Document:

Exhibit 10.1

CONTRIBUTION
AGREEMENT

(AAAAA RENT-A-SPACE)

between

AAAAA
RENT-A-SPACE, ALAMEDA, LTD., LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE, ALAMEDA II, LTD. LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE, BERKELEY I, LTD., LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE BERKELEY II, LTD., LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE – CASTRO VALLEY, LTD. LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE – COLMA, LTD.  LIMITED
PARTNERSHIP, a
California limited partnership,

AAAAA
RENT-A-SPACE, HAYWARD, LTD., LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE – MAUI,  A LIMITED
PARTNERSHIP, a
Hawaiian limited partnership,

AAAAA
RENT-A-SPACE, SAN LEANDRO, LTD., LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE, SAN PABLO, LTD. LIMITED PARTNERSHIP, a California limited partnership,

AAAAA
RENT-A-SPACE – VALLEJO, LTD. LIMITED PARTNERSHIP, a California limited partnership

as CONTRIBUTORS,

and

EXTRA
SPACE STORAGE LP,

a Delaware limited partnership, as ACQUIROR,

Dated as of June 15, 2007

EACH CONTRIBUTOR IS MAKING A DECISION TO INVEST IN UNITS OF LIMITED
PARTNERSHIP INTEREST IN THE ACQUIROR AND IN THE SECURITIES FOR WHICH THOSE
UNITS ARE EXCHANGEABLE (COLLECTIVELY, THE “SECURITIES”).  IN MAKING SUCH INVESTMENT DECISION, EACH
CONTRIBUTOR MUST RELY ON ITS OWN EXAMINATION OF THE ISSUERS OF THE SECURITIES
AND THE TERMS OF THE INVESTMENT, INCLUDING THE MERITS OF THE INVESTMENT AND THE
RISKS INVOLVED.  THE SECURITIES HAVE NOT
BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY.  FURTHERMORE, THE FOREGOING
AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR ADEQUACY OF THIS DOCUMENT.  ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  EACH CONTRIBUTOR IS AWARE THAT IT MAY BE
REQUIRED TO BEAR THE FINANCIAL RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD
OF TIME.

NO GENERAL SOLICITATION WILL BE CONDUCTED AND NO OFFERING LITERATURE OR
ADVERTISING IN ANY FORM WILL OR MAY BE EMPLOYED IN THIS OFFERING OF THE
SECURITIES, EXCEPT FOR THIS DOCUMENT (INCLUDING AMENDMENTS AND SUPPLEMENTS
HERETO) AND THE DOCUMENTS SUMMARIZED HEREIN OR ENCLOSED HEREWITH.  NO PERSON OTHER THAN THE REIT IS AUTHORIZED
TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION IN CONNECTION WITH THIS
OFFERING NOT CONTAINED IN THIS DOCUMENT (INCLUDING AMENDMENTS AND SUPPLEMENTS
HERETO) AND THE DOCUMENTS SUMMARIZED HEREIN OR ENCLOSED HEREWITH.  SUCH OTHER INFORMATION OR REPRESENTATIONS, IF
GIVEN OR MADE, MUST NOT BE RELIED UPON.

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THIS CONTRIBUTION AGREEMENT (the “Agreement”) is
made and entered into effective as of the 15th day of June, 2007 (hereinafter
the “Effective Date”), by, between, and
among those entities identified as Contributors on the signature pages of this
Agreement, (each a “Contributor”,
and collectively “Contributors”)
and EXTRA SPACE STORAGE LP, a Delaware
limited partnership (“Acquiror”).

R
E  C  I  T  A  L  S:

A.            Each of the Contributors operates and owns
either fee title to, or a leasehold estate pursuant to the Ground Leases
(hereinbelow defined) in, one or more of the self storage facilities listed on Exhibit “A” (each a “Property” and
collectively the “Properties”).  Each of the Properties is more fully
described on Exhibit “A-1” through “A-14”,  inclusive.

B.            Subject to the terms and conditions of this
Agreement, Acquiror desires to acquire and accept all of Contributors’ right,
title, and interest in and to the Properties from Contributors in their as-is,
where-is condition and Contributors are willing to contribute and convey all of
Contributors’ right, title, and interest in and to the Properties.

NOW, THEREFORE, in consideration of and in reliance upon
the terms, covenants, conditions and representations contained in this
Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Contributors and Acquiror agree
as follows:

1.             Contribution.  Subject to, and on the terms and conditions
herein set forth, Contributors hereby agree to contribute and convey to Acquiror,
and Acquiror hereby agrees to accept, all of Contributors’ right, title, and
interest in and to the Properties. 
Subject to any provision contained herein that expressly permits the
termination of this Agreement as to a particular Property, Acquiror expressly
acknowledges and agrees that Acquiror has no right to acquire and Contributors
have no obligation to contribute and convey, less than all of the Properties,
it being the express agreement and understanding of Acquiror and Contributors
that, as a material inducement to Acquiror and Contributors to enter into this
Agreement, Acquiror has agreed to acquire and accept, and Contributors have
agreed to contribute and convey, all of the Properties in accordance with the
terms and conditions hereof.

2.             Property Description.

(a)           Subject to the provisions of this Section 2,
each Property includes all of the right, title and interest of the applicable
Contributor in and to (i) all buildings, structures, fixtures, easements,
rights of way and improvements located thereon or appurtenant thereto
(collectively, the “Improvements”),
(ii) the Personal Property (hereinafter defined), (ii) the Intangible Personal
(hereinafter defined), (iii) the Leases (hereinafter defined), (iv) the
Designated Contracts (hereinafter defined), (v) the Security Deposits
(hereinafter defined) and (vi) the Ground Leases (hereinafter defined).  Notwithstanding anything to the contrary in
the preceding sentence, the term “Property” shall not include any of the
Excluded Property (hereinafter defined) with respect to any of the Properties.

(b)           For purposes of this Agreement “Personal  Property”
means, as to each Property, all fixtures, furniture, carpeting, draperies,
appliances, building supplies, equipment, machinery, inventory and other tangible
items of personal property which are owned by the Contributor of such Property
and presently affixed, attached to, placed or situated upon such Property
and/or used exclusively in connection with the ownership, operation and
occupancy of such Property.

(c)           For purposes of this Agreement, “Intangible Property” means, as to each Property, all
assignable intangible personal property, if any, now or through the date of
Closing owned by the Contributor of such Property and arising out of or in
connection with such Contributor’s ownership of such Property and the Personal
Property, including (to the extent any such items exist): (i) such Contributor’s
rights to use all plans, specifications and drawings relating to the
Improvements located on such Property (subject to the rights of the parties who
prepared the same), (ii) transferable licenses, permits and certificates of
occupancy issued by governmental authorities relating to the use, maintenance,
occupancy and/or operation of such Property and the Personal Property, and
(iii) any presently effective and assignable warranties and guaranties with
respect to such Property.

(d)           For purposes of this Agreement, “Leases” means, as to each Property, all leases and rental
agreements (other than the Ground Leases) now or hereafter entered into for
occupancy of space within the improvements or other portions of such Property.

(e)           For purposes of this Agreement, “Designated Contracts” means, as to each Property, (1) those
Contracts (hereinafter defined) which Acquiror has chosen to have assigned to
Acquiror at the Closing and which are listed on Exhibit “B”
attached hereto and by this reference made a part hereof (2) those Contracts
that prior to Closing are designated in writing by Acquiror as Contracts that
Acquiror chooses to have assigned to Acquiror at Closing, and (3) any Contracts
hereafter approved by Acquiror pursuant to the provisions of Section 9(c)
below.

(f)            For purposes of this Agreement, “Security Deposits” means, as to each Property, all security
deposits of tenants under Leases (“Tenants”), if
any, which as of the Closing Date have not been applied by Contributor in
accordance with the terms of the applicable Leases.

(g)           For purposes of this Agreement, “Ground Leases” means: the Berkeley II Ground Lease, the
Castro Valley Ground Lease, the Kapolei Ground Lease, and the San Pablo Ground
Lease, each as defined on Exhibit “A”.

(h)           For purposes of this Agreement, “Excluded Property” means: (i) any bank accounts of any
Contributor, (ii) any motor vehicles or aircraft owned by any Contributor,
(iii) any business forms, employee training manuals, proprietary Contributor
software and other intellectual property owned and used by any of the
Contributors in the operation of a self storage business at any of the Properties,
(iv) except as provided in Section 24 below, the right to use the name “AAAAA
Rent-A-Space”, (v) any operating accounts, replacement or reserve accounts or
other accounts maintained by or on behalf of any Contributor or such
Contributor’s affiliates with respect to the Properties, excepting however,
reserve accounts under the Third Party Loans that are assumed by Acquiror,
which reserve accounts shall be assigned by Contributor to Acquiror at closing
of the applicable Property; (vi) any refundable cash or other security deposits
or any bonds posted by or on behalf of any Contributor with any governmental
authorities, utilities or other parties, other than those for which an
adjustment is made pursuant to Section 8 below; (vii) subject to any obligation
of any Contributor to remit such refunds to Tenants, any refunds of real estate
taxes and assessments, personal property taxes and similar payments
attributable to the period prior to the applicable Closing (provided, however,
any refunds for the fiscal tax year in which the Closing occurs shall be
prorated in accordance with Section 8 below); (viii) subject to Section 10
below, any claims under any Contributor’s insurance policies; (ix) any
agreement between a Contributor and such Contributor’s on-site property
manager; and (x) any loans or other securities (as defined in the Investment
Company Act of 1940) owned by any Contributor.

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3.             Contribution Consideration; Series A Participating Redeemable Preferred
Units; Other Agreements.

(a)           General.  Acquiror’s sole general
partner is ESS Holdings Business Trust I, a Massachusetts business trust (the “General Partner”) and a wholly owned subsidiary of Extra
Space Storage Inc., a Maryland corporation (the “REIT”).  The REIT is a real estate investment trust
whose common stock, par value $0.01 per share (the “Stock”)
is traded on the New York Stock Exchange (the “NYSE”).

(b)           Contribution Consideration.  The
aggregate consideration to be delivered to Contributors by Acquiror for the
Properties (the “Contribution Consideration”) shall
consist of that number (the “Total Series A Preferred
Unit Amount”) of Series A Preferred Units (as defined in the Amended
and Restated Partnership Agreement) that is equal to the number of OP Units (as
defined in the Amended and Restated Partnership Agreement) having an aggregate
value (based upon each OP Unit having a value which is equal to the average
closing price of the Stock on the NYSE for the ten (10) consecutive trading
days ending on the second trading day immediately preceding the Closing Date
(as defined below)) that equals the aggregate of the following items:  (a) One Hundred Fifty Million Two Hundred
Thousand and No/100 Dollars ($150,200,000.00) (the “Gross Dollar
Value”); minus (b) the outstanding balance of the Third Party
Loans (hereinafter defined) (including unpaid principal and interest and
related charges and other fees and expenses owing with respect to the Third
Party Loans) as of the Proration Date (as defined below), but specifically not
including any prepayment fees or prepayment penalties payable with respect to
the any of the Third Party Loans; minus (c) One Hundred Fifteen Million
and No/100 Dollars ($115,000,000.00). 
The parties agree that the fair market value of the total Series A
Preferred Units is equal to the Gross Dollar Value minus the outstanding
balance of the Third Party Loans (the “Net Value”).  The
parties further agree that each Series A Preferred Unit shall have a
liquidation preference equal to the sum of (x) One Hundred Fifteen Million and
No/100 Dollars ($115,000,000.00) divided by the total number of Series A
Preferred Units issued to Contributors, plus (y) the value of an OP Unit at the
time of liquidation.  As used herein, the
term “Third Party Loans” shall mean all of
the loans identified on Exhibit “D” attached hereto and by this reference made a part
hereof.  Each Property that is security
for a Third Party Loan is hereinafter referred to as a “Third Party
Loan Property” and all of the Properties that are security for a
Third Party Loan are hereinafter collectively referred to as the “Third Party Loan Properties”.  Subject to the provisions of Section 3(d)
below, Acquiror shall, at the Closing, pay in full the outstanding balance
owing with respect to each of the Third Party Loans other than the “Hayward Loan” and the “San Leandro Loan”
(each, as defined on Exhibit “D”). 
Subject to the provisions of Section 3(e) below, Acquiror shall, at the
Closing, assume the Hayward Loan and the San Leandro Loan.

(c)           Allocation of Contribution Consideration.  The
number of Series A Preferred Units that shall be distributed to each
Contributor (the “Allocated Contribution
Consideration”) shall be equal to the product (rounded to the
nearest whole number so that the sum of all Series A Preferred Units distributed
to all Contributors pursuant to this Agreement is equal to the Total Series A
Preferred Unit Amount) of the Total Series A Preferred Unit Amount multiplied
by a fraction the numerator of which is such Contributor’s Allocated Share of
the Net Value (hereinafter defined) and the denominator of which is the total
Net Value.  As used herein, the term “Allocated Share of the Net Value” shall mean as to each
Contributor the shall mean the portion of the Net Value allocated to such
Contributor’s Property on Exhibit “C”
attached hereto and by this reference made a part hereof.

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(d)           Payment of Certain Third Party Loans.  With
the exception of the Hayward Loan (as defined on Exhibit “D”) and the San
Leandro Loan (defined on Exhibit “D”), Acquiror shall, at the Closing, pay in
full the aggregate outstanding balance of the all of the Third Party Loans
(each individually a “Prepaid Loan”
and collectively the “Prepaid Loans”),
including unpaid principal and interest and any related charges and other fees
and expenses and any prepayment fees or prepayment penalties payable with
respect to the Prepaid Loans; provided, however, that any prepayment fees or
prepayment penalties payable with respect to the prepayment of a Prepaid Loan
shall not reduce the amount of the Gross Dollar Value for purposes of
determining the Net Value pursuant to Section 3(b) above.

(e)           Assumption of Hayward Loan and San Leandro
Loan.  The obligations of Contributors and Acquiror
under this Agreement shall be subject to the following:

(1)           Each Third Party Lender  and
each loan servicer of either the Hayward Loan or the San Leandro Loan (each
hereinafter a “Assumption Loan” and collectively
the “Assumption Loans”) consenting to the
transaction which is the subject of this Agreement and Acquiror’s assumption of
the Assumption Loans, all on terms that are reasonably acceptable to Acquiror
(the “Lender Conditions”).  Contributors have informed Acquiror that KN
Productions, Inc. (hereinafter the “Contributor Guarantor”)
has executed separate Indemnity and Guaranty Agreements with respect to each of
the Assumption Loans and that each Third Party Lender of the Assumption Loans
may require Acquiror to provide a financially responsible person to provide a
similar guaranty and indemnity with respect to such Third Party Lender’s
Assumption Loan (hereinafter a “Replacement Guarantor”).  Acquiror agrees to offer a Replacement
Guarantor who shall, in Acquiror’s reasonable determination, satisfy the
financial conditions required to be maintained by the applicable Contributor
Guarantor pursuant to the Third Party Loan Documents (hereinafter defined) for
each Assumption Loan, including, but not limited to, any guarantees of each
Assumption Loan; provided, however, that the parties acknowledge that Acquiror
may, at Acquiror’s option, require that the assumption and/or guaranties of the
Assumption Loans be provided by, one or more affiliates of Acquiror who satisfy
the foregoing criteria.  In the event
that the Third Party Loan Documents for the Assumption Loans do not specify
financial conditions required to be maintained by the applicable Contributor
Guarantor, then, in the event so required by the applicable Third Party Lender,
Acquiror agrees to offer a Replacement Guarantor who shall have a minimum net
worth of at least $100,000,000.00. 
Notwithstanding the foregoing, in no event shall Acquiror be required to
approve any Lender Conditions which require Acquiror or any affiliate of
Acquiror to execute any guaranties or to incur any obligations with respect to
an Assumption Loan which are materially more onerous or burdensome than the
guaranties and/or obligations undertaken by the applicable Contributor or such
Contributor’s affiliates (including, but not limited to, the Contributor
Guarantor) under the applicable Third Party Loan Documents for such Assumption
Loan.

(2)           Promptly after the Effective Date, Acquiror
and Contributors shall apply to each Third Party Lender and servicer of the
Assumption Loans for such Third Party Lender and servicer’s consent to the
transaction which is the subject of this Agreement and Acquiror’s assumption of
each of the Assumption Loans in accordance with Lender Conditions that area
reasonably acceptable to Acquiror. 
Contributors and Acquiror each agree to use commercially reasonable
efforts to cooperate with each other and with each such Third Party Lender and
servicer in seeking such approval and consent and in responding to the
reasonable requests of such Third Party Lender and/or servicer.  Notwithstanding anything to the contrary
contained herein, provided that Contributors 

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and
Acquiror shall have satisfied their respective obligations under this Section,
the failure of a Third Party Lender to approve the assignment and assumption of
an Assumption Loan by the Closing Date shall not constitute a default by either
Contributor or Acquiror.

(3)           Notwithstanding anything to the contrary in
this Agreement, if at the Closing Date, any Third Party Lender and/or the
servicer of either of the Assumption Loans has not consented to the transaction
which is the subject of this Agreement and to Acquiror’s assumption of such
Loan in accordance with Lender Conditions that are reasonably acceptable to
Acquiror, the following provisions of this Section 3(e)(3) shall apply:

(A)          Acquiror may, by written notice to Contributors given at or prior to
the Closing Date or at any time after the giving of a notice pursuant to
Section 3(e)(3)(B) below with respect to such Assumption Loan, elect to waive
the condition that such Third Party Lender and servicer consent to the
transaction which is the subject of this Agreement and to Acquiror’s assumption
of such Assumption Loan and proceed to Closing, in which event, the provisions
of Section 13(c) below shall apply to such Loan, or

(B)           Acquiror may, by written notice to Contributors given at or prior to
the Closing, elect to proceed to the Closing with respect to all of the
Properties other than one or more of the Third Party Loan Properties securing
an Assumption Loan with respect to which Acquiror has not received such consent
(with an appropriate reduction in the Gross Dollar Value for purposes of
determining the Total Series A Preferred Unit Amount), in which event, Acquiror
and Contributor shall continue to seek the consent of such Third Party Lender
and/or the servicer of such Third Party Lender’s Assumption Loan to the
transaction which is the subject of this Agreement and Acquiror’s assumption of
such Assumption Loan in accordance with the provisions of Section 3(e)(2) above
and the provisions of Sections 3(e)(4) and 8(g) shall apply to the Third Party
Loan Property which secures such Assumption Loan.

If at the Closing Date the
Third Party Lenders and/or the servicers of both Assumption Loans have not
consented to the transaction which is the subject of this Agreement and
Acquiror’s assumption of such Assumption Loans, Acquiror may, in Acquiror’s
sole discretion, make a different election with respect to each Assumption
Loan.

