of (a) Gross Equity
Value and (b) the amount of all Indebtedness of USI, the Operating Partnership,
their subsidiaries and any affiliates holding direct or indirect interests in
any of the properties or assets to be owned by USI, the Operating Partnership
or any such subsidiary (to the extent such Indebtedness of such affiliate
related to such properties or assets), upon the consummation of the IPO and the
transactions related to the IPO (collectively with the IPO, the “IPO
Transactions”), after application of the proceeds of the IPO Transactions
(including, without limitation, the Operating Partnership’s pro rata share of
consolidated and unconsolidated joint venture Indebtedness, if any). For
purposes of this definition, “Gross Equity Value” shall mean the gross equity
value of USI and the Operating Partnership, without duplication, upon the
consummation of the IPO Transactions, as determined by USI as of the Closing
Date in consultation with its underwriters.

“Indebtedness” means, as to any person, any indebtedness, whether or not
contingent, secured, senior, mezzanine or subordinated, (i) in respect of
borrowed money (including, without limitation, permanent indebtedness,
construction indebtedness, bridge financing, secured debt, mortgage debt, lines
of credit and indebtedness secured by pledges of equity interests), (ii)
evidenced by bonds, notes, debentures or similar instruments, or (iii)
representing capital lease obligations. “Indebtedness” shall not include any
indebtedness of USI, the Operating Partnership or any of their subsidiaries
owed to each other.

 

 

“Pre-Public Offering Indebtedness” means the sum of (a) the amount of all
Indebtedness of USI, the Operating Partnership, their subsidiaries and any
affiliates holding direct or indirect interests in any of the properties or
assets to be owned by USI, the Operating Partnership or any such subsidiary (to
the extent such Indebtedness of such affiliate related to such properties or
assets), determined as of immediately prior to the consummation of the IPO
Transactions (including, without limitation, the Operating Partnership’s pro
rata share of consolidated and unconsolidated joint venture Indebtedness, if
any), and (b) all accrued or accumulated interest, prepayment penalties,
financing fees, exit fees, and other amounts, costs or expenses payable on
account of the repayment, assumption or refinancing of any such Indebtedness in
connection with the IPO Transactions. “Pre-Public Offering Indebtedness” shall
be calculated without duplication of amounts, including, without limitation,
amounts included in Acquisition Costs or Transaction Costs.

“Acquisition Costs” means the sum of (a) the aggregate equity value of the OP
units to be issued in connection with the contribution of the Lantana, FL,
Lakewood, OH and Vero Beach, FL properties to the Operating Partnership by
Robert J. Amsdell, Trustee, Amsdell and Amsdell and Amsdell Holdings I, Inc.,
respectively, such equity value determined by multiplying the number of such OP
units by the IPO Price Per Share, (b) the cash purchase price for the capital
stock of U-Store-It Mini Warehouse Co., and (c) the aggregate acquisition costs
for all new properties (and entities) acquired by USI, the Operating
Partnership or any of their subsidiaries in connection with the consummation of
the IPO Transactions, including the purchase price thereof and the amount of
any assumed Indebtedness in connection therewith (or, in the case of an
acquisition of an entity, the Indebtedness of such entity). “Acquisition
Costs” shall be calculated without duplication of amounts, including, without
limitation, amounts included in Transaction Costs or Pre-Public Offering
Indebtedness.

“Transaction Costs” means the (a) outstanding third party payables of USI, the
Operating Partnership, or their subsidiaries in connection with the IPO
Transactions, and (b) third party fees and expenses incurred by USI, the
Operating Partnership or their subsidiaries in connection with the IPO
Transactions, including, without limitation, underwriting discounts, fees and
commissions (other than underwriting discounts, fees and commissions relating
to any over-allotment option of the underwriters) and other fees and costs
payable to the underwriters, legal, accounting or other professional fees, the
costs of any road show, printing expenses and filing and qualification fees,
and (c) third party fees, transfer taxes, costs and reserves associated with
all third party Indebtedness obtained by USI, the Operating Partnership or
their subsidiaries in connection with the IPO Transactions, and (d) the amount
of working capital reserves established by USI and the Operating Partnership
upon the consummation of the IPO Transactions. “Transaction Costs” shall be
calculated without duplication of amounts, including, without limitation,
amounts included in Pre-Public Offering Indebtedness and Acquisition Costs.

“IPO Price Per Share” means the issuance price per share of the common shares
of USI at the IPO.exv10w17

 

Exhibit 10.17

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

ACQUIPORT/AMSDELL I LIMITED PARTNERSHIP

AND

METRO STORAGE LLC

 

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT is dated as of the Effective Date
specified in Article I below by and between METRO STORAGE LLC, a Delaware
limited liability company (“Seller”) and Acquiport/Amsdell I Limited
Partnership, a Delaware limited partnership (“Buyer”).

RECITALS:

     WHEREAS, Seller directly or indirectly owns the 42 self-storage projects
as more particularly described below; and

     WHEREAS, Seller desires to convey or cause to be conveyed to Buyer, and
Buyer desires to accept the conveyance of, such self-storage projects, all on
the terms and conditions hereinafter set forth.

     NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements set forth herein, the parties hereto agree as follows:

Article I.

GENERAL INFORMATION

     Exhibit A hereto lists the 42 self-storage projects that are being sold
pursuant to this Agreement (each such project, collectively with the applicable
related items of real and personal property described in Article III, being a
“Project”) and also lists for the applicable Project the portion of the
Acquisition Value (as defined below) allocated to such Project. Seller is the
direct owner of 12 of such Projects and the indirect owner of 24 of such
Projects (except that a portion of the Project located in Des Plaines, Illinois
is leased rather than owned). Seller also owns the entire limited partnership
interest in Metropolitan Self-Storage Limited Partnership — Indianapolis, an
Illinois limited partnership (“Indy”), which owns 6 of such Projects.
Indianapolis Self Storage LLC, an Illinois limited liability company (“Indy
GP”) owns the entire general partnership interest in Indy, and Indy GP is
accordingly joining in this Agreement solely for the purpose of agreeing to
cause Indy GP to sell such 6 Projects in accordance with the terms of this
Agreement. Each of the entities other than Seller which owns any of such
Projects is referred to herein as a “Subsidiary”. Exhibit A hereto also sets
forth the direct and indirect owners of each Project. The following further
general information is used throughout this Agreement:

     1.1 Title Company: First American Title Insurance Company

     1.2 Effective Date: August 13, 2004

     1.3 Land: The real property portion of the Projects.

     1.4 Acquisition Value: The sum of One Hundred Eighty-Four Million
U.S. Dollars ($184,000,000). The percentage of the Acquisition Value allocable
to each Project is as shown on Exhibit L hereto. The allocation of Acquisition
Value among the Projects shall be used for purposes of (i) determining the
portion of the Acquisition Value attributable to any Project that is

 

 

the subject of a Project Withdrawal (as defined in Section
12.5), (ii) determining the amount of the Title Policy for each Project, and
(iii) determining the value upon which any required transfer taxes are to be
paid.

     1.5 Earnest Money: The sum of Two Million Dollars ($2,000,000)
Earnest Money to be deposited by Buyer in cash with the Escrow Agent (as
defined in Section 4.1) within one business day after full execution of this
Agreement (subject to further increase pursuant to Section 4.1 below in the
event Buyer elects to extend the Closing Date pursuant to Section 9.1 below),
together with all interest accrued thereon.

     1.6 Initial Inspection Period: To and including September 10, 2004.

     1.7 Extended Inspection Period: To and including September 20,
2004.

     1.8 Closing Date: A date on or before October 20, 2004 which is
mutually acceptable to Buyer and Seller, subject to extension pursuant to
Section 9.1 below.

     1.9 Place of Closing: Through escrow closing at the offices of
Seller’s attorneys in Chicago, Illinois.

	 	 	 	 	 	 
	 	1.10

	 	Notices, Buyer:
	 	Acquiport/Amsdell I Limited Partnership
	 	

	 	 	 	6745 Engle Road, Suite 300
	 	

	 	 	 	Cleveland, Ohio 44130
	 	

	 	 	 	Attn: Steven G. Osgood, President & Chief Financial Officer
	 	

	 	 	 	Fax:(440) 234-5899
	 	

	 	 	 	Phone:(440) 234-0700
	 	

	 	 	 	E-mail: steveo@u-store-it.com
	 	 
	 	 	 	 
	 	

	 	 	 	     and
	 	 
	 	 	 	 
	 	

	 	 	 	Attn: Patricia A. Rocewicky, Executive Administrator
	 	

	 	 	 	Fax:(440) 234-5899
	 	

	 	 	 	Phone:(440) 234-0700
	 	

	 	 	 	E-mail: par@u-store-it.com
	 	 
	 	 	 	 
	 	

	 	with a copy to:
	 	Hurtuk & Daroff Co., L.P.A.
	 	

	 	 	 	One Corporate Exchange
	 	

	 	 	 	25825 Science Park Drive, Suite 210
	 	

	 	 	 	Cleveland, Ohio 44122
	 	

	 	 	 	Attn: Kurt von Boeselager
	 	

	 	 	 	Fax: (216) 464-4007
	 	

	 	 	 	Phone:(216) 464-6839
	 	

	 	 	 	E-mail:kvb@hurtukdaroff.com
	 	1.11

	 	Notices, Seller:
	 	Metro Storage LLC
	 	 
	 	 	 	 
	 	

	 	 	 	Attn: Matthew Nagel

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	 	 	 	Phone: 847/604-5226
	 	

	 	 	 	E-mail: mnagel@metrostorage.com
	 	 
	 	 	 	 
	 	

	 	with a copy to:	 	 
	 	

	 	 	 	Sonnenschein Nath & Rosenthal LLP
	 	

	 	 	 	8000 Sears Tower
	 	

	 	 	 	Chicago, Illinois 60606
	 	

	 	 	 	Attn: Todd Stennes, Esq. and Gerald J. Sherman
	 	

	 	 	 	Fax: 312/876-7934
	 	

	 	 	 	Phone: 312/876-3173
	 	

	 	 	 	E-mail: tstennes@sonnenschein.com and
	 	

	 	 	 	gsherman@sonnenschein.com

Article II.

