Document:

Exhibit

Exhibit 10.17

THIRD INCREASE AGREEMENT AND AMENDMENT
This Third Increase Agreement and Amendment (this “Agreement”), dated as of January 29, 2018 (the “Increase Effective Date”), is by and among NSA OP, LP, a limited partnership formed under the laws of the State of Delaware (the “Borrower”), certain Subsidiaries of the Borrower party to the Credit Agreement referred to below, NATIONAL STORAGE AFFILIATES TRUST, a Maryland real estate investment trust (the “Parent Guarantor” and, together with those certain Subsidiaries, collectively, the “Guarantors”), the lender parties hereto providing a new commitment or new loan pursuant to the terms hereof (each, an “Increase Lender” and collectively the “Increase Lenders”) and KeyBank National Association, as Administrative Agent (the “Administrative Agent”) for the Lenders (as hereinafter defined) and in its capacity as Swingline Lender and as issuer of Letters of Credit. All capitalized terms used herein without definitions shall have the meanings given to such terms in the Credit Agreement (as hereinafter defined). 
WHEREAS, the Amended and Restated Credit Agreement, dated as of May 6, 2016 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”), is by and among, among others, the Borrower, the Guarantors, the Administrative Agent and the financial institutions which are or become a party thereto as lenders (each a “Lender” and, collectively, the “Lenders”);
WHEREAS, Section 2.16 of the Credit Agreement provides that the Borrower may request, upon notice to the Administrative Agent and satisfaction of the conditions set forth in Section 2.16(b) (the “Increase Conditions”), that the Revolving Commitments and/or term loans made under the Credit Agreement be increased by an aggregate amount of up to $325,000,000;
WHEREAS, immediately prior to the effectiveness of this Agreement, the aggregate outstanding principal amount of (i) the Revolving Commitments is $400,000,000, (ii) the Tranche A Loans is $235,000,000, (iii) the Tranche B Loans is $155,000,000, and (iv) the Tranche C Loans is $105,000,000 and there is $105,000,000 remaining to be exercised under the accordion provided under Section 2.16 of the Credit Agreement (prior to giving effect to this Agreement);
WHEREAS, the Borrower has requested that the Increase Lenders provide a new tranche of term loans maturing January 29, 2023 in an aggregate principal amount equal to $125,000,000 (such new term loan tranche, the “Tranche D Loan” and the Lenders providing such Tranche D Loans, the “Tranche D Lenders”) consisting of (i) $105,000,000 under the accordion provided under Section 2.16 of the Credit Agreement (prior to giving effect to this Agreement) and (ii) $20,000,000 under the Additional Accordion (as defined below);
WHEREAS, concurrently with the effectiveness of this Agreement and the making of the Tranche D Loan (collectively referred to sometimes hereinafter as the “Increase”), the remaining amount under the accordion provided under Section 2.16 of the Credit Agreement (prior to giving effect to this Agreement) would be reduced to zero and the Borrower has requested that, immediately prior to the making of the Tranche D Loan, the Requisite Lenders amend Section 2.16 of the Credit Agreement to refresh the accordion and permit an additional $300,000,000 (the “Additional Accordion”) of Revolving Commitments and/or term loans to be requested thereunder in accordance with the terms thereof (the “Accordion Amendment”), $20,000,000 of which would immediately 

be utilized in connection with the making of the Tranche D Loan, so that after the effectiveness of this Agreement and the amendments herein, the aggregate amount of the Revolving Commitments and Term Loans shall not exceed $1,300,000,000;
WHEREAS, each of KeyBanc Capital Markets Inc., PNC Capital Markets, LLC, U.S. Bank, National Association and Wells Fargo Bank, National Association shall be named a Co-Lead Arranger under the Credit Agreement with respect to the Tranche D Loan; 
WHEREAS, one or more of the Increase Lenders shall be a new lender party to the Credit Agreement (each such new lender, an “Augmenting Lender”);
WHEREAS, Schedule 1.1 to the Credit Agreement (Lender Commitments) will be updated to reflect Lender Commitments after giving effect to the making of the Tranche D Loans, to be attached hereto as Annex 2; 
WHEREAS, the parties hereto desire to make certain other conforming amendments to the Credit Agreement to reflect the addition of the Tranche D Loans thereunder, as reflected herein; and 
WHEREAS, the Administrative Agent is willing to give effect to the making of the Tranche D Loans provided that the parties hereto enter into this Agreement;
NOW THEREFORE, the parties hereto hereby agree as follows:
1.Tranche D Loans.  Pursuant to Section 2.16 of the Credit Agreement, each Tranche D Lender hereby severally and not jointly agrees to provide a Term Loan Tranche D Commitment in the amount set forth next to such Tranche D Lender’s name on Annex 1 attached hereto (in each case, such Lender’s “Tranche D Loan Amount”).  The aggregate Tranche D Loan, as set forth in such Annex 1, is equal to $125,000,000.   In connection therewith, subject to the terms of the Credit Agreement, each Tranche D Lender severally and not jointly agrees to fund, and make a single loan in immediately available funds to the Borrower on the Increase Effective Date, in an aggregate principal amount equal to its Tranche D Loan Amount.  After giving effect to the making of the Tranche D Loans, each Tranche D Lender shall have the Term Loan Tranche D Commitment and Commitment Percentage with respect to the Tranche D Facility set forth on the new Schedule 1.1 attached as Annex 2 hereto (it being acknowledged that each Term Loan Tranche D Commitment will terminate upon the funding of the applicable Tranche D Loan).  Subject to Section 2.8(c) of the Credit Agreement, each payment or prepayment of principal of Tranche D Term Loans by the Borrower shall be made for the account of the Tranche D Lenders pro rata in accordance with the respective unpaid principal amounts of the Tranche D Term Loans held by them.  In addition, each payment of interest on Tranche D Term Loans by the Borrower shall be made for the account of the Tranche D Lenders pro rata in accordance with the amounts of interest on the Tranche D Term Loans then due and payable to the Tranche D Lenders.
2.    Amendments to Credit Agreement.
As of the Increase Effective Date, the Credit Agreement is amended as set forth below:

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(a)    The definition of “Applicable Margin” set forth in Section 1.1 of the Credit Agreement is amended by deleting the Table contained in clause (a) thereof in its entirety and inserting in place thereof the following new Table (solely to add the pricing for the Tranche D Loans to the Table):

	
												
	Level
	Total Leverage Ratio
	Applicable Margin for Revolving Loans that are LIBOR Loans
	Applicable Margin for Revolving Loans that are Base Rate Loans
	Applicable Margin for Tranche A Term Loans that are LIBOR Loans
	Applicable Margin for Tranche A Term Loans that are Base Rate Loans
	Applicable Margin for Tranche B Term Loans that are LIBOR Loans
	Applicable Margin for Tranche B Term Loans that are Base Rate Loans
	Applicable Margin for Tranche C Term Loans that are LIBOR Loans
	Applicable Margin for Tranche C Term Loans that are Base Rate Loans
	Applicable Margin for Tranche D Term Loans that are LIBOR Loans
	Applicable Margin for Tranche D Term Loans that are Base Rate Loans