(4)           As to each Assumption Loan with respect to
which Acquiror has made an election pursuant to Section 3(e)(3)(B) above, upon
the applicable Third Party Lender’s approval of Acquiror’s assumption of such
Assumption Loan in accordance with Lender Conditions which are reasonably
acceptable to Acquiror, Contributor and Acquiror agree to execute such
documentation as may be reasonably required by Third Party Lender pursuant to
and in accordance with the terms of the Third Party Loan Documents and such
Lender Conditions and to take all other steps reasonably necessary to promptly
Close the loan assumption and Acquiror’s acquisition of the Third Party Loan
Property which secures such Assumption Loan as soon as reasonably possible, but
in no event later than the tenth (10th) business day after the Lender shall
have approved such loan assumption, the completion of which shall include such
Third Party Lender’s release of Contributor and each Contributor Guarantor from
future liability with respect to the Assumption Loan.

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(5)           If Acquiror initially makes an election
pursuant to Section 3(e)(3)(B) above with respect to an Assumption Loan and
thereafter makes an election pursuant to Section 3(e)(3)(A) above with respect
to such Assumption Loan, the Closing with respect to Acquiror’s acquisition of
the Third Party Loan Property that secures such Assumption Loan shall occur as
soon as reasonably possible after the date on which Acquiror gives Contributors
written notice of Acquiror’s election pursuant to Section 3(e)(3)(A) above with
respect to such Assumption Loan, but in no event later than ten (10) business
days after the giving of such written notice.

(6)           Concurrently with the Closing of the
assumption of each Assumption Loan and provided the applicable Third Party
Lender shall agree, all reserve accounts maintained by such Third Party Lender
on behalf of Contributor in connection with the Assumption Loan, if any, shall
be assigned by the applicable Contributor to Acquiror at the Closing of the
applicable Third Party Loan Property and such Contributor shall receive a
credit at Closing equal the amounts so assigned.  If the applicable Third Party Lender shall
not agree to the assignment and assumption of existing reserves at Closing as
aforesaid, such Contributor shall not receive a credit therefore at Closing,
and, if required by such Third Party Lender, Acquiror shall establish
replacement reserves in the amounts required by the Third Party Lender, and
Acquiror shall upon such Contributor’s request, reasonably cooperate with such
Contributor’s efforts to recover such Contributor reserves from such Lender.

(7)           Acquiror shall be responsible for and pay all
fees, costs, expenses, and other charges charged by any Third Party Lender with
respect to its consenting to the transaction which is the subject of this
Agreement and the assumption of any Assumption Loan in accordance with the
provisions of this Section 3(e) including, without limitation, any loan
assumption fees.

(f)            Issuance of Series A Preferred Units.  The
Series A Preferred Units shall be issued and delivered to Contributors at
Closing.  Subject to the terms and
conditions contained in the Amended and Restated Partnership Agreement
(hereinafter defined), the Series A Preferred Units shall be redeemable for
cash or exchangeable for shares (“Conversion Shares”)
of the Stock; provided, however, that notwithstanding anything to the contrary
in either the Amended and Restated Partnership Agreement or this Agreement, the
REIT shall not exchange, in the aggregate with respect to all such exchanges,
more than 25,000,000 Conversion Shares with respect to the redemption of either
some or all of the Series A Preferred Units. 
Anything in the Amended and Restated Partnership Agreement to the
contrary notwithstanding, Acquiror agrees that so long as the Series A
Preferred Units remain issued and outstanding, Acquiror shall not (i) authorize
or issue any securities in Acquiror having any preference as to or on a parity
with the dividend or redemption rights, liquidation preferences, conversion
rights, voting rights or any other rights or privileges of the Series A
Preferred Units, (ii) reclassify any partnership interests into interests
having any preference as to or on a parity with the dividend or redemption
rights, liquidation preferences, conversion rights, voting rights or any other
rights or privileges of the Series A Preferred Units, (iii) authorize or issue
any debt which is convertible into or exchangeable for, partnership interests
in Acquiror having any preference as to or on parity with the dividend or
redemption rights, liquidation preferences, conversion rights, voting rights or
any other rights or privileges of the Series A Preferred Units, or (iv) amend
or repeal any provision of, or add any provision to the Amended and Restated
Partnership Agreement if such actions would alter or change the preferences,
rights, privileges or restrictions provided for the benefit of the Series A
Preferred Units.

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(g)           Transfer Restrictions.

(1)           By executing and delivering this Agreement,
each Contributor agrees that such Contributor may only sell, transfer, assign,
pledge or encumber, or otherwise convey any or all of the Series A Preferred
Units issued and delivered to such Contributor in connection with this
transaction (any of the foregoing, a “Transfer”) in
strict compliance with this Agreement, the Amended and Restated Partnership
Agreement, the charter documents of the REIT and the registration and other
provisions of the Securities Act of 1933, as amended (and the rules and
regulations promulgated thereunder (the “Securities Act”)),
any state securities laws, the rules of the NYSE, in each case as may be
applicable (collectively, the “Transfer Requirements”).  In addition, without the consent of the
General Partner which may be given or withheld in its sole and absolute
discretion, no Contributor nor any successor shall be permitted to Transfer
such Contributor’s (or successor’s) Series A Preferred Units, or take any
action, which would cause the Series A Preferred Units issued pursuant to this
Agreement to such Contributor to be directly or indirectly owned by more than
one partner as determined for purposes of Treasury Regulation Section
1.7704-1(h)(1)(ii), but without regard to Treasury Regulation Section
1.7704-1(h)(3)(ii).  Notwithstanding the
foregoing, at all times after the date which is two years following the
contribution of the Properties to Acquiror, the Contributors agree that all of
the Series A Preferred Units will be held, in the aggregate, by not more than
six partners (determined as described in the prior sentence).

(2)           Permitted Transfers. 
Provided that Big Sky Limited Liability Company, a Wyoming limited
liability company (“BSLLC”) and H.
James Knuppe and Barbara Knuppe, as Trustees of the RAS I International Trust,
a Cook Island international trust (“RAS”) each (A)
agree to assume and be bound by the provisions of Sections 3(g)(1) and 3(i) of
this Agreement and the provisions of the Amended and Restated Partnership
Agreement with respect to the Series A Preferred Units, and (B) execute and
deliver to Acquiror an Accredited Investor Questionnaire (in the form attached
hereto as Exhibit “K”), the parties agree and
understand that immediately after receipt of the Series A Preferred Units, each
Contributor shall transfer the Series A Preferred Units received by such
Contributor to BSLLC which in turn, shall transfer such Series A Preferred
Units to RAS, and after such transfers, BSLLC and RAS shall, with respect to
the Series A Preferred A Units, be treated as “Contributors” under this
Agreement.  Furthermore, subject to
Section 3(g)(1) above and Section 3(i) below, but notwithstanding anything to
the contrary in Section 11.3A of the Amended and Restated Partnership
Agreement, Acquiror agrees to not unreasonably withhold or delay its consent
with respect to any Transfer of Series A Preferred Units by a Contributor for estate
planning objectives, including the assignment, sale, transfer or conveyance of
Series A Preferred Units (Y) to parents, spouses, siblings, descendants, and/or
ancestors of any individuals who own and control such Contributor, and (Z) to
trusts, family trusts, partnerships, limited liability companies, family
limited partnerships or other entities established for estate planning purposes
by any individuals who own and control such Contributor.

(h)           Registration Rights.  At
Closing, the Acquiror shall cause the REIT to enter into a Registration Rights
Agreement (the “Registration Rights Agreement”)
substantially in the form of Exhibit “E”
attached hereto, pursuant to which the REIT shall agree to register the resale
of Conversion Shares.

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(i)            Lock-Up Period.  By
executing and delivering this Agreement, each Contributor agrees that until the
close of the period immediately following the Closing Date and ending on
September 1, 2008 (the “Lock-Up Period”)
such Contributor shall not have the right to require Acquiror to redeem any
Series A Preferred Unit held by Contributor under the Amended and Restated
Partnership Agreement.  If any
Contributor transfers any Series A Preferred Unit or any interest therein, such
Series A Preferred Unit shall remain subject to this Section 3(i) and, as a
condition to the validity of such disposition and in addition to any other
Transfer Requirements, the transferee of such Series A Preferred Unit or
interest therein shall be required to assume, in a form acceptable to Acquiror,
the obligations of this Section 3(i) with respect to such Series A Preferred
Unit.  Thereafter, such transferee shall,
for purposes of this Section 3(i), be a Contributor.  Notwithstanding the foregoing, prior to the
expiration of the Lock-Up Period, Contributors may (in each case, in strict
compliance with the Transfer Requirements) pledge or encumber (to or for the
benefit of a lender, which, in addition to banks, shall include, without
limitation, Acquiror, the REIT, securities firms, broker/dealers and other
entities engaged in the business of commercial lending) all or any portion of
the Series A Preferred Units.  Acquiror
agrees to review each request by Contributors that Acquiror consent to
Contributors’ pledging or encumbering Contributors’ Series A Preferred Units on
a case by case basis; provided, however, that such consent shall not be
unreasonably denied.

(j)            Alternative Redemption Rights.  At
any time in which Contributors are entitled to require Acquiror to redeem the
Series A Preferred Units, Acquiror will consider, in good faith, proposals made
from time to time by all of the Contributors, acting as a group, to redeem all
of the Series A Preferred Units issued pursuant to this Agreement with property
designated by the Contributors making such proposal (an “Alternative
Redemption”).  Such proposals
may include a statement that such Alternative Redemption is intended to be  part of a series of transactions (potentially
including a cash redemption pursuant to Section 16.4 of the Amended and Restated
Partnership Agreement) pursuant to which all of Contributors’ Series A
Preferred Units shall be completely redeemed. 
Acquiror shall not unreasonably withhold its acceptance of a proposal
for an Alternative Redemption that meets the criteria set forth in this Section
3(j) and that does not, in Acquiror’s reasonable judgment, expose Acquiror, any
of Acquiror’s partners or the REIT to a risk of liability or damage, or of a
penalty or other exposure for noncompliance with law.  Each such proposal for an Alternative
Redemption shall be accompanied by an opinion of reputable tax counsel (which
may be Baker & McKenzie LLP), in form and substance reasonably satisfactory
to Acquiror, which opinion (A) at the election of Acquiror, shall state that
Acquiror shall be entitled to rely on such opinion, and (B) shall be
reconfirmed at the closing of the Alternative Redemption that, under then
applicable law, the proposed Alternative Redemption should result in the
redeeming Contributors receiving for federal income tax purposes a tax basis in
the property to be received by the Contributors pursuant to the proposed
Alternative Redemption that is determined under Section 732(a) or (b) of the
Code, as applicable, and specifying which such Section applies.  Acquiror may allow additional Alternative
Redemptions in its absolute discretion. 
Alternative Redemptions will be required to meet the following
requirements:

(1)           In all events, neither Acquiror nor any of
its affiliates will assume or be required to bear, directly or indirectly, any
costs of expenses or any environmental, tax, legal, economic or reporting risks
or liabilities beyond those which would inhere in a redemption of Series A
Preferred Units for cash in accordance with the Amended and Restated
Partnership Agreement.

(2)           Neither the Acquiror nor any of its
affiliates will make any representations or warranties regarding the properties
so acquired, tax treatment, etc.

 8
 

(k)           Further Assurances.  Each
party hereto will execute such further documents and take such further actions
as may be reasonably requested by the other to consummate the transactions
consummated hereby, to vest the Acquiror with full right, title and interest in
and to the Property or to effect the other purposes of this Agreement.

(l)            Treatment as Contribution.  It
is the intent of the parties to this Agreement that the contribution, transfer,
conveyance and assignment effectuated pursuant to this Agreement for the
Contribution Consideration shall constitute a “Capital
Contribution” to the Acquiror and is intended to be governed by
Section 721(a) of the United States Internal Revenue Code of 1986, as amended
(the “Code”), and that such transfer shall
not be treated as a sale, or a disguised sale under Section 707(a)(2)(B) of the
Code, by either party.  Contributors and
Acquiror hereby consent to such treatment. 
Acquiror and the Contributor agree to file income tax returns treating
such transaction as a non-taxable contribution under Section 721(a) of the
Code.  It is the intent of the parties
that Contributors’ share of the non-recourse liabilities of Acquiror shall be
determined in accordance with the provisions of Section 1.752-3 of the Treasury
Regulations, as amended from time to time.

(m)          Survival of Obligations.  The
parties agree that the obligations of the parties pursuant to Sections 3(f),
3(g), 3(h), 3(i), 3(j), 3(k) and 3(l) shall survive the Closing and the
delivery of the Deeds and the other documents contemplated by this Agreement.

4.             Earnest Money Deposit.

(a)           Deposit of Earnest Money.  Concurrently
with the execution of this Agreement by Acquiror and Contributors, Acquiror
shall deposit with Chicago Title Insurance Company, National Office, at 171 N.
Clark Street, 3rd Floor,
Chicago, IL 60601, Attention: Ronald K. Szopa, as the “Escrow Agent”
and “Title Company,” an earnest money
deposit in cash in the amount of FOURTEEN MILLION NINE HUNDRED THOUSAND AND
NO/100 DOLLARS ($14,900,000.00) (“Earnest Money Deposit”).  Except as specifically set forth in this
Agreement, the Earnest Money Deposit shall be non-refundable.

(b)           Investment of Earnest Money Deposit.  Upon
receipt, Escrow Agent shall deposit the Earnest Money Deposit into an interest
bearing money market account maintained at a bank customarily used by Escrow
Agent for such purposes.  All interest
earned on the Earnest Money Deposit while held by Escrow Agent shall be added
to and increase the amount of Earnest Money Deposit and shall be reported to
the Internal Revenue Service as income of Acquiror.  Acquiror and Contributors agree to provide
Escrow Agent with their respective tax identification numbers upon execution of
this Agreement and Acquiror and Contributors shall promptly execute all forms
reasonably requested by Escrow Agent in connection with depositing the Earnest
Money Deposit in an interest-bearing account as provided above.

(c)           Release of Earnest Money Deposit at Closing.  Upon
the Closing of Acquiror’s acquisition of each Property in accordance with this
Agreement, a portion of the Earnest Money Deposit shall be released and
delivered to Acquiror, with such portion of the Earnest Money Deposit being
determined in accordance with the following provisions of this Section 4(c):

(1)           With respect to the Closing for each of the
Properties other than the last three (3) Properties to Close, the portion of
the Earnest Money Deposit to be released to Acquiror with respect to each such
Property shall be equal to the product of $7,400,000.00 multiplied by a
fraction the numerator of which is the Allocated Contribution Consideration for
such Property and the denominator of which is the aggregate Allocated
Contribution Consideration for all of the Properties.

 9
 

(2)           $2,500,000.00 of the Earnest Money Deposit
shall be released and delivered to Acquiror upon the Closing of each of the
last three (3) Properties to Close; provided, however, that at the Closing of
the last Property, the entire remaining balance of the Earnest Money Deposit
(including interest) shall be released and delivered to Acquiror.

Except for a release of all
or any portion of the Earnest Money Deposit to Acquiror as provided above in
this Section 4(c), if either Acquiror or any Contributor makes a written demand
upon Escrow Agent for payment of the Earnest Money Deposit (or a portion
thereof), Escrow Agent shall give written notice to the other parties of such
demand.  If Escrow Agent does not receive
a written objection from any other party to the proposed payment of the Earnest
Money Deposit (or a portion thereof) within three (3) business days after that
party’s receipt of such notice, Escrow Agent shall make the payment of the
Earnest Money Deposit (or a portion thereof) pursuant to the demand.  If Escrow Agent does receive such written
objection within such three (3) business day period, Escrow Agent shall
continue to hold the Earnest Money Deposit (or a portion thereof) as provided
in Section 4(b) until otherwise directed by joint written instructions from
Acquiror and Contributors or a final, non-appealable judgment of a court of
competent jurisdiction.  However, Escrow
Agent shall have the right to deposit the Earnest Money Deposit with the clerk
of the Superior Court of Alameda County, California.  If Escrow Agent so deposits the Earnest Money
Deposit with the clerk of the court, Escrow Agent shall give written notice thereof
to Contributors and Acquiror and, upon such deposit and notice, Escrow Agent
shall be relieved and discharged of all further obligations hereunder.

5.             Items from Contributors.

(a)           Documents.  Acquiror acknowledges that
each Contributor has, with respect to each Property owned by such Contributor,
made available to Acquiror at such Contributor’s principal place of business
all of the following (collectively, the “Documents”), to
the extent that they exist and are within the control of any of the Contributors
or any of their respective affiliates, employees or agents and to the extent
the same do not constitute Excluded Documents, as defined below:

(1)           All inspections, studies, assessments,
reports, audits, and surveys affecting or relating to such Property, including,
but not limited to, all title reports, title policies, land surveys,
environmental, mechanical, electrical, structural, soils, and similar reports,
assessments, and/or audits, traffic studies, and appraisals. (Acquiror
acknowledges that a substantial number of such title reports, surveys,
engineering reports and environmental reports have already been received).

(2)           All site plans, as-built plans, drawings,
environmental, mechanical, electrical, structural, soils, and similar plans and
specifications relating to such Property.

(3)           All certificates, inspections, permits,
compliance letters, and certificates of occupancy relating to such Property or
such Contributor’s business on such Property.

(4)           A rent roll for such Property (each
hereinafter a “Rent Roll ) together with a copy
of the standard form of lease agreement, amendments, and side agreements and
tenant insurance sales materials used in connection with the operation of such
Property, and a true and correct copy of each non-self storage lease affecting
such Property.

 10
 

(5)           A list of all real estate contracts,
including service contracts, license agreements, warranties, management,
maintenance, leasing commission or other agreements affecting such Property, if
any, together with copies of the same. 
The contracts which are included on the lists delivered to Acquiror
pursuant to this Section 5(a)(5) are hereinafter collectively referred to
as the “Contracts”.

(6)           Copies of all real and personal property tax
statements relating to such Property, or any part thereof, for each of the two
years prior to the current year and, if available, for the current year.

(7)           A schedule of all litigation affecting such
Property or such Contributor during the past twelve (12) months, together with
a “loss run” of all claims submitted to the Contributor’s insurance carriers
for the past five (5) years.

(8)           Copies of financial statements for such
Property for 2004, 2005, 2006 and year to date 2007, together with copies of monthly
delinquency reports, unit mix/occupancy statistics report, monthly management
reports, non-rented unit reports ( collectively the “Financial
Reports”).  Prior to the
Closing, each Contributor shall provide Acquiror with monthly updates to
Contributor’s Financial Reports within five (5) business days after the end of
each month.

(9)           Copies of the organizational documents for
such Contributor.

(10)         Copies of all the documents evidencing and or
securing each Third Party Loan, including, but not limited to, any guarantees
of each Third Party Loan (hereinafter collectively the “Third Party
Loan Documents”).

(11)         Copies of all Ground Lease agreements and
amendments.

(b)           Excluded Documents.  As
used herein, “Excluded Documents” shall mean (i)
any purchase and escrow agreements and correspondence pertaining to Contributor’s
acquisition of the Property, (ii) any agreements and/or letters of intent
pertaining to the potential acquisition of the Property by any past or
prospective purchasers, (iii) any third party purchase inquiries and
correspondence, appraisals or economic evaluations of the Property, (iv) any
personnel records and files maintained by or on behalf of Contributor with
respect to individuals, if any, employed at or in connection with a Property
which Contributor is obligated by law to keep confidential, and (v) any
documents or materials which are subject to the attorney/client privilege or
which are the subject of a confidentiality obligation.