DEFINITIONS

     The terms defined in Article I and this Article II, whenever capitalized,
shall have the meanings set forth below and in Article I, whenever such terms
are used in this Agreement and all Exhibits hereto, unless the context clearly
indicates a different meaning:

     “Agreement". This instrument, together with all exhibits, addenda,
schedules, and proper amendments thereto.

     “Buyer’s knowledge” (or any form of such term, such as “knowledge of
Buyer” or “known to Buyer” etc.) means the actual knowledge of the officers,
agents and representatives of the Buyer and shall not include any constructive
or implied knowledge or the actual knowledge of any other person or entity.

     “Closing". The consummation of the transactions contemplated by this
Agreement, including the transfer of the Projects to Buyer and receipt of the
Acquisition Value by Seller.

     “Current Funds". Wire transfer of current federal funds in accordance
with wiring instructions to be provided by Seller, or such other forms of
immediately available funds as may be acceptable to Seller.

     “Earnest Money". The sum specified in Section 1.5 above, subject to
increase as described in Section 4.1 below (which includes all interest accrued
on the deposited funds).

     “Encumbrance". Any security interest, pledge, mortgage, lien (including
environmental and tax liens), charge, easement, encumbrance, adverse claim,
preferential arrangement, or restriction of any kind, including, without
limitation, any material restriction on the use, voting, transfer, receipt of
income or other exercise of any attributes of ownership.

     “Permitted Exceptions". Those matters subject to which title to the
Projects shall be conveyed to Buyer in accordance with Section 6.3 hereof.

     “Seller’s knowledge” (or any form of such term, such as “knowledge of
Seller” or “known to Seller” etc.) means the actual knowledge of Matthew Nagel,
Martin Gallagher and/or

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K. Blair Nagel and shall not include any constructive or implied knowledge
or the actual knowledge of any other person or entity.

     “Surveys". Surveys of the Projects, certified as of a date no earlier
than six months prior to the Effective Date, made in accordance with the most
current “Minimum Standard Detail Requirements for Land Title Surveys” jointly
established and adopted by ALTA and ACSM in 1992. Upon Buyer’s request, Seller
shall provide Buyer with the name of the surveyor preparing each Survey so that
Buyer may request that the surveyor show or verify matters not covered by a
survey prepared in accordance with the preceding sentence. However, (i) Buyer
shall be responsible for the incremental cost of showing or verifying any such
additional matters, and (ii) none of the Title Review Period, the Initial
Inspection Period nor the Extended Inspection Period shall be extended by the
amount of time it takes the surveyor to address any such additional matters.

     “Title Commitments". The proforma commitments for Owner’s Title Insurance
Policies to be issued to Buyer in accordance with Section 6.1 hereof.

     “Title Documents". The documents listed in the Title Commitments as
exceptions to title to the Land and Improvements.

     “Title Policies". The ALTA form of Owner’s Policies of Title Insurance to
be issued to Buyer with full extended coverage in the full amount of the
Acquisition Value (in the aggregate) in accordance with Section 9.3 hereof.

     “Title Review Period". The period from the date hereof to September 15,
2004.

Article III.

AGREEMENT OF TRANSFER

     Subject to the terms and conditions set forth in this Agreement, Seller
agrees to sell, transfer and assign (or to cause the applicable Subsidiary to
sell, transfer and assign) to Buyer, and Buyer agrees to purchase and accept
from Seller or the applicable Subsidiary, all right, title and interest of
Seller or the applicable Subsidiary in and to the following described property:

     (a) Land. The Land.

     (b) Easements. All easements, if any, benefiting the Land or
the Improvements (as hereinafter defined).

     (c) Rights and Appurtenances. All rights and appurtenances,
if any, pertaining to the Land including any right, title and interest of
Seller in and to adjacent streets, alleys or rights-of-way.

     (d) Improvements. All improvements to and structures in and
on the Land (“Improvements”).

     (e) Leases. All leases or other agreements in effect on the
Closing Date demising space in or providing for the use or occupancy of
the Improvements or Land

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(“Leases”), and all refundable tenant deposits held by Seller,
subject to Seller’s rights under Section 10.2.

     (f) Tangible Personal Property. The computers, copiers,
furniture, phones and office supplies located in the management offices
at the respective Projects and the 14 trucks and 40 golf carts located at
the Projects (“Tangible Personal Property”), but excluding all resale
merchandise (e.g. boxes and locks for sale) and proprietary materials
(e.g. lease forms, training materials, marketing materials), which Seller
may remove from the Projects before Closing or at any time during the two
week period after Closing. Within fourteen days from the Effective Date
Seller shall deliver to Buyer a list of computers and copiers located at
each Project.

     (g) Intangible Property. All intangible property
(“Intangible Property”), if any, pertaining to the respective Projects or
the use thereof, including, without limitation, transferable contracts,
transferable telephone exchange numbers, all assignable guarantees and
warranties pertaining to the Improvements and the Tangible Personal
Property (including, without limitation, any construction warranties
relating to the Improvements which run to the benefit of Seller), and
specifically including any Contracts (as defined in Section 6.1) which
Buyer elects to assume, but excluding (i) any proprietary software
or operating materials used by Seller or any Subsidiary in connection
with the Projects and any interest in Seller’s website, and (ii) except
to the extent expressly set forth in Section 12.2, any right to the trade
names Metro-Self Storage or Metro Storage or any variants thereof.

Article IV.

CONSIDERATION

     4.1 Earnest Money. Within one business day after execution of this
Agreement, and as a condition precedent to Seller’s obligations under this
Agreement, Buyer shall deposit the $2,000,000 of Earnest Money with U.S. Bank
National Association or an affiliate thereof (the “Escrow Agent”) in Current
Funds. The Earnest Money shall be held by the Escrow Agent in an interest
bearing account pursuant to an escrow agreement in the form of Exhibit B hereto
unless and until the Earnest Money is disbursed by the Escrow Agent in
accordance with the terms of such escrow agreement. As provided in the Escrow
Agreement, the Earnest Money shall be released (i) on the sole order of the
Buyer or Buyer’s attorney at any time on or before September 20, 2004, and (ii)
on the sole order of Seller or Seller’s attorney after September 20, 2004. If
Buyer exercises its option(s) to extend the Closing Date pursuant to Section
9.1 below, then (a) upon the notice of the first extension, the $2,000,000 of
initial Earnest Money shall be released from the escrow to an account
designated by Seller, and (b) concurrently with notice of each such exercise of
an extension option Buyer shall deliver an additional $1,000,000 of
non-refundable Earnest Money to Seller by wire transfer to an account
designated by Seller. The Earnest Money (including any such further $1,000,000
extension option deposit(s)) will be applied to the Acquisition Value due at
Closing. In the event of a default by either party, the Earnest Money
(including any such further $1,000,000 extension option deposit(s)) will be
disbursed in accordance with Article XI hereof.

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     Buyer’s failure to timely deposit any installment of the Earnest Money
shall constitute a default by Buyer hereunder and shall make this Agreement
terminable at Seller’s option. However, if Seller chooses not to terminate
this Agreement, Buyer shall remain contractually obligated to deposit the
Earnest Money in accordance with the terms hereof; and if Seller does elect to
terminate this Agreement Buyer shall be obligated to pay to Seller the
applicable installment of the Earnest Money, which shall be retained by Seller
along with any previous deposit(s) of the Earnest Money as liquidated damages
due to Seller.

     4.2 Payment of Acquisition Value. The Acquisition Value, subject
to adjustments and prorations as provided herein, shall be paid to Seller at
the Closing in Current Funds.

Article V.

CONDITIONS TO CLOSING

     5.1 Conditions to Buyer’s Obligations. Except as otherwise
expressly provided in this Agreement, the obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of
the following conditions on or before the Closing Date:

     (a) The representations and warranties of Seller contained herein
shall be true in all material respects as of the Closing Date as if made
on the Closing Date;

     (b) Seller shall have performed in all material respects all the
covenants and agreements required to be performed by Seller under this
Agreement prior to the Closing; and

     (c) Seller shall have delivered to the Buyer the items set forth in
Section 9.2(a).

     5.2 Conditions to Seller’s Obligations. Except as otherwise
expressly provided in this Agreement, the obligation of Seller to consummate
the transactions contemplated by this Agreement is subject to the satisfaction
of the following conditions on or before the Closing Date:

     (a) The representations and warranties of Buyer contained herein
shall be true in all material respects as of the Closing Date as if made
on the Closing Date;

     (b) Buyer shall have performed in all material respects all the
covenants and agreements required to be performed by Buyer under this
Agreement prior to the Closing; and

     (c) Buyer shall have delivered to the Seller the items set forth in
Section 9.2(b).

     5.3 Waivers of Conditions. Any conditions specified in this
Article 5 may be waived by the applicable party. If either the Buyer or Seller
elects to proceed with the Closing, each and every condition that is
unsatisfied at the Closing shall be deemed to be waived.
If a party shall waive or be deemed to have waived any condition set forth
in this Article 5, such party shall be

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deemed to have fully released and
forever discharged the other party from and on account of all claims, demands
or charges with respect to the waived condition.

Article VI.

DELIVERIES AND INSPECTIONS

     6.1 Seller’s Obligations. Seller has delivered or, in the case of
Leases, made available to Buyer the following items:

     (a) Title Commitments. The Title Commitments, at Seller’s
expense, issued by Title Company setting forth the state of title to the
Land and Improvements and all exceptions thereto, including easements,
restrictions, rights-of-way, covenants, reservations, and other
conditions, if any, affecting the Land and Improvements which would
appear in the Title Policies, if issued. Along with the Title
Commitments, Seller shall also furnish to Buyer copies of all Title
Documents.

