Document:

Exhibit 10.2

 

TIMOTHY M. MARTIN

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is dated as
of June 29, 2010 by and between U-STORE-IT TRUST, a Maryland real estate
investment trust (the “Company”), and Timothy M. Martin (the “Executive”).

 

WHEREAS,
the Company and the Executive entered into an Employment Agreement, dated
December 11, 2006 (the “Original Employment Agreement”), which was
superseded and replaced in its entirety by the Amended and Restated Employment
Agreement dated as of April 20, 2007 (the “First Restated Employment
Agreement”);

 

WHEREAS,
the Company and the Executive entered into an Employment Agreement, dated as of
December 23, 2008 (the “Second Restated Employment Agreement”),
which superseded and replaced in its entirety the First Restated Employment
Agreement;

 

WHEREAS,
the Company and the Executive desire to enter into this Agreement, which
supersedes and replaces in its entirety the Second Restated Employment Agreement;

 

WHEREAS,
the Company desires to employ the Executive to devote full time to the business
of the Company as the Chief Financial Officer of the Company on the terms and
subject to the conditions hereinafter stated; and

 

WHEREAS,
the Executive desires to be employed by the Company on the terms and subject to
the conditions hereinafter stated.

 

Accordingly,
the parties hereto agree as follows:

 

1.                                       Term.  The Company hereby continues the employment
of the Executive, and the Executive hereby accepts such continuation of
employment, for an initial term ending on June 30, 2011 unless sooner
terminated in accordance with the provisions of Section 4 or Section 5
(the period during which the Executive is employed hereunder being hereinafter
referred to as the “Term”).  The
Term shall be subject to automatic one-year renewals unless either party hereto
notifies the other, in accordance with Section 7.4, of non-renewal
at least ninety (90) days prior to the end of any such Term.  Notwithstanding the employment of the
Executive by the Company, the Company shall be entitled to pay the Executive
from the payroll of any subsidiary of the Company.

 

2.                                       Duties.  The Executive, in his capacity as Chief
Financial Officer, shall faithfully perform for the Company the duties of said
office and shall perform such other duties of an executive, managerial or
administrative nature as shall be specified and designated from time to time by
the Board of Trustees of the Company (the “Board”) (including the
performance of services for, and serving on the Board of Directors or a
comparable governing body of, any subsidiary or affiliate of the Company
without any additional compensation). 
The Executive shall devote substantially all of the Executive’s business
time and effort to the performance of the Executive’s duties hereunder,
provided that in no event shall this sentence prohibit the Executive from
performing personal and charitable activities and any other activities approved
by the Board, so long as such activities do not materially and adversely
interfere with the 

 

 

Executive’s duties for the Company.  The Board may delegate its authority to take
any action under this Agreement to the Compensation Committee of the Board (the
“Compensation Committee”).

 

3.                                       Compensation.

 

3.1                                 Salary.  The Company shall pay the Executive during
the Term a base salary at the rate of $275,000 per annum (the “Annual Salary”),
in accordance with the customary payroll practices of the Company applicable to
senior executives generally.  The Annual
Salary may be increased annually by an amount as may be approved by the Board
or the Compensation Committee, and, upon such increase, the increased amount
shall thereafter be deemed to be the Annual Salary for purposes of this
Agreement.

 

3.2                                 Bonus.  During the Term, in addition to the Annual
Salary, the Executive will be eligible to participate in (a) any formal
annual bonus plan established by the Compensation Committee for all executive
officers in its sole and absolute discretion (the “Annual Bonus Plan,”
and amounts paid thereunder are referred to as an “Annual Bonus”) and
(b) any formal long-term bonus or incentive plans established by the
Compensation Committee for all executive officers in its sole and absolute
discretion (the “Long-Term Bonus Plans,” and amounts paid thereunder are
referred to as “Long-Term Bonus”). 
The Annual Bonus Plans and the Long-Term Bonus Plans are referred to as
the “Bonus Plans.”  The Executive
may be awarded such restricted shares, share options and other equity-based
awards under the Company’s equity compensation plans (“Equity Awards”)
as the Compensation Committee determines to be appropriate in its sole
discretion.

 

3.3                                 Benefits —
In General.  The
Executive shall be permitted during the Term to participate in any group life,
hospitalization or disability insurance plans, health programs, pension and
profit sharing plans and similar benefits that may be available to similarly
situated senior executives of the Company generally, on the same terms as may
be applicable to such other executives, in each case to the extent that the
Executive is eligible under the terms of such plans or programs.  During the Term, the Company shall maintain
customary liability insurance for trustees and officers and list the Executive
as a covered officer.

 

3.4                                 Vacation.  During the Term, the Executive shall be
entitled to vacation of four (4) weeks per year.

 

3.5                                 Automobile.  During the Term, the Company will provide the
Executive an allowance for the use of an automobile (including the payment of
vehicle insurance) in accordance with the Company’s policy in effect from time
to time.  At the option of the Company,
in lieu of providing such allowance, the Company will provide the Executive
with an automobile of suitable standard to the Executive’s position.

 

3.6                                 Expenses.  The Company shall pay or reimburse the
Executive for all ordinary and reasonable out-of-pocket business expenses
actually incurred (and, in the case of reimbursement, paid) by the Executive
during the Term in the performance of the Executive’s services under this
Agreement, pursuant to the Company’s standard expense reimbursement 

 

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policy as in effect from time to time, so long as
the Executive provides proper documentation establishing the amount, date and
business purpose of the expenses.

 

3.7                                 Special Payment.  Within thirty (30) days after the date of
this Agreement, the Company shall pay to the Executive $125,000.