(c)           Return of Documents.  As
to each Property, at such time as this Agreement is terminated for any reason,
Acquiror shall return to Contributors the copies and/or originals of all of the
Documents delivered or made available to Acquiror by or on behalf of any
Contributor with respect to such Property.

(d)           No Representations. 
Acquiror acknowledges that with the exception of the Documents described
in Sections 5(a)(4), 5(a)(5), 5(a)(7), 5(a)(8), 5(a)(9), 5(a)(10), and
5(a)(11), many of the Documents were prepared by third parties other than
Contributors, and in some instances, may have been prepared prior to
Contributors’ ownership of the Properties. 
Acquiror 

 11
 

further
acknowledges and agrees that, except as expressly set forth in Section 14 below
(1) neither Contributors nor any of Contributors’ respective agents, employees
or contractors has made any warranty or representation regarding the truth,
accuracy or completeness of the Documents or the source(s), and (2)
Contributors have not undertaken any independent investigation as to the truth,
accuracy or completeness of the Documents and Contributors are providing the
Documents or making the Documents available to Acquiror solely as an
accommodation to Acquiror.  To the extent
such Documents exist and are in the possession or reasonable control of any of
the Contributors or any of their respective affiliates, employees or agents,
Contributors warrant that the Documents described in Sections 5(a)(4), 5(a)(5),
5(a)(7), 5(a)(8), 5(a)(9), 5(a)(10), and 5(a)(11) are true and accurate in all
material respects and, to the extent such documents do not exist or are not
within the reasonable control of any of the Contributors or any of their
respective affiliates, employees or agents, Contributors agree to provide
reasonable cooperation with Acquiror to provide Acquiror with access to such
Documents.

(e)           Survival of Obligations.  The
obligations of Section 5(c) shall survive any termination of this
Agreement.  In addition to any other
remedies available to Contributors, Contributors shall have the right to seek
equitable relief (including specific performance and injunctive relief) against
Acquiror and Acquiror’s representatives to enforce the provisions of Section
5(c).

6.             Rule 3-14 Audit.  Contributors acknowledge that under Rule 3-14
of Regulation S-X, Acquiror is required to obtain certain information in connection
with reports Acquiror is required to file with the Securities and Exchange
Commission.  Accordingly, provided that
Acquiror provides a certificate executed by an executive officer of Acquiror
that Acquiror is obligated to complete a Rule 3-14 Audit (hereinbelow defined)
Contributors agree to (a) allow Acquiror and Acquiror’s representatives, at
Acquiror’s sole cost and expense, to perform an audit of Contributors’
respective operations at the Properties to the extent required under Rule 3-14
of Regulation S-X (hereinafter a “Rule 3-14 Audit”),
and (b) make available to Acquiror and Acquiror’s representatives for
inspection and audit at Contributors’ respective offices all of Contributors’
books and records reasonably requested by Acquiror for the full calendar year
2005 and the full calendar year 2006 and relating to the operations of each
Contributor on the Properties, including, but not limited to, income, expense,
occupancy, and other financial and occupancy information relating to the
Properties.  In connection with the
foregoing, Acquiror shall give Contributors no less than ten (10) business days’
prior written notice of Acquiror’s plans to inspect and audit such books and
records.  Contributors acknowledge that
Rule 3-14 may require Acquiror to perform a Rule 3-14 Audit both after the
expiration of the Due Diligence Period and after the Closing and Contributors
agree that Contributors’ respective obligations under this Section 6 shall
survive the Closing and delivery of documents contemplated by this
Agreement.  Any Rule 3-14 Audit shall be
completed as soon as reasonably possible and Acquiror and Acquiror’s
representatives shall use commercially reasonable best efforts not to interfere
with Contributors’ ability to conduct its business.  Copies of all Rule 3-14 Audits shall be
promptly provided to each Contributor at no cost to Contributor.  Acquiror expressly acknowledges and agrees
that all Rule 3-14 Audits, together with the books and records made available
to Acquiror in connection therewith, shall be subject to the terms and
conditions of Section 26 below.

7.             Title Insurance Policies.  At Closing, Acquiror’s title
to each of the Properties shall be evidenced by an extended coverage title
insurance policy (on the CLTA or ALTA form, as applicable) (each hereinafter a “Title Policy” and collectively the “Title
Policies”) in the full amount of the “Allocated Share of the Gross
Dollar Value” (hereinafter defined) for such Property, insuring that Acquiror
or Acquiror’s designee, is the owner of either fee simple title or a leasehold
estate under the applicable Ground Lease (as applicable) in and to such
property subject only to the exceptions to title for 

 12
 

such Property listed on Exhibit “F”
attached hereto and by this reference made a part hereof (hereinafter the “Permitted Exceptions”). 
At Closing, Contributors’ agree to provide such affidavits as the Title
Company may reasonably require as a condition to issuance of the Title
Policies.  So long as such failure is not
a result of a default by any Contributor under this Agreement, Contributors’
inability to deliver title to any of the Properties in the condition necessary
for the Title Company to issue the Title Policies for any reason shall
constitute a failure of a condition and shall not constitute a breach of
Contributors’ obligations under this Agreement. 
As used herein, “Allocated Share of the
Gross Dollar Value” with respect to each Property shall mean an
amount equal to the Gross Dollar Value multiplied by a fraction the numerator
of which is such Contributor’s Allocated Share of the Gross Dollar Value
(hereinafter defined) and the denominator of which is the total Gross Dollar
Value.  As used herein, the term “Allocated Share of the Gross Dollar Value” shall mean as to
each Contributor the portion of the Gross Dollar Value allocated to such
Contributor’s Property on Exhibit “M”
attached hereto and by this reference made a part hereof.

8.             Proration Date, Closing Date and Closing Procedures and Requirements.

(a)           Closing Date. 
Subject to the provisions of Section 3(e)(3)(B) above, the “Closing Date” or “Closing” of
this Agreement and the completion of Contributors’ contribution of the
Properties to Acquiror and Acquiror’s acquisition of the Properties shall occur
on or before June 26, 2007 (hereinafter the “Initial
Scheduled Closing Date”). 
Closing shall be coordinated and conducted through the Title Company’s
office and neither party shall be required to personally attend the
Closing.  The “Closing Date”
with respect to any Property shall be the date on which the “Closing” with respect to such Property occurs.  The “Closing” with
respect to any Property shall be deemed to have occurred when all of the
conditions to Closing with respect to such Property (as set forth in this
Agreement) have either been satisfied or waived, the Escrow Agent holds a
separate settlement statement signed by the Contributor of such Property with
respect to such Property, a separate settlement statement signed by Acquiror
with respect to such Property, and all of the funds and all of the other
documents required by this Agreement, and Contributors and Acquiror have
authorized Escrow Agent to deliver such funds and documents in accordance with
the provisions of this Agreement.  The Closing
of a Property shall not occur unless each condition to Acquiror’s obligations
and each condition to Contributors’ obligations more specifically set out and
otherwise enumerated in respectively in Sections 12 and 13 below have been
satisfied or waived with respect to such Property.

(b)           Transitional Walk-Through. 
Within approximately ten (10) days prior to Closing, Acquiror’s
operational staff shall have the right to conduct a general walk-through of all
buildings, improvements, storage areas (not under the control of Tenants) and,
subject to each Tenant’s rights, other spaces, equipment and Personal Property
with representatives of Contributors in order to prepare for and assist in the
transition of management at Closing.

(c)           Conveyance of Properties and Delivery of
Closing Documents.  Each Contributor shall convey such
Contributor’s Property to Acquiror pursuant to a “Deed”
and/or “Assignments”, as applicable, and the
other documents which are more particularly described on Exhibit “G”
attached hereto and by this reference made a part hereof.  At the Closing with respect to the Alameda
Property, the Contributor of the Alameda Property and each of such Contributor’s
affiliates will provide Acquiror with an additional separate assignment of all
of such Contributor’s rights, claims, and causes of action arising from or
relating to the environmental condition of the Alameda Property against all
prior owners and other potentially responsible parties (other than such
Contributor and any of such Contributor’s affiliates); provided, however, that
such Contributor shall retain the right to assert any and all defenses that are
now or hereafter available to such Contributor with respect to any claims that
might hereafter be asserted against 

 13
 

such
Contributor and relating to the environmental condition of the Alameda
Property.  The Contributor of the Alameda
Property agrees to cooperate with Acquiror (at Acquiror’s expense) in the
assertion of such claims by Acquiror.  By
the Closing Date, each Contributor shall deliver to the Title Company each of
the documents identified on Exhibit “G” as a document to be delivered by such
Contributor (with each such document having been duly executed, in recordable
form where applicable).  By the Closing
Date, Acquiror shall deliver to the Title Company each of the documents
identified on Exhibit “G” as a document to be delivered by Acquiror (with each
such document having been duly executed, in recordable form where
applicable).  Promptly after the Closing
Date, the Title Company shall record and/or deliver the Deeds, Assignments and
other documents identified on Exhibit “G” in the manner specified on Exhibit “G”.

(d)           Prorations.  At Closing, all prorations
shall be funded in cash or other immediately available funds by the party
obligated to pay such prorations pursuant to the following provisions of this
Section 8(d):

(1)           All real property ad valorem taxes and
general and special assessments applicable to each Property for the year in
which the Closing occurs shall be prorated between Contributors and Acquiror as
of 12:01 a.m. on the third day prior to the Closing Date for such Property (the
“Proration Date”), said proration to be
based upon the most recently available tax or assessment rate and valuation
with respect to such Property. 
Notwithstanding the foregoing, any taxes or assessments levied against
any Property with respect to any period of time prior to the Proration Date
shall remain and be the obligation of Contributors, if not provided for in the
prorations, and Contributors shall promptly pay, or reimburse Acquiror, as
applicable, all such taxes or assessments prior to their delinquency.  At or prior to the Closing, Contributors
shall pay all real property ad valorem taxes and all general and special
assessments applicable to the Properties which are due and payable for any
period prior to the year in which the Closing occurs.  Acquiror shall be responsible for the payment
of any taxes or assessments levied against any Property with respect to any
period of time after the Closing Date. 
Any refund for real estate taxes or assessments applicable to the period
preceding the Closing, whether paid before or after the Closing, shall be paid
to Contributors, and Acquiror shall have no claim or right whatsoever thereto,
provided, however, any refund applicable to the pro-rated tax year for which
Acquiror paid a portion shall be prorated. 
The remaining principal amount (after the application of the prorated
portion of any installment applicable to the period prior to the Closing Date)
of any and all assessments and/or bonds which encumber the Properties or any
part thereof shall not be prorated or apportioned but shall be assumed in full
by Acquiror at Closing.  The obligations
under this subsection shall survive Closing.

(2)           Subject to the Proration Review (as defined
in Exhibit “H”), all income and operating
expense items, including, but not limited to, utilities, yellow page
advertisements, prepaid insurance premiums (but only to the extent that
Contributors’ insurance policies are assigned to Acquiror at Closing pursuant
to Section 14(a)(14) below), Ground Lease rents, and all amounts due under any
Designated Contracts, shall be prorated as of the Proration Date.  For any deposit with a utility company for
which the utility company accepts the Acquiror as assignee and permits the
retention of the deposit, Acquiror shall give the applicable Contributor a
credit at Closing for each such retained deposit with a utility company serving
a Property in which case such Contributor shall assign such Contributor’s
rights to each such deposit to Acquiror at the Closing; or, at such Contributor’s
option, such Contributor shall be entitled to receive a refund of each such
deposit from the utility company, and Acquiror shall post its own deposits.

 14

(3)           For purposes of this Agreement, “Rentals” means, collectively, all amounts paid or payable by
Tenants under their respective Leases in connection with their occupancy of the
Property, including prepaid rents.  “Rentals”
shall not include the Security Deposits. 
At the Closing with respect to each Property, Rentals for such Property
shall be allocated in accordance with the following provisions of this Section
8(d)(3):

(A)          As to each Property, at the Closing, the Contributor of such Property
shall pay to Acquiror the amount of any Rentals which have been prepaid for any
period after the month in which the Proration Date with respect to such
Property occurs.

(B)           If the Proration Date occurs on a date that is after the tenth (10th)
day of any calendar month, the Contributor of such Property shall provide
Acquiror and Escrow Agent with a list of those Rentals that have actually been
collected with respect to such Property as of the Proration Date, and Escrow
Holder shall make appropriate debits and credits to the accounts of Acquiror
and Contributor to reflect such prorations.

(C)           If the Proration Date occurs on a date that is on or between the first
(1st) and tenth (10th) day of any calendar month, Rentals for such Property for
such calendar month shall be deemed received based on the average historical
collection rate for such Property during the first ten (10) days of each of the
three (3) calendar months immediately preceding the calendar month in which the
Proration Date with respect to such Property shall occur.  For purposes of proration of Rentals at
Closing, (I) the Contributor of such Property shall provide Acquiror and Escrow
Agent with the amount of those Rentals that have been deemed received by such
Contributor as of the Proration Date pursuant to the first sentence of this
Section, (II) the Contributor of such Property shall provide Acquiror and
Escrow Agent with a list of the Rentals actually received by such Contributor
for such month, and (III) Escrow Holder shall make appropriate debits and credits
to the accounts of Acquiror and such Contributor to reflect such
prorations.  By way of example only,
assume that as of the Proration Date, Contributor has actually received $20,000
in Rentals for the month in which the Proration Date occurs and that scheduled
monthly Rentals for the Property are in the aggregate $50,000.  If the Proration Date occurs on the fifth
(5th) day of a 30-day calendar month and historically, 85% of the Rentals are
collected by the tenth (10th) day of a month, then for purposes of prorating
Rentals, Escrow Agent shall (x) assume that $42,500 of the Rentals will be
collected during the first ten (10) days of the calendar month in which the
Closing shall occur, (y) then allocate five/thirtieths (5/30) of the amount of
the Rentals deemed collected (i.e. $7,083.33) to Contributor and the remainder
to Acquiror, and (z) credit Acquiror at Closing with an amount equal to the
difference in Rentals actually collected by Contributor and the amount
allocated to Contributor at Closing pursuant to clause (y) above (i.e.
$12,916.67).

(D)          If the Proration Date shall occur on a date that is (i) after the tenth
(10th) day of any calendar month, those Rentals which have not been collected
as of the Proration Date shall be deemed “Delinquent Rentals”
and (ii) on a date that is on or between the first (1st) and tenth (10th) day
of any calendar month, those Rentals not deemed collected pursuant Section
8(d)(3)(C) above, 

 15
 

shall be deemed “Delinquent Rentals.” 
At the Closing with respect to each Property, the unpaid Delinquent
Rentals for such Property shall be treated as though received by Acquiror and
prorated as follows: (x) Delinquent Rentals that are unpaid for no more than 30
days shall be allocated 75% to the Contributor of such Property and 25% to
Acquiror; (y) Delinquent Rentals that are unpaid in excess of 30 days but no
more than 60 days shall be allocated to 50% to the Contributor of such Property
and 50% to Acquiror; and (z) Delinquent Rentals that are unpaid for more than
60 days shall be allocated 100% to Acquiror. 
If a Tenant has any Rentals that are delinquent, all Rentals for that
tenant (regardless of whether delinquent or not) shall be included in the
longest delinquency category for which that tenant is delinquent as of the
Proration Date.  As an example, if a
Tenant has Rentals that are 61-days delinquent, all of the Rentals of that
Tenant shall be entirely in the over 60-day category.  Upon the Closing, Escrow Agent shall credit
to the account of the Contributor of each Property the aggregate amount of the
Delinquent Rentals allocated to such Contributor for such Property pursuant to
clauses (x) and (y) above.  After
Closing, Acquiror shall be entitled to retain all Delinquent Rentals actually
received as to such Property and Contributors shall have no interest therein,
as Contributors shall have received at Closing a credit for and payment of its
agreed-upon share of such Delinquent Rentals. 
Accordingly, there shall be no post-Closing reconciliation or adjustment
with respect to Delinquent Rentals, other than as may be necessary to determine
the actual amounts of Delinquent Rentals as of the Proration Date.

(E)           As to each Property, at the Closing, the Contributor of such Property
shall pay to Acquiror the amount of any Security Deposits.

(4)           Other customary adjustments, if any, made in
connection with the sale of similar type of storage properties shall be
prorated between Acquiror and Contributors at the Closing.

(5)           Subject to the terms and conditions hereof,
within sixty (60) days after the Closing, Acquiror and Contributors shall
review the prorations in accordance with the provisions of Exhibit “H
attached hereto and by this reference made a part hereof.

(e)           Closing Costs.  Contributors shall pay all filing and recording
fees relating to documents required to clear title to the Properties,
specifically including the payment and release of the liens of the Prepaid
Loans.  Acquiror shall pay any taxes
(including, but not limited to, transfer taxes, transfer fees, documentary and
intangible taxes) relating to the transfer of title to the Properties and sales
tax and surtax to state or local entities with reference to the sale of the
Properties, and the cost of the Title Policies (hereinafter defined).  Acquiror shall pay the closing fees charged
by the Escrow Agent and Title Company. 
Acquiror shall pay any intangible taxes, fees or other costs charged by
the lenders on the assumption of the Third Party Loans which Acquiror assumes
per Section 3(e) above.  Any closing
and/or escrow fees or costs not specifically enumerated above shall be paid by
Acquiror.  Acquiror and Contributor shall
each pay their own attorneys’ fees in connection with the preparation and
negotiation of this Agreement.

(f)            Transfer of Possession and Risk of Loss.  Operational
control of the Properties shall be transferred to Acquiror at the start of
business on the Closing Date, subject to the supervision of the
Contributors.  Legal possession and all
risks of loss with respect to the Properties shall be borne by Contributors
until the delivery of the applicable Deed at Closing.

 16
 

(g)           Assumption Loan Outside Closing Date. 
Notwithstanding anything to the contrary contained in this Agreement, if
(1) Acquiror made an election pursuant to Section 3(e)(3)(B) above with respect
to one or more of the Assumption Loans, and (2) the Closing with respect to
each Third Party Loan Property securing each such Assumption Loan has not
occurred by August 25, 2007, the following provisions of this Section 8(g)
shall apply:

(1)           Provided that none of the Contributors is in
default in the performance of the obligations of any Contributor under this
Agreement and provided that no event has occurred which, with the giving of
notice or lapse of time, or both, would constitute such a default by any of the
Contributors, each Contributor shall have the right to thereafter terminate
this Agreement with respect to any of the Properties for which a Closing has
not occurred by written notice to Acquiror.

(2)           Provided that Acquiror is not in default in
the performance of Acquiror’s obligations under this Agreement and provided
that no event has occurred which, with the giving of notice or lapse of time,
or both, would constitute such a default Acquiror shall have the right to
thereafter terminate this Agreement with respect to any of the Properties for
which a Closing has not occurred by written notice to Contributors.

(3)           Upon a termination of this Agreement pursuant
to either Section 8(g)(1) or Section 8(g)(2) above, Escrow Agent shall return
the applicable portion of the Earnest Money Deposit to Acquiror and the parties
shall have no further liability to one another hereunder with respect to the
Properties for which a Closing has not occurred except to the extent expressly
stated otherwise herein.