     (b) The Surveys. The Surveys.

     (c) Rent Rolls and Operating Statements. For each Project,
(i) a current rent roll, (ii) operating statements for calendar year
2003, and (iii) monthly operating statements for each of the first six
calendar months of 2004.

     (d) Leases. All Leases.

     (e) Contracts. Copies of all contracts, if any, in the
possession of Seller pertaining to the Projects (“Contracts”) as of the
date of this Agreement, including, but not limited to, service contracts,
equipment leases and maintenance contracts, but excluding any
property management contracts (which shall be terminated by Seller at or
before Closing).

     (f) Other Deliveries. The other materials listed on Exhibit
I.

     6.2 Buyer’s Obligations. Buyer shall be obligated to pay the
expense of its due diligence review as detailed in Section 6.4, and to carry
out its inspections in good faith.

     6.3 Title Objections.

     (a) If any exceptions appear in the Title Commitments, Title
Documents or Surveys that Buyer determines in good faith are unacceptable
to it and that would unreasonably interfere with Buyer’s intended use of
any Project, or that result in title to a Project not being insurable,
then Buyer must, within the Title Review Period, provide written notice
to Seller and Title Company of such unacceptable exception(s)
(“Unpermitted Exceptions”). If Buyer fails to disapprove an item
reflected therein by written notice received by Seller and Title Company
within the Title Review Period, Buyer shall be deemed to have
unconditionally approved such item. Notwithstanding that Buyer has until
the end of the Title Review Period to provide notices of any Unpermitted
Exceptions, Buyer shall use good faith efforts to provide such notices in
an

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expeditious manner as and when Buyer completes its review of title
and Surveys for each Project.

     (b) Seller may, at Seller’s option, attempt to eliminate or modify
such Unpermitted Exceptions to the reasonable satisfaction of Buyer,
although Seller shall not be obligated to do so, and Seller shall provide
to Buyer written notice within three (3) business days of its receipt of
Buyer’s written notice of Seller’s intention of whether or not to attempt
to eliminate such Unpermitted Exceptions. Seller has no obligation to
endeavor to cure any Unpermitted Exception raised by Buyer, and Seller
shall not be required to expend any effort or funds, or to commence
litigation to cure an Unpermitted Exception. If Seller chooses not to
eliminate such condition, or if Seller fails to give notice within the
three business day period set forth above of its election to cure such
condition, then within three (3) business days thereafter, Buyer may
terminate this Agreement by notice in writing to Seller, and the Earnest
Money shall be refunded to Buyer. Notwithstanding the preceding
sentence, if Buyer does not terminate this Agreement within such three
(3) business day period, Buyer shall be deemed to have unconditionally
accepted such title subject to such Unpermitted Exceptions and Buyer must
close the purchase of the Projects subject to such Unpermitted
Exceptions. If Seller elects to attempt a cure, but is unable to cure an
Unpermitted Exception by the Closing Date, then Buyer may terminate this
Agreement by notice in writing to Seller, and the Earnest Money shall be
refunded to Buyer. If the Buyer does not so elect to terminate this
Agreement, Buyer shall be deemed to have unconditionally accepted title
subject to such Unpermitted Exception and the parties shall proceed with
Closing as scheduled. The matters shown on the Title Commitments and
Surveys which Buyer approves or is deemed to approve pursuant to this
Section 6.3 shall constitute Permitted Exceptions.

     6.4 Inspection Period.

     (a) During the Initial Inspection Period and the Extended Inspection
Period, Buyer may conduct a due diligence review of the Projects,
including obtaining such engineering and environmental reports as it may
deem necessary and reviewing the documents to be provided by Seller
pursuant to Section 6.1. If for any reason during the Initial Inspection
Period Buyer determines that it is not advisable to purchase the
Projects, then Buyer may by notice to Seller in writing prior to the
expiration of the Initial Inspection Period terminate this Agreement in
its entirety (but not on a Project by Project basis), in which case the
Earnest Money shall be returned to Buyer. Failure of Buyer to provide
such notice by such date shall constitute a waiver by Buyer of any right
to terminate this Agreement pursuant to the terms of this Section 6.4(a),
and thereafter $1,000,000 of the Earnest Money shall become completely
earned and non-refundable unless this Agreement is terminated by Buyer in
accordance with the terms of Section 6.3(b), Section 6.4(b) or Section
11.1.

     (b) If after the expiration of the Initial Inspection Period but on
or before the expiration of the Extended Inspection Period Buyer
determines that it is not advisable to purchase the Projects (other than
for reasons based on Buyer’s financial due diligence), then Buyer may by
notice to Seller in writing prior to the expiration of the Extended
Inspection Period terminate this Agreement in its entirety (but not on a
Project by Project basis), in which case the Earnest Money shall be
returned to Buyer. Any such

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termination notice shall describe the applicable objectionable
condition in reasonable detail. Failure of Buyer to provide such notice
by such date shall constitute a waiver by Buyer of any right to terminate
this Agreement pursuant to the terms of this Section 6.4(b), and
thereafter the remaining $1,000,000 of the Earnest Money shall also
become completely earned and non-refundable unless this Agreement is
terminated by Buyer in accordance with the terms of Section 6.3(b) or
Section 11.1.

     (c) Any information regarding the Projects provided to Buyer by
Seller and any information acquired by Buyer in connection with this
Agreement or Buyer’s investigation of the Projects shall constitute
Confidential Information, as such term is defined in that certain
Confidentiality Agreement executed by Buyer and dated March 1, 2004. All
such Confidential Information and Buyer’s use thereof shall be governed
by and subject to the terms of such Confidentiality Agreement. If this
Agreement is terminated for any reason, Buyer shall upon Seller’s request
deliver to Seller all information, data, studies and tests regarding the
Projects which Seller previously provided to Buyer. Buyer shall also
upon Seller’s request deliver to Seller any environmental, physical and
other third party reports relating to the Projects and obtained by Buyer
from parties other than Seller, provided Seller reimburses Buyer for
Buyer’s actual costs related thereto. Buyer authorizes Seller to re-use
and disclose any and all such materials, and Buyer shall execute such
further written authorizations for such future use and disclosure as
Seller may reasonably request.

     (d) Buyer shall give Seller reasonable prior written notice (at
least 24 hours) of its intention to conduct any inspections of the
Projects, which notices shall specify the date and time that Buyer or its
representatives will arrive at the applicable Project, and Seller shall
have the right to have representatives of Seller present at any
inspections. Buyer shall be liable for all damage or injury to any
person or property resulting from any such inspection, whether occasioned
by the acts of Buyer or any of its employees, agents, representatives or
contractors, and Buyer shall indemnify, defend and hold harmless Seller
from any liability resulting therefrom. This indemnification by Buyer
shall survive the Closing or any termination of this Agreement. Buyer
agrees to indemnify and hold harmless the Seller from any claim, damage,
loss, or liability to which Seller is at any time subjected as a result
of Seller’s compliance with the prior sentence.

     (e) Certain third party environmental and/or engineering reports
have been generated or work has been performed to generate such reports
(collectively, the “Existing Due Diligence”) in connection with a prior
proposed sale of the Projects pursuant to a prior sale agreement between
Seller and Storeinvest I, LLC (the “Prior Sale Agreement”). Seller
hereby acknowledges and agrees that, notwithstanding any confidentiality
requirements in the Prior Sale Agreement or in any separate
confidentiality agreement related to the Prior Sale Agreement, Buyer
shall be permitted to obtain and (subject to the confidentiality
restrictions herein) make use of the Existing Due Diligence.

Article VII.

REPRESENTATIONS AND WARRANTIES

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     7.1 Seller’s Representations. Seller represents and warrants to
Buyer as follows:

     (a) Seller is a duly formed and validly existing limited liability
company in good standing under the laws of the State of Delaware.

     (b) Seller and each Subsidiary is a duly formed and validly existing
entity in good standing under the laws of its state of organization and
is qualified to do business in the State(s) in which it is legally
required to be so qualified.

     (c) Seller has taken all necessary action and obtained all necessary
consents to authorize its execution, delivery and performance of this
Agreement; and this Agreement is enforceable against Seller.

     (d) This Agreement and the transactions contemplated hereby do not
conflict with existing laws or with any contracts to which Seller or any
of the Subsidiaries is a party.

     (e) There is no legal action pending which would materially affect
the ability of Seller or any Subsidiary to carry out the transactions
contemplated by this Agreement.

     (f) There is no currently pending litigation relating to any Project
which is not covered by insurance.

     (g) No petition in bankruptcy (voluntary or otherwise), assignment
for the benefit of creditors, or petition seeking reorganization or
arrangement or other action under federal or state bankruptcy laws is
pending or contemplated against Seller or any of the Subsidiaries.

     (h) Neither Seller nor any Subsidiary is a foreign person within the
meaning of Section 1445(f) of the Internal Revenue Code of 1986, as
amended.

     (i) The rent rolls and Project operating statements delivered
pursuant to Section 6.1 are true and correct in all material respects as
of the date thereof.

     (j) Neither Seller nor any Subsidiary has received any written
notice of any violation of any law, zoning ordinance, municipal
ordinance, code, or regulation (including any environmental law or
regulation) affecting the Projects which has not been cured, nor has
Seller or any Subsidiary received any written notice of any existing or
threatened condemnation action involving the Projects.

     (k) There is no currently pending litigation relating to any Project
which is not covered by insurance.

     (l) Neither Seller nor any Subsidiary is subject to any commitment,
obligation, or agreement to sell any Project (including but not limited
to, any right of first refusal or option to purchase granted to a third
party), which would or could prevent them from completing the transfer of
the Projects under this Agreement or which would bind Buyer subsequent to
Closing.