 

4.                                       Termination
upon Death or Disability.  If
the Executive dies during the Term, the obligations of the Company to or with
respect to the Executive shall terminate in their entirety except as otherwise
provided under this Section 4. 
If the Executive becomes eligible for disability benefits under the
Company’s long-term disability plans and arrangements (or, if none apply, would
have been so eligible under the most recent plan or arrangement), the Company
shall have the right, to the extent permitted by law, to terminate the
employment of the Executive upon notice in writing to the Executive and such
termination in and of itself shall not be, nor shall it be deemed to be, a
breach of this Agreement; provided, that, the Company will have no right to
terminate the Executive’s employment if, in the opinion of a qualified physician
reasonably acceptable to the Company, it is reasonably certain that the
Executive will be able to resume the Executive’s duties on a regular full-time
basis within 90 days of the date the Executive receives notice of such
termination.

 

Upon
death or other termination of employment by virtue of disability (i) the
Executive (or the Executive’s estate or beneficiaries in the case of the death
of the Executive) shall have no right to receive any compensation or benefit
hereunder on and after the Effective Date of the Termination other than Annual
Salary earned and accrued under this Agreement prior to the Effective Date of
the Termination, any bonus for the prior year not yet paid, and other benefits,
including payment for accrued but unused vacation, earned and accrued under
this Agreement prior to the Effective Date of the Termination (and
reimbursement under this Agreement for expenses incurred but not paid prior to
the Effective Date of the Termination) and an amount equal to the product of
(x) the Executive’s target annual bonus for the fiscal year of the
Executive’s death or disability and (y) a fraction, the numerator of which
is the number of days in the current fiscal year through the Effective Date of
the Termination, and the denominator of which is 365, such amount to be paid to
the Executive (or the Executive’s estate or beneficiaries in the case of the
death of the Executive) within 30 days of the Effective Date of Termination;
(ii) all Equity Awards held by the Executive shall become fully vested and
exercisable; and (iii) this Agreement shall otherwise terminate upon the
Effective Date of the Termination and there shall be no further rights with
respect to the Executive hereunder (except as provided in Section 7.14).  For purposes of this Section 4,
the “Effective Date of the Termination” shall mean the date of death or
the date on which a notice of termination by virtue of disability is given or
any later date (within thirty (30) days after the giving of such notice) set
forth in such notice of termination.

 

For
the avoidance of doubt, the Executive acknowledges and agrees that the payments
set forth in this Section 4 constitute liquidated damages for
termination of his employment during the Term upon death or by virtue of
disability.

 

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5.                                       Other
Terminations of Employment.

 

5.1                                 Termination for
Cause.  For purposes of this
Agreement, “Cause” shall mean:

 

(a)                                  the Executive’s
conviction for (or pleading nolo contendere
to) any felony or a misdemeanor involving moral turpitude;

 

(b)                                 the Executive’s
commission of an act of fraud, theft or dishonesty related to the business of
the Company or its affiliates or the performance of the Executive’s duties
hereunder;

 

(c)                                  the willful and
continuing failure or habitual neglect by the Executive to perform the
Executive’s duties hereunder;

 

(d)                                 any material
violation by the Executive of the covenants contained in Section 6
or in the Amended and Restated Non-Competition Agreement dated as of the date
hereof between the Executive and the Company (the “Restated Non-Competition
Agreement”); or

 

(e)                                  the Executive’s
willful and continuing material breach of this Agreement.

 

For
purposes of this Section 5.1, no act, or failure to act, by
Executive shall be considered “willful” unless committed in bad faith
and without a reasonable belief that the act or omission was in the best
interests of the Company or its subsidiaries. 
Notwithstanding the foregoing, if there exists (without regard to this
sentence) an event or condition that constitutes Cause under clause (c), (d) or
(e) above, the Executive shall have 30 days from the date written notice
is given by the Company of such event or condition to cure such event or
condition and, if the Executive does so, such event or condition shall not
constitute Cause hereunder.

 

5.2                                 Termination for
Good Reason.  For
purposes of this Agreement, “Good Reason” shall mean, unless otherwise
consented to by the Executive:

 

(a)                                  the material
reduction of the Executive’s authority, duties and responsibilities, or the
assignment to the Executive of duties materially and adversely inconsistent
with the Executive’s position or positions with the Company and its
subsidiaries;

 

(b)                                 a material
reduction in Annual Salary of the Executive;

 

(c)                                  the failure by
the Company to obtain an agreement from any successor to the business of the
Company to assume and agree to perform this Agreement;

 

(d)                                 a requirement
by the Company that the Executive’s work location be moved more than fifty (50)
miles from the Company’s office where the Executive works effective as of the
date of this Agreement, unless the relocation results in the work location
being closer to Executive’s residence; or

 

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(e)                                  the Company’s
material and willful breach of this Agreement.

 

Notwithstanding
the foregoing, if there exists (without regard to this sentence) an event or
condition that constitutes Good Reason under clause (a), (b), (d) or (e) above,
the Company shall have 30 days from the date on which the Executive gives the
written notice thereof to cure such event or condition and, if the Company does
so, such event or condition shall not constitute Good Reason hereunder.  Further, an event or condition shall cease to
constitute Good Reason one (1) year after the event or condition first
occurs.

 

5.3                                 Effect of
Termination for Cause.  The
Company may terminate the Executive’s employment hereunder for Cause and such
termination in and of itself shall not be, nor shall it be deemed to be, a
breach of this Agreement.  If the Company
terminates the Executive for Cause, (i) the Executive shall have no right
to receive any compensation or benefit hereunder on and after the Effective
Date of the Termination other than Annual Salary and other benefits, including
payment for unused vacation earned and accrued under this Agreement prior to
the Effective Date of the Termination and reimbursement under this Agreement
for expenses incurred but not paid prior to the Effective Date of the
Termination, but excluding any bonuses the Executive would have been entitled
to under the Bonus Plans; and (ii) this Agreement shall otherwise
terminate upon the Effective Date of the Termination and the Executive shall
have no further rights hereunder (except as provided in Section 7.14).  For purposes of this Section 5.3,
the “Effective Date of the Termination” shall mean the date on which a notice
of termination is given or any later date (within thirty (30) days after the
giving of such notice) set forth in such notice of termination.