9.             Covenants of Contributors.  Contributors agree and
covenant as follows:

(a)           Conduct of Business.  Up
to the earlier of the Closing with respect to the Properties of such
Contributor or the termination of this Agreement, each Contributor shall (i)
operate the business conducted at each of such Contributor’s Properties in the
manner in which such Contributor has operated and maintained such Properties
during the twelve (12) month period prior to the Effective Date, (ii) use
commercially reasonable efforts to preserve intact each of such Contributor’s
Properties and the good will and advantageous relationships of such Contributor
with customers, suppliers, independent contractors, employees and other persons
or entities material to the operation of the businesses conducted on such
Properties, (iii) perform such Contributors’ material obligations under all
Leases, Ground Leases, and other agreements affecting any of such Contributor’s
Properties, and (iv) not knowingly take any action or omit to take any action
which would cause any of the representations or warranties of any Contributor
contained herein to become inaccurate or any of the covenants of any
Contributor to be breached.  No
Contributor will engage in any practice, take any action, or enter into any transaction
outside of the ordinary and usual course of business.  Notwithstanding anything to the contrary in
this Section, no Contributor shall, without
Acquiror’s written consent (which consent may be withheld in Acquiror’s sole
and absolute discretion), enter into any lease agreements with tenants or
modify or extend existing Leases other than Leases for storage space in the
ordinary course of business and in no event: (1) for a term greater than one
(1) year; (2) at rental rates less than the rate in effect for like units; or
(3) which allow rent concessions unless such rent concessions are made in such
Contributor’s ordinary and usual course of business and are consistent with the
terms disclosed to Acquiror. 
Contributors hereby disclose to Acquiror that Contributors are currently
offering rental concessions which are more particularly described on Exhibit “I” attached hereto and by this reference made a
part hereof.

 17
 

(b)           Existing Notes,
Mortgages, and Ground Leases.  Until the
earlier of the Closing with respect to such Properties or termination of this
Agreement, no Contributor shall modify, alter or amend any existing note or
mortgage encumbering any of such Contributor’s Properties or further encumber
any of such Contributor’s Properties without the prior written consent of
Acquiror, or allow any existing note or mortgage encumbering any of such
Contributor’s Properties to be in default in any material respect.  Until the earlier of the Closing with respect
to such Ground Lease or termination of this Agreement, Contributors will not
modify, alter or amend any of the Ground Leases, or allow any of the Ground
Leases to be in default in any material respect.

(c)           Further Contracts.  Up
to the earlier of the Closing with respect to such Property or the termination
of this Agreement, no Contributor shall, without Acquiror’s prior written
approval (which approval may be withheld in Acquiror’s sole and absolute
discretion) and except as provided in Section 9(a) above with respect to Leases
for storage space, enter into any further Contracts or leases relating to such
Contributor’s Properties, which cannot be terminated upon thirty (30) days
notice without cost to Acquiror.  Any
Contracts which are approved by Acquiror pursuant to the provisions of this Section 9(c)
shall be deemed a Designated Contract hereunder and Acquiror shall assume at
Closing the obligations of Contributor arising thereunder to the extent that
such obligations arise from and after the Closing Date.

(d)           Warranties and Guaranties.  No
Contributor shall, before or after the Closing Date with respect to such
Contributor’s Properties or earlier termination of this Agreement, release or
materially and adversely modify any warranties or guarantees, if any, of
manufacturers, suppliers and installers related to such Contributor’s
Properties or any part thereof, except with the prior written consent of
Acquiror, which consent may be withheld in Acquiror’s sole and absolute
discretion after the delivery of the Approval Notice.

(e)           Change in Facts or Circumstances.  If,
prior to the Closing with respect to all of the Properties, any Contributor
becomes actually aware of any fact or circumstance which would make either any
representation or warranty contained in this Agreement or any of the documents
or other materials provided to Acquiror pursuant to this Agreement inaccurate,
such Contributor shall promptly notify Acquiror in writing of such fact or
circumstance; provided, however, that in no event shall any Contributor have
any liability, obligation or responsibility with respect to any representation
or warranty which was true and accurate when made by such Contributor upon the
execution and delivery of this Agreement, but which subsequently becomes untrue
or inaccurate merely by the passage of time or by an action which such
Contributor is authorized or permitted to take under this Agreement (e.g. any
new Leases, Contracts) or for any reason which is not a breach or default by
such Contributor of the covenants made by such Contributor in this Section 9.

(f)            Telephone Listing. 
Prior to Closing, Contributors will provide Acquiror with the addresses
and telephone numbers of each telephone company business office that serves a
Property and will execute and deliver to Acquiror all documents required by the
telephone company, including supersedure papers, to transfer the telephone
number, telephone listing, and yellow page advertisements of Contributors to
Acquiror.

 18
 

(g)           Termination of Employees and Rights to Occupy
Apartment.  Acquiror shall have no obligation to hire the
employees of any of the Contributors (if any) and no duty or other obligation
with respect to the termination of any such employees.  Contributors shall terminate the rights of
any person to occupy any residential apartment on any of the Properties
effective as of the Closing and without cost or liability to Acquiror.  None of the Contributors nor any of their
respective managing agents will, between the date hereof and the date of
Closing, enter into any new employment contracts or agreements or hire any new
employees except in the ordinary course of such Contributor’s business.  Acquiror shall not have any liability under
any pension or profit sharing plan that any Contributor or its managing agent
may have established with respect to the Property or its employees.

(h)           Evidence of Completion of Construction at
Colma Property.  The parties acknowledge that the Contributor
of the Colma Property recently completed the construction of certain on site
and off site improvements to the Colma Property which improvements are more
particularly described on Exhibit “J”
attached hereto and by this reference made a part hereof.  Within ten (10) days of the date of this
Agreement, the Contributor of the Colma Property shall provide Acquiror with an
un-conditional certificate of occupancy with respect to such improvements or
other evidence satisfactory to Acquiror that such Improvements have been
completed in a manner that complies with all of the requirements of applicable
governmental authorities.

(i)            Termination of Contracts. 
Contributors shall be responsible for cancellation of Contracts which
are not Designated Contracts and shall be responsible for the payment of all
cancellation fees associated with the termination of those Contracts.  Notwithstanding anything to the contrary
contained herein, Contributors shall cause the termination of all property
management agreements with respecting each Property.  Contributors’ cancellation of Contracts which
are not Designated Contracts shall be effective upon the Closing.

(j)            Withholding Certificates.  Each
Contributor shall provide to Acquiror prior to the Closing a federal FIRTPA
certificate and any comparable certificates under applicable state law
demonstrating that Acquiror is not required to withhold any amount from its
payment of the Contribution Consideration on account of taxes.

10.           Damage to Properties.  If before the Closing with
respect to all of the Properties any of the Properties with respect to which a
Closing has not yet occurred is materially or adversely affected in any way as
a result of any fire, flood, earthquake, similar acts of nature or other acts
of destruction which involves damage requiring repair and restoration costs of
less than or equal to Two Million Dollars ($2,000,000), Contributors and
Acquiror shall be obligated to proceed with the Closing with respect to such
Property and each of the other Properties. 
In that event, the Allocated Contribution Consideration for such
Property shall be reduced by the cost of repairing and restoring each such
Property.  If such material or adverse
change involves damage requiring repair and restoration costs in excess of Two
Million Dollars ($2,000,000) for any one Property, or in excess of Ten Million
Dollars ($10,000,000) in the aggregate for all Properties, Acquiror shall have
the option to (a) proceed with the Closing with respect to all of the
Properties, taking each such Property in its un-restored condition together
with any insurance proceeds or the right to receive such insurance proceeds,
and the rights to any other claims arising as a result of such material or
adverse , in which event, Acquiror shall, at Closing, receive a credit against
the Contribution Consideration for each such Property in an amount which is
equal to the difference between (1) the cost of repairing and restoring each
such Property and (2) the total amount of insurance proceeds payable with
respect to such material adverse change, or (b) terminate this Agreement with
respect to each of the Properties for which a Closing has not occurred.  Upon a termination of this Agreement pursuant
to this Section 10, Escrow Agent shall return the applicable portion of the
Earnest Money Deposit to Acquiror and the parties shall have no further
liability to one another hereunder with respect to the Properties for which a
Closing has not occurred except to the extent expressly stated otherwise
herein.

 19
 

11.           Eminent Domain.  If before Closing with respect to all of the
Properties, proceedings are commenced or threatened for the taking by exercise
of the power of eminent domain of all or a material part of any of the
Properties which, as reasonably determined by Acquiror, would render such
Property unacceptable to Acquiror as a self-storage facility, Acquiror shall
have the right, by giving written notice to Contributors within five (5) days
after Contributors give written notice to Acquiror of the commencement of such
proceedings to terminate this Agreement with respect to any of the Properties
for which a Closing has not occurred.  If
before the Closing with respect to all of the Properties, proceedings are
commenced or threatened for the taking by exercise of the power of eminent
domain of less than such a material part of any of the Properties, or if
Acquiror has the right to terminate this Agreement pursuant to the preceding
sentence but Acquiror does not exercise such right, then this Agreement shall
remain in full force and effect and, on the Closing with respect to such
Properties, the condemnation award (or, if not therefore received, the right to
receive such portion of the award) payable on account of each such taking shall
be transferred by Contributor to Acquiror as part of the Intangible Property
and Acquiror and Contributor shall proceed to Closing in accordance with the
terms of this Agreement without a reduction in the Contribution
Consideration.  Contributors shall give
notice to Acquiror within ten (10) days after Contributors receive notice of
the commencement of any proceedings for the taking by exercise of the power of
eminent domain of all or any part of any of the Properties.  Upon a termination of this Agreement pursuant
to this Section 11, Escrow Agent shall return the applicable portion of the
Earnest Money Deposit to Acquiror and the parties shall have no further
liability to one another hereunder with respect to the Properties for which a
Closing has not occurred except to the extent expressly stated otherwise
herein.

12.           Conditions to Acquiror’s Obligations. 
Acquiror’s obligation to acquire the Properties or otherwise perform any
obligations provided for in this Agreement is conditioned upon the occurrence
of the following conditions on or before the Closing Date:

(a)           The representations, warranties and covenants
of Contributors contained in this Agreement shall be materially true and
correct as of the Closing Date.

(b)           Each of the Contributors shall have performed
and complied with all material covenants and agreements contained herein which
are to be performed and materially complied with by such Contributor at or
prior to the Closing Date.

(c)           The Title Company shall be irrevocably
committed to issuing the Title Policies upon Closing insuring ownership of each
of the Properties in the name of Acquiror or its nominee or assignee in the
amount of the Allocated Share of the Gross Dollar Value for such Property,
subject only to the Permitted Exceptions.

(d)           None of the Properties shall have been
materially affected by any legislative or regulatory change occurring after the
expiration of the Due Diligence Period that would prohibit Acquiror from using
each of the Properties as a self-storage facility in a manner which is
consistent with Contributors’ historical use of that Property.

(e)           There shall be no pending actions, suits or
proceedings of any kind or nature whatsoever, legal or equitable, affecting any
of the Properties in any material way, or relating to or arising out of the
ownership or operation of any of the Properties, and continuing after the date
of this Agreement in any court or before or by a federal, state, county,
municipal department, commission, board, bureau, or agency or other
governmental instrumentality.

 20
 

(f)            Except as provided otherwise in Section
3(e)(3) above, each Third Party Lender and each servicer of an Assumption Loan
shall have approved the transaction which is the subject of this Agreement and
the Lender Conditions with respect to each Assumption Loan are acceptable to
Acquiror in accordance with the terms and conditions hereof.

(g)           The lessor of each Ground Lease shall have
received any required notice of assignment to the Acquiror, and consented to
such assignment (when required by the Ground Lease).  The lessor of each Ground Lease shall have
also executed an estoppel certificate which acknowledges, to the best of the
ground lessor’s knowledge, that rents are current, that there are no material
defaults by lessee beyond all applicable cure and notice provisions, and
confirming the completeness of Acquiror’s copy of the Ground Lease.

(h)           No material default by any lessee under a
Ground Lease shall have occurred and be then continuing and no event shall have
occurred and be then continuing which, with the giving of notice or lapse of
time, or both, shall constitute such a default.

(i)            No material default shall have occurred and
be then continuing under any of the Third Party Loan Documents and no event
shall have occurred and be then continuing which, with the giving of notice or
lapse of time, or both, shall constitute such a default.

(j)            In the event any of the foregoing conditions
or other conditions to this Agreement are not fulfilled, and are not waived by
Acquiror on or before the Closing with respect to a Property, Acquiror may
terminate this Agreement with respect to all, but not less than all, of the
Properties for which a Closing has not yet occurred.  Upon a termination of this Agreement pursuant
to this Section 12(j), Escrow Agent shall return the applicable portion of the
Earnest Money Deposit to Acquiror and the parties shall have no further
liability to one another hereunder with respect to the Properties for which a
Closing has not occurred except to the extent expressly stated otherwise
herein.

(k)           Neither Acquiror nor Contributor shall
willfully or in bad faith act or fail to act for the purpose of permitting any
of Acquiror’s Conditions in this Section 12 to fail.

(l)            Acquiror shall have the right to waive, in
its sole and absolute discretion, any of the conditions precedent set forth in
this Section 12, and the election by Acquiror to proceed with the Closing as to
a particular Property with the actual knowledge that a condition precedent has
not been satisfied, shall be deemed Acquiror’s waiver of such condition
precedent for such Property to the extent any such Acquiror condition precedent
has not been previously satisfied or waived.

13.           Conditions to Contributors’ Obligations. 
Contributors’ obligation to transfer the Properties or otherwise perform
any obligations provided for in this Agreement is conditioned upon the
occurrence of the following conditions on or before the Closing Date:

(a)           The representations, warranties and covenants
of Acquiror contained in this Agreement shall be materially true and correct as
of the Closing Date.

(b)           Acquiror shall have performed and complied
with all material covenants and agreements contained herein which are to be
performed and materially complied with by Acquiror at or prior to the Closing
Date.

 21
 

(c)           As to each Assumption Loan, the Third Party
Lender of such Assumption Loan shall have agreed to release the applicable
Contributor and each Contributor Guarantor from future liability with respect
to such Assumption Loan; provided, however, that Contributors shall be deemed
to have waived the condition specified in this Section 13(c) with respect to
such Assumption Loan if:

(1)           Acquiror has made an election pursuant to
Section 3(e)(3)(A) above with respect to such Assumption Loan; and

(2)           At the Closing with respect to the Third
Party Loan Property which secures such Assumption Loan, Acquiror agrees to
indemnify, defend, and hold the Contributor of such Third Party Loan Property
and the Contributor Guarantor harmless of and from any and all claims arising
from or relating to such Assumption Loan from and after such Closing.  Such indemnification shall be in a form which
is reasonably acceptable to such Contributor and such Contributor’s counsel.

(d)           The lessor of each Ground Lease shall have
consented to the assignment of the Ground Lease to Acquiror when required by
the Ground Lease, unless waived by Acquiror.

(e)           The Amended and Restated Partnership Agreement,
in the form submitted to Contributors, shall have been adopted as the
partnership agreement of Acquiror.

(f)            In the event any of the foregoing conditions
or other conditions to this Agreement are not fulfilled, and are not waived by
Contributors on or before the Closing with respect to a Property, Contributors
may terminate this Agreement with respect to all of the Properties for which a
Closing has not occurred.  Upon a
termination of this Agreement pursuant to this Section 13(f), Escrow Agent shall
return the applicable portion of the Earnest Money Deposit to Acquiror and the
parties shall have no further liability to one another hereunder with respect
to the Properties for which a Closing has not occurred except to the extent
expressly stated otherwise herein.

(g)           Neither Acquiror nor Contributor shall
willfully or in bad faith act or fail to act for the purpose of permitting any
of Acquiror’s Conditions in this Section 13 to fail.

(h)           Contributor shall have the right to waive, in
its sole and absolute discretion, any of the conditions precedent set forth in
this Section 13, and the election by Contributor to proceed with the Closing as
to a particular Property with the actual knowledge that a condition precedent
has not been satisfied, shall be deemed Contributor’s waiver of such condition
precedent for such Property to the extent any such Contributor condition
precedent has not been previously satisfied or waived.

14.           Contributors’ Representations and Warranties.

(a)           For purposes of this Section 14, as to each
Property, “Contributor” shall mean and refer only to the entity that owns such
Property.  The representations and
warranties set forth in this Agreement shall be separate for each Contributor
and shall be made solely as to itself and the Property it owns.  There shall be no joint liability to Acquiror
among or between the several Contributor entities with respect to any of the
warranties or representations set forth in this Agreement. Acquiror understands
and agrees that Acquiror shall look solely to the separate and specific
Contributor entity and the separate and specific Property it owns with respect
to each representation and warranty set forth in this Agreement.  Subject to the foregoing, as to each 

 22
 

Property,
respectively, Contributor represents and warrants to Acquiror that the
following matters are true and correct as of the Effective Date and, subject to
this Section, will also be true and correct as of the Closing.

(1)           Contributor is a limited partnership duly
formed, validly existing and in good standing in the state of its organization
and, on or before the Closing, Contributor will be qualified to do business in
each state in which Contributor operates a self storage business.

(2)           Contributor has the full power and authority
necessary to enter into, deliver and perform this Agreement, the other
agreements contemplated hereby and any other documents or instruments to be
executed and delivered by Contributor at Closing.  The execution and delivery of this Agreement
by Contributor and the consummation by Contributor of the transactions
contemplated by this Agreement have been duly authorized by all necessary
action on the part of Contributor and will not, with or without the giving of
notice, lapse of time or both, violate, conflict with, result in a breach of,
or constitute a default under or give to others any right of termination or
cancellation of, (1) the organizational documents, including the bylaws and
charter, if any, of Contributor, (2) any agreement, document, instrument or other
undertaking to which Contributor is a party or by which Contributor, its
interests or any of its assets or properties are bound, or (3) to the Actual
Knowledge of Contributor , any applicable law, or any judgment, writ,
injunction, decree, statute, order, rule or regulation applicable to
Contributor or by which its interests or any of its assets or properties are
bound, or (4) result in the creation of any lien upon any Property owned by
Contributor.  This Agreement has been
duly executed and delivered by Contributor and constitutes a valid and legally
binding obligation of Contributor, enforceable against Contributor in
accordance with and subject to its respective terms, subject to applicable
bankruptcy, insolvency, moratorium or other similar laws relating to creditors’
rights and general principles of equity. 
The signatures on this Agreement for and on behalf of Contributor are
genuine, and the signatory for Contributor has been duly authorized to execute
the same on behalf of such Contributor.

(3)           With the exception of the Berkeley II
Property, the Castro Valley Property, the Kapolei Property, and the San Pablo
II Property (hereinafter collectively the “Ground Lease Properties”),
to the Actual Knowledge of Contributor, either Contributor or Contributor’s
predecessor in interest owns fee simple title to each Property for which
Contributor is designated as the “owner” on Exhibit “A”; provided, however,
that the provisions of this Section 14(a)(3) as applied to each Property shall,
at the Closing for such Property, be merged into the Deed for such Property and
shall not survive the Closing for such Property.  Contributor’s predecessor in interest, if
any, is owned and controlled, directly or indirectly through one or more
intermediate entities, by the same individuals who own and control Contributor.

