Document:

PPG Industries, Inc. Executive Officers' Long Term Incentive Plan

 Exhibit 10.3 
  
 PPG INDUSTRIES, INC. 
  
 EXECUTIVE OFFICERS’ 
  
 LONG TERM INCENTIVE PLAN 

 Table of Contents 
  

					
	
	Statement of Purpose
			
	Section	 	I	  	Definitions
			
	Section	 	II	  	Awards
			
	Section	 	III	  	Termination/Disability/Death
			
	Section	 	IV	  	Specific Provisions Related to Benefits
			
	Section	 	V	  	Administration & Claims
			
	Section	 	VI	  	Amendment & Termination
			
	Section	 	VII	  	Miscellaneous
			
	Section	 	VIII	  	Change in Control

  
 STATEMENT OF
PURPOSE 
  
 The PPG Industries Executive Officers’ Long Term
Incentive Plan is intended to further the long-term growth of the Corporation by providing incentive, in addition to current compensation, to certain executive officers of the Corporation who will have a substantial opportunity to influence such
long-term growth. Specifically the Plan: 
  

	•	Associates the personal interests of executive officers with the shareholders of the Corporation by relating capital accumulation to objective business or financial criteria, such
as the returns to shareholders, return on capital, cash return on capital, return on equity, earnings (pre-tax or after-tax) and earnings growth; 

  

	•	Provides a compensation program to executive officers which is competitive with compensation opportunities in competing industries; 

  

	•	Encourages executive officers to continue as employees of the Corporation. 

  

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 SECTION I - DEFINITIONS 
  

	1.01	Administrator means the senior Human Resources officer of the Company, and any person(s) designated by such Administrator to assist in the administration of the Plan.

  

	1.02	Affiliate means any business entity, other than a Subsidiary Corporation, in which PPG has an equity interest. 

  

	1.03	Award means the TSR Shares or Restricted Stock Units granted to a Covered Employee in accordance with Section 2.02. 

  

	1.04	Award Agreement means the agreement executed by the Corporation and a Covered Employee, in such form as the Administrator determines, which sets forth the number of TSR
Shares or Restricted Stock Units awarded and terms and conditions applicable to the Award. 

  

	1.05	Award Goals means the specific performance-based goals relating to an Award set by the Committee no later than 90 days after the commencement of an Award Period which
determine the amount of a Payment, as defined in Section 2.04(a), if any, which would be paid upon the achievement of such goals at the end of an Award Period. 

  

	1.06	Award Period means the three-year period commencing with January 1 of the year in which an Award is made. 

  

	1.07	Beneficiary means the person or persons designated by a Covered Employee to receive benefits hereunder following the Covered Employee’s death, in accordance with section
3.03; provided, however, in the event a Covered Employee fails to designate a Beneficiary in accordance with Section 4.02, his/her Beneficiary shall be the Beneficiary designated under the Deferred Compensation Plan. For purposes of this
Section 1.05, “person or persons” is limited to an individual, a Trustee or a Covered Employee’s estate. 

  

	1.08	Board means the Board of Directors of PPG Industries, Inc. 

  

	1.09	Committee means the Officers-Directors Compensation Committee (or any successor) of the Board. 

  

	1.10	Common Stock means the common stock of PPG Industries, Inc. 

  

	1.11	Company or PPG means PPG Industries, Inc. 

  

	1.12	Corporation means PPG and any Subsidiary designated by the Committee as eligible to participate in the Plan, and which, by proper authorization of the Board of Directors or
other governing body of such Subsidiary, elects to participate in the Plan. 

  

	1.13	Covered Employee means any Executive Officer who may be deemed to be a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code of 1986,
as amended. 

  

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	1.14	Deferred Compensation Plan means the PPG Industries, Inc. Deferred Compensation Plan. 

  

	1.15	Disability means any long-term disability. The Administrator, in his complete and sole discretion, shall determine a Covered Employee’s Disability; provided,
however, that a Covered Employee who is approved to receive Long-Term Disability benefits pursuant to the PPG Industries, Inc. Long-Term Disability Plan shall be considered to have a Disability. The Administrator may require that a Covered Employee
submit to an examination from time to time, but no more often than annually, at the expense of the Company, by a competent physician or medical clinic, selected by the Administrator, to confirm Disability. On the basis of such medical evidence, the
determination of the Administrator as to whether or not a condition of Disability exists or continues shall be conclusive. 

  

	1.16	Dividend Equivalent means a hypothetical dividend on TSR Shares or Restricted Stock Units, granted on the same date as dividends are paid on the Company’s Common Stock
and having a value on the date granted equal to the value of actual dividends paid on a share of the Company’s Common Stock on the same date. 

  

	1.17	ERISA means the Employee Retirement Income Security Act of 1974, as amended. 

  

	1.18	Fair Market Value of the Common Stock means the average of the closing sale prices reported on the New York Stock Exchange-Composite Tape for the Common Stock for all days in
the month of December during which the New York Stock Exchange is open in the last year of the Award Period to which the Award being paid wholly or partly in shares of Common Stock relates. 

  

	1.19	Payment has the meaning set forth in Section 2.04(a). 

  

	1.20	Plan means the PPG Industries, Inc. Executive Officers’ Long Term Incentive Plan, as set forth herein and as amended from time to time. 

  

	1.21	Prior Plan means the PPG Industries, Inc. Long Term Incentive Plan for Key Employees, formerly the PPG Industries, Inc. Total Shareholder Return Plan for Key Employees.

  

	1.22	Restricted Stock Unit means a unit which is equivalent to one share of Common Stock. 

  

	1.23	Restricted Stock Unit Account means an account maintained for a Covered Employee to which Restricted Stock Units are credited. 

  

	1.24	Subsidiary means any corporation of which fifty percent (50%) or more of the outstanding voting stock or voting power is owned, directly or indirectly, by the Company and any
partnership or other entity in which the Company has a fifty percent (50%) or more ownership interest. 

  

	1.25	TSR Account means an account maintained for a Covered Employee to which TSR Shares are credited. 

  

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	1.26	TSR Share means a hypothetical share of stock which is equivalent to one share of Common Stock. 

  
 SECTION II - PARTICIPATION & AWARDS 
  

	2.01	Participation 

  
 All Covered Employees shall be eligible to receive one or more Awards for each Award Period. Such determination shall be at the total discretion of the
Committee based on the Committee’s estimation of those Covered Employees who will have a substantial opportunity to influence the long-term growth of the Corporation. 
  