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     (m) The Leases listed on the rent rolls together with the billboard
and cell tower leases delivered to Buyer prior to the date hereof are all
of the leases affecting the Projects; and the copies thereof which have
been delivered to or made available to Buyer pursuant to Section 6.1 are
true and correct in all material respects.

     (n) The copies of the Contracts delivered to Buyer pursuant to
Section 6.1 are true and correct in all material respects.

     (o) Except as to be disclosed to Buyer within ten days after the
Effective Date, Seller has not distributed or authorized the distribution
of any localized, mass or direct marketing mailing which provides any
coupons, discounts or other rental concessions, rebates or free rent for
any new or existing tenants of any Project which would become effective
after the Closing Date.

     Buyer shall give written notice to Seller within five (5) days after
Buyer’s obtaining knowledge that any Seller representation and warranty is no
longer true and correct; provided, however, that Buyer’s failure to give such
written notice shall in no instance constitute a default by Buyer under this
Agreement but shall instead only serve to bar Buyer from raising such matter as
a failure of a condition precedent to Buyer’s obligation to close the
transaction. Buyer’s election to proceed with the Closing shall result in
Buyer’s waiver of any remedy resulting from the incorrectness in such
representation or warranty or from the incorrectness in any other
representation or warranty of Seller of which Buyer shall have knowledge at or
prior to Closing. The foregoing waiver shall survive the Closing.

     7.2 Buyer’s Representations. Buyer represents and warrants to
Seller that:

     (a) Buyer is a duly formed and validly existing limited partnership
in good standing under the laws of the State of Delaware.

     (b) Buyer has taken all necessary action and obtained all necessary
consents (including any board of directors, management committee or other
analogous approvals) to authorize Borrower’s execution, delivery and
performance of this Agreement and all of the transactions contemplated
hereby, and this Agreement is binding upon and enforceable against Buyer.

     (c) This Agreement and the transactions contemplated hereby do not
conflict with existing laws or with any contracts to which Buyer is a
party.

     (d) There is no legal action pending which would materially affect
the ability of Buyer to carry out the transactions contemplated by this
Agreement.

     (e) No petition in bankruptcy (voluntary or otherwise), assignment
for the benefit of creditors, or petition seeking reorganization or
arrangement or other action under federal or state bankruptcy laws is
pending or contemplated against Buyer.

     (f) Buyer is a sophisticated investor and has made an independent
decision to acquire the Projects without reliance on any statements by
Seller other than those contained in this Agreement.

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     Seller shall give written notice to Buyer within five (5) days after
Seller’s obtaining knowledge that any Buyer representation and warranty is no
longer true and correct; provided, however, that Seller’s failure to give such
written notice shall in no instance constitute a default by Seller under this
Agreement but shall instead only serve to bar Seller from raising such matter
as a failure of a condition precedent to Seller’s obligation to close the
transaction. Seller’s election to proceed with the Closing shall result in
Seller’s waiver of any remedy resulting from the incorrectness in such
representation or warranty or from the incorrectness in any other
representation or warranty of Buyer of which Seller shall have knowledge at or
prior to Closing. The foregoing waiver shall survive the Closing.

     7.3 Survival. All of the representations and warranties of Seller
and Buyer contained in this Agreement or in any of the documents listed in
Article IX or otherwise executed by Buyer or Seller at Closing (the “Closing
Documents”) are material and all shall survive the Closing Date or termination
of this Agreement for a period of one (1) year (the “Survival Period”). All
rights of Buyer hereunder or under any of the Closing Documents, with respect
to any surviving representation, warranty, covenant or indemnity shall be
deemed waived if Buyer does not, by written notice to Seller, advise Seller of
any alleged breach of representation, warranty or covenant, or any alleged
indemnification obligation, prior to the expiration of the Survival Period.
Subject to the limitation set forth in the immediately preceding sentence, all
remedies shall be those set forth in Article XI below, and notwithstanding
anything herein to the contrary, Seller’s liability under any representation,
warranty, covenant or indemnity made hereunder or in any of the Closing
Documents shall in no event exceed the aggregate Seller’s Maximum Liability (as
hereinafter defined). The provisions of this Section 7.3 shall survive the
Closing.

     7.4 Disclaimer. BUYER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS
SPECIFICALLY SET FORTH IN THIS AGREEMENT, NONE OF SELLER OR SELLER’S EMPLOYEES,
AGENTS, INVESTMENT BANKERS, BROKERS OR OTHER REPRESENTATIVES (COLLECTIVELY,
WITH SELLER, THE “SELLER PARTIES”) HAS MADE OR DOES MAKE, AND EACH SUCH PARTY
SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER,
WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS
TO, CONCERNING OR WITH RESPECT TO THE PROJECTS, INCLUDING, WITHOUT LIMITATION,
(A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROJECTS; (B) THE WATER,
SOIL AND GEOLOGY OF THE PROJECTS, (C) THE INCOME TO BE DERIVED FROM THE
PROJECTS, (D) THE SUITABILITY OF THE PROJECTS FOR ANY AND ALL ACTIVITIES AND
USES WHICH BUYER MAY CONDUCT THEREON, (E) THE COMPLIANCE OF OR BY THE PROJECTS
OR THEIR OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY
APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (F) THE HABITABILITY,
MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF THE PROJECTS, (G) THE MANNER OR QUALITY OF THE CONSTRUCTION OR
MATERIALS, IF ANY, INCORPORATED INTO THE PROJECTS, (H) THE MANNER, QUALITY,
STATE OF REPAIR OR LACK OF REPAIR OF THE PROJECTS, OR (I) ANY OTHER MATTER WITH
RESPECT TO THE PROJECTS. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE
SELLER PARTIES HAVE NOT MADE, DO NOT MAKE AND SPECIFICALLY DISCLAIM ANY
REPRESENTATIONS REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL

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PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS,
INCLUDING THE EXISTENCE IN OR ON THE PROJECTS OF HAZARDOUS MATERIALS. BUYER
HEREBY RELEASES SELLER PARTIES FROM ANY AND ALL LIABILITY IN CONNECTION WITH
ANY CLAIMS THAT BUYER MAY HAVE AGAINST SELLER PARTIES, AND BUYER HEREBY AGREES
NOT TO ASSERT ANY CLAIMS FOR CONTRIBUTION, COST RECOVERY OR OTHERWISE, AGAINST
ANY SELLER PARTY RELATING DIRECTLY OR INDIRECTLY TO THE EXISTENCE OF ASBESTOS
OR HAZARDOUS MATERIALS OR SUBSTANCES ON, OR ENVIRONMENTAL CONDITIONS OF, THE
PROJECT, WHETHER KNOWN OR UNKNOWN. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT,
HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROJECTS, BUYER IS RELYING
SOLELY ON ITS OWN INVESTIGATION OF THE PROJECTS AND NOT ON ANY INFORMATION
PROVIDED OR TO BE PROVIDED BY SELLER PARTIES. BUYER FURTHER ACKNOWLEDGES AND
AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE
PROJECTS WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER PARTIES HAVE
NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND,
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, MAKE NO REPRESENTATIONS AS TO
THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. SELLER PARTIES ARE NOT
LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROJECTS, OR THE OPERATION
THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, INVESTMENT BANKER, AGENT,
EMPLOYEE, SERVANT OR OTHER PERSON. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT
TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE TRANSFER OF THE PROJECTS AS
PROVIDED FOR HEREIN IS MADE ON AN “AS IS”, “WHERE IS” CONDITION AND BASIS “WITH
ALL FAULTS”. IT IS UNDERSTOOD AND AGREED THAT THE ACQUISITION VALUE HAS BEEN
ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROJECTS ARE
TRANSFERRED BY SELLER AND ACCEPTED BY BUYER SUBJECT TO THE FOREGOING. THE
PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING.

Article VIII.

FUTURE OPERATIONS

     From the Effective Date of this Agreement until the Closing or earlier
termination of this Agreement:

     8.1 Maintenance. Seller shall (or shall cause the Subsidiaries to)
keep and maintain the Land and Improvements and the Tangible Personal Property
in their condition at the respective Projects as of the Effective Date of this
Agreement, reasonable wear and tear, casualty and condemnation excepted and to
continue to operate the Projects in the ordinary course consistent with past
practices.

     8.2 Contracts. Seller shall (or shall cause the Subsidiaries to)
perform all their material obligations under the Contracts prior to Closing.
Seller and the Subsidiaries may, without the consent of Buyer, terminate,
modify, enter into, or renew any Contract in the

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ordinary course of business, provided that (i) any new Contract
is cancelable on or before Closing and (ii) Seller shall not terminate any
yellow page advertising before Closing. Buyer shall notify Seller prior to the
end of the Extended Inspection Period if Buyer wants any Contracts terminated
prior to Closing. With respect to any Contracts as to which Buyer does not
notify Seller within such time, Buyer shall assume each such Contract at
Closing, and any expenses with respect thereto shall be prorated as of the
Closing Date. Seller agrees that the management contracts will be terminated
at Seller’s expense at or before Closing unless Buyer and Seller have otherwise
entered into an agreement for Seller to continue to manage the Projects for
Buyer after Closing.

     8.3 Leasing of Space. Seller shall (or shall cause the
Subsidiaries to) perform all of their material obligations under the Leases
prior to Closing. Seller and the Subsidiaries shall be entitled to modify,
amend, enter into, and renew any Leases in the ordinary course of business,
provided that all Leases are on Seller’s standard form and are negotiated at
arms-length with third parties that are not controlled by or under common
control with Seller. Notwithstanding the foregoing, after the expiration of
the Extended Inspection Period Seller and the Subsidiaries shall not modify,
amend, enter into or renew any non mini-storage leases without the consent of
Buyer, which consent will not be unreasonably withheld or delayed.