(4)           To the Actual Knowledge of Contributor,
either Contributor or Contributor’s predecessor in interest owns all of the
interest of the lessee under each Ground Lease for which Contributor is
designated as the “owner” on Exhibit “A”; provided, however, that the
provisions of this sentence as applied to each Property shall not survive the
Closing for such Property.  Contributor’s
predecessor in interest, if any, is owned and controlled, directly or
indirectly through one or more intermediate entities, by the same individuals
who own and control Contributor. 
Contributor has provided Acquiror with a true, correct and complete copy
of each Ground Lease and all amendments to each Ground Lease.  The copy of each Ground Lease (including any 

 23
 

amendments
thereto) delivered to Acquiror by Contributors constitutes the entire agreement
between the lessor under such Ground Lease and the Contributor of the leasehold
estate which is the subject of such Ground Lease with respect to the property
which is the subject of such Ground Lease. 
Except as set forth in the copy of each Ground Lease delivered by
Contributors to Acquiror, no such Ground Lease has been modified, changed,
altered, assigned, supplemented, or amended. 
To the Actual Knowledge of Contributors, none of the Ground Leases is in
default beyond all applicable cure and notice periods and no event has occurred
which, with the giving of notice or lapse of time, or both, would constitute
such a default.  To the Actual Knowledge
of Contributors, each Ground Lease is in full force and effect according to its
terms and is valid and binding upon each lessor thereunder.

(5)           To the Actual Knowledge of Contributor,
Contributor has not received any written notice that Contributor is in default
under any of the Leases or under any of the Contracts or that any event has
occurred which, with the giving of notice or lapse of time, or both, would
constitute such a default.

(6)           The tenant under the Kapolei Ground Lease is
entitled to a credit against the “Base Rent” (as defined in the Kapolei Ground
Lease) payable under the Kapolei Ground Lease in accordance with the provisions
of Section 2(d) of the Kapolei Ground Lease.

(7)           To the Actual Knowledge of Contributor, and
except as disclosed to Acquiror in writing, Contributor has not received
written notice of any municipal violation which have not been corrected.

(8)           To the Actual Knowledge of Contributor, the
Financial Reports will fairly represent in all material respects the financial condition
and operating results of the Property for the periods indicated, subject to
normal year end adjustments.  To the
Actual Knowledge of Contributor, since the date of the last financial statement
included in the information provided to Acquiror pursuant to this Agreement,
there has been no material adverse change in the financial condition or in the
operations of any Property.

(9)           No lease commission or similar fee is due or
unpaid by Contributor with respect to any Lease, and there are no written or
oral agreements that will obligate Acquiror, as Contributor’s assignee, to pay
any such commission or fee under any Lease or extension, expansion or renewal
thereof.  Except as set forth on the Rent
Roll, the Leases and any guarantees thereof are in full force and effect, and,
to Contributor’s Actual Knowledge, are subject to no defenses, setoffs or
counterclaims for the benefit of the Tenants. 
Except as noted in the Rent Roll, neither the landlord under the Leases
nor, to Contributor’s Actual Knowledge, any Tenant is in default under its
Lease beyond all applicable notice and cure periods.  Except as disclosed on the Rent Roll, no
rents or security deposits or other payments have been collected in advance for
more than one (1) month.  Except as
disclosed on the Rent Roll, each rental concession, rental abatement or other
benefit granted to Tenants under the Leases will have been fully utilized prior
to the Closing.

(10)         The right of any person to occupy the manager’s
apartment on each Property (if any) is a month to month tenancy that can be
terminated on not more than thirty (30) days notice to such person.

 24
 

(11)         To the Actual Knowledge of Contributor,
Contributor has not received any written notice of (A) a pending or overtly
threatened in writing condemnation or eminent domain proceeding relating to the
Property, or (B) pending or overtly threatened in writing actions, suits, legal
or other proceedings with reference to the Property.

(12)         To Contributor’s Actual Knowledge,
Contributor has not received written notice of any present default or breach
under any mortgage or other encumbrance encumbering the Property or any
covenants, conditions, restrictions, rights-of-way or easements which may
affect the Property or any portion or portions thereof, except as disclosed on
any title insurance policies provided to Acquiror prior to the Closing.

(13)         Except as set forth on the Schedule
14(a)(13) attached hereto and incorporated herein, to the Actual Knowledge
of Contributor, Contributor has not received written notice of any existing,
pending, or threatened investigation, inquiry or proceeding by any governmental
authority or any other entity or person or to any remedial obligations under
any Environmental Law, as defined herein.

(14)         To the Actual Knowledge of Contributors all
of Contributors’ insurance policies are in full force and effect, all premiums
for such policies were paid when due and all future premiums for such policies
(and any replacements thereof) shall be paid by Contributors on or before the
due date therefore.  Until the Closing,
Contributor shall pay the premiums on, and shall not cancel or voluntarily
allow to expire, any of Contributor’s insurance policies unless such policy is
replaced, without any lapse of coverage, by another policy or policies
providing coverage at least as extensive as the policy or policies being
replaced.  To the extent permitted under
such policy, Contributor agrees to assign on a non-exclusive basis to Acquiror
at Closing such of Contributor’s current policies as Acquiror may request in
writing and will use commercially reasonable efforts to cause Acquiror to be
named as an additional insured under each of such policies on or before the
expiration of the Due Diligence Period. 
At Closing, Contributor shall, provided that Acquiror has been named as
an additional insured on such policies, provide Acquiror with a Certificate of
Insurance on Accord Form 25 or Form 27, as applicable, as evidence that
Acquiror has been named as an additional insured under each such policy and with
evidence reasonably satisfactory to Acquiror that each such policy has been
assigned to Acquiror.  In the event of
such an assignment, the premiums on any of such policies that Acquiror elects
to have assigned to it shall be prorated between Contributor and Acquiror as of
the Proration Date.

(15)         To the Actual Knowledge of Contributor and
except as disclosed in the Documents, there are no labor disputes pending or
overtly threatened in writing concerning the operation or maintenance of any of
the Properties.  Contributors are not a
party to any union or other collective bargaining agreement with employees
employed in connection with the ownership, operation or maintenance of any of
the Properties.

(16)         No act of bankruptcy, voluntary or
involuntary has occurred with respect to Contributor or any of its affiliates.

(17)         Neither Contributor, nor to Contributor’s
Actual Knowledge, any member, partner or shareholder of Contributor, nor, to
Contributor’s actual knowledge, any person or entity with actual authority to
direct the actions of any member, partner or shareholder of Contributor, nor,
to Contributor’s actual knowledge, any other person or entity holding any legal
or beneficial interest whatsoever in Contributor, (a) are named on 

 25
 

any
list of persons, entities and governments issued by the Office of Foreign
Assets Control of the United States Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 – Blocking Property
and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
Support Terrorism (“Executive Order 13224”),
as in effect on the Effective Date, or any similar list known to Contributor or
publicly issued by OFAC or any other department or agency of the United States
of America (collectively, the “OFAC Lists”),
(b) are included in, owned by, controlled by, knowingly acting for or on behalf
of, knowingly providing assistance, support, sponsorship, or services of any
kind to, or otherwise knowingly associated with any of the persons, entities or
governments referred to or described in the OFAC Lists, or (c) has knowingly
conducted business with or knowingly engaged in any transaction with any of the
persons, entities or governments named on any of the OFAC Lists or any of the
persons, entities or governments 
included in, owned by, controlled by, acting for or on behalf of,
providing assistance, support, sponsorship, or services of any kind to, or, to
Contributor’s knowledge, otherwise associated with any of the persons, entities
or governments  referred to or described
in the OFAC Lists.

(18)         All liabilities assumed or taken subject to
by Acquiror in connection with the transfer of the Properties to Acquiror are “qualified
liabilities” as defined in Treasury Regulation Section 1.707-5(a)(6).

(b)           As used in this Agreement, the term “Actual Knowledge” (or words of similar import) shall, when
used with respect to any Contributor, mean the present, current, actual,
conscious (and not constructive, imputed or implied) knowledge of H. James
Knuppe, Barbara Knuppe or Michael J. Knuppe, without having made independent
inquiry.  No such person shall have any
personal liability or obligation whatsoever with respect to any of the matters
set forth in this Agreement and any other documents, agreements or instruments
related thereto or any of the representations made by Contributor being or
becoming untrue, inaccurate or incomplete in any respect and Acquiror shall
look solely to the assets of the Contributor entity with respect to a breach of
a representation and warranty hereunder as to any Contributor or Property.  Under no circumstances whatsoever shall
information possessed by or known to any person or entity (including any of
Contributors’ consultants, agents or advisors or their respective employees or
representatives, or another Contributor), other than H. James Knuppe, Barbara
Knuppe, or Michael J. Knuppe, be imputed or attributed to any Contributor.

(c)           All representations, warranties and covenants
of each Contributor contained in Section 5(d) above and this Section 14 shall
survive the Closing and shall inure to the benefit of Acquiror and its legal
representatives, heirs, successors or assigns for a period of six (6) months
after the Closing of the applicable Property and shall automatically expire
unless Acquiror prior thereto has given such Contributor written notice of any
alleged breach and Acquiror commences and serves an action against Contributor
within ninety (90) days after Acquiror gives such notice to Contributor (and,
in the event any such suit is timely commenced by Acquiror and served against
Contributor, shall survive thereafter only insofar as the subject matter of the
alleged breach specified in such suit is concerned).  If notice is not timely given and suit is not
timely commenced and served by Acquiror, Contributor’s representations and
warranties shall thereafter be void and no force or effect as to such Property.

(d)           Notwithstanding anything to the contrary
contained in this Agreement, no Contributor shall have any liability,
obligation or responsibility of any kind to Acquiror or any party claiming by,
under or through Acquiror with respect to any of the representations and
warranties contained in Section 14 above if, prior to the Closing with respect
to a Property, 

 26
 

Acquiror
obtains knowledge from any source (including the Documents) that any of the
foregoing representations and warranties are untrue or incorrect with respect
to such Property, and Acquiror nevertheless Closes Acquiror’s acquisition of
such Property pursuant to this Agreement. 
Acquiror further agrees to provide Contributors with written notice (a “Representation Notice”) promptly upon Acquiror’s learning
that any representation or warranty of any Contributor in this Agreement is
untrue or incorrect or has been breached by such Contributor.  In the event Acquiror gives one or more
Representation Notices with respect to the warranties and representations of a
Contributor and such Contributor fails to correct each inaccuracy or cure all
such breaches of any representation or warranty, then Acquiror’s sole remedy in
respect to a change in facts or circumstances which do not otherwise constitute
a default of such Contributor of such Property pursuant to this Agreement,
shall be to elect, in Acquiror’s sole discretion, to (a) if such breach(es)
relate(s) to one or more of the Properties, remove such Properties from the
Properties being conveyed pursuant to this Agreement and receive a reduction in
the Contribution Consideration in an amount equal to the amount of the
Allocated Share of the Gross Dollar Value for such Property or Properties, in
which event no party hereto shall have any further obligation or liability to
any other party hereto with respect to such Property or Properties except for
those provisions of this Agreement which expressly survive the termination of
this Agreement or (b) if such breach(es) relate to a Property or to Properties
having, in the aggregate, an Allocated Purchase Price equal to or greater than
$50,000,000.00, terminate this Agreement, in which event the undisbursed portion
of the Earnest Money Deposit shall be returned to Acquiror within five (5) days
of such termination and, following the return of such Earnest Money Deposit, no
party hereto shall have any further obligation or liability to any other party
hereto with respect to any Properties for which a Closing has not occurred
except with respect to those provisions of this Agreement which expressly
survive the termination of this Agreement.

15.           Additional Representations and Warranties by Contributors. 
Subject to the provisions of Section 14(a) above, each Contributor makes
the following representations and warranties to Acquiror, each of which is
material and is being relied upon by Acquiror and will be true and correct as
of Closing:

(a)           Such Contributor is acquiring the Series A
Preferred Units for such Contributor’s own account (or if such Contributor is a
trustee, for a trust account) for investment only, and not with a view to or
for sale in connection with any distribution of all or any part of such Series
A Preferred Units.  Such Contributor
hereby agrees that such Contributor shall not, directly or indirectly, transfer
all or any part of such Series A Preferred Units (or solicit any offers to buy,
purchase or otherwise acquire or take a pledge of all or any part of the Series
A Preferred Units), except in accordance with the registration provisions of
the Securities Act, and the regulations thereunder or an exemption from such
registration provisions, with any applicable state or non-U.S. securities laws,
and with the terms of this Agreement. 
Such Contributor understands that such Contributor must bear the
economic risk of an investment in the Series A Preferred Units for an
indefinite period of time because, among other reasons, the offering and sale
of such Series A Preferred Units have not been registered under the Securities
Act and, therefore, such Series A Preferred Units cannot be resold unless such
resale is subsequently registered under the Securities Act or an exemption from
such registration is available.  Such
Contributor also understands that sales or transfers of such Series A Preferred
Units are further restricted by the provisions of the REIT’s charter or the
organizational agreements of the Acquiror, and may be restricted by other
applicable securities laws.  If at any
time the Series A Preferred Units are evidenced by certificates or other
documents, each such certificate or other document shall contain a legend
stating that (1) such Series A Preferred Units (i) have not been registered
under the Securities Act or the securities laws of any state; (ii) have been
issued pursuant to a claim of exemption from the registration provisions of the
Securities Act and any state securities law which may be applicable; 

 27
 

and
(iii) may not be sold, transferred or assigned without compliance with the
registration provisions of the Securities Act and the regulations thereunder
and any other applicable federal or state securities laws or compliance with
applicable exemptions therefrom; (2) sale, transfer or assignment of such
Series A Preferred Units is further subject to restrictions contained in the
organizational documents of the issuer of such securities and such Series A
Preferred Units may not be sold, transferred or assigned unless and to the
extent permitted by, and in accordance with, the provisions of the Amended and
Restated Partnership Agreement of the Acquiror or the charter of the REIT, as
applicable; and (3) sale, transfer or assignment of such Series A Preferred
Units is subject to restrictions contained in the Registration Rights Agreement
and this Agreement being executed by Contributor on the date of this Agreement.

(b)           Such Contributor has received and carefully
reviewed the following documents:  (A)
the Form S-11 for the REIT, which was filed with the Securities and Exchange
Commission (“SEC”) and became effective on
August 17, 2004; (B) the Form 10-K for the year ended December 31, 2006 for the
REIT; (C) the annual proxy statement of the REIT for 2006 (i.e., for  its 2007 annual meeting); (D) the Form 10-Q
for the REIT for the calendar quarter ending March 31, 2007 and for each
calendar quarter ending between the Effective Date of this Agreement and the
Closing Date; and (E) the Amended and Restated Agreement of Limited Partnership
of Acquiror dated August 17, 2004, as the same is to be amended pursuant to the
proposed Second Amended and Restated Agreement of Limited Partnership of
Acquiror, a copy of which has been delivered to Contributors (the “Amended and Restated Partnership Agreement”), as the same is
to be amended pursuant to the Partnership Joinder Agreement.  Such Contributor has been afforded the
opportunity to ask questions of those persons such Contributor considers
appropriate and to obtain any additional information such Contributor desires
in respect of the Series A Preferred Units and the business, operations,
conditions (financial and otherwise) and current prospects of Acquiror and the
REIT and has received answers thereto satisfactory to such Contributor from the
Acquiror or the REIT or their representatives regarding the terms and
conditions of the offering of the Series A Preferred Units, and such
Contributor has obtained all additional information requested by such
Contributor of Acquiror or the REIT and their representatives to verify the
accuracy of all information furnished to such Contributor regarding the
offering of such Series A Preferred Units. 
Such Contributor represents and warrants that such Contributor has read
this Agreement in its entirety and has relied upon and is making his, her or
its decision to acquire the Series A Preferred Units in exchange for such
Contributor’s interests based solely upon his, her or its review and evaluation
of this Agreement and is not relying on the REIT or any of its subsidiaries, affiliates
or any of their respective representatives or agents with respect to any tax or
other economic considerations involved in connection with the receipt of the
Series A Preferred Units.  Such
Contributor represents and warrants that such Contributor has been advised to
consult with his, her or its tax, legal and other advisors regarding the
receipt of the Series A Preferred Units and its effects, the tax consequences
of making and not making a contribution hereunder, and has obtained, in such
Contributor’s judgment, sufficient information to evaluate the merits and risks
of an exchange and investment hereunder. 
Such Contributor has not been furnished with and has not relied on any
oral or written representation in connection with the offering of the Series A
Preferred Units that is not contained in this Agreement.

(c)           Such Contributor has such knowledge and
experience in financial and business matters such that such Contributor is
capable of evaluating the merits and risks of Acquiring the Series A Preferred
Units, and that such Contributor has evaluated the risks of investing in the
Series A Preferred Units and has determined that they are a suitable investment
for such Contributor.  Such Contributor
represents and warrants that such Contributor understands that an investment in
the Series A Preferred Units is a speculative investment that involves very
significant risks and tax uncertainties and that such Contributor is prepared
to bear the economic, 

 28
 

tax
and other risks of an investment in the Series A Preferred Units for an
indefinite period of time, and is able to withstand a total loss of such
Contributor’s investment in the Series A Preferred Units.

(d)           Such Contributor is an “accredited investor”
as defined in Regulation D under the Securities Act (“Accredited Investor”).  In this regard, such Contributor has
completed, signed and returned with this Agreement an Accredited Investor
Questionnaire substantially in the form attached hereto as Exhibit “K”.  Such Contributor will, upon request, execute
and/or deliver any additional documents deemed by the Acquiror to be necessary
or desirable to confirm such Contributor’s Accredited Investor status.

(e)           Such Contributor represents and agrees that
such Contributor is not and will not be (1) an “employee benefit plan” within
the meaning of Section 3(3) of ERISA, whether or not subject to ERISA, (2) a “plan”
within the meaning of Section 4975 of the Code, or (3) any person or entity
whose assets include or are deemed to include the assets of any such “employee
benefit plan” or “plan” by reason of Section 2510.3-101 of the Regulations of
the U.S. Department of Labor or otherwise. 
Such Contributor will, upon request, execute, deliver and/or provide any
additional documents deemed by the Acquiror to be necessary or desirable to
confirm the foregoing.

(f)            Such Contributor represents and warrants that
the signature pages correctly set forth, for such Contributor, (1) the
principal residence of such Contributor if such Contributor is a natural
person, (2) the place of business (or, if there is more than one place of
business, the chief executive office) of such Contributor if such Contributor
is a corporation, partnership, limited liability company, business trust or
other entity (an “Entity”), (3)
the state of incorporation, organization or formation if such Contributor is an
Entity other than a general partnership, (4) the information specified in
clauses (1) and (2) of this subsection 15(f) as to each trustee of such
Contributor if such Contributor is a trust (other than a business trust) and
such trustee is a natural person and (5) the information specified in clauses
(2) and (3) of this subsection 15(f) as to each trustee of such Contributor if
such Contributor is a trust (other than a business trust) and such trustee is
an Entity.