	2.02	Awards 

  

	 	(a)	The Committee may grant one or more Awards to any Covered Employee in a given year, subject to the limits in clause (f) below. No later than 90 days after the commencement of the
relevant Award Period, the Committee shall determine or approve: 

  

	 	(1)	The Award Period; 

  

	 	(2)	The number of TSR Shares or Restricted Stock Units to be awarded to each Covered Employee in connection with each Award; 

  

	 	(3)	The Award Goals for each Award based on one or more of the following business or financial criteria: (i) A comparison of where the total shareholder return of PPG Common Stock
(stock price plus accumulated dividends) ranks among the total shareholder return for companies in a relevant stock index; (ii) Return on Capital; (iii) Cash Return on Capital; (iv) Return on Equity; (v) Earnings (pre-tax or after-tax); and (vi)
Earnings Growth; 

  

	 	(4)	Any terms and conditions applicable to the Awards, including, but not limited to, the imposition of restrictions on the right to transfer shares of Common Stock delivered to Covered
Employees. Such terms and conditions may differ for each Award Period. 

  

	 	(b)	The Committee may grant Awards at any time during an Award Period; and, when made, such grant shall be effective for the entire Award Period, subject to Section 2.02(g) below;
provided, that such Awards granted after the 90-day period described in paragraph (a) above (which may not be entirely tax deductible) shall not affect the tax deductibility of any Awards granted pursuant to paragraph (a).

  

	 	(c)	An Award under the Plan shall be granted to Covered Employees in the form of TSR Shares which shall be reflected in a TSR Account or Restricted Stock Units, which shall be reflected
in a Restricted Stock Unit account, maintained by the Company for each Covered Employee. 

  

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	 	(d)	Each Award shall be made in writing in an Award Agreement which shall set forth the terms and conditions established by the Committee for the Award. 

  

	 	(e)	The Committee shall have the negative discretion to reduce or eliminate any Award for any Award Period as it deems equitable. 

  

	 	(f)	The maximum aggregate Awards that may be granted to an individual who is Chief Executive Officer is limited to an aggregate amount of TSR Shares and Restricted Stock Units
equivalent to 250,000 shares of Common Stock for any Award Period. The maximum aggregate Awards that may be granted to either of the next two most highly compensated Covered Employees is limited to an aggregate amount of TSR Shares and Restricted
Stock Units equivalent to 150,000 shares of Common Stock for any Award Period. The maximum aggregate Awards that may be granted to any other Covered Employee is limited to an aggregate amount of TSR Shares and Restricted Stock Units equivalent to
100,000 shares of Common Stock for any Award Period. 

  

	 	(g)	The Committee may terminate an Award at any time during an Award Period if, in its sole discretion, the Committee determines that the Participant is no longer in a position to have
a substantial opportunity to influence the long-term growth of the Corporation. 

  

	2.03	Dividend Equivalents 

  

	 	(a)	Subject to paragraph (c) below, the Committee may determine that each Covered Employee shall be entitled to receive a Dividend Equivalent on any TSR Share or Restricted Stock Unit
in his/her TSR Account or Restricted Stock Unit Account during the Award Period. 

  

	 	(b)	Dividend Equivalents shall be credited into the Covered Employee’s account in the Deferred Compensation Plan and credited to the PPG Stock Account or other Investment
Account(s) in the Deferred Compensation Plan as designated by the Covered Employee under the provisions of the Deferred Compensation Plan. 

  

	 	(c)	Dividend Equivalent payments shall not be made on any TSR Shares or Restricted Stock Units following the date a Covered Employee’s employment is terminated or the date the
Covered Employee is determined to have a Disability. 

  

	 	(d)	A Covered Employee shall be entitled to payment of Dividend Equivalents in accordance with the provisions of the Deferred Compensation Plan without regard to the actual payment or
non-payment of the Award to which the Dividend Equivalents relate. 

  

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	2.04	Payment of Awards 

  

	 	(a)	In accordance with the provisions of this Plan and the conditions set forth in the Award Agreement, a Covered Employee shall be entitled to a payment on account of an Award at the
end of the Award Period (“Payment”). 

  

	 	(b)	Payments to Covered Employees will be made in the form of Common Stock, or cash or a combination of both, as the Committee may determine. 

  

	 	(c)	The amount of any cash to be paid in lieu of Common Stock shall be determined on the basis of the Fair Market Value of the Common Stock. 

  
 As to shares of Common Stock which constitute all or any part of a Payment,
the Committee may impose such restrictions concerning their transferability and/or their forfeitability as provided in the Award Agreement. 
  

	 	(d)	Payments shall be made to Covered Employees as soon as practicable after the Committee has determined that the terms and conditions with respect to the Award have been satisfied -
i.e.: generally, within two and one-half months after the end of the Award Period. 

  

	 	(e)	If any dividends are declared on the Common Stock portion of a Payment on a date subsequent to the close of a Award Period but prior to the delivery of Common Stock shares to a
Covered Employee, an amount equivalent to such dividends shall be paid in cash to the Covered Employee. 

  

	 	(f)	Any Award granted to a Covered Employee under the Prior Plan may be adopted by the Committee and paid out under this Plan if the Committee determines that (1) objective Award Goals
were established under the Prior Plan no later than 90 days after the commencement of the relevant Award Period, (2) the Awards granted under the Prior Plan do not exceed the maximums set forth in Section 2.02(f), (3) the Award Goals have been met,
(4) the material terms of the Awards granted under the Prior Plan do not differ from this Plan, as approved by the Company’s shareholders, and (5) payment of such Awards satisfies the requirements of Section 162(m) of the Code.

  

	 	(g)	Prior to the payment of any Award under this Plan, the Committee shall certify that the Award Goals for such Award have been met. 

  

	 	(h)	The Committee shall have the negative discretion to reduce or eliminate any Payment made for any Award Period. 

  

	2.05	Deferral of Payments 

  

	 	(a)	A Covered Employee may elect to defer receipt of a Payment in accordance with this Section 2.05. 

  

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	 	(b)	A Covered Employee may elect to defer either 25%, 50%, 75% or 100% of his/her Payment. Any balance which is not deferred in accordance with this paragraph shall be paid to the
Covered Employee in Common Stock and cash, as determined in accordance with Section 2.04(b). 

  

	 	(c)	Except as otherwise provided in paragraph (d) below, all elections pursuant to Section 2.05 must be filed with the Administrator no later than the last day of the year prior to the
last year of the Award Period, and such election shall become irrevocable as of the first day of the last year of the Award Period. 

  

	 	(d)	Covered Employees who are granted an Award during the last year of an Award Period may make an election in accordance with this Section 2.05 within the 30-day period following
notice to the Participant that he or she has been granted such Award. 

  

	 	(e)	The value of any amount deferred in accordance with this Section 2.05, as determined in TSR Shares or Restricted Stock Units, shall be credited to the PPG Stock Account in the
Deferred Compensation Plan at the time the Payment would otherwise be made following the Award Period and shall be subject to the provisions of the Deferred Compensation Plan. 