	1
	Less than  or equal to 45%
	1.40%
	0.40%
	1.35%
	0.35%
	1.60%
	0.60%
	1.70%
	0.70%
	1.30%
	0.30%

	2
	Greater than 45% and less or equal to 50%
	1.55%
	0.55%
	1.50%
	0.50%
	1.75%
	0.75%
	1.90%
	0.90%
	1.45%
	0.45%

	3
	Greater than 50% and less than or equal to 55%
	1.75%
	0.75%
	1.70%
	0.70%
	1.95%
	0.95%
	2.05%
	1.05%
	1.65%
	0.65%

	4
	Greater than 55%
	1.95%
	0.95%
	1.90%
	0.90%
	2.15%
	1.15%
	2.25%
	1.25%
	1.85%
	0.85%

(b)    The definition of “Applicable Margin” set forth in Section 1.1 of the Credit Agreement is further amended by deleting the Table contained in clause (b) thereof in its entirety and inserting in place thereof the following new Table (solely to add the pricing for the Tranche D Loans to the Table):

	
												
	Level
	Borrower’s Credit Rating (S&P/Moody’s or Equivalent)
	Applicable Margin for Revolving Loans that are LIBOR Loans
	Applicable Margin for Revolving Loans that are Base Rate Loans
	Applicable Margin for Tranche A Term Loans that are LIBOR Loans
	Applicable Margin for Tranche A Term Loans that are Base Rate Loans
	Applicable Margin for Tranche B Term Loans that are LIBOR Loans
	Applicable Margin for Tranche B Term Loans that are Base Rate Loans
	Applicable Margin for Tranche C Term Loans that are LIBOR Loans
	Applicable Margin for Tranche C Term Loans that are Base Rate Loans
	Applicable Margin for Tranche D Term Loans that are LIBOR Loans
	Applicable Margin for Tranche D Term Loans that are Base Rate Loans

	1
	At Least A- or A3
	0.85%
	0.00%
	0.95%
	0.00%
	1.35%
	0.35%
	1.50%
	0.50%
	0.90%
	0.00%

	2
	BBB+ or Baa1
	0.90%
	0.00%
	1.00%
	0.00%
	1.40%
	0.40%
	1.55%
	0.55%
	0.95%
	0.00%

	3
	BBB or Baa2
	1.00%
	0.00%
	1.15%
	0.15%
	1.50%
	0.50%
	1.65%
	0.65%
	1.10%
	0.10%

	4
	BBB- or Baa3
	1.20%
	0.20%
	1.40%
	0.40%
	1.75%
	0.75%
	1.90%
	0.90%
	1.35%
	0.35%

	5
	Below BBB- and Baa3
	1.55%
	0.55%
	1.80%
	0.80%
	2.30%
	1.30%
	2.45%
	1.45%
	1.75%
	0.75%

(c)    Section 1.1 is hereby amended by amending and restating each of the following definitions to read in their entirety as follows:
 “Class” when used with respect to a Lender, refers to whether such Lender has a Loan or Commitment with respect to a particular class of Loans or Commitments (i.e., a Revolving Loan, Tranche A Loan, Tranche B Loan, Tranche C Loan or Tranche D Loan).
“Commitment Percentage” means, (a) in respect of the Revolving Credit Facility, with respect to any Revolving Lender at any time, its Revolving Commitment Percentage at such time, (b) in respect of the Tranche A Facility, with respect to any Tranche A Lender at any 

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time, the percentage of the Tranche A Facility represented by (i) on or prior to the Effective Date, such Tranche A Lender’s Tranche A Commitment at such time and (ii) thereafter, the principal amount of such Tranche A Lender’s Tranche A Loans at such time, (c) in respect of the Tranche B Facility, with respect to any Tranche B Lender at any time, the percentage of the Tranche B Facility represented by (i) on or prior to the Effective Date, such Tranche B Lender’s Tranche B Commitment at such time and (ii) thereafter, the principal amount of such Tranche B Lender’s Tranche B Loans at such time, (d) in respect of the Tranche C Facility, with respect to any Tranche C Lender at any time, the percentage of the Tranche C Facility represented by (i) on or prior to the Second Increase and Amendment Effective Date, such Tranche C Lender’s Tranche C Commitment at such time and (ii) thereafter, the principal amount of such Tranche C Lender’s Tranche C Loans at such time and (e) in respect of the Tranche D Facility, with respect to any Tranche D Lender at any time, the percentage of the Tranche D Facility represented by (i) on or prior to the Third Increase and Amendment Effective Date, such Tranche D Lender’s Tranche D Commitment at such time and (ii) thereafter, the principal amount of such Tranche D Lender’s Tranche D Loans at such time.  The Commitment Percentage of each Lender in respect of each Facility is set forth opposite the name of such Lender on Schedule 1.1, as such Schedule 1.1 may be updated by the Administrative Agent from time to time.
“Facility” means the Revolving Credit Facility, the Tranche A Facility, the Tranche B Facility, the Tranche C Facility or the Tranche D Facility, as the context may require, and “Facilities” means all such Facilities together.
“Increasing Lender” has the meaning given that term in Section 2.16(a) and includes any Lender providing any term loan pursuant to the Second Increase Agreement and Amendment or the Third Increase Agreement and Amendment.
“Incremental Term Loan” has the meaning given that term in Section 2.16(a) and includes the Tranche A Increase, the Tranche B Increase, the Tranche C Loans and the Tranche D Loans.
“Incremental Term Loan Amendment” has the meaning given that term in Section 2.16(e) and includes the First Increase Agreement, the Second Increase Agreement and Amendment and the Third Increase Agreement and Amendment.
“Maturity Date” means, (i) with respect to the Revolving Credit Facility (including Swingline Loans), the Revolver Maturity Date, (ii) with respect to the Tranche A Facility, the Tranche A Maturity Date, (iii) with respect to the Tranche B Facility, the Tranche B Maturity Date, (iv) with respect to the Tranche C Facility, the Tranche C Maturity Date and (v) with respect to the Tranche D Facility, the Tranche D Maturity Date; provided, however, that, in each case, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.
“Term Loan” or “Term Loans” means any Tranche A Loan, Tranche B Loan, Tranche C Loan or Tranche D Loan made pursuant to Section 2.2, or all of such Loans (or of any such Tranche) collectively, as the context may require. 

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“Term Loan Commitment” means, (a) as to each Term Loan Lender as of the Third Increase and Amendment Effective Date, its Tranche A Commitment, Tranche B Commitment, Tranche C Commitment and/or Tranche D Commitment, as the context may require, as set forth on Schedule 1.1, as the same may be amended from time to time, or (b) a Term Loan Lender’s obligation to make a Term Loan after the Third Increase and Amendment Effective Date as set forth in any agreement executed by an existing Term Loan Lender or a Person who becomes a Term Loan Lender in accordance with Section 2.16.
“Term Loan Facility” means the Tranche A Facility, the Tranche B Facility, the Tranche C Facility and the Tranche D Facility.
“Titled Agents” means, in each case in their respective capacities as Co-Lead Arrangers (a) (i) with respect to the Facilities, KeyBanc Capital Markets Inc. and PNC Capital Markets LLC, (ii) solely with respect to the Tranche C Loan, BMO Harris Bank N.A., and (iii) solely with respect to the Tranche D Loan, U.S. Bank, National Association and Wells Fargo Bank, National Association; (b) each of KeyBanc Capital Markets Inc. and PNC Capital Markets LLC, in their capacity as Co-Bookrunners, and (c) PNC Bank, National Association, in its capacity as Syndication Agent.
“Tranche” means the Tranche A Facility, the Tranche B Facility, the Tranche C Facility and/or the Tranche D Facility, as the context may require.
(d)    Section 1.1 is hereby further amended by inserting therein each of the following new definitions in the appropriate alphabetical order:
“Additional Accordion” has the meaning given that term in Section 2.16(a).
“Third Increase Agreement and Amendment” means that certain Third Increase Agreement and Amendment dated as of the Third Increase and Amendment Effective Date among the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent.
“Third Increase and Amendment Effective Date” means January 29, 2018.
“Total Tranche D Commitment” means as of the Third Increase and Amendment Effective Date, the sum of the Tranche D Commitments of the Tranche D Lenders. As of the Third Increase and Amendment Effective Date, the Total Tranche D Commitment is $125,000,000.  Upon the funding of the Tranche D Loans in an amount equal to the Total Tranche D Commitment on the Third Increase and Amendment Effective Date, the Tranche D Commitments will be deemed to be zero and will terminate.
“Tranche D Commitment” means as to each Tranche D Lender, its obligation to make Tranche D Loans to Borrower on the Third Increase and Amendment Effective Date pursuant to Section 2.2(bbb) in an original principal amount not to exceed the applicable amount set forth opposite such Tranche D Lender’s name on Schedule 1.1.  Upon the funding of the Tranche D Loans in an amount equal to the Total Tranche D Commitment on the Third 