 

5.4                                 Effect of
Termination Without Good Reason.  The Executive may terminate his employment
without Good Reason.  If the Executive
terminates the Executive’s employment with the Company without Good Reason:
(i) the Executive shall have no right to receive any compensation or
benefit hereunder on and after the Effective Date of the Termination other than
Annual Salary and other benefits, including payment for unused vacation earned
and accrued under this Agreement prior to the Effective Date of the Termination
and reimbursement under this Agreement for expenses incurred but not paid prior
to the Effective Date of the Termination, but excluding any bonuses the
Executive would have been entitled to under the Bonus Plans; and (ii) this
Agreement shall otherwise terminate upon the Effective Date of the Termination
and the Executive shall have no further rights hereunder (except as provided in
Section 7.14).  For purposes
of this Section 5.4, the “Effective Date of the Termination”
shall mean the date on which a notice of termination is given or any later date
(within thirty (30) days after the giving of such notice) set forth in such
notice of termination.

 

5.5                                 Effect of
Non-Renewal.  In the
event the Company elects not to renew this Agreement as contemplated in Section 1
above and as a result the Executive has a Separation from Service the Executive
shall receive a cash payment equal to one (1) times the sum of: (x) the
Executive’s Annual Salary in effect on the day of expiration of the Term and (y) the
average of the two previous Annual Bonuses received by the Executive as
provided for in Section 3.2, payable no later than 30 days after
such Separation from Service.  Upon
termination of this Agreement following a non-renewal election pursuant to Section 1
the Executive shall have no further rights hereunder (except as provided in Section 7.14).

 

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5.6                                 Termination
Without Cause; Termination for Good Reason.  The Company may terminate the Executive’s
employment at any time without Cause, for any reason or no reason and the
Executive may terminate the Executive’s employment with the Company for Good
Reason.  If the Company or the Executive
terminates the Executive’s employment and such termination is not described in Section 4
or Section 5.1 through Section 5.5, (i) the
Executive shall receive the Executive’s Annual Salary earned and accrued under
this Agreement prior to the Effective Date of the Termination, any bonus for
the prior year which has been awarded but not yet paid, and other benefits,
including payment for accrued but unused vacation, earned and accrued under
this Agreement prior to the Effective Date of the Termination (and
reimbursement under this Agreement for expenses incurred but not paid prior to the
Effective Date of the Termination) and an amount equal to the product of
(x) the Executive’s target annual bonus for the fiscal year of the
Executive’s termination of employment and (y) a fraction, the numerator of
which is the number of days in the current fiscal year through the Effective
Date of the Termination, and the denominator of which is 365, such amount to be
paid to the Executive within 30 days of the Effective Date of Termination;
(ii) the Executive shall receive a cash payment equal to the Severance
Payment payable within 30 days of the Effective Date of the Termination;
(iii) for 18 months after the Effective Date of the Termination, the
Company shall continue medical, prescription and dental benefits to the
Executive and/or the Executive’s family at least equal to those which would
have been provided to them in accordance with the welfare benefit plans,
practices, policies and programs provided by the Company to the extent
applicable generally to other peer employees of the Company and its affiliated
companies, as if the Executive’s employment had not been terminated; provided,
however, that if the Executive becomes reemployed with another employer
and is eligible to receive medical, prescription and dental benefits under
another employer provided plan, the medical, prescription and dental benefits
described herein shall be secondary to those provided under such other plan
during such applicable period of eligibility; (iv) all Equity Awards held
by the Executive shall become fully vested and exercisable (notwithstanding
anything to the contrary contained in any plan); and (v) this Agreement
shall otherwise terminate upon the Effective Date of the Termination and the
Executive shall have no further rights hereunder (except as provided in Section 7.14).

 

The
“Severance Payment” means 2.99 times the sum of: (i) the Executive’s
Annual Salary (as in effect on the effective date of such termination) and
(ii) the average of the two previous Annual Bonuses received by the
Executive pursuant to Section 3.2. 
For purposes of this Section 5.6, the “Effective Date of
the Termination” shall mean the date on which a notice of termination is
given or any later date (within thirty (30) days after the giving of such
notice) set forth in such notice of termination, or in the case of termination
of employment by the Executive for Good Reason, the date of termination
specified in such Executive’s notice of termination.

 

5.7                                 Severance and
Release.  In the event that Executive’s
employment is terminated and Executive receives a Severance Payment or other
post-termination benefits, the payment of such benefits is expressly
conditioned upon and shall not be made, provided or otherwise available unless
and until, Executive has executed and delivered to the Company a Severance and
General Release Agreement in substantially the form attached hereto as
Exhibit A.  The Company shall have
no post-termination obligations under this Agreement if the executed release is
not received by the Company within 60 days after the Effective Date of
Termination.

 

6

 

5.8                                 Nature of
Payments.  For the
avoidance of doubt, the Executive acknowledges and agrees that the payments set
forth in this Section 5 constitute liquidated damages for
termination of his employment during the Term.

 

5.9                                 References in Section 5.5
and Section 5.6 to Annual Bonuses (and the singular thereof) mean
any such bonuses received under this Agreement or the Second Restated
Employment Agreement.

 

6.                                       Confidential
and Proprietary Information.

 

6.1                                 Confidential
Information.  The
Executive shall keep secret and retain in strictest confidence, and shall not
use for his personal benefit or the benefit of others or directly or indirectly
disclose, except as may be required or appropriate in connection with his
carrying out his duties under this Agreement, all confidential information,
knowledge or data relating to the Company or any of its affiliates, or to the
Company’s or any such affiliate’s respective businesses and investments (including
confidential information of others that has come into the possession of the
Company or any such affiliate), learned by the Executive heretofore or
hereafter directly or indirectly from the Company or any of its affiliates and
which is not generally available lawfully and without breach of confidential or
other fiduciary obligation to the general public without restriction (the “Confidential
Company Information”), except with the Company’s express written consent or
as may otherwise be required by law or any legal process.