  
 SECTION III - TERMINATION/DISABILITY/DEATH 
  

	3.01	Retirement 

  
 If a Covered Employee’s employment with the Corporation terminates during an Award Period because of retirement, and after the Covered Employee has been an eligible participant for at least 12 months of the Award
Period, the Covered Employee shall be entitled to a prorated Award which shall be determined at the end of the Award Period. Such prorated Award shall be determined by multiplying the Award to which the Covered Employee would otherwise have been
entitled by a fraction - the numerator of which is the number of months the Covered Employee was employed during the Award Period and the denominator of which is the total number of calendar months in the Award Period. 
  

	3.02	Disability 

  
 If a Covered Employee’s employment with the Corporation terminates during an Award Period because of Disability, and after the Covered Employee has been an eligible participant for at least 12 months of the Award
Period, the Covered Employee shall be entitled to a prorated Award which shall be determined at the end of the Award Period. Such prorated Award shall be determined by multiplying the Award to which the Covered Employee would otherwise have been
entitled by a fraction - the numerator of which is the number of months the Covered Employee was employed during the Award Period and the denominator of which is the total number of calendar months in the Award Period. 
  

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	3.03	Death 

  
 If a Covered Employee’s employment with the Corporation terminates during an Award Period because of the Covered Employee’s death, and after the Covered Employee has been an eligible participant for at least
12 months of the Award Period, the Covered Employee’s Beneficiary shall be entitled to a prorated Award which shall be determined at the end of the Award Period. Such prorated Award shall be determined by multiplying the Award to which the
Covered Employee would otherwise have been entitled by a fraction - the numerator of which is the number of months the Covered Employee was employed during the Award Period and the denominator of which is the total number of calendar months in the
Award Period. 
  

	3.04	Termination 

  
 If a Covered Employee’s employment with the Corporation terminates during an Award Period for any reason other than retirement, Disability or Death, the Award shall be forfeited on the date of such termination;
provided, however, that the Committee, in its sole discretion, may determine that the Covered Employee will be entitled to a prorated Award. 
  
 SECTION IV - SPECIFIC PROVISIONS RELATED TO BENEFITS 
  

	4.01	Nonassignability 

  

	 	(a)	Except as provided in paragraph (b) below and in section 5.02, no person shall have any power to encumber, sell, alienate, or otherwise dispose of his/her interest under the Plan
prior to actual payment to and receipt thereof by such person; nor shall the Administrator recognize any assignment in derogation of the foregoing. No interest hereunder of any person shall be subject to attachment, execution, garnishment or any
other legal, equitable, or other process. 

  

	 	(b)	Paragraph (a) above shall not apply to the extent that a Covered Employee’s interest under the Plan is alienated pursuant to a “Qualified Domestic Relations Order”
(“QDRO”) as defined in §414(p) of the Code. 

  

	 	(1)	The administrator is authorized to adopt such procedural and substantive rules and to take such procedural and substantive actions as the Administrator may deem necessary or
advisable to provide for the payment of amounts from the Plan to an Alternate Payee as provided in a QDRO. Such rules and actions shall be consistent with the principal purposes of the Plan. 

  

	 	(2)	Under no circumstances may the Administrator accept an order as a QDRO following a Covered Employee’s death. 

  

	 	(3)	No Payment shall be made to an Alternate Payee until such Payment would otherwise be payable to a Covered Employee. 

  

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	4.02	Beneficiary Designation 

  

	 	(a)	The Covered Employee shall have the right, at any time, to designate any person(s) as Beneficiary. The designation of a Beneficiary shall be effective on the date it is received by
the Administrator, provided the Covered Employee is alive on such date. 

  

	 	(b)	Each time a Covered Employee submits a new Beneficiary designation form to the Administrator, such designation shall cancel all prior designations. 

  

	 	(c)	In the case of a Covered Employee who does not have a valid Beneficiary designation on file at the time of his/her death, or in the case the designated Beneficiary predeceases the
Covered Employee, any Payment to which the Covered Employee would have been entitled shall be paid to the Covered Employee’s estate at the end of the Award Period. 

  

	4.03	Limited Right to Assets of the Corporation 

  

	 	(a)	No Covered Employee or other person shall have any claim or right to be granted an Award under the Plan. 

  

	 	(b)	The Benefits paid under the Plan shall be paid from the general funds of the Company, and the Covered Employees and any Beneficiary shall be no more than unsecured general creditors
of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder. 

  

	4.04	Forfeiture Provision 

  
 Notwithstanding any other provisions herein: 
  

	 	(a)	If at any time within the Award Period or within one year after the Award Period, the Covered Employee engages in any activity in competition with any activity of the Corporation,
or contrary or harmful to the interests of the Corporation, including, but not limited to: 

  

	 	(1)	Conduct related to the Covered Employee’s employment for which either criminal or civil penalties against the Covered Employee may be sought; or 

  

	 	(2)	Violation of the Corporation’s Business Conduct Policies; or 

  

	 	(3)	Accepting employment with or serving as a consultant, advisor or in any other capacity to an employer that is in competition with or acting against the interests of the Corporation,
including employing or recruiting any present, former or future employee of the Corporation; or 

  

	 	(4)	Disclosing or misusing any confidential information or material concerning the Corporation; or 

  

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	 	(5)	Participating in a hostile take over attempt; 

  
 then the Award shall terminate effective on the date on which the Committee determines that Covered Employee has engaged in such activity. Any “Award
Gain” realized by the Covered Employee shall be paid by the Covered Employee to the Company. For purposes of this Section 4.04, “Award Gain” shall mean the cash and the closing market price of the Common Stock delivered to the Covered
Employee pursuant to an Award. Any portion of a Payment which was deferred shall be forfeited from the Covered Employee’s account in the Deferred Compensation Plan in accordance with this Section 4.04. 
  

	 	(b)	By executing the Award Agreement, the Covered Employee shall agree to a deduction from any amounts the Corporation owes the Covered Employee from time to time (including amounts
owed to the Covered Employee as wages or other compensation, fringe benefits or vacation pay, as well as any other amounts owed to the Covered Employee), to the extent of amounts owed to the Corporation in accordance with paragraph (a) above.
Whether or not the Corporation elects to make any set-off in whole or in part, if the Corporation does not recover by means of set-off the full amount the Covered Employee owes in accordance with paragraph (a), the Covered Employee agrees to pay the
unpaid balance to the Corporation immediately upon notification by the Administrator. 

  

	 	(c)	The Covered Employee may be released from the Covered Employee’s obligations under paragraphs (a) and (b) above only if the Committee determines, in its sole discretion, that
such action is in the best interest of the Corporation. 

  

	4.05	Taxes 

  
 The Corporation shall have the right to deduct, or to require the Covered Employee or other person receiving a payment under the Plan to pay to the Corporation any Federal or state taxes required by law to be withheld
or paid. 
  