(g)           Such Contributor has obtained from its own
counsel advice regarding the tax consequences of (1) the transfer of such
Contributor’s Property to Acquiror and the receipt of the Contribution
Consideration, as consideration therefor, (2) Such Contributor’s admission as a
limited partner of Acquiror, and (3) any other transaction contemplated by this
Agreement.  Such Contributor further
represents and warrants that it has not relied on Acquiror, Acquiror’s
affiliates, representatives, counsel or other advisors and their respective
representatives for such tax advice.

(h)           Such Contributor is not a foreign person and
is not owned directly or indirectly, in whole or in part, by a foreign person
as determined for purposes of the Code and the regulations promulgated
thereunder.  No withholding for taxes is
required upon the issuance of Series A Preferred Units to such Contributor.

(i)            Such Contributor has not entered into any
agreement and is not otherwise liable or responsible to pay any brokers’ or
finders’ fees or expenses to any Person with respect to this Agreement or its
acquisition of Series A Preferred Units contemplated hereby, except for any
such Person the fees and expenses for which such Contributor shall be solely
responsible for and pay.

 29
 

The warranties and representations of Contributor set forth in this
Section 15 shall survive the Closing.

16.           Remaking of Contributor Warranties and Representations at Closing. 
Except as expressly provided otherwise in Sections 14 and 15 above, the
representations and warranties made in this Agreement by Contributor shall be
deemed remade by Contributor as of the Closing Date with the same force and
effect as if, in fact, specifically remade at that time.

17.           Acquiror’s Representations and Warranties. 
Acquiror makes the following representations and warranties, each of
which is material and is being relied upon by Contributors:

(a)           Acquiror is a limited liability company, duly
formed, validly existing and in good standing in the state of Delaware and, on
or before the Closing, Acquiror, or Acquiror’s affiliated company taking title
at Closing, will be qualified to do business in the state in which the
Properties are located.  The REIT is a
real estate investment trust duly organized, validly existing and in good
standing under the laws of the State of Maryland.

(b)           Acquiror has the full power and authority
necessary to enter into, deliver and perform this Agreement, the other
agreements contemplated hereby and any other documents or instruments to be
executed and delivered by Acquiror at Closing. 
The execution and delivery of this Agreement by Acquiror and the
consummation by Acquiror of the transactions contemplated by this Agreement
have been duly authorized by all necessary action on the part of Acquiror and
will not, with or without the giving of notice, lapse of time or both, violate,
conflict with, result in a breach of, or constitute a default under or give to
others any right of termination or cancellation of, (1) the organizational
documents, including the bylaws and charter, if any, of Acquiror, (2) any
agreement, document, instrument or other undertaking to which Acquiror is a
party or by which Acquiror, its interests or any of its assets or properties
are bound, or (3) to Acquiror’s Actual Knowledge, any applicable law, or any
judgment, writ, injunction, decree, statute, order, rule or regulation
applicable to Acquiror or by which its interests or any of its assets or
properties are bound..  This Agreement
has been duly executed and delivered by Acquiror and constitutes a valid and
legally binding obligation of Acquiror, enforceable against Acquiror in
accordance with and subject to its respective terms, subject to applicable
bankruptcy, insolvency, moratorium or other similar laws relating to creditors’
rights and general principles of equity. 
The signatures on this Agreement for and on behalf of Acquiror are
genuine, and the signatory for Acquiror has been duly authorized to execute the
same on behalf of such Contributor.

(c)           Neither Acquiror, nor any member or manager
of Acquiror, nor, to Acquiror’s Actual Knowledge, any person or entity with
actual authority to direct the actions of any member or manager of Acquiror
without the vote, consent, or approval of any other person, (i) are named on
any list of persons, entities and governments issued by OFAC pursuant to
Executive Order 13224, as in effect on the date hereof, or any OFAC Lists, (ii)
are included in, owned by, controlled by, knowingly acting for or on behalf of,
knowingly providing assistance, support, sponsorship, or services of any kind
to, or otherwise knowingly associated with any of the persons, entities or
governments referred to or described in the OFAC Lists, or (iii) has knowingly
conducted business with or knowingly engaged in any transaction with any of the
persons, entities or governments named on any of the OFAC Lists or any of the
persons, entities or governments 
included in, owned by, controlled by, acting for or on behalf of, providing
assistance, support, sponsorship, or services of any kind to, or, to Acquiror’s
knowledge, otherwise associated with any of the persons, entities or
governments  referred to or described in
the OFAC Lists.

 30

(d)           The Series A Preferred Units, when issued in
accordance with this Agreement will be duly and validly issued, fully paid and
nonassessable.

(e)           The performance by the REIT of the terms and
conditions of this Agreement does not and will not conflict with the Articles
of Incorporation or By-Laws of the REIT and does not breach or violate any
applicable law, rule or  regulation of
any  governmental authority.

(f)            There is no action, suit or proceeding
pending or, to Acquiror’s Actual Knowledge, threatened against the REIT or any
of its properties, which would, if adversely determined, have a material
adverse effect on the financial condition or results of operations of the
REIT.  There is no action or proceeding
pending or, to Acquiror’s Actual Knowledge, threatened against the REIT which
challenges or impairs the REIT’s ability to execute, deliver and perform under
this Agreement or any of the documents and/or instruments to be delivered in
accordance herewith.

(g)           Each and every one of the foregoing representations
and warranties is true and correct as of the Effective Date and will be true
and correct as of the Closing Date.

(h)           As used in this Agreement, the term “Actual Knowledge” (or words of similar import) shall, when
used with respect to Acquiror, mean the present, current, actual, conscious
(and not constructive, imputed or implied) knowledge of Kenneth M. Woolley,
Kent W. Christensen, Charles L. Allen, or David L. Rasmussen, without having
made independent inquiry.  No such person
shall have any personal liability or obligation whatsoever with respect to any
of the matters set forth in this Agreement and any other documents, agreements
or instruments related thereto or any of the representations made by Acquiror
being or becoming untrue, inaccurate or incomplete in any respect and
Contributors shall look solely to the assets of the Acquiror with respect to a
breach of a representation and warranty hereunder as to Acquiror.  Under no circumstances whatsoever shall
information possessed by or known to any person or entity (including any of
Acquiror’s consultants, agents or advisors or their respective employees or
representatives), other than Kenneth M. Woolley, Kent W. Christensen, Charles
L. Allen, or David L. Rasmussen, be imputed or attributed to Acquiror.

(i)            All representations, warranties and covenants
of Acquiror contained in this Agreement shall survive the Closing and shall
inure to the benefit of Contributors and their respective legal
representatives, heirs, successors or assigns for a period of six (6) months
after the last Closing of Acquiror’s acquisition of a Property under this
Agreement and shall automatically expire unless Contributors prior thereto have
given such Acquiror written notice of any alleged breach and Acquiror commence
and serve an action against Acquiror within ninety (90) days after Contributors
give such notice to Acquiror (and, in the event any such suit is timely
commenced by Contributors and served against Acquiror, shall survive thereafter
only insofar as the subject matter of the alleged breach specified in such suit
is concerned).  If notice is not timely
given and suit is not timely commenced and served by Contributors, Acquiror’s
representations and warranties shall thereafter be void and no force or effect
as to such Property.

18.           Remaking of Acquiror Warranties and Representations  The
representations and warranties made in this Agreement by Acquiror shall be
deemed remade by Acquiror as of the Closing Date with the same force and effect
as if, in fact, specifically remade at that time.  Other than the representations contained in
Section 17 above and the covenants of Acquiror contained in Section 20 below,
Acquiror makes no representation with respect to and is not responsible for any
federal, state or local tax consequences to Contributor of the transaction
covered by this Agreement.

 31
 

19.           Indemnification.

(a)           Subject to the limitations contained in
Sections 14, 22, and 25, each Contributor agrees to indemnify, defend and hold
harmless Acquiror and its nominees, successors, assigns, officers, directors,
members, managers, partners, agents, and employees from and against any and all
liabilities, claims, causes of action, penalties, costs and expenses, of any
kind or nature whatsoever, to the extent arising out of, resulting from,
relating to, or incident to a breach of the express representations and
warranties of such Contributor.

(b)           Each Contributor agrees to indemnify, defend
and hold Acquiror harmless from and against any and all claims, costs,
penalties, damages, losses, liabilities and expenses, including attorneys’
fees, related to or arising from any claim related to the transactions
contemplated herein by any person holding a direct or indirect interest in
Contributor, including but not limited to any claim for the breach of any
fiduciary duty or the terms, conditions, representations and warranties of this
Agreement generally.

(c)           Subject to the provisions of Section 17
above, Acquiror agrees to indemnify, defend and hold harmless Contributors and
Contributors’ respective nominees, successors, assigns, officers, directors,
members, managers, partners, agents, and employees from and against any and all
liabilities, claims, causes of action, penalties, costs and expenses, of any
kind or nature whatsoever, arising out of, resulting from, relating to, or
incident to (i) Acquiror’s ownership or use of the Properties after the Closing
Date, (ii) the Designated Contracts, (iii) the Leases, or (iv) the Ground
Leases.

(d)           The provisions of this Section 19 shall
survive the Closing.

20.           Tax Matters.

(a)           Definitions.  As used in this Section 20,
the terms set forth below shall have the following respective meanings:

(1)           “Book Gain” means, with respect to
each Contributor, any gain that would not be required under Section 704(c) of
the Code and applicable Treasury Regulations to be specifically allocated to
such Contributor but rather would be allocated to all partners in Acquiror,
including the REIT (indirectly through the General Partner and one or more
limited partners), in accordance with their respective economic interests in
Acquiror.

(2)           “Protected Gain” shall mean, with
respect to each Contributor, the taxable gain that such Contributor would be
allocated and recognize under Section 704(c) of the Code if such Contributor’s
Property is sold in a fully taxable transaction.  The Contributors’ estimate of the initial
Protected Gain allocable to each Contributor with respect to such Contributor’s
Property as of the Closing Date is set forth on Exhibit “L”
attached hereto and by this reference made a part hereof.  Anything to the contrary herein
notwithstanding, any gain that would be allocated to a Contributor upon a sale
of any Property that corresponds to a Book Gain would not be considered
Protected Gain.

(3)           “Sale Restriction Period” shall mean a
period of time commencing on the Closing Date and ending on the earlier of (i)
the date that is ten (10) years following the Closing Date; or (ii) the date on
which more than ninety-five percent (95%) of the Series A Preferred Units
issued by the Acquiror pursuant to this Agreement have been disposed of in the
aggregate by Contributors in one or more taxable transactions.

 32
 

(b)           Restrictions on Disposition of Property.

(1)           Acquiror agrees, without the consent of the
applicable Contributor, which consent may be granted or withheld in such
Contributor’s sole discretion, not to sell or dispose of such Contributor’s
Property in a transaction that would cause such Contributor, during the Sale
Restriction Period, to recognize any Protected Gain, unless Acquiror makes the
indemnity payment to such Contributor set forth in Section 20(c) below.  Without limiting the foregoing, upon the
expiration of the Sale Restriction Period, Acquiror nonetheless agrees that it
shall use reasonable efforts to structure any sale or disposition of each
Contributor’s Property such that it permits the applicable Contributor to not
recognize any taxable gain, it being understood that Acquiror will have no
liability to Contributor if Contributor recognizes gain as a result of the sale
or disposition.  Contributors agree that
the preceding sentence will not apply to either a sale of a Property where the
primary purpose of the sale is the generation of cash for the payment of direct
and indirect obligations of the Acquiror or a bulk sale of one or more
Properties together with at least four other properties.

(2)           The prohibition on the sale or other
disposition of the Property will not apply if the Property is disposed of in a
transaction in which no gain is required to be recognized by Contributor (for
example, an exchange under Section 1031 of the Code or a tax-free partnership
merger or contribution).    In the event
of an involuntary conversion of the Property within the meaning of Section 1033
of the Code during the Sale Restriction Period, Acquiror shall use its
reasonable efforts to replace the converted Property unless otherwise consented
to in writing by Contributor, which consent may be granted or withheld in the
Contributor’s sole discretion, it being understood that Acquiror will have no
liability to Contributor if Contributor recognizes gain as a result of the sale
or disposition.

(c)           Indemnity Payment.  In
the event of a sale or disposition by Acquiror of a Contributor’s Property in a
transaction to which Section 20(b) applies, Acquiror shall reimburse such
Contributor for all income tax incurred with respect to the Protected Gain
attributable to such Contributor’s Property. 
Anything to the contrary in this Agreement notwithstanding, the sole and
exclusive rights and remedies of Contributor for a breach or violation of the
provisions of Section 20(b) by Acquiror shall be a claim for damages against
Acquiror, computed as set forth in this 20(c), and Contributor shall not be
entitled to pursue a claim for specific performance of the provisions of
Section 20(b) by Acquiror, or bring a claim against any person that acquires
the Property from Acquiror in violation of Section 20(b).

(d)           Section 704(c) Method. 
Acquiror will use the “traditional method” as described in Treasury
Regulation Section 1.704-3(b) for tax allocations with respect to the
Properties.

21.           Tax Computations for REIT Qualification. 
Contributors acknowledge that (a) the computation of taxable income of
Acquiror is crucial in the determination of the taxable income of REIT, (b) the
REIT needs to be able to prepare accurate estimates of its taxable income in
order to monitor compliance with the requirement that it distribute 90% of its
taxable income to its shareholders, and (c) the depreciation of the Property
and the required depreciation allocations under Section 704(c) of the Code will
materially impact the computation of Acquiror’s and REIT’s taxable income.  Accordingly, each Contributor agrees that (y)
within twenty (20) days of the Effective Date, Contributor shall provide 

 33
 

Acquiror with tax-basis computations and historical
tax depreciation schedules updated through the Closing Date for each Property,
and (z) within twenty (20) days of the Effective Date, Contributors shall
provide Acquiror with all data required to perform depreciation allocations (as
contemplated by Section 704(c) of the Code) with respect to each Property.  Such data shall include the tax basis
allocable to each Contributor for each of such Contributor’s Properties.  In addition, each Contributor acknowledges
that, in the event repayment of any Existing Indebtedness triggers discharge of
indebtedness income under the Code (and particularly Section 61(a)(12)
thereof), the Amended and Restated Partnership Agreement shall be amended to
specially allocate all such income to Contributor.  The provisions of this Section 21 shall
survive the Closing and the delivery of the Deeds and the other documents
contemplated by this Agreement.

22.           Acquisition “As-Is”.

(a)           Acquiror expressly acknowledges and agrees
that prior to the Effective Date hereof, Acquiror has had sufficient
opportunity to conduct due diligence with respect to and inspect each of the
Properties and, subject to the terms and conditions of this Agreement, does
approve the Properties.

(b)           NOTWITHSTANDING ANYTHING CONTAINED IN THIS
AGREEMENT TO THE CONTRARY, EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES
EXPRESSLY MADE BY A CONTRIBUTOR IN SECTIONS 14 AND 15 ABOVE OR OTHERWISE
EXPRESSLY MADE BY A CONTRIBUTOR IN THIS AGREEMENT OR BY A CONTRIBUTOR IN THE
DOCUMENTS OR INSTRUMENTS DELIVERED BY SUCH CONTRIBUTOR AT THE CLOSING, IF ANY,
IT IS UNDERSTOOD AND AGREED THAT NEITHER SUCH CONTRIBUTOR NOR ANY OF ITS
AGENTS, EMPLOYEES OR CONTRACTORS HAS MADE, AND IS NOT NOW MAKING, AND ACQUIROR
HAS NOT RELIED UPON AND WILL NOT RELY UPON (DIRECTLY OR INDIRECTLY), ANY
WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED,
ORAL OR WRITTEN WITH RESPECT TO THE PROPERTIES, INCLUDING WARRANTIES OR
REPRESENTATIONS AS TO (I) MATTERS OF TITLE, (II) ENVIRONMENTAL MATTERS RELATING
TO ANY OF THE PROPERTIES OR ANY PORTION THEREOF, (III) GEOLOGICAL CONDITIONS,
(IV) FLOODING OR DRAINAGE, (V) SOIL CONDITIONS, (VI) THE AVAILABILITY OF ANY
UTILITIES TO ANY OF THE PROPERTIES, (VII) USAGES OF ADJOINING PROPERTY, (VIII)
ACCESS TO ANY OF THE PROPERTIES OR ANY PORTION THEREOF, (IX) THE VALUE,
COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN,
QUALITY, DESCRIPTIONS, SUITABILITY, SEISMIC OR OTHER STRUCTURAL INTEGRITY, OPERATION,
TITLE TO, OR PHYSICAL OR FINANCIAL CONDITION OF THE IMPROVEMENTS OR ANY OTHER
PORTION OF ANY OF THE PROPERTIES, (X) ANY INCOME, EXPENSES, CHARGES, LIENS,
ENCUMBRANCES, RIGHTS OR CLAIMS ON OR AFFECTING OR PERTAINING TO ANY OF THE
PROPERTIES OR ANY PART THEREOF, (XI) THE PRESENCE OF HAZARDOUS SUBSTANCES
(HEREINBELOW DEFINED) IN OR ON, UNDER OR IN THE VICINITY OF ANY OF THE
PROPERTIES, (XII) THE CONDITION OR USE OF ANY OF THE PROPERTIES OR COMPLIANCE
OF ANY OF THE PROPERTIES WITH ANY OR ALL PAST, PRESENT OR FUTURE FEDERAL, STATE
OR LOCAL ORDINANCES, RULES, REGULATIONS OR LAWS, BUILDING, FIRE OR ZONING
ORDINANCES, CODES OR OTHER SIMILAR LAWS, (XIII) THE EXISTENCE OR NON-EXISTENCE
OF UNDERGROUND STORAGE TANKS, (XIV) THE POTENTIAL FOR FURTHER DEVELOPMENT OF ANY
OF THE PROPERTIES, (XV) ZONING, OR THE EXISTENCE OF VESTED LAND USE, ZONING OR
BUILDING ENTITLEMENTS AFFECTING ANY OF THE PROPERTIES, (XVI) THE 

 34
 

MERCHANTABILITY
OF ANY OF THE PROPERTIES OR FITNESS OF ANY OF THE PROPERTIES FOR ANY PARTICULAR
PURPOSE, (XVII) TAX CONSEQUENCES (INCLUDING THE AMOUNT, USE OR PROVISIONS
RELATING TO ANY TAX CREDITS), (XVIII) MARKETPLACE CONDITIONS SUCH AS SELF
STORAGE SATURATION, (XIX) OCCUPANCY LEVELS, OR (XX) CURRENT INCOME STREAMS.
ACQUIROR FURTHER ACKNOWLEDGES THAT, EXCEPT FOR THOSE REPRESENTATIONS AND
WARRANTIES EXPRESSLY MADE BY A CONTRIBUTOR IN SECTIONS 14 AND 15 ABOVE OR
OTHERWISE EXPRESSLY MADE BY A CONTRIBUTOR IN THIS AGREEMENT OR BY A CONTRIBUTOR
IN THE DOCUMENTS OR INSTRUMENTS DELIVERED BY SUCH CONTRIBUTOR AT THE CLOSING,
ANY INFORMATION OF ANY TYPE WHICH ACQUIROR HAS RECEIVED OR MAY RECEIVE FROM
CONTRIBUTOR OR ITS AGENTS, EMPLOYEES OR CONTRACTORS, INCLUDING ANY
ENVIRONMENTAL REPORTS AND SURVEYS, IS FURNISHED ON THE EXPRESS CONDITION THAT
ACQUIROR SHALL NOT RELY THEREON, ALL SUCH INFORMATION BEING FURNISHED WITHOUT
ANY REPRESENTATION OR WARRANTY WHATSOEVER.