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Increase and Amendment Effective Date, the Tranche D Commitments will be deemed to be zero and will terminate.
“Tranche D Facility” means at any time, (a) on or prior to the Third Increase and Amendment Effective Date, the aggregate amount of the Tranche D Commitments at such time and (b) thereafter, the aggregate principal amount of the Tranche D Loans of all Tranche D Lenders outstanding at such time.  
“Tranche D Lender” means (a) at any time on or prior to the Third Increase and Amendment Effective Date, any Term Loan Lender that has a Tranche D Commitment at such time and (b) at any time after the Third Increase and Amendment Effective Date, any Term Loan Lender that holds Tranche D Loans at such time.
“Tranche D Loan” or “Tranche D Term Loan” means an advance made by any Tranche D Lender under the Tranche D Facility.
“Tranche D Maturity Date” means January 29, 2023, or such earlier date on which the Tranche D Loans shall become due and payable pursuant to the terms hereof. 
“Tranche D Notes” means collectively, the promissory notes made by Borrower in favor of the Tranche D Lenders in an aggregate principal amount equal to the Total Tranche D Commitment, substantially in the form of Exhibit H-2, as the same may be amended, replaced, substituted and/or restated from time to time.
(e)    Section 2.2 of the Credit Agreement is hereby amended by inserting, immediately following clause (bb) contained therein, the following new clause (bbb):  
“(bbb)    The Tranche D Borrowing.  Subject to the terms and conditions set forth herein, each Tranche D Lender severally and not jointly agrees to make a single loan to the Borrower on the Third Increase and Amendment Effective Date in an amount not to exceed such Tranche D Lender’s Commitment Percentage of the Tranche D Facility.  The Tranche D Borrowing shall consist of Tranche D Loans made simultaneously by the Tranche D Lenders in accordance with their respective Commitment Percentage of the Tranche D Facility.  Amounts borrowed under this Section 2.2(bbb) and repaid or prepaid may not be reborrowed.”
(f)    Section 2.2 of the Credit Agreement is hereby further amended by amending and restating clause (d) contained therein to read in its entirety as follows:
(d)    Disbursement of Term Loan Proceeds.  No later than 12:00 p.m. on the Effective Date or the Second Increase and Amendment Effective Date, as applicable, each Lender will make available for the account of its applicable Lending Office to the Administrative Agent at the Principal Office, in immediately available funds, the proceeds of the Tranche A Loan and Tranche B Loan to be made by such Lender.  Subject to satisfaction of the applicable conditions set forth in Article VI for such borrowing, the Administrative Agent will make the proceeds of such borrowing available to the Borrower no later than 

6

2:00 p.m. on the Effective Date.  No later than 12:00 p.m. (or such later time as is agreed by the Administrative Agent) on the Second Increase and Amendment Effective Date, each Tranche C Lender will make available for the account of its applicable Lending Office to the Administrative Agent at the Principal Office, in immediately available funds, the proceeds of the Tranche C Loan to be made by such Lender.  No later than 12:00 p.m. (or such later time as is agreed by the Administrative Agent) on the Third Increase and Amendment Effective Date, each Tranche D Lender will make available for the account of its applicable Lending Office to the Administrative Agent at the Principal Office, in immediately available funds, the proceeds of the Tranche D Loan to be made by such Lender.  Subject to satisfaction of the applicable conditions set forth in the Third Increase Agreement and Amendment for such borrowing, the Administrative Agent will make the proceeds of the Tranche D Loan borrowing available to the Borrower no later than 5:00 p.m. on the Third Increase and Amendment Effective Date.
(g)    Section 2.7 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
2.7  Repayment of Loans.
The Borrower shall repay the entire outstanding principal amount of, and all accrued but unpaid interest on, (i) the Revolving Loans on the Revolver Maturity Date, (ii) the Tranche A Loans on the Tranche A Maturity Date, (iii) the Tranche B Loans on the Tranche B Maturity Date, (iv) the Tranche C Loans on the Tranche C Maturity Date, and (v) the Tranche D Loans on the Tranche D Maturity Date.
(h)    The last sentence of Section 2.11(b) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
For the avoidance of doubt, the Tranche A Loans shall be evidenced by the Tranche A Notes, the Tranche B Loans shall be evidenced by the Tranche B Notes, the Tranche C Loans shall be evidenced by the Tranche C Notes and the Tranche D Loans shall be evidenced by the Tranche D Notes.
(i)    The first sentence of Section 2.16(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
The Borrower may from time to time elect to increase the Revolving Commitments or enter into one or more additional tranches of term loans (each, an “Incremental Term Loan”), so long as, after giving effect thereto, the aggregate amount of such Revolving Commitment increases and all such Incremental Term Loans (i) without giving effect to the Additional Accordion, does not exceed $325,000,000 and (ii) from and after giving effect to the Additional Accordion (defined below), does not exceed an additional $300,000,000 (the “Additional Accordion”) (in addition to the $325,000,000 referred to in clause (i)), such that the aggregate Revolving Commitments and Term Loans will not exceed $1,300,000,000 at any time (and for the avoidance of doubt, $20,000,000 of such Additional 