 SECTION V - ADMINISTRATION & CLAIMS

  

	5.01	Administration 

  

	 	(a)	The Committee shall designate the Administrator to administer the Plan and interpret, construe and apply its provisions in accordance with its terms. Subject to the terms of the
Plan the Administrator shall have the complete authority to: 

  

	 	(1)	Construe the terms of the Plan; and 

  

	 	(2)	Control and manage the operation of the Plan. 

  

	 	(b)	The Administrator shall have the authority to establish rules for the administration and interpretation of the Plan and the transaction of its business. The determination of the
Administrator as to any disputed question shall be conclusive. 

  

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	 	(c)	The Administrator may employ counsel and other agents and may procure such clerical, accounting and other services as the Administrator may require in carrying out the provisions of
the Plan. 

  

	 	(d)	The Administrator shall not receive any compensation from the Plan for his services. 

  

	 	(e)	The Corporation shall indemnify and save harmless the Administrator against all expenses and liabilities arising out of the Administrator’s service as such, excepting only
expenses and liabilities arising from the Administrator’s own gross negligence or willful misconduct, as determined by the Committee. 

  

	5.02	Claims 

  

	 	(a)	Every person receiving or claiming benefits under the Plan shall be conclusively presumed to be mentally and physically competent and of age. If the Administrator determines that
such person is mentally or physically incompetent or is a minor, payment shall be made to the legally appointed guardian, conservator, or other person who has been appointed by a court of competent jurisdiction to care for the estate of such person,
provided that proper proof of such appointment is furnished in a form and manner suitable to the Administrator. Any payment made under the provisions of the paragraph (a) shall be a complete discharge of any liability therefor under the Plan.
The Administrator shall not be required to see to the proper application of any such payment. 

  

	 	(b)	Claims Procedure 

  
 Claims for benefits by a Covered Employee or Beneficiary shall be filed, in writing, with the Administrator. If the Administrator denies the claim, in
whole or in part, the Administrator shall furnish a written notice to the claimant setting forth a statement of the specific reasons for the denial of the claim, references to the specific provisions of the Plan on which the denial is based, a
description of any additional material or information necessary to perfect the claim and an explanation of why such material or information is necessary, and an explanation of the review procedure. Such notice shall be written in a way calculated to
be understandable by the claimant. 
  
 The written notice from
the Administrator shall be furnished to the claimant within ninety (90) days following the date on which the claim was filed, except that if special circumstances require an extension of time, the Administrator shall notify the claimant of this need
within such 90-day period. Such notice shall inform the claimant the nature of the circumstances necessitating the need for additional time and the date by which the claimant will be furnished with the decision regarding the claim. Such extension
may provide for up to an additional 90 days. 
  

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	 	(c)	Review Procedure 

  
 Within sixty (60) days of the date the Administrator denies a claim, in whole or in part, the claimant, or his/her authorized representative, may request
that the decision be reviewed. Such request shall be in writing, shall be filed with the Administrator, and shall contain the following information: 
  

	 	(1)	The date on which the denial was received by the claimant; 

  

	 	(2)	The date on which the claimant’s request for review was filed with the Administrator; 

  

	 	(3)	The specific portions of the denial which the claimant requests the Administrator to review; 

  

	 	(4)	A statement setting forth the basis on which the claimant believes that a review of the decision is required; 

  

	 	(5)	Any written material which the claimant desires the Administrator to take into consideration in reviewing the claim. 

  
 The Administrator shall afford the claimant, or his/her authorized
representative, an opportunity to review documents pertinent to the claim, and shall conduct a full and fair review of the claim and its denial. The Administrator’s decision on such review shall be furnished to the claimant in writing, and
shall be written in a manner calculated to be understandable to the claimant. Such decision shall include a statement of the specific reason(s) for the decision, including references to the specific provision(s) of the Plan relied upon. 

 
 The written notice from the Administrator shall be furnished to the
claimant within sixty (60) days following the date on which the request for review was received by the Administrator, except that if special circumstances require an extension of time, the Administrator shall notify the claimant of this need within
such 60-day period. Such notice shall inform the claimant the nature of the circumstances necessitating the need for additional time and the date by which the claimant will be furnished with the decision regarding the claim. Such extension may
provide for up to an additional 60 days. 
  

	5.03	Plan Expenses 

  
 The cost of administering the Plan shall be paid by the Corporation. 
  

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 SECTION VI - AMENDMENT AND TERMINATION 
  

	6.01	Amendment of the Plan 

  

	 	(a)	Except as provided in paragraph (b) below, the Board or the Committee may amend the Plan, in whole or in part, at any time. 

  

	 	(b)	No amendment may, without shareholder approval, (1) expand the class of eligible employees, (2) increase either the maximum award to an individual Covered Employee or the maximum
aggregate number of shares payable, or (3) change the list of business or financial criteria to be used to establish Award Goals. 

  

	6.02	Termination of the Plan 

  
 The Plan shall terminate when all TSR Shares or Restricted Stock Units subject to Award under the Plan or all Common Stock available for delivery under
the Plan have been paid out or delivered or on such earlier date as may be determined by the Board or the Committee 
  

	6.03	Company Action 

  
 The Company’s power to amend or terminate the Plan shall be exercisable by the Board or by the Committee, or by any individual authorized by the
Board to exercise such powers. 
  
 SECTION VII -
MISCELLANEOUS 
  

	7.01	Share and Award Authorization 

  

	 	(a)	Awards of TSR Shares or Restricted Stock Units which are determined by the Committee to be entitled to Dividend Equivalents shall entitle Covered Employees to Dividend Equivalents
but not to actual dividends, voting or other rights of shareholders. TSR Shares or Restricted Stock Units covered by Awards which are not earned or are forfeited for any reason shall, unless the Plan has been terminated, again be available for other
Awards under the Plan. The maximum number to TSR Shares or Restricted Stock Units which may be awarded under the Plan on and after the date hereof shall not exceed the number of shares authorized and available for award as approved by shareholders
as set forth in paragraph (d) below, subject to adjustment as provided in paragraph (c) below. 

  

	 	(b)	The maximum number of shares of Common Stock which shall be available for issuance and delivery to Covered Employees under this Plan on and after this date shall not exceed the
number of shares authorized and available for issuance as approved by shareholders, as set forth in paragraph (d) below, subject to adjustment as provided in paragraph (c) below. 

  

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	 	(c)	In the event of any change in the number of outstanding shares of Common Stock by reason of any stock dividend, stock split, reorganization, merger, consolidation, exchange of
shares or similar change, a corresponding change shall be made in: 

  

	 	(i)	The number of TSR Shares or Restricted Stock Units available for grant pursuant to Section 2.02; 

  

	 	(ii)	The number of shares of Common Stock available for issuance and delivery pursuant to paragraph (b) above; 

  

	 	(iii)	The number of TSR Shares or Restricted Stock Units contingently held by any Covered Employee unless the Committee makes a contrary determination, which it may do in its sole
discretion and which, if done, shall be final and binding. 