(c)           ACQUIROR REPRESENTS AND WARRANTS THAT
ACQUIROR IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED ACQUIROR OF REAL
ESTATE AND THAT ACQUIROR HAS RELIED AND SHALL RELY SOLELY ON (I) ACQUIROR’S OWN
EXPERTISE AND THAT OF ACQUIROR’S CONSULTANTS IN PURCHASING THE PROPERTIES, (II)
ACQUIROR’S OWN KNOWLEDGE OF THE PROPERTIES BASED ON ACQUIROR’S INVESTIGATIONS
AND INSPECTIONS OF THE PROPERTIES AND (III) THOSE REPRESENTATIONS AND
WARRANTIES EXPRESSLY MADE BY A CONTRIBUTOR IN SECTIONS 14 AND 15 ABOVE OR
OTHERWISE EXPRESSLY MADE BY A CONTRIBUTOR IN THIS AGREEMENT OR BY A CONTRIBUTOR
IN THE DOCUMENTS OR INSTRUMENTS DELIVERED BY SUCH CONTRIBUTOR AT THE CLOSING.  EXCEPT FOR THOSE REPRESENTATIONS AND
WARRANTIES EXPRESSLY MADE BY A CONTRIBUTOR IN SECTIONS 14 AND 15 ABOVE OR
OTHERWISE EXPRESSLY MADE BY A CONTRIBUTOR IN THIS AGREEMENT OR BY A CONTRIBUTOR
IN THE DOCUMENTS OR INSTRUMENTS DELIVERED BY SUCH CONTRIBUTOR AT THE CLOSING: (W)
ACQUIROR HAS CONDUCTED SUCH INSPECTIONS AND INVESTIGATIONS OF THE PROPERTIES AS
ACQUIROR DEEMS NECESSARY, INCLUDING THE PHYSICAL AND ENVIRONMENTAL CONDITIONS
THEREOF, AND SHALL RELY UPON THE SAME, (X) UPON CLOSING, ACQUIROR SHALL ASSUME
THE RISK THAT ADVERSE MATTERS, INCLUDING ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY ACQUIROR’S INSPECTIONS AND
INVESTIGATIONS, (Y) ACQUIROR ACKNOWLEDGES AND AGREES THAT UPON CLOSING, EACH
CONTRIBUTOR SHALL SELL AND CONVEY TO ACQUIROR AND ACQUIROR SHALL ACCEPT SUCH
CONTRIBUTOR’S PROPERTY “AS IS, WHERE IS,” WITH ALL FAULTS AND DEFECTS (LATENT
AND APPARENT), AND (Z).  ACQUIROR FURTHER
ACKNOWLEDGES AND AGREES THAT THERE ARE NO ORAL AGREEMENTS, WARRANTIES OR
REPRESENTATIONS WITH RESPECT TO THE PROPERTY MADE BY CONTRIBUTOR, OR ANY AGENT,
EMPLOYEE OR CONTRACTOR OF CONTRIBUTOR.

(d)           ACQUIROR ACKNOWLEDGES AND AGREES CONTRIBUTOR
WOULD NOT HAVE AGREED TO SELL THE PROPERTY TO ACQUIROR WITHOUT THE DISCLAIMERS
AND OTHER AGREEMENTS SET FORTH HEREIN. ACQUIROR ACKNOWLEDGES THAT THE PURCHASE
PRICE REFLECTS THE NATURE OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, AS
LIMITED BY THE 

 35
 

WAIVERS
AND DISCLAIMERS CONTAINED IN THIS AGREEMENT. 
ACQUIROR HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN
THIS AGREEMENT WITH ACQUIROR’S COUNSEL AND UNDERSTANDS THE SIGNIFICANCE AND
EFFECT THEREOF.

(e)           THE
TERMS AND CONDITIONS OF SECTIONS 22(b), 22(c), AND 22(d) SHALL EXPRESSLY
SURVIVE THE CLOSING, NOT MERGE WITH THE PROVISIONS OF THE DEED OR ANY OTHER
CLOSING DOCUMENTS.

	
  

  	
  ACQUIROR’S
  INITIALS

  	
   

  

 

(f)            Except with respect to any representations,
warranties and indemnities expressly set forth in this Agreement and except
with respect to any representations, warranties, indemnities, covenants or agreements
set forth in any document or instrument delivered by a Contributor at Closing,
and except as otherwise expressly provided in this Section, as to each
Contributor and the Property owned by such Contributor, subject only to Section
25(d) below and those obligations of such Contributor hereunder which this
Agreement specifically provides shall survive the Closing, Acquiror and anyone
claiming by, through or under Acquiror hereby waives its right to recover from
and fully and irrevocably releases each Contributor and such Contributor’s
partners, members, employees, officers, directors, parent, subsidiaries,
successors and assigns (the “Released Parties”)
from any and all claims, responsibility and/or liability that Acquiror may now
have or hereafter acquire against any of the Released Parties for any costs,
loss, liability, damage, expenses, demand, action or cause of action arising
from or related to (a) the condition (including any construction defects,
errors, omissions or other conditions, latent or otherwise), valuation,
salability or utility of any of the Properties, or its suitability for any
purpose whatsoever, (b) any other claims under Environmental Laws, and (c) any
information furnished by the Released Parties under or in connection with this
Agreement.  This release includes claims
of which Acquiror is presently unaware or which Acquiror does not presently
suspect to exist which, if known by Acquiror, would materially affect Acquiror’s
release of the Released Parties. 
Acquiror specifically waives the provision of any statute or principle
of law, which provides otherwise including, with respect to those Properties in
California, California Civil Code 1542 which provides in pertinent part:

“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her
settlement with the debtor.”

Acquiror’
Initials:                        

In this connection and to
the extent permitted by law, Acquiror agrees, represents and warrants that
Acquiror realizes and acknowledges that factual matters now unknown to Acquiror
may have given or may hereafter give rise to causes of action, claims, demands,
debts, controversies, damages, costs, losses and expenses which are presently
unknown, unanticipated and unsuspected, and Acquiror further agrees, represents
and warrants that the waivers and releases herein have been negotiated and
agreed upon in light of that realization and that Acquiror nevertheless hereby
intends to release, discharge and acquit Contributor from any such unknown
causes of action, claims, demands, debts, controversies, damages, costs, losses
and expenses.

 36
 

(g)           As used herein, (a) “Environmental
Laws” means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as amended, or the
Resource Conservation and Recovery Act (42 U.S.C. Section 6902 et seq.), as
amended, or any other federal, state or local law, ordinance, rule or
regulation relating to Hazardous Substances and applicable to the Property (but
specifically excluding any principles of common law or common law theories);
and (b) “Hazardous Substances” means any
hazardous, toxic or dangerous waste, substance or material, any pollutant or
contaminant, or any substance or organism which is toxic, explosive, corrosive,
flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise
hazardous, or any substance which contains gasoline, diesel fuel or other
petroleum hydrocarbons, polychlorinated biphenyls (PCBs), radon gas, urea
formaldehyde or asbestos.

(h)           As to each Property, the foregoing provisions
of this Section 22, including the waivers and releases by Acquiror, shall survive
the Closing and the recordation of the Deed, and shall not be deemed merged
into the Deed or other documents and instruments delivered at Closing.

23.           Rights of First Refusal.  Affiliates of Contributors own
and operate two additional self storage facilities commonly referred to as the “Moraga
Rent-A-Space” facility and the “Lahaina Rent-A-Space” facility (hereinafter
collectively the “ROR Facilities”).  Contributors agree that concurrently with the
Closing, Contributors’ shall cause the owners of the ROR Facilities to grant
Acquiror, for a period of two (2) years from the first Closing, a right of
first refusal to purchase each of the ROR Facilities by a Grant of Right of
First Refusal, which shall be in a form to be agreed upon by such affiliates and
Acquiror and executed and recorded at Closing. 
The Grant of Right of First Refusal shall provide, among other things,
that if the owner of an ROR Facility (the “ROR Owner”)
receives a bona fide third party offer to purchase the ROR Facility (the “ROR Offer”) that the ROR Owner is prepared to accept, then
Acquiror shall have a period of time not to exceed ten (10) business days in
which to agree, in writing, to the terms and conditions of the ROR Offer.  Acquiror’s failure to exercise its right of
first refusal within such ten (10) business day period shall constitute
Acquiror’s election not to acquire the applicable ROR Facility in accordance
with the terms of such ROR Offer and, thereafter, the right of first refusal
shall terminate with respect to such ROR Offer and the ROR Owner shall be
entitled to sell the ROR Offer in accordance with the provisions of such ROR
Offer free and clear of any such right of first refusal.  Acquiror agrees to promptly execute any and
all commercially reasonable instruments and/or documents to confirm the
expiration or earlier termination of the right of first refusal.  Notwithstanding anything to the contrary
contained herein, the parties agree that the right of first refusal shall not apply
to the transfer of any interest in any ROR Facility by an affiliate of
Contributors or the immediate family of H. James Knuppe to any lineal
descendant of H. James Knuppe; provided that the right of first refusal shall
survive such transfer.  The right of
first refusal granted to Acquiror shall be personal to Acquiror and shall not
be assignable (except to an Affiliate of Acquiror) without the express prior
written consent of Contributor and the ROR Owners, which consent may be
withheld in their sole and absolute discretion.

24.           Grant of License to Use Name “Rent-A-Space”. 
Concurrently with the Closing, Contributors shall cause the holder of
the rights to the names and/or marks “AAAAA” and “Rent-A-Space”, and
combinations thereof, to license, on a non-exclusive basis, such names and/or
marks to Acquiror for a period of time commencing on the Closing Date and
expiring with respect to each Property on the second anniversary of the Closing
Date for such Property.  Acquiror shall
not be required to pay any additional consideration with respect to the grant
of such license and such grant of license shall be in a form to be agreed upon
prior to the Closing.

 37
 

25.           Defaults.

(a)           If any Contributor hereunder fails to perform
its obligations as Contributor and such Contributor fails to cure such default within
five (5) business days after such Contributor’s receipt of a written notice
from Acquiror specifying such default, then Acquiror shall elect, as Acquiror’s
sole remedy, either: (a) specifically enforce this Agreement or seek injunctive
relief, (b) if such breach or default relates to one or more Properties, remove
such Property or Properties from the Properties being conveyed pursuant to this
Agreement, receive a reduction in the Contribution Consideration in the amount
of the Allocated Share of the Gross Dollar Value of each such Property and the
payment to Acquiror of Acquiror’s Reimbursable Due Diligence Expenses (as
hereinafter defined) allocable to each such Property,  (c)
if such breach or default relates to Properties having, in the aggregate, an
Allocated Purchase Price equal to or greater than $50,000,000.00, terminate
this Agreement and receive an immediate refund of the Earnest Money Deposit
from Escrow Agent.  The foregoing
remedies are Acquiror’s sole and exclusive remedies with respect to Contributor’s
default, and Acquiror waives any and all other remedies as may be available at
law or in equity in connection with Contributor’s default.

(b)           IN THE EVENT THE CLOSING AND THE CONSUMMATION
OF THE TRANSACTION CONTEMPLATED HEREIN DO NOT OCCUR AS PROVIDED HEREIN BY
REASON OF ANY BREACH OF ACQUIROR WHICH IS NOT CURED WITHIN FIVE (5) DAYS AFTER
WRITTEN NOTICE OF SUCH BREACH IS GIVEN TO ACQUIROR BY CONTRIBUTORS, ACQUIROR
AND CONTRIBUTOR AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO
ESTIMATE THE DAMAGES WHICH CONTRIBUTOR MAY SUFFER AS A RESULT THEREOF.  THEREFORE, ACQUIROR AND CONTRIBUTOR DO HEREBY
AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET DETRIMENT THAT CONTRIBUTOR
WOULD SUFFER IN THE EVENT THAT ACQUIROR BREACHES THIS AGREEMENT AND FAILS TO
COMPLETE THE PURCHASE OF EACH PROPERTY IS AND SHALL BE, AS CONTRIBUTOR’S SOLE
AND EXCLUSIVE REMEDY THE RIGHT TO TERMINATE THIS AGREEMENT AND TO RETAIN THE
UNDISBURSED PORTION OF THE EARNEST MONEY DEPOSIT AS LIQUIDATED DAMAGES, AND
FOLLOWING SUCH TERMINATION NO PARTY HERETO SHALL HAVE ANY FURTHER OBLIGATION OR
LIABILITY TO ANY OTHER PARTY HERETO EXCEPT WITH RESPECT TO THOSE PROVISIONS OF
THIS AGREEMENT WHICH EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT.  UPON ANY SUCH BREACH BY ACQUIROR, UNLESS
OTHERWISE SPECIFIED, THIS AGREEMENT SHALL BE TERMINATED WITH RESPECT TO EACH
PROPERTY FOR WHICH A CLOSING HAS NOT OCCURRED AND NEITHER PARTY SHALL HAVE ANY
FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EACH TO THE OTHER, EXCEPT FOR THE
RIGHT OF CONTRIBUTOR TO RECEIVE THE UNDISBURSED PORTION OF THE EARNEST MONEY
DEPOSIT FROM ESCROW AGENT AS AFORESAID AND RETAIN THE UNDISBURSED PORTION OF
THE EARNEST MONEY DEPOSIT AS LIQUIDATED DAMAGES FROM ACQUIROR AND THE
OBLIGATION OF ACQUIROR TO DELIVER TO CONTRIBUTOR THE DOCUMENTS PURSUANT TO
SECTION 5(C), ABOVE; PROVIDED, HOWEVER, THAT THIS LIQUIDATED DAMAGES PROVISION
SHALL NOT LIMIT CONTRIBUTOR’S RIGHT TO INJUNCTIVE RELIEF DUE TO ACQUIROR’S
BREACH OF ACQUIROR’S OBLIGATIONS UNDER SECTION 25 BELOW].  THE PARTIES ACKNOWLEDGE THAT SUCH PAYMENT OF
THE EARNEST MONEY DEPOSIT IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS
INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO CONTRIBUTOR.

 38

INITIALS:  

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, ALAMEDA,
  LTD., LIMITED PARTNERSHIP, a California limited Partnership

  	
  EXTRA SPACE
  STORAGE LP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, ALAMEDA II, LTD.,

  LIMITED PARTNERSHIP, a California limited Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, BERKELEY I, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, BERKELEY II, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE-CASTRO
  VALLEY, 

  LTD. LIMITED PARTNERSHIP, a California

  limited partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE – COLMA, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, HAYWARD, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE – MAUI, A 

  LIMITED PARTNERSHIP, a Hawaii limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, SAN LEADRO,

  LTD.,LIMITED PARTNERSHIP, a California

  limited partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE, SAN PABLO, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AAAAA RENT-A-SPACE – VALLEJO, LTD.,

  LIMITED PARTNERSHIP, a California limited

  Partnership

  	
   

  

 

 39
 

(c)                                  Notwithstanding anything to the contrary
contained in this Agreement, if the Closing is consummated, as to Acquiror and
each Contributor hereunder, as to each Property, no party shall have any
liability to another party following the Closing of such Property with respect
to any breaches of representations, warranties or covenants under this
Agreement (other than the covenants and obligations contained in Section 8(d)
and Section 8(e) unless and until the aggregate amount of the actual general
and compensatory damages suffered by the non-defaulting party by reason of any
such breach of representations, warranties or covenants exceeds the sum of Ten
Thousand Dollars ($10,000.00) for such Property (in which event the defaulting
party shall be responsible from the first dollar). Unless and until the amount
of the actual damages suffered or incurred by the non-defaulting party by
reason of any such breach of representations, warranties or covenants exceeds
in the aggregate, the sum of Ten Thousand Dollars ($10,000.00) for such
Property, the non-defaulting party shall not be entitled to file an action or
lawsuit or undertake any other legal proceeding against the defaulting party by
reason of such breach of representations, warranties or covenants.  The covenants and the obligations of the
parties contained in Section 8(d) and Section 8(e) shall be excluded from the
application of this Section.  The
provisions of this Section shall survive the Closing and the recordation of the
Deed, and shall not be deemed merged into the Deed or other documents or
instruments delivered at Closing.

(d)                                 The obligations and liabilities of each
Contributor under this Agreement are and shall be separate from the obligations
and liabilities of each other Contributor. 
Furthermore, as to each Property and the Contributor of such Property,
such Contributor’s total liability with respect to a breach of any representations,
warranties or other obligations of such Contributor contained in this Agreement
or in any document or instrument executed and delivered at Closing (including
any indemnity obligations in this Agreement or in any such document or
instrument) shall be limited to an amount equal to two and one-half percent (2
1⁄2%) of the Allocated Purchase Price for such Property.  It is expressly understood and agreed that in
no event shall any of the direct or indirect partners, shareholders, owners,
affiliates, officers, directors, employees or agents of each Contributor or any
affiliate or controlling person thereof, have any liability for any claim,
cause of action or other liability arising out of or relating to this Agreement
whether based on contract, common law, statute, equity or otherwise.  In no event shall a Contributor be liable to
Acquiror for consequential, indirect or punitive damages.  The foregoing limitations on liability shall
survive the Closing or any earlier termination of this Agreement and shall not
diminish or otherwise affect Acquiror’s waivers and releases in Section 22 of
this Agreement.

26.                                 Confidentiality.

(a)                                  Acquiror agrees that, prior to the Closing,
all documents and information obtained from Contributors or Contributors’
representatives pursuant to this Agreement including, without limitation, the
Documents, shall be kept confidential as provided in this Section 26(a).  Prior to the Closing, the property
information received from Contributors shall not be disclosed by Acquiror or
its representatives, in any manner whatsoever, in whole or in part, except (1)
with the prior written consent of Contributors (which consent may be withheld
in Contributors’ sole and absolute discretion), (2) to the extent that such
document or information is publicly available, 

 40
 

(3)
to Acquiror’s representatives who need to know the property information for the
purpose of evaluating the Properties and who are informed by the Acquiror of
the confidential nature of the property information; (4) as may be necessary for
Acquiror or Acquiror’s representatives to comply with applicable laws,
including, without limitation, governmental regulatory, disclosure, tax and
reporting requirements, to comply with other requirements of regulatory and
supervisory authorities and self-regulatory organizations having jurisdiction
over Acquiror or Acquiror’s representatives; or to comply with regulatory or
judicial processes; or (5) as may be necessary in order to assume the
Assumption Loans.  In permitting Acquiror
and its representatives to review the Documents to assist Acquiror, Contributor
has not waived any privilege or claim of confidentiality with respect thereto,
and no third party benefits or relationships of any kind, either expressed or
implied, have been offered, intended or created by Contributor and any such
claims are expressly rejected by Contributor and waived by Acquiror.  The provisions of this Section 26(a) shall
survive the Closing but shall, notwithstanding any other provision of this
Agreement, survive any termination of this Agreement.