 

6.2                                 Return of
Documents; Rights to Products.  All memoranda, notes, lists, records,
property and any other tangible product and documents (and all copies thereof)
made, produced or compiled by the Executive or made available to the Executive
concerning the businesses and investments of the Company and its affiliates
shall be the Company’s property and shall be delivered to the Company at any
time on request.  The Executive shall
assign to the Company all rights to trade secrets and other products relating
to the Company’s business developed by him alone or in conjunction with others
at any time while employed by the Company.

 

6.3                                 Rights and
Remedies upon Breach.  The
Executive acknowledges and agrees that any breach by him of any of the
provisions of this Section 6 (the “Restrictive Covenants”)
would result in irreparable injury and damage for which money damages would not
provide an adequate remedy.  Therefore,
if the Executive breaches any of the Restrictive Covenants, the Company and its
affiliates shall have the right and remedy to have the Restrictive Covenants
specifically enforced (without posting bond and without the need to prove
damages) by any court having equity jurisdiction, including, without
limitation, the right to an entry against the Executive of restraining orders
and injunctions (preliminary, mandatory, temporary and permanent) against
violations, threatened or actual, and whether or not then continuing, of such
covenants.  This right and remedy shall
be in addition to, and not in lieu of, any other rights and remedies available
to the Company and its affiliates under law or in equity (including, without
limitation, the recovery of damages).

 

7

 

7.                                       Other
Provisions.

 

7.1                                 Severability.  The Executive acknowledges and agrees that
the Executive has had an opportunity to seek advice of counsel in connection
with this Agreement.  If it is determined
that any of the provisions of this Agreement, or any part thereof, is invalid
or unenforceable, the remainder of the provisions of this Agreement shall not
thereby be affected and shall be given full affect, without regard to the
invalid portions.

 

7.2                                 Enforceability;
Jurisdictions.  The Company
and the Executive intend to and hereby confer jurisdiction to enforce the
Restrictive Covenants upon the courts of the State of Maryland and the
Commonwealth of Pennsylvania.  If any
court holds the Restrictive Covenants wholly unenforceable by reason of breadth
of scope or otherwise it is the intention of the Company and the Executive that
such determination not bar or in any way affect the Company’s right, or the
right of any of its affiliates, to the relief provided above in the courts of
any other jurisdiction within the geographical scope of such Restrictive
Covenants, as to breaches of such Restrictive Covenants in such other
respective jurisdictions, such Restrictive Covenants as they relate to each
jurisdiction’s being, for this purpose, severable, diverse and independent
covenants, subject, where appropriate, to the doctrine of res judicata.

 

7.3                                 Attorneys’ Fees.  In the event of any legal proceeding relating
to this Agreement or any term or provision thereof, the losing party shall be
responsible to pay or reimburse the prevailing party for all reasonable
attorneys’ fees incurred by the prevailing party in connection with such
proceeding within the 10 year period commencing on the applicable Effective
Date of Termination; provided, however, the Executive shall not be required to
pay or reimburse the Company unless the claim or defense asserted by the
Executive was unreasonable.  The amount
of reimbursement available to the Executive under this Section 7.3
during a taxable year will not affect the expenses eligible for reimbursement
in any other taxable year. 
Reimbursements under this Section 7.3 shall be paid to the
Executive on or before the last day of the Executive’s taxable year following
the Executive’s taxable year in which the expense is incurred.

 

7.4                                 Notices.  All notices, requests, demands, claims, and
other communications hereunder shall be in writing.  Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly delivered (i) two business
days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, (ii) when received if it is sent by facsimile
communication during normal business hours on a business day or one business
day after it is sent by facsimile and received if sent other than during
business hours on a business day, (iii) one business day after it is sent
via a reputable overnight courier service, charges prepaid, or (iv) when
received if it is delivered by hand, in each case to the intended recipient as
set forth below:

 

8

 

	
  If
  to the Company, to:

  	
  U-Store-It
  Trust

  
	
   

  	
  460
  E. Swedesford Road, Suite 3000

  
	
   

  	
  Wayne,
  PA 19087

  
	
   

  	
  Attn:
  Chief Executive Officer

  
	
   

  	
  Facsimile:
  (610) 293-5711

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  Pepper
  Hamilton, LLP

  
	
   

  	
  3000
  Two Logan Square

  
	
   

  	
  Philadelphia,
  PA 19103

  
	
   

  	
  Attn:
  Michael H. Friedman

  
	
   

  	
  Facsimile:
  (215) 981-4750

  

 

If to the Executive, to the address set forth in the records of the
Company.

 

Any
such person may by notice given in accordance with this Section to the
other parties hereto designate another address or person for receipt by such
person of notices hereunder.

 

7.5                                 Restated
Non-Competition Agreement.  The
Executive acknowledges that (i) the Executive will derive significant
benefits as a result of the Company’s execution and delivery of this Agreement
and (ii) the execution and delivery of the Restated Non-Competition
Agreement on the date hereof is a material inducement to the Company’s
execution and delivery of this Agreement and the Company would not have entered
into this Agreement without the execution and delivery by the Executive of the
Restated Non-Competition Agreement.

 

7.6                                 Entire
Agreement.  This
Agreement, together with the exhibits hereto and the Restated Non-Competition
Agreement, contains the entire agreement between the parties with respect to
the subject matter hereof and supersedes all prior agreements, written or oral,
with the Company or its subsidiaries (or any predecessor of either).

 

7.7                                 Waivers and
Amendments.  This
Agreement may be amended, superseded, canceled, renewed or extended, and the
terms hereof may be waived, only by a written instrument signed by the parties
or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any such right, power
or privilege nor any single or partial exercise of any such right, power or
privilege, preclude any other or further exercise thereof or the exercise of
any other such right, power or privilege.

 

7.8                                 GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW.

 

7.9                                 Assignment.  This Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void.  In the event of any merger, consolidation or
restructuring of the Company, the Company may assign this Agreement and its
rights hereunder to any successor.

 

9

 

7.10                           Withholding.  The Company shall be entitled to withhold
from any payments or deemed payments, including the payment to be made pursuant
to Section 3.7, any amount of withholding required by law.  No other taxes, fees, impositions, duties or
other charges or offsets of any kind shall be deducted or withheld from amounts
payable hereunder, unless otherwise required by law.