     8.4 Financing of Projects. Seller has notified Buyer that Seller
is concurrently negotiating with one or more prospective lenders for financing
to be secured by some or all of the Projects. Seller and the Subsidiaries
shall be entitled to enter into any financing arrangement(s) secured by all or
any of the Projects at any time before Closing so long as Seller agrees to have
any such liens released at Closing.

     8.5 Sale Agreements, Options, Etc.. Seller shall not, nor shall
Seller allow any Subsidiary to, enter into any contract to sell or grant any
option to purchase any portion of any Project, nor enter into any lease of all
or substantially all of any Project.

     8.6 Des Plaines Ground Lease. The ground lessor of a portion of
the Des Plaines Project has agreed to enter into a new ground lease in the form
attached hereto as Exhibit K (the “Des Plaines Ground Lease”) but requires the
new tenant (i.e. the entity that takes title to the Des Plaines Project at
Closing) to sign the Des Plaines Ground Lease and to deliver the certificate of
insurance required thereunder and the first year’s rent thereunder before the
ground lessor will execute the Des Plaines Ground Lease. Buyer shall
accordingly at Closing (or, at Buyer’s election, at any time before Closing)
execute the Des Plaines Ground Lease and deliver such insurance certificate and
rent. Seller shall promptly following receipt of such items from Buyer use
good faith efforts to obtain the ground Lessor’s signature on the Des Plaines
Ground Lease. If Seller is unable to obtain such signature within forty-five
days after Closing, then Seller shall pay to Buyer an amount equal to the
product of (x) 8.41, multiplied by (y) an amount equal to the aggregate gross
receipts attributable to that portion of the Des Plaines Project subject to the
Des Plaines Ground Lease for the twelve (12) full month period immediately
preceding the date hereof.

     8.7 Discount Promotions. Seller shall not, without the consent of
Buyer (which consent will not be unreasonably withheld or delayed), distribute
or authorize the distribution of any localized, mass or direct marketing
mailing which provide any coupons, discounts or other

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rental concessions, rebates or free rent for any new or
existing tenants of any Project which would be effective after the Closing
Date.

     8.8 Estoppels. Upon Buyer’s request, Seller shall deliver to the
tenants under any non-storage leases copies of any estoppel certificates that
Buyer may reasonably request, and Seller shall request that such tenants
execute and return such estoppels. Buyer shall prepare any such estoppels, and
it shall not be a condition to Closing that any such estoppels be obtained.

Article IX.

CLOSING

     9.1 Date and Place of Closing. Subject to the satisfaction or
waiver of all material conditions to either party’s obligation to consummate
the transfer and acquisition of the Projects, the Closing shall take place on
the Closing Date at the Place of Closing specified in Article I above.
Notwithstanding the foregoing, Buyer shall be permitted to extend the Closing
Date to November 22, 2004 provided that Buyer provides Seller with written
notice of such extension election no later than October 15, 2004 and
concurrently therewith delivers an additional $1,000,000 of Earnest Money to an
account designated by Seller. Furthermore, if Buyer properly exercises the
extension option set forth in the preceding sentence, Buyer shall be permitted
to further extend the Closing Date to December 20, 2004 provided that Buyer
provides Seller with written notice of such extension election no later than
November 17, 2004 and concurrently therewith delivers an additional $1,000,000
of Earnest Money to an account designated by Seller. Any such additional
deposit(s) of Earnest Money shall be fully earned and non-refundable at the
time made unless Buyer terminates this Agreement in accordance with Section
6.3(b) or Section 11.1. If Buyer elects to extend the Closing Date to December
20, 2004, then Seller at Seller’s sole election may then elect to further
extend the Closing Date to January 5, 2004 by written notice to Buyer given at
any time prior to December 13, 2004.

     9.2 Items to be Delivered at Closing.

     (a) By Seller. At or prior to Closing, Seller shall deliver
or cause to be delivered to Buyer, through escrow, each of the following
items:

     (i) For each Project, a properly executed deed in the form of
Exhibit C-1 hereto (for Illinois projects), C-2 hereto (for Indiana
Projects), C-3 hereto (for Ohio projects), C-4 hereto (for Florida
Projects) or C-5 hereto (for the Wisconsin Project).

     (ii) For each Project, a Bill of Sale and Assignment in the
form of Exhibit D hereto and fully executed title transfer
documentation for all motor vehicles to be transferred hereby as
required by applicable state law.

     (iii) For each Project, an Assignment of Leases, Intangible
Property, Contracts and Assumption Agreement in the form of Exhibit
E hereto (each an “Assignment and Assumption”).

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     (iv) If the Surveys delivered to Buyer during the Initial
Inspection Period were not already certified to Buyer, the Title
Company, and Buyer’s lender (if any), copies of the Surveys
certified to such parties.

     (v) Any customary certificates and affidavits that may be
required in the normal course by Title Company, in form and
substance satisfactory to Seller, duly executed by Seller.

     (vi) A Non-foreign Certification of Entity Transferor from
Seller and each Subsidiary or other evidence satisfying the
requirements of Section 1445 of the Internal Revenue Code.

     (vii) A certificate in the form of Exhibit F hereto
recertifying the representations and warranties set forth in
Section 7.1 above as of the Closing Date.

     (viii) Updated rent rolls for all Projects dated as of the end
of the day prior to the Closing Date.

     (ix) The closing statement for this transaction (the “Closing
Statement”) executed by Seller.

     (x) The originals (or clean and legible copies) of all of the
Leases, which shall be made available to Buyer at the Projects, and
Contracts, if any, in the possession of Seller.

     (xi) All of any keys in Seller’s possession relating to the
Projects and a written copy of all security alarm codes, if any.

     (xii) Notices in the form of Exhibit G hereto notifying the
vendors under the Contracts to be assumed by Buyer of the transfer
of the Projects.

     (xiii) Notices in the form of Exhibit H hereto notifying the
tenants of the transfer of the Projects.

     (xiv) A Non-Competition Agreement in the form of Exhibit J
hereto executed by Seller and Matthew Nagel and K. Blair Nagel.

     (xv) Any transfer declaration or other documentation or forms
required to comply with any state and/or local transfer tax
requirements as to the transactions contemplated by this Agreement,
duly executed by Seller or the applicable Subsidiary, if necessary.

     (xvi) Evidence of Seller’s authority to consummate this
transaction.

     (b) By Buyer. At or prior to Closing, Buyer shall deliver to
Seller, or cause to be delivered to Seller, through escrow, each of the
following items:

     (i) The Assignment and Assumptions executed by Buyer.

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     (ii) The Closing Statement executed by Buyer.

     (iii) The Acquisition Value, subject to application of the
Earnest Money and the adjustments and prorations as provided
herein, in Current Funds.

     (iv) Evidence of Buyer’s authority to consummate this
transaction.

     (v) A certificate in the form of Exhibit F hereto recertifying
the representations and warranties set forth in Section 7.2 above
as of the Closing Date.

     (vi) Any customary certificates and affidavits that may be
required in the normal course by Title Company, in form and
substance satisfactory to Title Company, duly executed by Buyer.

     (vii) A Non-Competition Agreement in the form of Exhibit J
hereto executed by Buyer.

     (viii) If not already delivered by Buyer prior to Closing, the
Des Plaines Ground Lease, duly executed by Buyer, along with the
certificate of insurance required thereunder and a check for the
first year’s rent.

     (ix) Any transfer declaration or other documentation or forms
required to comply with any state and/or local transfer tax
requirements as to the transactions contemplated by this Agreement,
duly executed by Buyer, if necessary.

     9.3 Title Policies. Within thirty (30) days after the Closing
occurs and all documents delivered at the Closing that are intended to be
recorded are so recorded and returned to the Title Company, the Title Company
shall deliver the Title Policies to Buyer, subject only to the Permitted
Exceptions. The provisions of this Section 9.3 shall survive the Closing.
Notwithstanding the foregoing, at Closing, the Title Company shall deliver to
Buyer endorsements to the Title Commitments or a “mark-up” of the same, in a
manner satisfactory to Buyer such that as of the Closing Date and payment of
the Acquisition Value, Buyer has the full protection of the Title Policies.

Article X.

CLOSING COSTS AND PRORATIONS

     10.1 Closing Costs. Seller and Buyer shall each pay their
respective attorneys’ fees. Buyer shall pay (i) all costs of Buyer’s
inspections (including environmental and engineering) and other due diligence,
(ii) one-half of the cost of the premiums for the title policies and for
extended coverage, (iii) one-half of the cost of the Surveys, including any
updates thereto reasonably required by Buyer, (iv) the title premiums for any
endorsements to the title policies (other than extended coverage), (v) any fees
and costs incurred as a result of any financing of the Acquisition Value or
subsequent mortgages of any of the Properties by Buyer, (vi) one-half of the
cost of the escrow closing fees, and (vii) one-half of any transfer taxes due
in connection with the sale of the Projects. Seller shall pay (i) one-half of
the cost of the premiums for the title

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policies and for extended coverage (but not for any other
endorsements), (ii) one-half of the cost of the Surveys, including any updates
thereto reasonably required by Buyer, (iii) one-half of the cost of the escrow
closing fees, and (iv) one-half of any transfer taxes due in connection with
the sale of the Projects. Seller shall also pay an investment banking fee to
Robert A. Stanger & Co., Inc..

     10.2 Prorations.

     (a) All rents, income, and all other operating expenses (except
utilities) with respect to the Projects for the month in which the
Closing occurs, and real estate and personal property taxes and other
assessments with respect to the Projects for the year in which the
Closing occurs, shall be prorated to the date of Closing (i.e. such that
revenues and expenses through and including the day before the date of
Closing shall be Seller’s and revenues and expenses on the date of
Closing and thereafter shall be Buyer’s) in the manner set forth in this
Section 10.2. Seller shall provide to Buyer a credit for all security
deposits held by Seller under the Leases (it being acknowledged that
security deposits are currently held only under a few office spaces
Leases and not under storage space leases). Seller shall also provide to
Buyer a credit for all security deposits held in connection with the
property managers’ occupation of managers’ apartments located at the
Projects.