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Accordion was utilized by the Borrower on the Third Increase and Amendment Effective Date).  
(j)    Exhibit H-2 (Form of Tranche A/Tranche B/Tranche C Term Note) to the Credit Agreement is hereby deleted in its entirety and replaced in its entirety with Exhibit H-2 (Form of [Tranche [ ]] Loan Promissory Note) attached hereto as Annex 3. The reference to such Exhibit H-2 in the Table of Contents of the Credit Agreement shall be updated accordingly.  
(k)    On and after the Increase Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended by the Third Increase Agreement and Amendment.
3.    Increasing/Augmenting Lender Agreements.  Each Increase Lender that is an existing Lender immediately prior to the effectiveness of this Agreement will enter into an Increasing Lender Agreement in substantially the form attached to the Credit Agreement as Exhibit J in connection with the Increase (each an “Increasing Lender Agreement”); and each Increase Lender that is an Augmenting Lender will enter into an Augmenting Lender Agreement in substantially the form attached to the Credit Agreement as Exhibit K (each an “Augmenting Lender Agreement”). 
4.    Amendment of Schedule 1.1.   Schedule 1.1 to the Credit Agreement is hereby deleted and replaced with Schedule 1.1 attached hereto as Annex 2.
5.    Consent of Tranche C Lenders.  Pursuant to Section 2.16(d), no new Incremental Term Loan may mature earlier than any then outstanding Term Loan.  By their signatures hereto, the Requisite Class Lenders of the Tranche C Term Loan consent to the Tranche D Term Loan and to the Tranche D Maturity Date.
6.    Affirmation and Acknowledgment. Subject to the terms of the Loan Documents, the Borrower hereby ratifies and confirms all of its Obligations to the Lenders, including, without limitation, the Loans, the Notes and the other Loan Documents, and the Borrower hereby affirms its absolute and unconditional promise to pay to the Lenders all Obligations under (and as defined in) the Credit Agreement, both before and after giving effect to this Agreement. The Guarantors hereby consent to the transactions contemplated by this Agreement and acknowledge and agree that the guaranties made by them contained in each Guaranty are, and shall remain, in full force and effect after giving effect to this Agreement. The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
7.     Representations and Warranties.  The Borrower and each of the Guarantors hereby jointly and severally represent and warrant to the Lenders as follows:
(a)The execution, delivery and performance of this Agreement by the Borrower and each Guarantor (i) are within the authority of such Loan Party, (ii) have been duly authorized by all necessary proceedings on the part of such Loan Party and any general partner thereof, (iii) do 

8

not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Loan Party is subject or any judgment, order, writ, injunction, license or permit applicable to such Loan Party, (iv) do not conflict with any provision of the organizational documents of such Loan Party or any general partner or manager thereof, and (v) do not contravene any provisions of, or constitute a Default or Event of Default under the Credit Agreement or a failure to comply with any term, condition or provision of, any other agreement, instrument, judgment, order, decree, permit, license or undertaking binding upon or applicable to such Loan Party or any of such Loan Party’s properties or in the creation of any mortgage, pledge, security interest, lien, encumbrance or charge upon any of the properties or assets of such Loan Party.
(b)    This Agreement (including the Increase) and the Credit Agreement and other Loan Documents constitute legal, valid and binding obligations of each Loan Party, enforceable in accordance with their respective terms, except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein and as may be limited by equitable principles generally.
(c)    Other than approvals or consents which have been obtained (written copies of which have been furnished to the Administrative Agent), the execution, delivery and performance by the Borrower and Guarantors of this Agreement (including the Increase), and the transactions contemplated hereby, do not require any approval or consent of, or filing with, any third party or any governmental agency or authority.
(d)    The representations and warranties made or deemed made by each Loan Party in the Loan Documents to which it is a party shall be true and correct in all material respects (or in all respects to the extent that such representations and warranties are already subject to concepts of materiality) on and as of the Increase Effective Date with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date).  For purposes of this clause (d), the representations and warranties contained in Section 7.11 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Article IX of the Credit Agreement. 
(e)    Both immediately before and immediately after giving effect to this Agreement (including the Increase) and the transactions contemplated hereby, no Default or Event of Default under (and as defined in) the Credit Agreement has occurred and is continuing.
8.    Conditions Precedent.   This Agreement shall be deemed to be effective as of the Increase Effective Date (with the Accordion Amendment being deemed effective immediately prior to the making of the Tranche D Term Loan), subject to the execution and delivery of the following documents, each in form and substance satisfactory to the Administrative Agent and satisfaction of the additional conditions set forth below:
(a)    this Agreement executed and delivered by the Borrower, the Guarantors, the Administrative Agent, the Increase Lenders, the Requisite Class Lenders of the Tranche C Loan and Lenders otherwise required to constitute Requisite Lenders; 

9

(b)    a Note substantially in the form of Exhibit H-2 to the Credit Agreement issued in favor of each Tranche D Lender reflecting the aggregate principal amount of such Lender’s Tranche D Loan (collectively, the “New Notes”); 
(c)    a certificate dated as of the date hereof signed by a duly authorized officer of the Borrower and each Guarantor (i) certifying and attaching the resolutions adopted by the Borrower and each Guarantor’s board of directors or trustees (or other appropriate governing body or Persons) authorizing the transactions described herein and evidencing the due authorization, execution and delivery of this Agreement, the New Notes and each of the other Loan Documents to which such Loan Party is a party executed in connection with the Increase, (ii) certifying that the organizational documents of the Borrower and each Guarantor have not been amended, modified or rescinded since they were last furnished in writing to the Administrative Agent, and remain in full force and effect as of the date hereof, (iii) certifying that the Borrower and each Guarantor is duly formed, validly existing and in good standing under the laws of such entity’s jurisdiction of organization, and that there is no pending or to such officer’s knowledge, threatened proceeding for dissolution, liquidation or other similar matter with respect to the Borrower or any Guarantor, (iv) certifying that, immediately before and immediately after giving effect to the Increase, this Agreement, the Increasing Lender Agreements and the Augmenting Lender Agreements, (A) the representations and warranties contained in Section 7 of the Credit Agreement and in the other Loan Documents are true and correct in all material respects (or in all respects to the extent that such representations and warranties are already subject to concepts of materiality) on and as of the Increase Effective Date with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in such respects on and as of such earlier date) and except that for purposes hereof, the representations and warranties contained in Section 7.11 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Article IX of the Credit Agreement, (B) there has been no material adverse change in the business, assets, operations, condition (financial or otherwise) or properties of any of the Loan Parties since the date of the financial statements most recently delivered to the Administrative Agent pursuant to the Credit Agreement, and (C) no Default or Event of Default exists; 
(d)    to the extent requested by the Administrative Agent, information from the Borrower with respect to any outstanding Disqualified Stock;
(e)    an Increasing Lender Agreement executed and delivered by each Increase Lender that is not an Augmenting Lender and the other parties thereto; 
(f)    an Augmenting Lender Agreement executed and delivered by each Augmenting Lender and the other parties thereto;
(g)    favorable opinions of counsel to the Borrower and Guarantors acceptable to the Administrative Agent with respect to this Agreement and the Increase reflected herein and the New Notes; and

10

(h)    payment by the Borrower in immediately available funds of the fees payable to the Increase Lenders set forth in the fee letter delivered in connection with this Agreement and as otherwise provided by the Credit Agreement.
9.    Miscellaneous Provisions.
(a)    THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
(b)    This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which counterparts taken together shall be deemed to constitute one and the same instrument.  The existence of this Agreement may be established by the introduction into evidence of counterparts that are separately signed, provided they are otherwise identical in all material respects.

[Remainder of Page Intentionally Blank]

    

11

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first above written.