 

7.11                           No Duty to
Mitigate.  The
Executive shall not be required to mitigate damages or the amount of any
payment provided for under this Agreement by seeking other employment or
otherwise, nor will any payments hereunder be subject to offset in the event
the Executive does mitigate.

 

7.12                           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors, permitted
assigns, heirs, executors and legal representatives.

 

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

 

7.14                           Survival.  Anything contained in this Agreement to the
contrary notwithstanding, the provisions of Section 6 and Section 7
(to the extent necessary to effectuate the survival of Section 6
and Section 7) shall survive termination of this Agreement and any
termination of the Executive’s employment hereunder.

 

7.15                           Existing
Agreements.  Executive
represents to the Company that the Executive is not subject or a party to any
employment or consulting agreement, non-competition covenant or other
agreement, covenant or understanding which might prohibit the Executive from
executing this Agreement or limit the Executive’s ability to fulfill the
Executive’s responsibilities hereunder.

 

7.16                           Headings.  The headings in this Agreement are for
reference only and shall not affect the interpretation of this Agreement.

 

7.17                           Six Month Delay
of Certain Payments.  In the
event the payment of any amounts payable pursuant to Section 5 of
this Agreement within six months of the date of the Executive’s Separation from
Service would cause the Executive to incur any additional tax under
Section 409A of the Internal Revenue Code of 1986, as amended, then
payment of such amounts shall be delayed until the date that is six months
following the Executive’s Separation from Service (the “Earliest Payment
Date”).  If this provision becomes
applicable, payments that would have been made prior to the Earliest Payment
Date in the absence of this provision will be paid as a lump sum on the
Earliest Payment Date and the remaining severance benefits or other payments
will be paid according to the schedule otherwise applicable to the payments.

 

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7.18                           Certain
Definitions.  For
purposes of this Agreement:

 

(a)                                  an “affiliate”
of any person means another person that directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control
with, such first person, and includes subsidiaries.

 

(b)                                 A “business
day” means the period from 9:00 am to 5:00 pm on any weekday that is not a
banking holiday in New York City, New York.

 

(c)                                  A “Separation
from Service” means a “separation from service” as defined in
Section 1.409A-1(h) of the Treasury Regulations; provided that in
applying Section 1.409A-1(h)(1)(ii) of the Treasury Regulations, a
Separation from Service shall be deemed to occur if the Company and the
Executive reasonably anticipate that the level of bona fide services the
Executive will perform for the Company (whether as an employee or as an
independent contractor) will permanently decrease to less than 50% of the
average level of bona fide services performed by the Executive for the Company
(whether as an employee or as a independent contractor) over the immediately
preceding 36-month period (or the full period of services performed for the
Company if the Executive has been providing services to the Company for less
than 36 months).  In the event of a
disposition of assets by the Company to an unrelated person, the Company
reserves the discretion to specify (in accordance with Section 1.409A-1(h)(4) of
the Treasury Regulations) whether the Executive who would otherwise experience
a Separation from Service with the Company as part of the disposition of assets
will be considered to experience a Separation from Service for purposes of
Section 1.409A-1(h) of the Treasury Regulations.

 

(d)                                 A “subsidiary”
means any corporation, partnership, joint venture or other entity in which at
least a majority interest in such entity is owned directly or indirectly by the
Company.

 

7.19                           Replacement of
Second Restated Employment Agreement.  The Company and the Executive acknowledge and
agree that the Second Restated Employment Agreement is hereby terminated by
mutual consent and neither the Company nor the Executive shall have any
continuing obligation to the other pursuant to the terms of the Second Restated
Employment Agreement.  The mutual
agreements and covenants contained in this Agreement shall replace and supersede
in their entirety the provisions of the Second Restated Employment Agreement,
as amended.

 

IN
WITNESS WHEREOF, the parties hereto have signed their names as of the day and
year first above written.

 

 

	
   

  	
  U-STORE-IT
  TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Dean Jernigan

  
	
   

  	
  Name:

  	
  Dean
  Jernigan

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Timothy M. Martin

  
	
   

  	
  Name:

  	
  Timothy
  M. Martin

  

 

11

 

EXHIBIT A

 

SEVERANCE AND GENERAL RELEASE AGREEMENT

 

This
agreement made and entered into between U-Store-It Trust (the “Company”)
and
                          
(the “Executive”);

 

WHEREAS,
the Executive has been employed by the Company (or its predecessor) since
                          
pursuant to that Amended and Restated Executive Employment Agreement dated
                          
(the “Employment Agreement”);

 

WHEREAS,
the Executive’s employment with the Company has been terminated under the
Employment Agreement, effective
                          ;

 

WHEREAS,
pursuant to the Employment Agreement, the Company has expressed its willingness
to provide a [Severance Payment] and/or other post-termination benefits (as
specifically set forth in the Employment Agreement, the “Termination
Benefits”), in connection with such termination, upon the terms set forth
herein;

 

WHEREAS,
pursuant to the Employment Agreement, the Executive has agreed to accept those
benefits upon the terms set forth herein;

 

NOW,
THEREFORE, the parties agree as follows:

 

1.                                       The recitals
set forth above are true and accurate.

 

2.                                       As a material
inducement to Executive to enter into this Agreement, the Company will provide
the Executive with the Termination Benefits in accordance with the terms and
conditions of the Employment Agreement, to be paid in the form of regular
payroll checks and from which the Company will make all applicable
withholding.  The Executive acknowledges
that he is not entitled to receive the Termination Benefits unless he executes
and does not revoke this Severance and General Release Agreement (the “Agreement”).

 

3.                                       This Agreement
is not and shall not be construed as an admission by the Executive of any fact
or conclusion of law.  Likewise, this
Agreement is not and shall not be construed as an admission by Company of any
fact or conclusion of law.  Without
limiting the general nature of the previous sentences, this Agreement shall not
be construed as an admission that the Executive, or the Company, or any of the
Company’s officers, directors, managers, agents, or employees have violated any
law or regulation or have violated any contract, express or implied.