  

	 	(d)	The maximum aggregate number of shares of Common Stock that may be paid out for all Covered Employees under this Plan shall not exceed 1,000,000 shares without shareholder approval.

  

	7.02	Successors of the Company 

  
 The rights and obligations of the Company under the Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the
Company. 
  

	7.03	ERISA Plan 

  
 The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for “a select group of management or highly compensated employees” within the meaning of Sections
201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I of ERISA. 
  

	7.04	Trust 

  
 The Company shall be responsible for the payment of all benefits under the Plan. At its discretion, the Company may establish one or more grantor trusts for the purpose of providing for payment of benefits under the
Plan. Such trust(s) may be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors. Benefits paid to the Covered Employee from any such trust shall be considered paid by the Company for purposes of meeting
the obligations of the Company under the Plan. 
  

	7.05	Employment Not Guaranteed 

  
 Nothing contained in the Plan nor any action taken hereunder shall be construed as a contract of employment or as giving any Covered Employee any right to
continued employment with the Corporation. 
  

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	7.06	Gender, Singular and Plural 

  
 All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person(s) requires. As the
context may require, the singular may be read as the plural and the plural as the singular. 
  

	7.07	Headings 

  
 The headings of the Sections, subsections and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions. 
  

	7.08	Validity 

  
 If any provision of the Plan is held invalid, void or unenforceable, the same shall not affect, in any respect, the validity of any other provision(s) of the Plan. 
  

	7.09	Waiver of Breach 

  
 The waiver by the Company of any breach of any provision of the Plan by a Covered Employee or Beneficiary shall not operate or be construed as a waiver of
any subsequent breach. 
  

	7.10	Applicable Law 

  
 The Plan is intended to conform and be governed by ERISA. In any case where ERISA does not apply, the Plan shall be governed and construed in accordance
with the laws of the Commonwealth of Pennsylvania. 
  

	7.11	Notice 

  
 Any notice required or permitted to be given to the Administrator under the Plan shall be sufficient if in writing and either hand-delivered, or sent by first class mail to the principal office of the Company at One
PPG Place, Pittsburgh, PA 15272, directed to the attention of the Administrator. Such notice shall be deemed given as of the date of delivery. 
  
 SECTION VIII - CHANGE IN CONTROL 
  

	8.01	Payments to a Trustee 

  
 Upon, or in reasonable anticipation of a Change in Control, as defined in Section 8.02, all contingent Awards outstanding shall be deemed to have been
earned on such basis as the Committee shall prescribe and then paid to a trustee or otherwise on such terms as the Committee may prescribe or permit and any deferred amounts shall be paid to a trustee or otherwise in such form and on such terms as
the Committee may prescribe or permit. 
  

 - 15 - 

	8.02	Definition: Change in Control 

  
 A “Change in Control” shall mean: 
  

	 	(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”). 

 
 For purposes of this subsection (a) the following acquisitions shall not
constitute a Change in Control: 
  
 Any acquisition directly from
the Company; 
  
 Any acquisition by the Company; 
  
 Any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company; or 
  
 Any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of paragraph (c) of this section 8.02. 
  

	 	(b)	Individuals who, as of January 1, 1999, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 

  

	 	(c)	Approval by the shareholders of the Company of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless, following such Business Combination: 

  

	 	(i)	All or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of Common Stock 

  

 - 16 - 

 and the combined voting power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be; 
  

	 	(ii)	No Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or
indirectly, 20% or more of, respectively, the then outstanding shares of Common Stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to
the extent that such ownership existed prior to the Business Combination; and 

  

	 	(iii)	At least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 

  

	 	(d)	Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or 

  
 (e) A majority of the Board otherwise determines that a Change in Control shall have occurred. 
  

 - 17 -Loan Agreement, dated as of March 8, 2004 with General Electric

 Exhibit 10.3 
  
 Loan No. 76-0029710 
  

  
 GENERAL ELECTRIC CAPITAL
CORPORATION 
 (Lender) 
  
 to 
  
 EXTRA SPACE PROPERTIES EIGHT LLC 
 (Borrower) 
  

  
 LOAN AGREEMENT 
  

  
 Dated as of: March 8, 2004 
  
 Location of Properties: CA, FL, NV 
  
 DOCUMENT PREPARED BY: 
  
 Sheppard, Mullin, Richter & Hampton LLP 
 650 Town Center Drive, 4th Floor 
 Costa Mesa,
California 92626-1925 
  
 Attention: Steven W. Cardoza, Esquire

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 ARTICLE 1 CERTAIN DEFINITIONS
	  	1
	 Section 1.1
	  	Certain Definitions	  	1
		
	 ARTICLE 2 LOAN TERMS
	  	4
	 Section 2.1
	  	The Loan	  	4
	 Section 2.2
	  	Interest Rate; Late Charge	  	4
	 Section 2.3
	  	Terms of Payment	  	4
	 Section 2.4
	  	Security	  	5
		
	 ARTICLE 3 INSURANCE, CONDEMNATION, AND IMPOUNDS
	  	6
	 Section 3.1
	  	Insurance	  	6
	 Section 3.2
	  	Use and Application of Insurance Proceeds	  	7
	 Section 3.3
	  	Condemnation Awards	  	8
	 Section 3.4
	  	Impounds	  	8
		
	 ARTICLE 4 ENVIRONMENTAL MATTERS
	  	9
	 Section 4.1
	  	Certain Definitions	  	9
	 Section 4.2
	  	Representations and Warranties on Environmental Matters	  	9
	 Section 4.3
	  	Covenants on Environmental Matters	  	9
	 Section 4.4
	  	Allocation of Risks and Indemnity	  	10
	 Section 4.5
	  	No Waiver	  	11
	 Section 4.6
	  	Lender Cure Rights	  	11
		
	 ARTICLE 5 LEASING MATTERS
	  	11
	 Section 5.1
	  	Representations and Warranties on Leases	  	11
	 Section 5.2
	  	Standard Lease Form; Approval Rights	  	12
	 Section 5.3
	  	Covenants	  	12
		
	 ARTICLE 6 REPRESENTATIONS AND WARRANTIES
	  	13
	 Section 6.1
	  	Organization, Power and Authority	  	13
	 Section 6.2
	  	Validity of Loan Documents	  	13
	 Section 6.3
	  	Liabilities; Litigation	  	13
	 Section 6.4
	  	Taxes and Assessments. Each	  	13
	 Section 6.5
	  	Other Agreements; Defaults	  	13
	 Section 6.6
	  	Compliance with Law	  	13
	 Section 6.7
	  	Location of Borrower	  	14
	 Section 6.8
	  	ERISA	  	14
	 Section 6.9
	  	Forfeiture	  	14
	 Section 6.10
	  	Tax Filings	  	14
	 Section 6.11
	  	Solvency	  	14
	 Section 6.12
	  	Full and Accurate Disclosure	  	15
	 Section 6.13
	  	Flood Zone	  	15
	 Section 6.14
	  	Single Purpose Entity/Separateness	  	15
	 Section 6.15
	  	Compliance with Anti-Terrorism Orders	  	17