BORROWER:

NSA OP, LP

		
	By:
	NATIONAL STORAGE AFFILIATES TRUST, its general partner

By:     ______________________________
Name:     
Title:     
 

    

    

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

GUARANTORS:

NATIONAL STORAGE AFFILIATES TRUST

By: ______________________________
Name:     
Title:     

SUBSIDIARY GUARANTORS

All Stor Indian Trail, LLC, 
American Mini Storage-San Antonio, LLC, 
Eagle Bow Wakefield, LLC, 
Great American Storage Partners, LLC, 
NSA-C Holdings, LLC, 
NSA-G Holdings, LLC, 
NSA Northwest Holdings II, LLC, 
NSA – Optivest Acquisition Holdings, LLC, 
NSA Property Holdings, LLC, 
NSA Storage Solutions, LLC, 
SecurCare Colorado III, LLC, 
SecurCare Moveit McAllen, LLC, 
SecurCare Oklahoma I, LLC, 
SecurCare Oklahoma II, LLC, 
SecurCare Properties I, LLC, 
SecurCare Properties II, LLC, 
SecurCare Portfolio Holdings, LLC, 
StoreMore Self Storage – Pecos Road, LLC, 
each, a Delaware limited liability company

By: ______________________________
Name:     
Title:     

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

Bullhead Freedom Storage, L.L.C, 
an Arizona limited liability company 

By: ______________________________
Name:     
Title:

GAK, LLC, 
Washington Murrieta II, LLC, 
Washington Murrieta IV, LLC, 
each a California limited liability company

By: ______________________________
Name:     
Title:

WCAL, LLC, 
a Texas limited liability company    

By: ______________________________
Name:     
Title: 

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

 
INCREASE LENDERS:

KEYBANK NATIONAL ASSOCIATION, 
as a Lender

By:                        
Name:  Michael P. Szuba
Title:   Vice President 

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

PNC BANK, NATIONAL ASSOCIATION, 
as a Lender

By:_________________________________
Name:
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

U.S. BANK, NATIONAL ASSOCIATION, 
as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

BMO HARRIS BANK N.A., as a Lender

    
By: ______________________________
Name:     
Title

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

REGIONS BANK, as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

SUNTRUST BANK, as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

CITIBANK, N.A., as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

ADMINISTRATIVE AGENT:

KEYBANK NATIONAL ASSOCIATION, as Administrative Agent

By:_________________________________
Name:  Michael P. Szuba
Title:   Vice President 

KEYBANK NATIONAL ASSOCIATION,
as issuer of Letters of Credit

    
By:                        
Name:  Michael P. Szuba
Title:   Vice President 
    

KEYBANK NATIONAL ASSOCIATION,
as Swingline Lender

    
By:                        
Name:  Michael P. Szuba
Title:   Vice President 

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

MORGAN STANLEY SENIOR 
FUNDING, INC., as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

CAPITAL ONE NATIONAL 
ASSOCIATION, as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

MORGAN STANLEY BANK, N.A., as a Lender

By: ______________________________
Name:     
Title:

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

ASSOCIATED BANK, NATIONAL ASSOCIATION, as a Lender

By: ______________________________
Name:     
Title:

 

[SIGNATURE PAGE TO THIRD INCREASE AGREEMENT AND AMENDMENT (KEYBANK/NSA)]

Annex 1
Increase Lenders

	
		
	Tranche D Lender
	Tranche D Commitment 

	KeyBank National Association
	$10,000,000.00

	PNC Bank, National Association
	$10,000,000.00

	U.S. Bank National Association
	$10,000,000.00

	Wells Fargo Bank, National Association
	$32,500,000.00

	BMO Harris Bank N.A.
	$10,000,000.00

	Regions Bank
	$10,000,000.00

	SunTrust Bank
	$10,000,000.00

	Citibank, National Association
	$32,500,000.00

	Total
	$125,000,000.00

Annex 1 - 1

Annex 2
SCHEDULE 1.1
Lender Commitments
Revolving Commitments
	
			
	Lender
	Revolving Commitment Amount
	Revolving Percentage

	KeyBank National Association
	$37,500,000.00
	9.375000000%

	PNC Bank, National Association
	$37,500,000.00
	9.375000000%

	U.S. Bank National Association
	$45,000,000.00
	11.250000000%

	Wells Fargo Bank, National Association
	$35,000,000.00
	8.750000000%

	BMO Harris Bank N.A.
	$37,500,000.00
	9.375000000%

	Capital One, National Association
	$37,500,000.00
	9.375000000%

	Regions Bank
	$30,000,000.00
	7.500000000%

	The Huntington National Bank
	$25,000,000.00
	6.250000000%

	Morgan Stanley Bank, N.A.
	$25,000,000.00
	6.250000000%

	Morgan Stanley Senior Funding, Inc.
	$30,000,000.00
	7.500000000%

	Royal Bank of Canada
	$30,000,000.00
	7.500000000%

	SunTrust Bank
	$30,000,000.00
	7.500000000%

	Associated Bank, National Association
	--
	--

	TOTAL
	$400,000,000.00
	100.000000000%

Annex 2 - 1

Term Loan Commitments/Term Loans
	
									
	Lender
	Tranche A Commitment Amount/Tranche A Term Loan
	Tranche A Commitment Percentage
	Tranche B Commitment Amount/Tranche B Term Loan
	Tranche B Commitment Percentage
	Tranche C Commitment Amount/Tranche C Term Loan
	Tranche C Commitment Amount/Tranche C Term Loan
	Tranche D Commitment Amount/Tranche D Term Loan
	Tranche D Commitment Amount/Tranche D Term Loan

	KeyBank National Association
	$27,500,000.00
	11.702127660%
	$23,750,000.00
	15.322580650%
	$25,000,000.00
	23.809523810%
	$10,000,000.00
	8.000000000%

	PNC Bank, National Association
	$27,500,000.00
	11.702127660%
	$23,750,000.00
	15.322580650%
	$25,000,000,00
	23.809523810%
	$10,000,000.00
	8.000000000%

	U.S. Bank National Association
	$32,500,000.00
	13.829787230%
	$12,500,000.00
	8.064516129%
	--
	--
	$10,000,000.00
	8.000000000%

	Wells Fargo Bank, National Association
	$30,000,000.00
	12.765957450%
	$12,500,000.00
	8.064516129%
	--
	--
	$32,500,000.00
	26.000000000%

	BMO Harris Bank N.A.
	$20,000,000.00
	8.510638298%
	$17,500,000.00
	11.290322580%
	$25,000,000.00
	23.809523810%
	$10,000,000.00
	8.000000000%

	The Huntington National Bank
	$17,500,000.00
	7.446808511%
	$7,500,000.00
	4.838709677%
	--
	--
	--
	--

	Regions Bank
	$20,000,000.00
	8.510638298%
	$10,000,000.00
	6.451612903%
	--
	--
	$10,000,000.00
	8.000000000%

	Morgan Stanley Senior Funding, Inc.
	$10,000,000.00
	4.255319149%
	--
	--
	--
	--
	--
	--

	Capital One, National Association
	$20,000,000.00
	8.510638298%
	$22,500,000.00
	14.516129030%
	--
	--
	--
	--

	SunTrust Bank
	$30,000,000.00
	12.765957450%
	$25,000,000
	16.129032260%
	--
	--
	$10,000,000.00
	8.000000000%

	Royal Bank of Canada
	--
	--
	--
	--
	--
	--
	--
	--

Annex 2 - 2

	
									
	Lender
	Tranche A Commitment Amount/Tranche A Term Loan
	Tranche A Commitment Percentage
	Tranche B Commitment Amount/Tranche B Term Loan
	Tranche B Commitment Percentage
	Tranche C Commitment Amount/Tranche C Term Loan
	Tranche C Commitment Amount/Tranche C Term Loan
	Tranche D Commitment Amount/Tranche D Term Loan
	Tranche D Commitment Amount/Tranche D Term Loan

	Associated Bank, National Association
	--
	--
	--
	--
	$30,000,000.00
	28.571428570%
	--
	--

	Morgan Stanley Bank, N.A.
	--
	--
	--
	--
	--
	--
	--
	--

	Citibank, N.A.
	 