 

4.                                       The Executive
represents and warrants that he has no personal knowledge of any practices
engaged in by the Company that is or was a violation of any applicable state
law or regulations or of any federal law or regulations.  To the extent that the Executive has
knowledge of any such practices, the Executive represents and warrants that the
Executive already has notified the Company in writing of such alleged
practices.

 

A-1

 

5.                                       The Executive
represents and warrants that he has not filed any other complaint(s) or
charge(s) against the Company with the EEOC or the state commission
empowered to investigate claims of employment discrimination or with any other
local, state or federal agency or court, and that if any such agency or court
assumes jurisdiction of any complaint(s) or charge(s) against the
Company on behalf of the Executive, the Executive will request such agency or
court to withdraw from the matter, and the Executive will refuse any benefits
derived therefrom.  This Agreement will
not affect the Executive’s right to hereafter file a charge with or otherwise
participate in an investigation or proceeding conducted by the EEOC regarding
matters which arose after the date of this Agreement and which are not the
subject of this Agreement.

 

6.                                       The Executive
hereby irrevocably and unconditionally releases and forever discharges the
Company, its subsidiaries, parent companies, and related entities, and each of
the Company and its affiliates’ successors, assigns, agents, directors,
officers, employees, representatives, and attorneys, and all persons acting by,
through, under or in concert with any of them (collectively “Released
Parties”), or any of them, from any and all charges, complaints, claims,
liabilities, obligations, promises, agreements, controversies, damages,
actions, causes of action, suits, rights, demands, costs, losses, debts and
expenses (including attorney’s fees and costs actually incurred), of any nature
whatsoever, known or unknown (“Claims”), which the Executive now has, or
claims to have, or which the Executive at any time heretofore had, or claimed
to have, against each or any of the Released Parties.  The definition of Claims also specifically
encompasses all claims of under Title VII of the Civil Rights Act of 1964,
as amended, 42 U.S.C. § 1981(a), the Age Discrimination in Employment Act
of 1967, as amended, the Employment Retirement Income Security Act, the Family
and Medical Leave Act, the Americans with Disabilities Act, the Fair Labor
Standards Act, the National Labor Relations Act, as well as all claims under
state law provided under other applicable state law or local ordinance
concerning the Executive’s employment. 
This Agreement further specifically encompasses all claims related to
compensation, benefits, incentive packages, or any other form of compensation
the Executive may or may not have received during his employment.

 

7.                                       The Executive
agrees that he forever waives and relinquishes any and all claim, right, or
interest in reinstatement or future employment that he presently has or might
in the future have with the Company and its successors and assigns.  The Executive agrees that he will not seek
employment with the Company and its successors and assigns in the future.

 

8.                                       If any
provision of this Agreement is held to be invalid or unenforceable, the
remainder of the Agreement shall nevertheless remain in full force and
effect.  If any provision is held to be
invalid or unenforceable with respect to particular circumstances, it shall
nevertheless remain in full force and effect in all other circumstances.  No waiver of any terms of conditions of this
Agreement or any part of the Agreement shall be deemed a waiver of any other
terms and conditions of this Agreement or with any later breach of this
Agreement.

 

9.                                       The Executive
agrees to indemnify and hold each and all of the Released Parties harmless from
and against any and all loss, costs, damage, or expense, including, without 

 

A-2

 

limitation, attorneys fees, incurred by the Released Parties, or any of
them, arising out of the Executive’s breach of this Agreement or the fact that
any representation made by him herein was false when made.

 

10.                                 In the event of
any breach of this Agreement or the Non-Competition Agreement or Section 6
of the Employment Agreement by the Executive, the Company shall be entitled to
immediately cease payment of the Termination Benefits in addition to any other
remedy it may have.  Both parties
understand and agree that should either of them breach any material term of
this Agreement, the non-breaching party can institute an action to enforce the
terms of this Agreement.  If legal action
is commenced to enforce any provision of this Agreement, the substantially
prevailing party in such action shall be entitled to recover its attorneys’
fees and expenses through any and all trial courts or appellate courts, in
addition to any other relief that may be granted.

 

11.                                 The Executive
represents that he has not heretofore assigned or transferred, or purported to
assign or transfer to any person or entity, any Claim or any portion thereof or
interest therein.

 

12.                                 The Executive
represents and acknowledges that in executing this Agreement he does not rely
and has not relied upon any other representation or statement made by any of
the Released Parties or by any of the Released Parties’ agents, representatives
or attorneys, except as set forth herein, with regard to the subject matter,
basis or effect of this Agreement.

 

13.                                 The Executive
further agrees that he will not disparage the Company, its business, its
employees, officers or agents, or any of the Company’s affiliates or related
entities in any manner harmful to their business or business reputation.  The Executive and the Company agree to keep
the matters contained herein confidential. 
The Executive will not discuss this agreement with any current or former
employee(s) of the Company.  This
clause shall not prevent the Executive from communicating confidentially with
his attorney(s) or immediate family members, or to the extent required by
public disclosure laws or as required by laws, regulations, or a final and
binding court order or other compulsory process.  Likewise, the Company agrees not to disparage
the Executive or otherwise make any negative statement about the Executive, in
writing, orally, or otherwise, in connection with the matters or claims
released herein and expressly including, but not limited to, matters related to
the Executive’s employment with the Company. 
This clause shall not prevent the Company from communicating
confidentially with its attorney(s), officers, or directors of the corporation,
or to the extent required by public disclosure laws or as required by laws, regulations,
or a final and binding court order or other compulsory process.

 

14.                                 This Agreement
shall be binding upon the Company, the Executive and their respective heirs,
administrators, representatives, executors, successors, and assigns, and shall
inure to the benefit of the Released Parties and each of them, and to their
heirs, administrators, representatives, executor, successors and assigns.

 

A-3

 

15.                                 All terms not
defined herein shall have the meanings set forth in the Employment Agreement.