     (b) Seller shall pay or cause to be paid to Buyer, in cash at
Closing, the amount of the prepaid rents paid to Seller by tenants as of
the Closing Date. Except as hereinafter provided, no proration shall be
made for rents delinquent as of the Closing Date (“Delinquent Rents”).
At Closing, Buyer shall pay Seller an amount equal to eighty-five percent
(85%) of Delinquent Rents of Non-Defaulting Tenants which are delinquent
thirty (30) days or less. As used herein, Non-Defaulting Tenants means
tenants who are currently not more than thirty (30) days delinquent in
the payment of rent. Any Delinquent Rents collected after Closing shall
belong exclusively to Buyer and all rights to pursue collection of such
amounts shall vest solely in Buyer. Buyer and Seller acknowledge that
many of the Leases provide that rent payments thereunder are due on days
other than the first day of a calendar month.

     (c) Real estate taxes and personal property taxes (if any) shall be
prorated as of the Closing date based on the most recent ascertainable
real estate tax rate and assessor’s valuation (after accounting for the
result of any known successful tax appeals) and shall not be reprorated.
Buyer shall assume, at Closing, any and all obligations and assessments,
if any, arising from any road district or municipal utility district
affecting the Projects, or for any special assessments or taxes. Seller
reserves the rights to continue to contest any assessment of any of the
Projects or any portion thereof and to attempt to obtain a refund for any
taxes previously paid. Seller shall retain all rights with respect to
any refund of taxes applicable to any period prior to the Closing Date,
and Buyer shall deliver to Seller any amounts received by Buyer with
respect thereto after Closing.

     (d) Rent and any other amounts payable under the lease of the leased
portion of the Project located at 1950 South Mt. Prospect Road in Des
Plaines, Illinois shall be prorated as of the Closing Date.

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     (e) A deposit was made with the predecessor owner of the Project
located at 1004 South Milwaukee Avenue in Wheeling, Illinois to be used
to pay the costs of maintenance of a stormwater pump station located in
the vicinity of the Project, and Seller shall provide Buyer with a credit
at Closing in the amount of the then remaining unapplied balance of such
deposit.

     (f) Seller will obtain the return of any utility deposits maintained
by Seller or any Subsidiary with respect to the Projects, and Buyer shall
be responsible for making any required replacement utility deposits.

     (g) All other operating expenses (including utility charges and all
expenses under any Contracts assumed by Buyer and any prepaid yellow page
listing expenses) with respect to the Projects shall be prorated at
Closing to the extent such items are definitively determinable at
Closing. All of such items which are not definitively determinable at
Closing shall not be prorated at Closing but shall instead be prorated
within sixty days after Closing when such items have been definitively
determined. Buyer acknowledges that Seller has, or will have, committed
to certain yellow page advertising that may not be published until after
the Closing date due to normal commitment time frames involved in placing
yellow page advertisements. Buyer shall be responsible for 100% of the
costs of any such advertisements not yet published by Closing and shall
reimburse Seller at Closing for any such costs already paid by Seller.

Article XI.

DEFAULTS AND REMEDIES

     11.1 Seller’s Default; Buyer’s Sole Remedies. If, after written
demand, Seller fails to consummate this Agreement in accordance with its terms
(other than by reason of (i) Buyer’s breach of any of its representations or
warranties contained in this Agreement; (ii) Buyer’s continuing default of any
of its material covenants hereunder after five (5) days, prior written notice
of such default; (iii) a termination of this Agreement by Seller or Buyer
pursuant to a right to do so expressly provided for in this Agreement, except
by reason of a default by either party, or (iv) failure by Buyer to deliver the
items required under Section 9.2(b)), Buyer may, as Buyer’s sole and exclusive
remedies, either (1) terminate this Agreement by written notice to Seller, in
which event the Earnest Money shall be returned to Buyer, or (2) pursue
specific performance of this Agreement. In the event of Seller’s continuing
default after Closing in any of its covenants in this Agreement which survive
Closing or any documents delivered by Seller at Closing, and such default
continues for more than thirty (30) days after written notice of such default
from Buyer, Buyer shall be entitled to pursue its remedies for actual monetary
damages from Seller (including, but not limited to, attorneys’ fees and costs
incurred by Buyer in connection therewith); provided that (x) in no event shall
Seller’s liability under any representation, warranty, certification, covenant,
agreement, proration, reproration, obligation or indemnity made hereunder or
under any of the Closing Documents or otherwise in connection with the
transactions contemplated herein exceed $1,000,000 in the aggregate (the
“Seller’s Maximum Liability”), and (y) Seller shall have no liability to Buyer
under any representation, warranty, certification, covenant, agreement
obligation or indemnity made hereunder or under any of the Closing Documents or
otherwise in connection with the transactions contemplated herein (other than
reproration obligations) unless and until the total amount that would be owed

- 20 -

 

to Buyer on account of all such liabilities in the aggregate exceeds
$100,000. In no event shall Seller be liable for any special, punitive,
speculative or consequential damages. The amount of any damages owed by Seller
to Buyer for any post-Closing liabilities shall be net of, and subject to, any
insurance proceeds received and the amount of any related deductible with
respect to such damages under any applicable insurance policies. Buyer agrees
that it shall use commercially reasonable efforts to recover any insurance
proceeds that may be obtainable with respect to any such damages. None of
Seller’s partners, members, managers, officers, agents, investment bankers or
employees shall have any personal liability of any kind or nature or by reason
of any matter or thing whatsoever under, in connection with, arising out of or
in any way related to this Agreement, the Closing Documents or the transactions
contemplated herein, and Buyer waives for itself and for anyone who may claim
by, through or under Buyer any and all rights to sue or recover on account of
any such alleged personal liability.

     11.2 Buyer’s Default; Seller’s Sole Remedies. If after written
demand, Buyer fails to consummate this Agreement in accordance with its terms
(other than by reason of (i) Seller’s breach of any of its representations or
warranties contained in this Agreement; (ii) Seller’s continuing default of any
of its material covenants after five (5) days, prior written notice of such
default; (iii) a termination of this Agreement by Seller or Buyer pursuant to a
right to do so expressly provided for in this Agreement, except by reason of a
default by either party,; or (iv) failure by Seller to deliver the items
required under Section 9.2(a)), Seller may receive and retain the Earnest Money
as liquidated damages (and not as a penalty) for breach of this Agreement.
Such amount is agreed upon by and between Seller and Buyer as liquidated
damages, due to the difficulty and inconvenience of ascertaining and measuring
actual damages, and the uncertainty thereof. In the event of Buyer’s
continuing default after Closing in any of its covenants in this Agreement
which survive Closing or any documents delivered by Buyer at Closing, and such
default continues for more than thirty (30) days after written notice of such
default from Seller, Seller shall be entitled to pursue any remedies available
at law or in equity including, but not limited to, suit for damages from Buyer
(including, but not limited to, attorneys’ fees and costs incurred by Seller in
connection therewith).

Article XII.

MISCELLANEOUS PROVISIONS

     12.1 On-Site Employees. The site-specific employees currently
providing on-premises services for the Projects are all employees of an
affiliate of Seller and will all be re-assigned or terminated at or prior to
Closing. However, Buyer acknowledges that certain of such employees that
reside at the Projects have a contractual right to remain in the residential
units at the Projects for up to 15 days after Closing.

     12.2 Use of Tradename; Phone Listings. Buyer shall not use the
names “Metro Self Storage”, “Metro Storage” or any variation thereof; except
that Buyer shall be permitted to (i) allow the existing Metro Self Storage
signage to remain up at the Projects for up to 90 days after Closing (after
which time such signage shall no longer be used), and (ii) continue to use
existing phone listings until expiration of currently contracted yellow page
listings for the Projects. Commencing promptly after Closing, Buyer shall use
good faith efforts to have all phone listings for each Project switched to
another name as soon as is practicable.

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     12.3 Broker’s Commissions. Seller represents to Buyer that Seller
has not authorized any broker, investment banker or finder to act on Seller’s
behalf in connection with the acquisitions hereunder and that Seller has not
dealt with any broker or finder purporting to act on behalf of any other party,
other than Robert A. Stanger & Co, Inc., whose investment banking fee shall be
paid by Seller. Seller agrees to indemnify and hold harmless Buyer from and
against any and all claims, losses, damages, costs or expenses of any kind or
character arising out of or resulting from any agreement, arrangement or
understanding alleged to have been made by Seller or on Seller’s behalf with
any broker or finder in connection with this Agreement or the transaction
contemplated hereby. Buyer represents to Seller that Buyer has not authorized
any broker or finder to act on Buyer’s behalf in connection with the transfers
hereunder and that Buyer has not dealt with any broker or finder purporting to
act on behalf of any other party. Buyer agrees to indemnify and hold harmless
Seller from and against any and all claims, losses, damages, costs or expenses
of any kind or character arising out of or resulting from any agreement,
arrangement or understanding alleged to have been made by Buyer or on Buyer’s
behalf with any broker or finder in connection with this Agreement or the
transaction contemplated hereby.

     12.4 Assignment. Buyer may not assign Buyer’s rights under this
Agreement without Seller’s prior written consent, which consent may be withheld
in Seller’s discretion for any reason or for no reason whatsoever.
Notwithstanding the foregoing, Buyer may assign its rights to an entity that is
controlled directly or indirectly by Buyer or under common control with Buyer,
so long as such entity expressly assumes by written instrument approved by
Seller all of Buyer’s obligations arising under this Agreement. Seller shall
have no obligation to release Buyer’s liability under this Agreement upon any
such assignment. Notwithstanding the foregoing, Seller acknowledges that Buyer
may collaterally assign its rights under this Agreement to Lehman Brothers
Holdings, Inc. or an affiliate thereof.