	 
	 
	 
	 
	 
	$32,500,000.00
	26.000000000%

	TOTAL
	$235,000,000.00
	100.000000000%
	$155,000,000.00
	100.000000000%
	$105,000,000.00
	100.000000000%
	$125,000,000.00
	100.000000000%

Annex 2 - 3

Annex 3
EXHIBIT H-2
FORM OF [TRANCHE [  ]] LOAN PROMISSORY NOTE

$__________    __________ ___, 20__
 
FOR VALUE RECEIVED, the undersigned hereby promises to pay to _______________ (the “Lender”) or its registered assigns, in care of KeyBank National Association, as Administrative Agent (the “Administrative Agent”) at KeyBank National Association, 127 Public Square, Cleveland, Ohio 44114, or at such other address as may be specified in writing by the Administrative Agent to the Borrower, the principal sum of _____________AND __/100 DOLLARS ($___________), on the date and in the principal amount provided in the Credit Agreement, and to pay interest on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit Agreement.
 
The date, amount of the [Tranche A/Tranche B/Tranche C/Tranche D] Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this [Tranche A/Tranche B/Tranche C/Tranche D] Loan Promissory Note (the “Note”), endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the [Tranche A/Tranche B/Tranche C/Tranche D] Loan made by the Lender.
 
This Note is one of the Notes referred to in the Amended and Restated Credit Agreement (the “Credit Agreement”) dated as of May 6, 2016, by and among by and among NSA OP, LP, a limited partnership formed under the laws of the State of Delaware (the “Borrower”), the Lenders from time to time party thereto, and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent for the Lenders, and joined in for certain purposes by certain Subsidiaries of the Borrower and NATIONAL STORAGE AFFILIATES TRUST, a Maryland real estate investment trust (“NSA REIT” or the “Parent Guarantor”).  Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Credit Agreement.
 
The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon the terms and conditions specified therein.

This Note is guaranteed by the Guarantors as provided in the Guaranty.  Reference is hereby made to the Guaranty for a description of the nature and extent of such guaranty, the terms and conditions upon which such guaranty was granted and the rights of the holder of this Note in respect thereof.    
 

Annex 3 - 1

Except as permitted by Section 13.5 of the Credit Agreement, this Note may not be assigned by the Lender to any other Person.
 
[This Note is given in replacement of the Term Note dated _______ __, 20__ in the original principal amount of $_________ previously delivered to the Lender under the Credit Agreement.  THIS NOTE IS NOT INTENDED TO BE, AND SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING UNDER OR IN CONNECTION WITH THE OTHER NOTE.]
 
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
 
The Borrower hereby waives presentment for payment, demand, notice of demand, notice of non-payment, protest, notice of protest and all other similar notices.
 
Time is of the essence for this Note.
 
[Signature Page Follows]
 

Annex 3 - 2

IN WITNESS WHEREOF, the undersigned has executed and delivered this Note as of the date first written above.

NSA OP, LP, as Borrower

		
	By:
	NATIONAL STORAGE AFFILIATES TRUST, its general partner

By:     ______________________________
Name:     
Title:     

 

Annex 3 - 3Exhibit

Exhibit 10.28

THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

National Storage Affiliates Trust
Form of LTIP Unit Award Agreement

1.    Grant of LTIP Units.
[] (the “Grantee”), is hereby awarded [] LTIP Units (the “LTIP Units”) in NSA OP, LP (the “Partnership”), by National Storage Affiliates Trust, in its sole capacity as general partner of the Partnership, on the date hereof subject to the terms and conditions of this LTIP Unit Award Agreement (this “Agreement”) and subject to the provisions of the National Storage Affiliates Trust 2015 Equity Incentive Plan (the “Plan”) and the Third Amended and Restated Limited Partnership Agreement of the Partnership, dated as of April 28, 2015 (as amended, the “Partnership Agreement”).  The Plan is hereby incorporated herein by reference as though set forth herein in its entirety.  Definitions not included herein shall have the meaning set forth in the Plan and Partnership Agreement, as applicable.
2.    Restrictions and Conditions.
The LTIP Units are subject to the following restrictions and conditions, in addition to any requirements or restrictions set forth with respect to LTIP Units in the Plan and the Partnership Agreement:
(a)    [] LTIP Units shall vest as specified in Annex A attached hereto (the "Time Vested LTIP Units") and [] LTIP Units, representing the maximum number of LTIP Units that can vest based on performance, shall vest as specified in Annex B attached hereto (the "Performance Vested LTIP Units"). Subject to paragraph 5(b) below, during the period prior to the full vesting of any LTIP Unit (the "Vesting Period"), the Grantee shall not be permitted voluntarily or involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign such LTIP Unit (or have such LTIP Unit attached or garnished).

(b)    Except as provided in the foregoing paragraph (a), below in this paragraph (b) or in the Plan, the Grantee shall have, in respect of the LTIP Units, all of the rights of a holder of LTIP Units as set forth in the Partnership Agreement.  Distributions and allocations with respect to the LTIP Units shall be made to the Grantee in accordance with the terms of the Partnership Agreement, 

except that the Grantee, during the Vesting Period, shall be entitled to receive distributions (1) with respect to each Time Vested LTIP Unit, equal to and concurrently with each distribution paid to a holder of a Class A OP Unit as distributions on Class A OP Units are made and (2) with respect to each Performance Vested LTIP Unit at the "Maximum Level" (as set forth on Annex B), equal to ten percent (10%) of the distributions payable with respect to each distribution paid to a holder of a Class A OP Unit as distributions on Class A OP Units are made (the "Interim Distributions").  Upon the completion of the Vesting Period, Grantee shall be entitled to receive an amount equal to (1) the distributions payable during the Vesting Period with respect to a number of Class A OP Units of the Company that is identical to the actual number of Performance Vested LTIP Units earned pursuant to Annex B, less (2) the amount of the Interim Distributions (such amount, the "Performance Distribution"). After the completion of the Vesting Period, Grantee shall be entitled to receive distributions on each vested LTIP Unit equal to distributions paid to a holder of a Class A OP Unit as distributions on Class A OP Units are made.

(c)    Subject to paragraphs (d), (e) and (f) below, if the Grantee has a Termination of Service prior to the completion of the Vesting Period (i) without Cause (as defined in Grantee's employment agreement with the Company dated [] (the "Employment Agreement")), (ii) for Good Reason (as defined in the Employment Agreement), (iii) by reason of the Grantee's death or (iv) on account of the Grantee's Disability (as defined in the Employment Agreement) prior to the completion of the Vesting Period, then upon the completion of the Vesting Period, (1) the Grantee shall receive a prorated number of the Performance Vested LTIP Units calculated by multiplying the number of the Performance Vested LTIP Units that would have been awarded upon the completion  of the Vesting Period if Grantee had not had a Termination of Service prior to the completion of the Vesting Period by a fraction (the "Termination Fraction") the numerator of which is (y) the number of calendar days that elapsed from the beginning of the Vesting Period to and including the date of the Grantee’s Termination of Service, and the denominator of which is (z)  the number of calendar days in the Vesting Period, (2) the Grantee shall receive a prorated amount of the Performance Distribution calculated by multiplying the amount of the Performance Distribution that would have been paid upon the completion of the Vesting Period if Grantee had not had a Termination of Service prior to the completion of the Vesting Period (as calculated under paragraph 2(b) above) by the Termination Fraction, and (3) the outstanding Time Vested LTIP Units shall immediately vest.  Notwithstanding the foregoing or any provisions of the Employment Agreement, in the event of such a Termination of Service following a Change of Control which occurs after June 30, 20[], then the number of Performance Vested LTIP Units that shall vest shall be calculated in the same manner as set forth in this paragraph (c) without being subject to proration.