(b)                                 Contributors and Acquiror agree that the
existence and terms of this Agreement shall be kept confidential as provided in
this Agreement.  The identity of Acquiror
and Contributor, the existence of this Agreement and the terms of this
Agreement shall be kept confidential and shall not be disclosed by
Contributors, Acquirors or their respective representatives, in any manner
whatsoever, in whole or in part, except (1) with the prior written consent of
the non-disclosing party (which consent may be withheld in the non-disclosing
party’s or parties’ sole and absolute discretion), (2) to the extent that such
document or information is publicly available, or (3) as may be necessary for
Contributors, Acquiror’s or any of their respective representatives to comply
with applicable laws, including, without limitation, governmental regulatory,
disclosure, tax and reporting requirements, to comply with other requirements
of regulatory and supervisory authorities and self-regulatory organizations
having jurisdiction over any Contributor or such Contributor’s representatives;
or to comply with regulatory or judicial processes.  Furthermore, except as expressly permitted
pursuant to the provisions of subparts (2) or (3) of this Section 26(b), under
no circumstances shall Acquiror use the name “Knuppe” or disclose the name “Knuppe”
without the express prior written consent of Contributors (which consent may be
withheld in Contributors’ sole and absolute discretion).  Acquiror shall give Contributors advance
written notice of Acquiror’s use of the name “Knuppe” in accordance with the
provision of this Section 26(b), which notice shall include a reference to the
applicable laws which require such disclosure. 
Contributors hereby disclose to Acquiror that Contributor may have
inadvertently disclosed the nature of this Agreement to the property manager(s)
of the Hayward Property.  Acquiror
expressly acknowledges and agrees that the foregoing limited inadvertent disclosure
shall not be deemed a default hereof.

27.                                 Payment of Commissions.  Each
party hereto represents and warrants that it has employed no brokers or real
estate agencies in the creation of or the negotiations relating to this
Agreement, and each party shall indemnify, defend and hold harmless the other
party by reason of any breach of such party of its warranty and representation
under this section.  The provisions of
this section shall survive Closing.

28.                                 Successors and Assigns. 
Subject to the restrictions on assignment set forth below, this
Agreement shall be binding upon and inure to the benefit of Contributors and
Acquiror and their respective estates, personal representatives, heirs,
devisees, legatees, successors and permitted assigns.  Acquiror may not assign any of its rights
and/or delegate any of its obligations under this Agreement without first
obtaining the prior written consent of the Contributors, which consent may be
withheld by Contributors in their sole and absolute discretion, provided that
Contributors’ consent shall not be required for an assignment to an “affiliated”
company (as defined hereafter).  Any
assignee as may be 

 41
 

consented to by Contributors or which is permitted
under this Section shall expressly assume in writing all obligations of
Acquiror under this Agreement and shall further acknowledge and agree in
writing to be bound by all of the provisions of this Agreement as if the
assignee had originally executed this Agreement as Acquiror.  Notwithstanding any assignment as may be
consented to by Contributors or which is permitted under this Section, the
named Acquiror hereunder shall not be released, and shall remain liable for,
all obligations of the party which is the Acquiror under this Agreement.  An “affiliated” company shall mean an entity
that controls, is controlled by, or is under common control with the Acquiror.

29.                                 Notices.  Any
notice, approval, waiver, objection or other communication required or
permitted to be given hereunder or given in regard to this Agreement by one
party to the other shall be in writing and the same shall be deemed to have
been served and received (a) if hand delivered, when delivered in person to the
address set forth hereinafter for the party to whom notice is given; (b) if by
overnight delivery when received by the other party; or (c) if by facsimile,
when received by the other party at the number hereinafter specified as
evidenced by the confirmation receipt of the Sender; provided, however, that if
such facsimile is received after 5:00 p.m. Pacific Time, such notice shall be deemed
received on the next business day.  Any
party may change its address for notices by notice theretofore given in
accordance with this section:

	
  

  	
  If to Contributors:

  	
  AAAAA Rent-A-Space 

  Attn: Dr. H. James Knuppe 

  4545 Crow Canyon Place 

  Castro Valley, CA 94552 

  Tel. (510) 727-1800 x 311 

  Fax. (510) 727-0185 

  Email. Knuppe@aol.com

  
	
   

  	
   

  
	
   

  	
  With a Copy to:

  	
  Miller, Starr & Regalia 

  Attn: Eugene Miller & Hans Lapping 

  1331 N. California Blvd., 5th Flr. 

  Walnut Creek, CA 94596 

  Tel. (925) 935-9400 

  Fax. (925) 933-4126 

  Email. ehm@msandr.com & hl@msandr.com

  
	
   

  	
   

  
	
   

  	
  And With a Copy to:

  	
  Baker & McKenzie LLP 

  Attn: Richard M. Lipton 

  One Prudential Plaza, Suite 3500 

  130 East Randolph Drive 

  Chicago, Illinois 60601 

  Tel: 312-861-7590 

  Fax: 312-698-2254 

  Email: Richard.m.lipton@bakernet.com

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Acquiror:

  	
  Extra Space Storage LLC 

  Attn: David L. Rasmussen 

  2795 E. Cottonwood Parkway, #400 

  Salt Lake City, UT 84121 

  Tel. 801-365-4473 

  Fax 801-365-4947 

  Email: drasmussen@extraspace.com

  

 

 42
 

 

	
  

  	
  With a Copy to:

  	
  Steven E. Tyler 

  Holland & Hart LLP 

  60 East South Temple, Suite 2000 

  Salt Lake City, Utah 84111 

  Tel. 801-595-7800 

  Fax 801-364-9124 

  Email: setyler@hollandhart.com

  

 

30.                                 Timing.  If
any date herein (except the Proration Date) shall fall on a Saturday, Sunday,
Monday or national or state holiday (“Non-business Day”),
the date shall automatically be advanced to the first Tuesday thereafter; but
if that day is a Non-business Day, then the date shall be the next business day.

31.                                 Further Assurances.  From
time to time, at either party’s reasonable request, whether on or after
Closing, and without further consideration, the other party shall execute and
deliver any further commercially reasonable instruments of conveyance and take
such other commercially reasonable actions as the requesting party may
reasonably require to complete the transfer of the Properties to Acquiror.

32.                                 Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument.  Delivery of the executed
Agreement may be accomplished by facsimile transmission, and if so, the
facsimile copy shall be deemed an executed original counterpart of the
Agreement.  All executed counterparts
together shall constitute one and the same document, and any signature pages,
including facsimile copies thereof, may be assembled to form a single original
document.

33.                                 Attorney’s Fees.  Each
party shall bear its own attorneys’ fees in connection with the preparation and
negotiation of this Agreement and any controversy, claim or dispute between or
among the parties.

34.                                 Time of
Essence.  Time is of the essence of this
Agreement.

35.                                 Survival.  All provisions that expressly
survive the Closing or termination of this Agreement shall survive.

36.                                 Governing Law.  This
Agreement and all transactions contemplated hereby shall be governed by,
construed and enforced in accordance with the laws of the State of California with
the exception of issues of title to each Property which will be construed in
accordance with the laws of the State in which a particular Property is
located.  The parties agree that this
Agreement has been made in Castro Valley, California and that exclusive
jurisdiction for matters arising under this Agreement shall be in the State
courts in Alameda County, California. 
Each party, by signing this Agreement, irrevocably consents to and shall
submit to such jurisdiction.

37.                                 Entire Agreement and Amendments.  This
Agreement, together with all exhibits attached hereto or referred to herein,
contain all representations and the entire understanding between the parties
hereto with respect to the subject matter hereof.  Any prior correspondence, memoranda or agreements
are replaced in total by this Agreement and exhibits hereto.  This Agreement may only be modified or
amended upon the written consent of both parties.

38.                                 No Recordation. 
There shall be no recordation of either this Agreement or any memorandum
hereof or any affidavit pertaining hereto, and any such recordation of this
Agreement or memorandum hereof or affidavit pertaining hereto by any party
hereunder shall constitute a material default hereunder by such party, and
non-defaulting shall have all rights and remedies expressly available to such
party hereunder.

 43
 

39.                                 Severability.  If
any provision of this Agreement or application to any party or circumstance
shall be determined by any court of competent jurisdiction to be invalid and
unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such person or circumstances, other than those as to which
it is so determined invalid or unenforceable, shall not be affected thereby,
and each provision hereof shall be valid and shall be enforced to the fullest
extent permitted by law.

40.                                 Participation in Drafting.  The
language of this Agreement shall be in all cases construed simply according to
its fair meaning and not strictly for or against any of the parties hereto.  Contributors and Acquiror each acknowledge
that they participated equally in the drafting of this Agreement and,
accordingly, no court construing this Agreement shall construe it more
stringently against one party than any other.

41.                                 Exhibits and Schedules. 
Exhibit “A” through Exhibit “L”, inclusive, and Schedule 14(a)(13) are
hereby incorporated herein.

42.                                 Contributors’ Access to Records.  For
a period of four (4) years subsequent to the Closing Date, Acquiror agrees to
reasonably cooperate with Contributors and Contributors’ agents, employees and
representatives in the event of Contributors’ need to respond to any legal
requirement, including any tax audit, by allowing Contributors and Contributors’
agents, employees and representatives access, upon reasonable advance written
notice (which notice shall identify the nature of the information sought by
Contributors), at all reasonable times during business hours to examine and
make copies of any and all files and records delivered by Contributors to Acquiror.  The provisions of this Section shall survive
the Closing and the recordation of the Deed for a period of four (4) years and
shall not merge into the Deed and the other documents and instruments delivered
at Closing.

[Signatures on Following Pages]

 44
 

IN WITNESS WHEREOF, the
parties have executed this Contribution Agreement effective as of the Effective
Date.

	
  

  	
  CONTRIBUTORS:

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE, ALAMEDA, LTD.,

  LIMITED PARTNERSHIP, a California limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS - ALAMEDA, 

  INC., a Nevada corporation, its general 

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE, ALAMEDA II,

  LTD. LIMITED PARTNERSHIP, a California

  limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  
	
   

  	
   

  	
  California corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE, BERKELEY I,

  LTD., LIMITED PARTNERSHIP, a California

  limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE BERKELEY II,

  LTD., LIMITED PARTNERSHIP, a California

  limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
						

 45
 

 

	
  

  	
  AAAAA
  RENT-A-SPACE – CASTRO

  VALLEY, LTD. LIMITED PARTNERSHIP, a California limited
  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE – COLMA, LTD.

  LIMITED PARTNERSHIP, a California limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS - COLMA, INC.,
  a

  Nevada corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE, HAYWARD, LTD.,

  LIMITED PARTNERSHIP, a California limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS - HAYWARD,

  INC., a Nevada corporation, its general

  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE – MAUI, A

  LIMITED PARTNERSHIP, a Hawaiian limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
						

 

 46
 

 

	
  

  	
  AAAAA RENT-A-SPACE, SAN LEANDRO,

  LTD., LIMITED PARTNERSHIP, a California

  limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS – SAN

  LEANDRO, INC., a Nevada corporation,

  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE, SAN PABLO, LTD.

  LIMITED PARTNERSHIP, a California limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
	
   

  	
   

  
	
   

  	
  AAAAA RENT-A-SPACE – VALLEJO, LTD.

  LIMITED PARTNERSHIP, a California limited

  partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  KN PRODUCTIONS CO., INC., a

  California corporation, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Knuppe 

  	
   

  
	
   

  	
   

  	
  Name: Michael Knuppe 

  
	
   

  	
   

  	
  Title: President 

  
	
   

  	
   

  	
  Date:

  	
     6-14-07

  	
   

  
						

 

 47
 

 

	
  

  	
  ACQUIROR:

  
	
   

  	
   

  
	
   

  	
  EXTRA SPACE STORAGE LP, a
  Delaware

  limited partnership

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  ESS HOLDINGS BUSINESS TRUST I,

  a Massachusetts business trust, its sole

  general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Charles L. Allen

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  CHARLES L. ALLEN

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  TRUSTEE  
  6-15-07

  	
   

  
							

 

The foregoing Agreement is approved this 14th day of June, 2007, by the
following:

 

	
  

  	
   

  	
  /s/ H. James Knuppe

  	
   

  
	
  

  	
   

  	
  H. James Knuppe

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Barbara Knuppe

  	
   

  
	
   

  	
   

  	
  Barbara Knuppe

  	
   

  

 

 48Exhibit
4.11

	
  COMMON STOCK

  	
  

  	
  COMMON
  STOCK

  
	
   

  	
   

  
	
  THIS CERTIFICATE
  IS TRANSFERABLE IN

  	
  PAR
  VALUE $.01

  
	
  CANTON, MA AND
  JERSEY CITY, NJ

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  Certificate

  	
   

  	
  Shares

  
	
  Number

  	
   

  	
  * * 600620* * * * * *

  
	
  ZQ 000208

  	
   

  	
  * * * 600620* * * * *

  
	
   

  	
   

  	
  * * * * 600620* * * *

  
	
   

  	
  LTC
  PROPERTIES, INC.

  	
  * * * * * 600620* * *

  
	
   

  	
  INCORPORATED
  UNDER THE LAWS OF THE STATE OF MARYLAND

  	
  * * * * * * 600620* *

  

 

	
  THIS CERTIFIES THAT

  	
  CUSIP 502175 10
  2

  
	
   

  	
  SEE REVERSE FOR
  CERTAIN DEFINITIONS

  

 

	
  MR. SAMPLE & MRS SAMPLE &

  MR. SAMPLE & MRS SAMPLE

  
	
  ** Mr. Alexander David Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander
  David Sample **** Mr. Alexander David Sample

  
	
  **** Mr. Alexander David
  Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample ****
  Mr. Alexander David Sample **** Mr. Alexander David

  
	
  Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander
  David Sample **** Mr. Alexander David Sample **** Mr. Alexander

  
	
  David Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander
  David Sample **** Mr. Alexander David Sample **** Mr.

  
	
  Alexander David Sample
  **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample ****

  
	
  Mr. Alexander David
  Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample ****
  Mr. Alexander David Sample **** Mr. Alexander David Sample

  
	
  **** Mr. Alexander David
  Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample ****
  Mr. Alexander David Sample **** Mr. Alexander David

  
	
  Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander
  David Sample **** Mr. Alexander David Sample **** Mr. Alexander

  
	
  David Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander
  David Sample **** Mr. Alexander David Sample **** Mr.

  
	
  Alexander David Sample
  **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr.
  Alexander David Sample **** Mr. Alexander David Sample ****

  
	
  Mr. Alexander David
  Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample ****
  Mr. Alexander David Sample **** Mr. Sample **** Mr. Sample

  

 

is the owner of

	
  * * * SIX HUNDRED THOUSAND

  SIX HUNDRED AND TWENTY * * *

  
	
  **600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares***

  
	
  *600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****

  
	
  600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****6

  
	
  00620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****60

  
	
  0620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600

  
	
  620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares***600620**Shares****600620**Shares****60062

  
	
  0**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620

  
	
  **Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620*

  
	
  *Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**

  
	
  Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**S

  
	
  hares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Sh

  

 

FULLY PAID AND
NON-ASSESSABLE SHARES OF THE COMMON STOCK OF

LTC Properties, Inc.
transferable on the share register of the Corporation by the holder hereof in
person or by duly authorized attorney upon surrender of this Certificate
properly endorsed.

This Certificate is not
valid until countersigned by the Transfer Agent and registered by the
Registrar.

Witness the
facsimile seal of said Corporation and the facsimile signatures of its duly
authorized officers.

	
  

  	
  

  	
  DATED
  <<Month Day Year>>

  
	
  COUNTERSIGNED AND REGISTERED:

  
	
  COMPUTERSHARE INVESTOR 

  SERVICES, LLC.

  
	
  Chairman of the
  Board

  	
  (CHICAGO)

  
	
   

  	
  TRANSFER AGENT AND REGISTRAR,

  
	
  

  	
   

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Treasurer

  	
  AUTHORIZED
  SIGNATURE

  

 

SECURITY INSTRUCTIONS
ON REVERSE

14969

LTC
PROPERTIES, INC.

RESTRICTIONS ON TRANSFER; REDEEMABLE SHARES; AUTHORITY
TO ISSUE STOCK OF MORE THAN ONE CLASS

The Charter of the Corporation authorizes the Board
of Directors to refuse to permit the transfer of any stock of the Corporation
to any proposed transferee if such proposed transfer may in the opinion of the
Board jeopardize the qualification of the Corporation as a real estate
investment trust (“REIT”) as defined in the federal Internal Revenue Code; the
Charter provides that all contracts owned by any person in excess of a “Limit”
are automatically converted into “Excess Shares.”  Excess shares are redeemable by the
Corporation and subject to other restrictions and limitations set forth in the
Charter. The Charter authorizes the Corporation to issue stock of more than one
class; the Board of Directors has authority to issue Preferred Stock in such
one or more series consisting of such numbers of shares and having such
preferences, conversion and other rights, voting powers, restriction and limitations
as to dividends, qualifications and terms and conditions of redemption as the
Board may determine, and the Board of Directors also has authority to classify
or reclassify any unissued stock from time to time.

The
Corporation will furnish a full statement of the provisions of the Charter with
respect to restrictions on transfer, the “Limit” and other provisions relative
to “Excess Shares,”and information as to the respective classes and series of
stock, to any stockholder on request and without charge.

The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

	
  TEN COM -

  	
  as tenants in common

  	
  UNIF GIFT MIN
  ACT-

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  	
   

  	
  under Uniform
  Gifts to Minors Act

  	
   

  
	
  TEN ENT -

  	
  as tenants by the entireties

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
   

  	
   

  
	
  JTTEN -

  	
  as joint tenants with right of survivorship and

  not as tenants in common

  	
   

  	
   

  
	
  Additional
  abbreviations may also be used though not in the above list.

  
	
   

  	
   

  
	
  For value
  received,                                                   hereby
  sell, assign and transfer unto

  
								

 

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE

(PLEASE
PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

	
  

  
	
   

  
	
   

  	
  shares

  
	
  of the capital stock represented by the within
  Certificate, and do hereby irrevocably constitute and appoint

  
	
   

  
	
   

  	
  Attorney

  
	
  to transfer the said stock
  on the books of the within named Corporation with full power of substitution
  in the premises.

  
			

 

 

	
  Dated:

  	
   

  	
  20

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notice:

  	
  THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND
  WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY
  PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  

 

 

	
  SECURITY INSTRUCTIONS

  	
  

  
	
  THIS IS WATERMARKED PAPER DO NOT ACCEPT WITHOUT NOTHING

  
	
  WATERMARK HOLD TO LIGHT TO VERIFY WATERMARK.

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