 

16.                                 This Agreement
shall in all respects be interpreted, enforced and governed under the laws of
the State of Maryland.

 

17.                                 This Agreement
sets forth the entire agreement between the parties hereto.  Any modification, amendment or change to this
Agreement must be made in writing and signed by both parties.

 

The
Executive acknowledges that he has been advised to consult with an attorney
prior to executing this Agreement.  The
Executive acknowledges that the Executive has been given a period of twenty-one
(21) days within which to consider this Agreement.  The Executive further acknowledges that this
Agreement may be revoked by the Executive at any time during the seven (7) day
period beginning on the date that the Executive has signed this Agreement by
providing written notice of revocation to: 
[insert
name and address of Company official to whom written notice of revocation must
be delivered]. 
This Agreement shall not become effective if the Executive revokes the
Agreement during this 7-day period and will not become effective otherwise
until after expiration of the 7-day period. 
The Executive shall not be entitled to receive any Termination Benefits
under this Agreement or otherwise until the expiration of the revocation
period.

 

[Signatures on Following Page]

 

A-4

 

	
   

  	
   

  	
  U-STORE
  IT TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/

  	
   

  
	
  Date

  	
   

  	
  Name:

  	
  Dean
  Jernigan

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/

  	
   

  
	
  Date

  	
   

  	
  Name:

  	
  Timothy
  M. Martin

  

 

A-5Exhibit
10.3

 

AMENDED AND RESTATED
NONCOMPETITION AGREEMENT

 

THIS AMENDED AND RESTATED
NONCOMPETITION AGREEMENT (this “Agreement”) is
entered into as of June 29, 2010 by and between U-STORE-IT TRUST, a
Maryland real estate investment trust (the “Company”),
and Dean Jernigan (the “Executive”).

 

WHEREAS, the Company and the
Executive entered into a Noncompetition Agreement dated April 24, 2006
(the “Prior Noncompetition Agreement”) which
is superseded by this Agreement; and

 

WHEREAS, concurrently with
the execution and delivery of this Agreement, the Company and the Executive are
entering into an Amended and Restated Executive Employment Agreement dated as
of the date hereof, pursuant to which, among other things, the Company has
agreed to employ the Executive, and the Executive has agreed to be employed by
the Company, in accordance with the terms thereof (the “Employment
Agreement”); and

 

WHEREAS, the Company and the
Executive agree that the Executive will not engage in competition with the
Company and will refrain from taking certain other actions pursuant to the
terms and conditions hereof in an effort to protect the Company’s legitimate
business interests and goodwill and for other business purposes.

 

NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereto
agree as follows:

 

1.                                       Noncompetition.  The Executive agrees with the Company that
for the longer of (i) the five-year period beginning on the date of this
Agreement or (ii) the period during which the Executive is employed by, or serving as an
officer or trustee or director of, the Company, U-Store-It, L.P., a Delaware limited
partnership of which the Company is the general partner, or any of their direct
or indirect subsidiaries (collectively, the “REIT”), and for one
year thereafter (the “Restricted Period”), the Executive will not,
(a) directly or indirectly, engage in any business involving self-storage
facility development, construction, acquisition or operation (“Self Storage Business”), whether such business is conducted
by the Executive individually or as a principal, partner, member, stockholder,
director, trustee, officer, employee or independent contractor of any Person
(as defined below) or (b) own any interests in any self-storage
facilities, in each case in the United States of America; provided, however, that this Section 1 shall not be deemed
to prohibit the direct or indirect ownership by the Executive of up to five
percent of the outstanding equity interests of any public company.  For purposes of this
Agreement, “Person” means any individual,
firm, corporation, partnership, company, limited liability company, trust,
joint venture, association or other entity.

 

2.                                       Nonsolicitation. The Executive
agrees with the Company that for the longer of (i) the five-year period
beginning on the date of this Agreement or (ii) the period 

 

 

during which the Executive is employed by, or serving as an officer or
trustee or director of, the REIT, and for two years thereafter, such
Executive will not (a) directly or indirectly solicit, induce or encourage
any employee or independent contractor to terminate their employment with the
REIT or to cease rendering services to the REIT, and the Executive shall not
initiate discussions with any such Person for any such purpose or authorize or
knowingly cooperate with the taking of any such actions by any other Person, or
(b) hire (on behalf of the Executive or any other person or entity) any
employee or independent contractor who has left the employment or other service
of the REIT (or any predecessor thereof) within one year of the termination of
such employee’s or independent contractor’s employment or other service with
the REIT.

 

3.                                       Reasonable and
Necessary Restrictions.  The
Executive acknowledges that the restrictions, prohibitions and other provisions
hereof, including, without limitation, the Restricted Period set forth in Section 1
and the restrictions set forth in Section 2, are reasonable, fair and
equitable in terms of duration, scope and geographic area, are necessary to
protect the legitimate business interests of the REIT, and are a material
inducement to the Company to enter into this Agreement and the Employment
Agreement.

 

4.                                       Specific Performance.  The Executive acknowledges that the
obligations undertaken by such Executive pursuant to this Agreement are unique
and that the Company likely will have no adequate remedy at law if the
Executive shall fail to perform any of such Executive’s obligations hereunder,
and the Executive therefore confirms that the Company’s right to specific
performance of the terms of this Agreement is essential to protect the rights
and interests of the Company. 
Accordingly, in addition to any other remedies that the Company may have
at law or in equity, the Company shall have the right to have all obligations,
covenants, agreements and other provisions of this Agreement specifically
performed by the Executive, and the Company shall have the right to obtain
preliminary and permanent injunctive relief to secure specific performance and
to prevent a breach or contemplated breach of this Agreement by the
Executive.  Further, the Executive agrees
to indemnify and hold harmless the Company from and against any reasonable costs
and expenses incurred by the Company as a result of any breach of this
Agreement by such Executive, and in enforcing and preserving the Company’s
rights under this Agreement, including, without limitation, the Company’s
reasonable attorneys’ fees.  The
Executive hereby acknowledges and agrees that the Company shall not be required
to post bond as a condition to obtaining or exercising such remedies, and the
Executive hereby waives any such requirement or condition.  If the Executive is the prevailing party in
any action in which the Company seeks to enforce its rights under this
Agreement, the Company agrees to indemnify and hold harmless the Executive from
and against any reasonable costs and expenses incurred by the Executive as a
result of such action, including, without limitation, the Executive’s
reasonable attorneys’ fees.