  

 TABLE OF CONTENTS – Page i 

					
	 ARTICLE 7 FINANCIAL REPORTING
	  	18
	 Section 7.1
	  	Financial Statements	  	18
	 Section 7.2
	  	Accounting Principles	  	19
	 Section 7.3
	  	Other Information; Access	  	19
	 Section 7.4
	  	Annual Budget	  	19
		
	 ARTICLE 8 COVENANTS
	  	19
	 Section 8.1
	  	Due On Sale and Encumbrance; Transfers of Interests	  	19
	 Section 8.2
	  	Taxes; Utility Charges	  	19
	 Section 8.3
	  	Control; Management	  	19
	 Section 8.4
	  	Operation; Maintenance; Inspection	  	20
	 Section 8.5
	  	Taxes on Security	  	20
	 Section 8.6
	  	Legal Existence; Name, Etc.	  	20
	 Section 8.7
	  	Further Assurances	  	20
	 Section 8.8
	  	Estoppel Certificates	  	21
	 Section 8.9
	  	Notice of Certain Events	  	21
	 Section 8.10
	  	Indemnification	  	21
	 Section 8.11
	  	Cooperation	  	21
	 Section 8.12
	  	Payment For Labor and Materials	  	22
		
	 ARTICLE 9 EVENTS OF DEFAULT
	  	22
	 Section 9.1
	  	Payments	  	22
	 Section 9.2
	  	Insurance	  	22
	 Section 9.3
	  	Sale, Encumbrance, Etc.	  	22
	 Section 9.4
	  	Covenants	  	22
	 Section 9.5
	  	Representations and Warranties	  	23
	 Section 9.6
	  	Other Encumbrances	  	23
	 Section 9.7
	  	Involuntary Bankruptcy or Other Proceeding	  	23
	 Section 9.8
	  	Voluntary Petitions, Etc.	  	23
	 Section 9.9
	  	Anti-Terrorism	  	23
		
	 ARTICLE 10 REMEDIES
	  	23
	 Section 10.1
	  	Remedies - Insolvency Events	  	23
	 Section 10.2
	  	Remedies - Other Events	  	23
	 Section 10.3
	  	Lender’s Right to Perform the Obligations	  	24
		
	 ARTICLE 11 MISCELLANEOUS
	  	24
	 Section 11.1
	  	Notices	  	24
	 Section 11.2
	  	Amendments and Waivers	  	25
	 Section 11.3
	  	Limitation on Interest	  	25
	 Section 11.4
	  	Invalid Provisions	  	25
	 Section 11.5
	  	Reimbursement of Expenses	  	26
	 Section 11.6
	  	Approvals; Third Parties; Conditions	  	26
	 Section 11.7
	  	Lender Not in Control; No Partnership	  	26
	 Section 11.8
	  	Contest of Certain Claims	  	27
	 Section 11.9
	  	Time of the Essence	  	27
	 Section 11.10
	  	Successors and Assigns	  	27
	 Section 11.11
	  	Renewal, Extension or Rearrangement	  	27
	 Section 11.12
	  	Waivers	  	27
	 Section 11.13
	  	Cumulative Rights; Joint and Several Liability	  	27
	 Section 11.14
	  	Singular and Plural	  	27

  

 TABLE OF CONTENTS – Page ii 

					
	 Section 11.15
	  	Phrases	  	28
	 Section 11.16
	  	Exhibits and Schedules	  	28
	 Section 11.17
	  	Titles of Articles, Sections and Subsections	  	28
	 Section 11.18
	  	Promotional Material	  	28
	 Section 11.19
	  	Survival	  	28
	 Section 11.20
	  	Waiver of Jury Trial	  	28
	 Section 11.21
	  	Waiver of Punitive or Consequential Damages	  	28
	 Section 11.22
	  	Governing Law	  	28
	 Section 11.23
	  	Entire Agreement	  	29
	 Section 11.24
	  	Counterparts	  	29
		
	 ARTICLE 12 LIMITATIONS ON LIABILITY
	  	29
	 Section 12.1
	  	Limitation on Liability	  	29
	 Section 12.2
	  	Limitation on Liability of Lender’s Officers, Employees, Etc.	  	30

  
 LIST OF EXHIBITS
AND SCHEDULES 
  

					
	 EXHIBIT A-1
	  	-	  	 LEGAL DESCRIPTION OF EDISON PROJECT

			
	 EXHIBIT A-2
	  	-	  	 LEGAL DESCRIPTION OF HARBOR PROJECT

			
	 EXHIBIT A-3
	  	-	  	 LEGAL DESCRIPTION OF HOWELL PROJECT

			
	 EXHIBIT A-4
	  	-	  	 LEGAL DESCRIPTION OF OLD BRIDGE PROJECT

			
	 EXHIBIT A-5
	  	-	  	 LEGAL DESCRIPTION OF WOODBRIDGE PROJECT

			
	 SCHEDULED 1.1
	  	-	  	 PROJECT INFORMATION

			
	 SCHEDULE I
	  	-	  	 DEFEASANCE

			
	 SCHEDULE II
	  	-	  	 REQUIRED REPAIRS

  

 TABLE OF CONTENTS – Page iii 

 LOAN AGREEMENT 
  
 This Loan Agreement (this “Agreement”) is entered into as of March 8, 2004 between GENERAL
ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”), and EXTRA SPACE PROPERTIES EIGHT LLC, a Delaware limited liability company, whose organization number is 3772419
(“Borrower”). 
  
 ARTICLE 1

  
 CERTAIN DEFINITIONS 
  
 Section 1.1 Certain Definitions. As used herein, the following
terms have the meanings indicated: 
  
 “Affiliate” means (a) any corporation in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower directly or indirectly owns or controls more than ten percent (10%) of the
beneficial interest, (b) any partnership, joint venture or limited liability company in which Borrower or any partner, shareholder, director, officer, member, or manager of Borrower is a partner, joint venturer or member, (c) any trust in which
Borrower or any partner, shareholder, director, officer, member or manager of Borrower is a trustee or beneficiary, (d) any entity of any type which is directly or indirectly owned or controlled by Borrower or any partner, shareholder, director,
officer, member or manager of Borrower, (e) any partner, shareholder, director, officer, member, manager or employee of Borrower, (f) any Person related by birth, adoption or marriage to any partner, shareholder, director, officer, member, manager,
or employee of Borrower, or (g) any Borrower Party. 
  