(d)    Upon the completion of the Vesting Period, or, if earlier, the Grantee's Termination of Service for any reason other than as specified above in paragraph (c), all LTIP Units granted 

hereunder that have not vested will be forfeited without payment of any consideration, and neither the Grantee nor his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such LTIP Units.

(e)    If the Grantee commences or continues service as a director or consultant of the Company upon termination of employment, such continued service shall be treated as continued employment hereunder (and for purposes of the Plan), and the subsequent termination of service shall be treated as the applicable Termination of Service for purposes of this Agreement.

(f)    If the Grantee's Employment Agreement provides that LTIP Units subject to restriction shall be subject to terms other than those set forth above, the terms of the Employment Agreement shall apply with respect to such LTIP Units granted hereby and shall, to the extent applicable, supersede the terms hereof.

(g)    For purposes of this Agreement, a Termination of Service shall occur when the employee-employer relationship or trusteeship, or other service relationship, between the Grantee and the Company is terminated for any reason, including, but not limited to, any termination by resignation, discharge, death or retirement under the Employment Agreement. The Compensation Committee, in its absolute discretion, shall determine the effects of all matters and questions relating to termination of service.  For this purpose, the service relationship shall be treated as continuing intact while the Grantee is on sick leave or other bona fide leave of absence (to be determined in the discretion of the Compensation Committee).

    
3.    Certain Terms of LTIP Units.

(a)    The Company may, but is not obligated to, issue to the Grantee (or its assignee or transferee, as applicable) a certificate in respect of the LTIP Units or may indicate such Grantee's ownership of LTIP Units on the Company's books and records.  Such certificate, if any, shall be registered in the name of the Grantee (or such assignee or transferee).  The certificates for LTIP Units issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder, or pursuant to any assignment or transfer by the Grantee, or as the Compensation Committee may otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a legend referring to the terms, conditions, and restrictions applicable to such LTIP Units, substantially in the following form:
THE TRANSFERABILITY OF THIS CERTIFICATE AND THE LTIP UNITS REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE NATIONAL STORAGE AFFILIATES TRUST 2015 EQUITY INCENTIVE PLAN, THE PARTNERSHIP AGREEMENT AND AN AWARD AGREEMENT APPLICABLE TO THE GRANT OF THE LTIP UNITS 

REPRESENTED BY THIS CERTIFICATE.  COPIES OF SUCH PLAN, PARTNERSHIP AGREEMENT AND AWARD ARE ON FILE IN THE OFFICES OF NSA OP, LP.
(b)    Certificates, if any, evidencing the LTIP Units granted hereby shall be held in custody by the Company until the restrictions have lapsed.  If and when such restrictions so lapse, the certificates shall be delivered by the Company to the Grantee.
(c)    So long as the Grantee holds any LTIP Units, the Grantee shall disclose to the Company in writing such information as may be reasonably requested with respect to ownership of LTIP Units and any conditions applicable thereto, as the Company, as applicable, may deem reasonably necessary, including in order to ascertain and establish compliance with provisions of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to the Company or to comply with requirements of any other appropriate taxing or other regulatory authority.
4.    Compliance with Securities laws.
The Grantee acknowledges that the LTIP Units have not been registered under the Securities Act or under any state securities or “blue sky” law or regulation (collectively, "Securities Laws") and hereby makes the following representations and covenants as a condition to the grant of LTIP Units:
(a)    The Grantee has not taken, and covenants that it will not take, himself or herself or through any agent acting on his behalf, any action that would subject the issuance or sale of the LTIP Units to the registration provisions of the Securities Act or to the registration, qualification or other similar provisions of any Securities Laws, or breach any of the provisions of any Securities Laws, but, rather, that the Grantee shall at all times act with regard to the LTIP Units in full compliance with all Securities Laws;

(b)    The Grantee has acquired and, to the extent applicable, is acquiring the LTIP Units for his or her own account for investment and with no present intention of distributing the LTIP Units or any part thereof;

(c)    The Grantee is and shall be an “accredited investor” as defined in Section 2(15) and Rule 501(a) of Regulation D of the Securities Act;

(d)    The Grantee is capable of evaluating the merits and risks of the acquisition and ownership of the LTIP Units and has obtained all information regarding the Company (and its applicable affiliates) and the LTIP Units as the Grantee deems appropriate, and has relied solely upon such information, and the Grantee's own knowledge, experience and investigation, and those of his advisors, and not upon any representations of the Company, in connection with his investment decision in acquiring the LTIP Units; and

(e)    The Grantee and his or her professional advisors have had an opportunity to conduct, and have so conducted if so desired, a due diligence investigation of the Company in connection with the decision to acquire the LTIP Units and in such regard have done all things as the Grantee and they have deemed appropriate and have had an opportunity to ask questions of and receive answers from the Company, and have done so, as they have deemed appropriate.

5.    Miscellaneous.
(a)    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

(b)    Except as set forth in the Partnership Agreement, the Grantee shall not have the right to transfer all or any portion of the LTIP Units without the prior written consent of the General Partner (in its sole discretion); provided, however, that the Grantee may transfer all or any portion of the Grantee's vested LTIP Units for bona fide estate planning purposes to an immediate family member or the legal representative, estate, trustee or other successor in interest, as applicable, of the Grantee.  Any transfer in violation of this Agreement or the Partnership Agreement, or which does not otherwise comply with the conditions of transfer imposed by the General Partner shall be void.

(c)    The Grantee shall be responsible for filing with the Internal Revenue Service an election under Section 83(b) of the Code on a form substantially similar to the form attached hereto as Annex C and reasonably satisfactory to the Company (and will include a copy thereof with the applicable tax return) within 30 days after the date hereof.  The Grantee shall be solely responsible for the filing of such election and all related filings.

(d)    The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(e)    The Compensation Committee may make such rules and regulations and establish such procedures for the administration of this Agreement as it deems appropriate.  Without limiting the generality of the foregoing, the Compensation Committee may interpret the Plan and this Agreement, with such interpretations to be conclusive and binding on all persons and otherwise 

accorded the maximum deference permitted by law.  In the event of any dispute or disagreement as to interpretation of the Plan or this Agreement or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan or this Agreement, the decision of the Compensation Committee shall be final and binding upon all persons.

(f)    All notices hereunder shall be in writing, and if to the Company or the Compensation Committee, shall be delivered to the Company or mailed to its principal office, addressed to the attention of the Compensation Committee; and if to the Grantee, shall be delivered personally, sent by facsimile transmission or mailed to the Grantee at the address appearing in the records of the Company.  Such addresses may be changed at any time by written notice to the other party given in accordance with this paragraph 5(f).

(g)    The failure of the Grantee or the Company to insist upon strict compliance with any provision of this Agreement or the Plan, or to assert any right the Grantee or the Company, respectively, may have under this Agreement or the Plan, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement or the Plan.

(h)    Nothing in this Agreement shall confer on the Grantee any right to continue in the employ or other service of the Company or interfere in any way with the right of the Company or its affiliates to terminate the Grantee’s employment or other service at any time.

(i)    The terms of this Agreement shall be binding upon the Grantee and upon the Grantee's heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest and upon the Company and its successors and assignees, subject to the terms of the Plan.