     12.5 Condemnation and Casualty.

     (a) Condemnation. Seller shall promptly notify Buyer of any
threatened or commenced condemnation or eminent domain proceedings
affecting any Project. In the event that all or any “substantial
portion” of a Project shall be taken in condemnation or by conveyance in
lieu thereof or under the right of eminent domain or formal proceedings
have been initiated therefor after the Effective Date and before the
Closing Date, then at the election of Buyer by written notice thereof to
Seller within ten (10) days after Seller notifies Buyer of the
condemnation, this Agreement shall be terminated as to the applicable
Project (but not as to any other Project), in which event the Acquisition
Value shall be reduced by the allocable portion thereof attributable to
such Project (any such election to terminate as to a Project and
reduction of Acquisition Value being a “Project Withdrawal”). In the
event Buyer fails to timely deliver written notice of termination as
described above, Buyer shall be deemed to have elected to proceed to
close the transaction contemplated herein pursuant to the terms hereof,
in which event Seller shall deliver to Buyer at the Closing any proceeds
actually received by Seller attributable to such Project from such
condemnation or eminent domain proceeding or conveyance in lieu thereof
and assign to Buyer Seller’s rights to any such proceeds not yet received
by Seller, and there shall be no reduction in the Acquisition Value. If
the taking does not involve a “substantial portion” of the Project, as
herein defined, then Buyer shall be obligated to close the transaction
contemplated herein according to the terms hereof,

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notwithstanding such taking, and
Seller shall deliver to Buyer at the Closing any proceeds actually
received by Seller attributable to such Project from such condemnation or
eminent domain proceeding or conveyance in lieu thereof and assign to
Buyer Seller’s rights to any such proceeds not yet received by Seller,
and there shall be no reduction in the Acquisition Value.

     (b) Casualty. Seller shall promptly notify Buyer of any
material casualty affecting any Project. In the event that all or any
“substantial portion” of a Project shall be damaged or destroyed by fire
or other casualty after the Effective Date and before the Closing Date,
either Seller or Buyer may, at its option, elect to have a Project
Withdrawal occur with respect to such Project by written notice thereof
to the other party within ten (10) days after Seller notifies Buyer of
the casualty and the availability and amount of insurance proceeds. In
the event neither Seller nor Buyer terminates this Agreement as described
above, they shall be deemed to have elected to proceed to close the
transaction contemplated herein pursuant to the terms hereof, in which
event Seller shall deliver to Buyer at the Closing any insurance proceeds
actually received by Seller attributable to such Project from such
casualty, or assign to Buyer all of Seller’s right, title and interest in
any claim under any applicable insurance policies in respect of such
casualty, together with payment to Buyer of an amount equal to the
deductible(s), if any, applicable to such loss under the insurance
policy(ies), and there shall be no reduction in the Acquisition Value.
If the casualty loss does not involve a “substantial portion” of the
Project, as defined herein, then Buyer shall be obligated to close the
transaction contemplated herein according to the terms hereof,
notwithstanding such casualty loss, and Seller shall either (i) deliver
to Buyer at the Closing any insurance proceeds actually received by
Seller attributable to the Project from such casualty, or (ii) assign to
Buyer all of Seller’s right, title, and interest in any claim under any
applicable insurance policies in respect of such casualty, together with
payment to Buyer of an amount equal to the deductible(s), if any,
applicable to such loss under the insurance policy(ies), and there shall
be no reduction in the Acquisition Value.

     (c) Substantial Portion Defined. For the purposes of this
Section 12.5, a taking of or casualty loss to a “substantial portion” of
a Project shall be deemed to include any taking or casualty loss which
(i) is equal to or greater than (A) 20% of the value of the Project as
established by Acquisition Value allocation for such Project, or (B) 20%
of the aggregate gross number of square feet contained in the storage
facilities constituting such Project, or (ii) involves a taking that has
a material adverse effect on Buyer’s use of the remainder of the Project,
by materially adversely affecting the adequacy of utilities, parking
and/or access to the Project, the location or size of signage for the
Project, or the zoning compliance thereof.

     (d) Risk of Loss. Subject to the foregoing provisions of
this Section 12.5 risk of loss until Closing shall otherwise be borne by
Seller.

     (e) Emergency Repairs. In the event a Project is damaged
prior to Closing and such damage creates any emergency requiring
immediate repair in order to prevent further damage to such Project,
Seller shall be entitled to immediately commence such repairs, and the
contractor and method of repair to be used shall be determined by Seller.
Both parties agree to cooperate to accomplish such repair in a timely
manner. Casualty

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proceeds, if any, paid as a result of damage requiring
immediate repair shall be used in paying the cost of such repairs or to
reimburse the party that paid for such repairs.

     12.6 Notices. Any notice, approval, waiver, objection or other
communication (for convenience, referred herein as a “notice”) required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been properly given if (a) hand delivered (effective upon delivery), (b) sent
by a nationally recognized overnight delivery service (effective one (1)
business day after delivery to such courier for overnight service) or (c) sent
by facsimile or e-mail (effective upon confirmation of transmission), in each
case, addressed in accordance with Section 1.10 or 1.11 (as applicable), or to
such other or additional addresses as either party might designate by written
notice to the other party. Confirmation of a facsimile transmission to
Seller’s counsel shall be deemed effective verification of delivery of notice
to Seller.

     Notices to Seller shall be sent only by e-mail to Matthew Nagel
(mnagel@metrostorage.com) with a concurrent copy by e-mail and by facsimile or
overnight delivery to Seller’s counsel.

     12.7 Entire Agreement. This Agreement and the Exhibits attached
hereto constitute the entire agreement between Seller and Buyer, and there are
no other covenants, agreements, representations, warranties, promises, terms,
provisions, conditions, undertakings, or understandings, either oral or
written, between them concerning the Projects other than those expressly herein
set forth. No subsequent alteration, amendment, change, deletion or addition
to this Agreement shall be binding upon Seller or Buyer unless in writing and
signed by both Seller and Buyer.

     12.8 Headings. The headings, captions, numbering system, etc. are
inserted only as a matter of convenience and may under no circumstances be
considered in interpreting the provisions of this Agreement.

     12.9 Binding Effect. All of the provisions of this Agreement are
hereby made binding upon the personal representatives, heirs, successors, and
assigns of both parties hereto. Where required for proper interpretation,
words in the singular shall include the plural; the masculine gender shall
include the neuter and the feminine, and vice versa. The terms “heirs,
executors, administrators and assigns” shall include “successors, legal
representatives and assigns.”

     12.10 Time of Essence. Time is of the essence in each and every
provision of this Agreement.

     12.11 Unenforceable or Inapplicable Provisions. If any provision
hereof is for any reason unenforceable or inapplicable, the other provisions
hereof will remain in full force and effect in the same manner as if such
unenforceable or inapplicable provision had never been contained herein, unless
such unenforceable provision materially affects any material covenants set
forth herein.

     12.12 Counterparts. This Agreement may be executed in any number
of counterparts, each of which will for all purposes be deemed to be an
original, and all of which are identical.

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     12.13 Applicable Law. This Agreement shall be construed under and
in accordance with the internal laws of the State of Illinois without regard to
principles of conflicts of laws.

     12.14 Attorneys’ Fees. In the event any legal action or other
proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach, default or misrepresentation in connection with any
provision of this Agreement, the successful or prevailing party or parties
shall be entitled to recover and the court is specifically empowered to award
reasonable attorneys’ fees, court costs and all expenses even if not taxable as
court costs (including, without limitation, all such fees, taxes, costs and
expenses incident to appellate, bankruptcy and post-judgment proceedings),
incurred in that action or proceeding, in addition to any other relief to which
such party or parties may be entitled. Attorneys’ fees shall include, without
limitation, paralegal fees, investigative fees, administrative costs, sales and
use taxes and all other charges billed by the attorney to the prevailing party.

     12.15 Authority. Each person executing this Agreement, by his
execution hereof, represents and warrants that he is fully authorized to do so,
however, the parties will cooperate in providing appropriate proof to the other
party of the authority of the signing person to bind the party.

     12.16 Time Periods. Unless otherwise expressly provided herein,
all periods for delivery or review and the like shall be determined on a
“calendar” day basis. If any date for performance, approval, delivery or
Closing falls on a Saturday, Sunday or legal holiday (state or federal) in the
State of Illinois, the time therefor shall be extended to the next business
day.

     12.17 No Recording. Seller and Buyer agree that neither this
Agreement, a copy of this Agreement nor any instrument describing or referring
to this Agreement shall ever be filed of record, and in the event this
Agreement, a copy of this or any instrument describing or referring to this
Agreement is so filed of record by Buyer or its agents, such act will be
considered a default under this Agreement and Seller, at Seller’s option, may
terminate this Agreement and exercise any other rights or remedies of Seller
under this Agreement for a default on the part of Buyer. In addition, Buyer
hereby appoints Seller as Buyer’s agent and attorney-in-fact with full power
and authority to execute and record any and all documents deemed necessary by
Seller to release, explain or terminate any such document wrongfully filed of
record in the public records. Such appointment is coupled with an interest and
is irrevocable. This provision shall survive any termination of this
Agreement.

     12.18 Interpretation. The parties acknowledge that each party and
its counsel have reviewed and revised this Agreement and that the rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
in any amendments or exhibits thereto.

     12.19 No Third Party Beneficiary. The provisions of this Agreement
are for the exclusive benefit of the Seller and Buyer hereto and no other party
shall have any right or claim against the Seller and Buyer, or either of them, by reason of those
provisions or be entitled to enforce any of those provisions against the Seller
and Buyer hereto, or either of them.