 “Agreement” means this Loan Agreement, as amended from time to time. 
  
 “Assignment of Leases and Rents” means each Assignment of Leases and Rents, executed by Borrower for the benefit of Lender, and
pertaining to leases of space in a Project. 
  
 “Award” has the meaning assigned in Section 3.3.  
  
 “Bankruptcy Party” has the meaning assigned in Section 9.7. 
  
 “Borrower Party” means any Joinder Party, any manager or managing member of Borrower, and any manager or managing member in any
limited liability company that is a manager or managing member of Borrower, at any level. 
  
 “Business Day” means a day other than a Saturday, a Sunday, or a legal holiday on which national banks located in the State of New York are not open for general banking business. 
  
 “Casualty” has the meaning assigned in Section 3.2.
 
  
 “Closing Date” means the date
the Loan is funded by Lender.  
  
 “Condemnation” has the meaning assigned in Section 3.3.  
  
 “Contract Rate” has the meaning assigned in Section 2.2. 
  

 LOAN AGREEMENT – Page 1 

 “Debt” means, for any Person, without duplication: (a) all indebtedness of such
Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (b) all unfunded amounts under a loan agreement, letter of credit, or other credit
facility for which such Person would be liable, if such amounts were advanced under the credit facility, (c) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred or special dividend, including any
mandatory redemption of shares or interests, (d) all indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases that constitute capital leases for which such Person is liable, and (f) all obligations of such
Person under swaps, caps, floors, collars and other hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a
creditor against loss. 
  
 “Debt Service”
means the aggregate interest, fixed principal, and other payments due under the Loan, and on any other outstanding permitted Debt relating to the Projects approved by Lender for the period of time for which calculated. 
  
 “Default Rate” means the lesser of (a) the maximum
rate of interest allowed by applicable law, and (b) five percent (5%) per annum in excess of the Contract Rate. 
  
 “Defeasance Option” has the meaning assigned in Section 2.3(c).  
  
 “Environmental Laws” has the meaning assigned in
Section 4.1 (a).  
  
 “ERISA” has
the meaning assigned in Section 6.8.  
  
 “Event
of Default” has the meaning assigned in Article 9.  
  
 “Funds” means the Required Repair Fund and the Replacement Escrow Fund.  
  
 “Hazardous Materials” has the meaning assigned in Section 4.1(b).  
  
 “Independent Director” has the meaning assigned in
Section 6.14(p).  
  
 “Insurance
Premiums” has the meaning assigned in Section 3.1(c).  
  
 “Joinder Party” means the Persons, if any, executing the Joinder hereto. 
  
 “Lien” means, as to any Project, any interest, or claim thereof, in the Project securing an obligation owed to, or a claim by, any
Person other than the owner of the Project, whether such interest is based on common law, statute or contract, including the lien or security interest arising from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and
other title exceptions and encumbrances affecting a Project. 
  
 “Loan” means the loan made by Lender to Borrower under this Agreement and all other amounts secured by the Loan Documents. 
  
 “Loan Documents” means: (a) this Agreement, (b) the Note, (c) the Mortgages, (d) the Assignments of Leases and Rents, (e) Uniform
Commercial Code financing statements, (f) such assignments of management agreements, contracts and other rights as may be required or otherwise 

  

 LOAN AGREEMENT – Page 2 

 
requested by Lender, (g) all other documents evidencing, securing, governing or otherwise pertaining to the Loan, and (h) all amendments, modifications,
renewals, substitutions and replacements of any of the foregoing; provided however, in no event shall the term “Loan Documents” include that certain Hazardous Materials Indemnity Agreement (the “Environmental Indemnity
Agreement”) dated the date hereof in favor of Lender. 
  
 “Loan Year” means (a) for the first Loan Year, the period between the Closing Date and one calendar year from the last day of the month in which the Closing Date occurs (unless the Closing Date is on the first day of
a month, in which case the first Loan Year shall commence on such Closing Date and end one calendar year from the last day of the month immediately preceding the Closing Date) and (b) each consecutive twelve month calendar period after the first
Loan Year until the Maturity Date. 
  
 “Maturity
Date” means, as applicable, the earlier of (a) April 1, 2009, or (b) any earlier date on which the entire Loan is required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents.

  
 “Mortgage” means each Mortgage,
Assignment of Leases and Rents, Security Agreement and Fixture Filing, executed by Borrower in favor of Lender, covering a Project. 
  
 “Note” means the Promissory Note of even date, in the stated principal amount of $20,377,000.00, executed by Borrower, and payable
to the order of Lender in evidence of the Loan. 
  
 “Person” means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of entity. 
  
 “Potential Default” means the occurrence of any event or condition which, with the giving of notice, the passage of time, or both, would constitute an Event of Default. 
  
 “Project” means each of the self-storage facilities
identified in Schedule 1.1 and all related facilities, amenities, fixtures, and personal property owned by Borrower and any improvements now or hereafter located on the real property on which such self-storage facility is
located, described in Exhibits A-1 through A-5. 
  
 “Rating Agencies” means each of Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., Moody’s Investors Service, Inc. and Fitch, Inc., or any other
nationally-recognized statistical rating agency which has been approved by Lender. 
  
 “Replacement Escrow Fund” has the meaning assigned in Section 2.4.  
  
 “Required Repair Fund” has the meaning assigned in Section 2.4.  
  
 “Secondary Market Transaction” has the meaning
assigned in Section 8.11. 
  
 “Single Purpose
Entity” shall mean a Person (other than an individual, a government or any agency or political subdivision thereof), which exists solely for the purpose of owning the Projects, observes corporate, company or partnership formalities, as
applicable, independent of any other entity, and which otherwise complies with the covenants set forth in Section 6.14 hereof. 
  
 “Site Assessment” means an environmental engineering report for each Project prepared at Borrower’s expense by an engineer
engaged by Borrower, or Lender on behalf of Borrower, and approved 

  

 LOAN AGREEMENT – Page 3 

 
by Lender, and in a manner reasonably satisfactory to Lender, based upon an investigation relating to and making appropriate inquiries concerning the
existence of Hazardous Materials on or about such Project, and the past or present discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard El527-93 (or any successor thereto published by ASTM) and good
customary and commercial practice. 
  
 “SPC
Party” has the meaning assigned in Section 6.14(o). 
  
 “State” means the State of Utah. 
  
 “Tax and Insurance Escrow Fund” has the meaning assigned in Section 3.4. 
  
 “Taxes” has the meaning assigned in Section 8.2. 
  
 “Yield Maintenance Amount” has the meaning assigned in Schedule I. 