(j)    Notwithstanding anything to the contrary contained in this Agreement, to the extent that the board of trustees of the Company (the "Board") determines that an LTIP Unit or the Plan is subject to Section 409A of the Code and fails to comply with the requirements of Section 409A of the Code, the Compensation Committee reserves the right (without any obligation to do so or to indemnify the Grantee for failure to do so), without the consent of the Grantee, to amend or terminate this Agreement and the Plan and/or amend, restructure, terminate or replace the LTIP Unit in order to cause the LTIP Unit to either not be subject to Section 409A of the Code or to comply with the applicable provisions of such section.

(k)    If, in the opinion of the independent trustees of the Board, the Company's financial results are restated due in whole or in part to intentional fraud or misconduct by one or more of the Company's executive officers, the Company's independent trustees may, based upon the facts and circumstances surrounding the restatement, direct that the Company recover all or a portion of, or cancel, the awards granted under this Agreement.

(l)    This Agreement, together with the Plan and Partnership Agreement, contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the []th day of [], 20[].
National Storage Affiliates Trust

By:     
Name:      
Title:     

GRANTEE

By:     
Name:      
Title:                         

ANNEX A

Time Vested LTIP Units
Subject to Section 2 of this Agreement, the [] Time Vested LTIP Units shall otherwise vest on the following dates:

	
				
	Percentage (Amount) of Time Vested LTIP Units Awarded Hereunder
	 
	Vesting Date
	 

	[]% ([])
	 
	January 1, 20[]
	 

	[]% ([])
	 
	January 1, 20[]
	 

	[]% ([])
	 
	January 1, 20[]
	 

ANNEX B
Performance Vested LTIP Units
Subject to Section 2 of this Agreement, the [] Performance Vested LTIP Units shall be subject to the following vesting rules during the period between January 1, 20[] and December 31, 20[] (the "Performance Period") and shall vest on January 1, 20[], subject to the achievement of certain performance criteria as set forth below:
1.    As to [] of the Performance Vested LTIP Units Granted:
	
				
	 
	3-Year Relative TSR vs MSCI US REIT Index (RMS)
	Vesting Percentage
	Number of Performance Vested LTIP Units

	"Minimum Level"
	35th Percentile
	[]%
	[]

	"Target Level"
	55th Percentile
	[]%
	[]

	"Maximum Level"
	75th Percentile
	[]%
	[]

In the event the 3-Year Relative TSR vs. MSCI US REIT Index falls between the 35th and 55th percentile, the Vesting Percentage and number of Performance Vested LTIP Units vesting shall be determined using a straight line linear interpolation between []% and []% and in the event that the 3-Year Relative TSR vs. MSCI US REIT Index falls between the 55th and 75th percentile, the Vesting Percentage and number of Performance Vested LTIP Units vesting shall be determined using a straight line linear interpolation between []% and []%.  In the event the 3-Year Relative TSR vs. MSCI US REIT Index is below the 35th percentile, the Vesting Percentage and number of Performance Vested LTIP Units vesting shall equal 0% of the "Maximum Level" Performance Vested LTIP Units.  In the event the 3-Year Relative TSR vs. MSCI US REIT Index exceeds the 75th percentile, the Vesting Percentage and number of Performance Vested LTIP Units vesting shall equal []% of the "Maximum Level" Performance Vested LTIP Units.
2.     As to []of the Performance Vested LTIP Units Granted:

	
				
	 
	3-Year Relative TSR vs SS Peer Companies
	Vesting Percentage
	Number of Performance Vested LTIP Units

	"Minimum Level"
	4th Place
	[]%
	[]

	"Target Level"
	2nd or 3rd Place
	[]%
	[]

	"Maximum Level"
	1st Place
	[]%
	[]

In the event the 3-Year Relative TSR vs. the SS Peer Companies is below 4th Place, the Vesting Percentage and number of Performance Vested LTIP Units vesting shall equal 0% of the "Maximum Level" Performance Vested LTIP Units.

3. For purposes of this Annex B, TSR performance will be calculated as the compounded annual growth rate, expressed as a percentage (rounded to the nearest tenth of a percent (0.1%)), in the value per share of common stock during the Performance Period due to the appreciation in the price per share of common stock and dividends paid during the Performance Period, assuming dividends are reinvested.  The Absolute TSR Percentage is calculated as follows:

Absolute TSR Percentage = (1*(1 + Cumulative TSR))^(1/3) -1

		
	•
	Where "Cumulative TSR" = ((1*(1 + TSR Year 1)*(1 + TSR Year 2)*(1 + TSR Year 3)) -1)

		
	•
	For purposes of the Cumulative TSR calculation, "TSR" for a given year shall be calculated as follows:

Where “D” is the amount of dividends paid to a shareholder of record with respect to one share of     common stock during the Performance Period.  For purposes of the calculation above, the     "Ending Share Price" for the last year (third year) of performance shall be based on a 20 day     trailing     average closing stock price.

The Absolute TSR Percentage of National Storage Affiliates Trust will be compared with the Absolute TSR Percentage of each company in the MSCI US REIT Index and each SS Peer Company.  The relative performance of National Storage Affiliates Trust versus the other companies in the MSCI US REIT Index will be expressed in terms of relative percentile ranking, which shall be applied as set forth in the table in Section 1 above.  The relative performance of National Storage Affiliates Trust versus the other SS Peer 

Companies will be expressed as a relative numerical ranking against the other SS Peer Companies, which shall be applied as set forth in the table in Section 2 above.

4. For purposes of Section 2 of this Annex B, the "SS Peer Companies" are:

		
	•
	CubeSmart

		
	•
	Extra Space Storage Inc. 

		
	•
	Public Storage

		
	•
	Life Storage, Inc. (formerly Sovran Self Storage, Inc.)

In order for a SS Peer Company to be included in the relative calculation for ascertaining the level of relative TSR performance under Section 2 of this Annex B, the SS Peer Company must be present for the entire Performance Period (i.e., a SS Peer Company that is, for example, acquired during the Performance Period, shall be entirely omitted from the calculation).

ANNEX C
[], 20[]
CERTIFIED MAIL RETURN
RECEIPT REQUESTED

		
	Re:
	Section 83(b) Election

Dear Sir or Madam:

Pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, the undersigned (the “Taxpayer”) files the following statement for the purpose of making, with respect to the property described below, the election permitted by Section 83(b):

		
	1.
	Name, address, taxpayer identification number and the taxable year of the Taxpayer:

Name:        
Address:        
    
T.I.N.:        
Taxable Year:        

		
	2.
	Description of the property with respect to which this election is being made: ____ units (“LTIP Units”) of interest in certain allocations and distributions of National Storage Affiliates Trust, a Maryland real estate investment trust (the “Company”).  ______ of such LTIP Units are subject to restriction.

		
	3.
	The date on which the property was acquired by the Taxpayer and the taxable year for which the election is being made: The Taxpayer acquired the LTIP Units on ___________.  The taxable year for which the election is made is the calendar year _____.

		
	4.
	The nature of the restrictions to which the property is subject: LTIP Units are subject to time-based and performance vesting.  LTIP Units are subject to forfeiture in the event of certain terminations of the Taxpayer’s service with the Company.

		
	5.
	The fair market value at the time of the acquisition (determined without regard to any restriction other than a restriction which by its terms will never lapse) of the property with respect to which the election is being made: At the time of the acquisition, the LTIP Units had a fair market value of $[0] per unit.

		
	6.
	The amount paid for such property: The LTIP Units were acquired for a purchase price of $[0] per unit.

		
	7.
	Copies of this statement have been furnished to the person for whom the services are to be performed.  Also, one copy of this statement will be submitted with the income tax return of the Taxpayer making this election for the taxable year in which the property was acquired.

Very truly yours,

______________

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