 

5.                                       Miscellaneous
Provisions.

 

5.1                                 Assignment;
Binding Effect.  This
Agreement may not be assigned by the Executive, but may be assigned by the
Company to any successor to its business and will inure to the benefit of and
be binding upon any such successor. 
Subject to the foregoing provisions restricting assignment, all
covenants and agreements in this 

 

2

 

Agreement by or on behalf of any of the parties hereto shall bind and
inure to the benefit of the respective successors, assigns, heirs, and personal
representatives.

 

5.2                                 Entire
Agreement.  This
Agreement, together with the Employment Agreement, constitutes the entire
agreement between the parties hereto with respect to the matters set forth
herein and supersedes and renders of no force and effect all prior oral or
written agreements, commitments and understandings among the parties with
respect to the matters set forth herein.  This Section 5.2 shall not be used to
limit or restrict the rights or remedies, whether express or implied, of any
noncompetition or nonsolicitation policies of the REIT applicable to the
Executive.

 

5.3                                 Amendment.  Except as otherwise expressly provided in
this Agreement, no amendment, modification or discharge of this Agreement shall
be valid or binding unless set forth in writing and duly executed by each of
the parties hereto.

 

5.4                                 Waivers.  No waiver by a party hereto shall be
effective unless made in a written instrument duly executed by the party
against whom such waiver is sought to be enforced, and only to the extent set
forth in such instrument.  Neither the
waiver by either of the parties hereto of a breach or a default under any of
the provisions of this Agreement, nor the failure of either of the parties, on
one or more occasions, to enforce any of the provisions of this Agreement or to
exercise any right or privilege hereunder shall thereafter be construed as a
waiver of any subsequent breach or default of a similar nature, or as a waiver
of any such provisions, rights or privileges hereunder.

 

5.5                                 Severability.  If fulfillment of any provision of this
Agreement, at the time such fulfillment shall be due, shall transcend the limit
of validity prescribed by law, then the obligation to be fulfilled shall be
reduced to the limit of such validity; and if any clause or provision contained
in this Agreement operates or would operate to invalidate this Agreement, in
whole or in part, then such clause or provision only shall be held ineffective,
as though not herein contained, and the remainder of this Agreement shall
remain operative and in full force and effect. Notwithstanding the foregoing,
in the event that the restrictions against engaging in competitive activity
contained in this Agreement shall be determined by any court of competent
jurisdiction to be unenforceable by reason of their extending for too great a
period of time or over too great a geographical area or by reason of their
being too extensive or unreasonable in any other respect, the Agreement  shall be interpreted to extend only over
the maximum period of time for which it may be enforceable and over the maximum
geographical area as to which it may be enforceable and to the maximum extent
in all other respects as to which it may be enforceable, all as determined by
such court in such action and the court may limit the application of any other
provision or covenant, or modify any such term, provision or covenant and
proceed to enforce this Agreement as so limited or modified.  To the extent necessary, the parties shall
revise the Agreement and enter into an appropriate amendment to the extent
necessary to implement any of the foregoing.

 

5.6                                 Governing Law;
Jurisdiction.  This
Agreement, the rights and obligations of the parties hereto, and any claims or
disputes relating thereto, shall be governed by and construed in accordance
with the laws of the State of Maryland, but not including the choice-of-law rules thereof.

 

3

 

5.7                                 Headings.  Section and subsection headings
contained in this Agreement are inserted for convenience of reference only,
shall not be deemed to be a part of this Agreement for any purpose, and shall
not in any way define or affect the meaning, construction or scope of any of
the provisions hereof.

 

5.8                                 Executive’s
Acknowledgement. The Executive acknowledges (i) that he has
had the opportunity to consult with independent counsel of his own choice
concerning this Agreement, and (ii) that he has read and understands this
Agreement, is fully aware of its legal effect, and has entered into it freely
based on his own judgment.

 

5.9                                 Notices.  All notices, requests, demands, and other
communications hereunder shall be in writing and shall be deemed to have been
delivered (i) when physically received by personal delivery (which shall
include the confirmed receipt of a telecopied facsimile transmission), or
(ii) three business days after being deposited in the United States certified
or registered mail, return receipt requested, postage prepaid or (iii) one
business day after being deposited with a nationally known commercial courier
service providing next day delivery service (such as Federal Express), to the
following addresses:

 

(i)                                 if to the
Executive, to the address set forth in the records of the Company; and

 

(ii)                              if to the
Company,

 

U-Store-It Trust

460 E. Swedesford Road, Suite 3000

Wayne, PA  19087

Attn:  c/o Chair, Compensation Committee

Facsimile:  (610) 293-5720

 

with a copy to:

 

U-Store-It Trust

460 E. Swedesford Road, Suite 3000

Wayne, PA  19087

Attn:  Jeffrey Foster, Chief Legal Officer

Facsimile No.: (610)
293-5720

 

4

 

5.10                           Execution in
Counterparts.  To
facilitate execution, this Agreement may be executed in as many counterparts as
may be required.  It shall not be
necessary that the signature of or on behalf of each party appears on each
counterpart, but it shall be sufficient that the signature of or on behalf of
each party appears on one or more of the counterparts.  All counterparts shall collectively
constitute a single agreement.

 

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

 

	
   

  	
  THE EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Dean Jernigan

  
	
   

  	
  Dean Jernigan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  U-STORE-IT TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel B. Hurwitz

  
	
   

  	
  Name: 

  	
  Daniel B. Hurwitz

  
	
   

  	
  Title:

  	
  Chairman, Compensation Committee

  

 

5

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