     12.20 Consent to Jurisdiction. Buyer and Seller each hereby
irrevocably submits to the jurisdiction of any United States Federal or
Illinois State court sitting in Lake County, Illinois in

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any action or proceeding arising out of or relating to this Agreement or any of the
transactions contemplated hereby, and Buyer and Seller each hereby irrevocably
agrees that any such action or proceeding may be heard and determined in any
such court and irrevocably waives any objection it may now or hereafter have as
to the venue of any such suit, action or proceeding brought in such a court or
that such court is an inconvenient forum. Any judicial proceeding by the Buyer
against Seller involving any matter in any way arising out of, related to, or
connected with any this Agreement or any of the transactions contemplated
hereby shall be brought only in a court in Lake County, Illinois.

     12.21 Confidential Agreement. Except as required below in this
Section 12.21 or by court order or by operation of law, the terms and
conditions of this Agreement shall be treated as confidential by both parties,
and neither any of such terms or conditions nor any copy of this Agreement
shall be divulged or provided to any third party other than the parties’
respective attorneys, agents, consultants and employees and Buyer’s lenders, if
any, by either party hereto without the prior consent of the other party
hereto. Buyer shall cause Buyer’s attorneys, agents, consultants, employees
and lenders to retain the confidentiality required pursuant to this Section.
Notwithstanding anything to the contrary contained in this Agreement (or in any
document or instrument related to this Agreement), Buyer and U-Store-It Trust
shall be permitted after the expiration of the Extended Inspection Period or
from and after any earlier date upon which Buyer has waived its rights under
the Extended Inspection Period and agreed that it shall no longer have any
right to terminate this Agreement pursuant to Section 6.4 to (i) disclose the
existence of this Agreement and the matters set forth herein in the Form S-11
registration statement of U-Store-It Trust (as amended from time to time) or as
may be otherwise required under the federal securities laws, and (ii) file this
Agreement as an exhibit to such registration statement or any other filings
required under the federal securities laws. Buyer shall indemnify, defend and
hold harmless Seller from any claims, losses, damages, costs or expenses of any
kind or character arising out of or resulting from any claim or allegation that
any information contained in any public filings or public offering materials is
incorrect, incomplete or misleading in any respect. This indemnification by
Buyer shall survive the Closing or any termination of this Agreement.

     12.22 Information and Audit Cooperation. At Buyer’s request, at
any reasonable time before or after the Closing with reasonable prior notice,
Seller shall provide to Buyer’s designated independent auditor access to the
books and records of the Projects, and all related information with respect to
the Projects for (i) the period for which Buyer or U-Store-It Trust is required
to have the Projects audited under the regulations of the Securities and
Exchange Commission and (ii) any subsequent unaudited period required to be
presented in the Form S-11 registration statement of U-Store-It Trust. In
addition, Seller shall request that its accountants, at Buyer’s expense and on
terms and conditions mutually acceptable to Seller’s accountants and Buyer, (x)
reformulate the audited financial statements of Seller with respect to the
Projects in order to generate audited financial statements and related audit
reports required to be included in the Form S-11 registration statement with
respect to the Projects and (y) consent to use of such reformulated statements
and being named as an expert in such registration statement. Seller’s sole
obligation under the preceding sentence shall be to request that its accountants
perform such services under the terms of the preceding sentence, and Seller
shall not be deemed to be in default hereunder if its accountants decline to
perform such services. Seller makes no representations or warranties and shall
in no way be liable in any respect with respect to any statements or reports so
generated by its accountants.

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     DATED as of the Effective Date specified in Article I.

	 	 	 	 	 	 	 	 	 
	 	 	
BUYER:
	 	 	 	 	 	 
	 	 	ACQUIPORT/AMSDELL I LIMITED

PARTNERSHIP, A Delaware limited

partnership	 	 
	 	 	By:	 	Amsdell Partners, Inc.,

an Ohio corporation	 	 
	 	 	 	 	By:
	 	/s/ Robert J. Amsdell

Robert J. Amsdell, President	 	 
	 	 	SELLER:	 	 
	 	 	METRO STORAGE LLC, a Delaware

limited liability company	 	 
	 	 	By:	 	Rockland Investments LLC, its

Managing Member	 	 
	 	 	 	 	By:
	 	/s/ K. Blair Nagel

	 	 
	 	 	 	 	Name:
	 	K. Blair Nagel

	 	 
	 	 	 	 	Title:
	 	Member

	 	 

JOINDER OF INDY GP

     The undersigned Indianapolis Self Storage LLC, an Illinois limited
liability company, is the sole general partner of Metropolitan Self-Storage
Limited Partnership — Indianapolis, an Illinois limited partnership (“Indy”)
and hereby joins this Agreement for purposes of agreeing to cause, and hereby
does agree to cause, Indy to transfer the Projects owned by Indy to Buyer at
Closing subject to and in accordance with the terms and conditions of this
Agreement.

	 	 	 	 	 	 	 
	 	 	INDIANAPOLIS SELF STORAGE LLC:	 	 
	 	 	 	 	 	 	 
	 	 	
By:
	 	/s/ K. Blair Nagel

	 	 
	 	 	
Name:
	 	K. Blair Nagel

	 	 
	 	 	
Title:
	 	Member

	 	 

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SCHEDULE OF EXHIBITS

	 	 	 
	Exhibit A

	 	List of Projects, Subsidiaries and Ownership Structure
	Exhibit B

	 	Form of Escrow Agreement
	Exhibit C

	 	Forms of Special Warranty Deeds
	Exhibit D

	 	Form of Bill of Sale and Assignment
	Exhibit E

	 	Form of Assignment of Leases, Intangible Property, Contracts and Assumption Agreement
	Exhibit F

	 	Form of Recertification of Representations and Warranties
	Exhibit G

	 	Form of Notice to Vendors
	Exhibit H

	 	Form of Notice to Tenants
	Exhibit I

	 	Other Due Diligence Deliveries
	Exhibit J

	 	Form of Non-Competition Agreement
	Exhibit K

	 	Form of Des Plaines Ground Lease
	Exhibit L

	 	Allocation of Acquisition Value

- 28 -

 

EXHIBIT A

SCHEDULE OF PROJECTS, SUBSIDIARIES AND OWNERSHIP STRUCTURES

1. Seller is the sole shareholder of NEW TAMPA ENTERPRISES, INC., a Florida
corporation which owns the Project located at 1402 Bearss Avenue, Lutz,
Florida.

2. Seller owns 100% of the limited partnership interests in METROPOLITAN
SELF-STORAGE LIMITED PARTNERSHIP — INDIANAPOLIS, an Illinois limited
partnership. The sole general partnership interest therein is owned by
Indianapolis Self Storage LLC. The six Projects owned by Metropolitan
Self-Storage Limited Partnership — Indianapolis are:

     a) 3380 N. Post Road, Indianapolis, IN

     b) 2251 N. Shadeland, Indianapolis, IN

     c) 551 Stover Ave., Indianapolis, IN

     d) 5425 North Tacoma Ave., Indianapolis, IN

     e) 3500 W. 96th Street, Indianapolis, IN

     f) 3912 N. Glen Arm Road, Indianapolis, IN

     3. Seller owns the sole membership interest in Metro Storage Portfolio Manager
LLC, a Delaware limited liability company, which in turn owns the sole
membership interest in METRO STORAGE PORTFOLIO I LLC, a Delaware limited
liability company which owns the following 22 Projects:

     a) 21 W. 209 Lake Street, Addison, IL

     b) 3605 Gabrielle Lane, Aurora, IL

     c) 26W230 Army Trail Rd., Bartlett, IL

     d) 900 E. Devon Avenue, Bartlett, IL

     e) 1950 South Mr. Prospect, Des Plaines, IL

     f) 1750 Busse Road, Elk Grove Village, IL

     g) 1718 Waukegan Road, Glenview, IL

     h) 16713 S. Halsted, Harvey, IL

     i) 2114 Oak Leaf Street, Joliet, IL

     j) 20825 Rand Road, Lake Zurich, IL

     k) 1551 West Algonquin Road, Mount Prospect, IL

     l) 1080 S. Butterfield Road, Mundelein, IL

     m) 3301 W. Buckley Road, North Chicago, IL

     n) 9685 Fall Creek Rd., Indianapolis, IN 46256

     o) 1730 W. Irving Park Road, Schaumburg, IL

     p) 665 S. Greenbay Road, Waukegan, IL

     q) 27W125 North Avenue, West Chicago, IL

     r) 1004 S. Milwaukee Avenue, Wheeling, IL

     s) 1042 S. Milwaukee Avenue, Wheeling, IL

     t) 8000 S. Route 53, Woodridge, IL

     u) 8270 North Michigan Road, Indianapolis, IN

     v) 6512 14th Street West, Bradenton, FL

- 29 -

 

4. Seller owns the sole membership interest in MAT Manager LLC, a Delaware
limited liability company, which in turn owns the sole membership interest in
MAT PORTFOLIO LLC, a Delaware limited liability company which owns the Project
located at 540 South Volusia Avenue, Orange City, Florida.

5. Seller directly owns the following 12 Projects:

     a) 3501 Washington, Gurnee, IL

     b) 1235 S. Highland Ave., Lombard, IL

     c) 14203 South Route 59, Plainfield, IL

     d) 1089 East Avenue, Streamwood, IL

     e) 143 W. 61st Street, Westmont, IL

     f) 920 W. County Line Rd., Indianapolis, IN

     g) 435 Congress Park Drive, Centerville, OH

     h) 8501 Springboro Pike, Miamisburg, OH

     i) 60 Westpark Drive, Centerville, OH

     j) 426 N. Smithville Road, Dayton, OH

     k) 14902 North 12th Street, Lutz, FL

     l) 2922 S. 5th Court, Milwaukee, WI 53207

- 30 -

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