 
 ARTICLE 2  
  
 LOAN TERMS 
  
 Section 2.1 The Loan. Upon satisfaction of all the terms and
conditions of Lender to making the Loan, Lender agrees to make a Loan of TWENTY MILLION THREE HUNDRED SEVENTY-SEVEN THOUSAND NO/100 DOLLARS ($20,377,000.00) to the Borrower, which shall be funded in one advance and repaid in accordance with the
terms of this Agreement and the Note. Borrower hereby agrees to accept the Loan on the Closing Date, subject to and upon the terms and conditions set forth herein. 
  
 Section 2.2 Interest Rate; Late Charge. The outstanding principal balance of the Loan shall bear interest at a
rate of interest equal to four and seven-tenths percent (4.70%) per annum (the “Contract Rate”). Interest at the Contract Rate shall be computed on the basis of a fraction, the denominator of which is three hundred sixty
(360) days and the numerator of which is the actual number of days elapsed from the date of the initial disbursement under the Loan or the date of the preceding interest installment due date, as the case may be, to the date of the next interest
installment due date or the Maturity Date. If Borrower fails to pay any installment of interest or principal within five (5) days of (and including) the date on which the same is due, Borrower shall pay to Lender a late charge on such past-due
amount, as liquidated damages and not as a penalty, equal to five percent (5%) of such amount, but not in excess of the maximum amount of interest allowed by applicable law. While any Event of Default exists, the Loan shall bear interest at the
Default Rate. 
  
 Section 2.3 Terms of Payment. The
Loan shall be payable as follows: 
  
 (a)
Interest and Principal. A payment of interest only on the Closing Date for the period from the Closing Date through the last day of the current month. Thereafter, a constant payment of $115,587.57, on the first day of May, 2004 and on
the first day of each calendar month thereafter; each of such payments, to be applied (i) to the payment of interest computed at the Contract Rate and (ii) the balance applied toward reduction of the principal sum. The constant payment required
hereunder is calculated based on a twenty-five (25) year amortization schedule. 
  
 (b) Maturity. On the Maturity Date, Borrower shall pay to Lender all outstanding principal, accrued and unpaid interest,
default interest, late charges and any and all other amounts due under the Loan Documents. 
  

 LOAN AGREEMENT – Page 4 

 (c) Prepayment. Except as set forth herein, the Loan is closed to
prepayment in whole or in part. Notwithstanding the foregoing, (i) the Loan may be prepaid in whole, but not in part, on or after the scheduled monthly payment date for the fifty-eighth (58th) payment of principal and interest, and (ii) from the
earlier to occur of (x) two (2) years after the sale of the Loan in a Secondary Market Transaction or (y) the fourth (4th) anniversary of the Closing Date, provided no Event of Default exists, Borrower may obtain the release of the Projects from the
lien of the Mortgages in accordance with the terms and provisions of Schedule I attached hereto (the “Defeasance Option”). 
  
 If the Loan is accelerated for any reason other than casualty or condemnation, and the Loan is otherwise
closed to prepayment, Borrower shall pay, in addition to all other amounts outstanding under the Loan Documents, a prepayment premium equal to the sum of (i) the Yield Maintenance Amount, if any, that would be required under the Defeasance Option
and (ii) five percent (5%) of the outstanding balance of the Loan. If for any reason the Loan is prepaid on a day other than a scheduled monthly payment date, the Borrower shall pay, in addition to the principal, interest and premium, if any,
required under this Section, an amount equal to the interest that would have accrued on the Loan from the date of prepayment to the next scheduled monthly payment date. In the event of a prepayment resulting from Lender’s application of
insurance or condemnation proceeds pursuant to Article 3 hereof, no prepayment penalty or premium shall be imposed. 
  
 Section 2.4 Security. 
  
 (a) Establishment of Funds. The Loan shall be secured by the Mortgages creating a first lien on each Project, the
Assignments of Leases and Rents and the other Loan Documents. Borrower agrees to establish the following reserves with Lender, to be held by Lender as further security for the Loan: (i) on the Closing Date, Borrower shall deposit with Lender the
amount of $29,485.00 (the “Required Repair Fund”) which shall be held by Lender for the completion of the required repairs set forth on Schedule II annexed hereto on or before
six months from the Closing Date; and (ii) Borrower shall deposit with Lender on the day of each calendar month a scheduled payment is due the amount of $4,154.00 which shall be held by Lender for replacements and repairs required to be made to the
Projects during the calendar year (the “Replacement Escrow Fund”). 
  
 (b) Pledge and Disbursement of Funds. Borrower hereby pledges to Lender, and grants a security interest in, any and all
monies now or hereafter deposited in the Funds as additional security for the payment of the Loan. Lender may reasonably reassess its estimate of the amount necessary for the Funds from time to time and may adjust the monthly amounts required to be
deposited into the Funds upon thirty (30) days notice to Borrower. Lender shall make disbursements from the Funds as requested by Borrower, and approved by Lender in its reasonable discretion, on a quarterly basis in increments of no less than
$5,000.00 upon delivery by Borrower of Lender’s standard form of draw request accompanied by copies of paid invoices for the amounts requested and, if required by Lender, lien waivers and releases from all parties furnishing materials and/or
services in connection with the requested payment. Lender may require an inspection of the applicable Project(s) at Borrower’s expense prior to making a quarterly disbursement in order to verify completion of replacements and repairs for which
reimbursement is sought. The Funds shall be held without interest in Lender’s name and may be commingled with Lender’s own funds at financial institutions selected by Lender in its reasonable discretion. Upon the occurrence of an Event of
Default, Lender may apply any sums then present in the Funds to the payment of the Loan in any order in its reasonable discretion. Until expended or applied as above provided, the Funds shall constitute additional security for the Loan. Lender shall
have no obligation to release any of the Funds while any Event of Default or Potential Default exists or any material adverse change has occurred in Borrower or any Joinder Party or any Project. All costs and expenses incurred by Lender in the
disbursement of any of the Funds shall be paid by Borrower promptly upon demand or, at Lender’s sole discretion, deducted from the Funds. 
  

 LOAN AGREEMENT – Page 5 

 ARTICLE 3 
  

INSURANCE, CONDEMNATION, AND IMPOUNDS  
  
 Section 3.1 Insurance. Borrower shall maintain insurance as follows: 
  
 (a) Casualty; Business Interruption. Borrower shall keep the Projects insured against damage
by fire and the other hazards covered by a standard extended coverage and all-risk insurance policy for the full insurable value thereof on a replacement cost claim recovery basis (without reduction for depreciation or co-insurance), and shall
maintain such other casualty insurance as reasonably required by Lender. Such insurance shall include coverage against acts of terrorism. Lender reserves the right to require from time to time the following additional insurance: boiler and
machinery; flood; earthquake/sinkhole; windstorm; worker’s compensation; and/or building law or ordinance. Borrower shall keep each Project insured against loss by flood if such Project is located currently or at any time in the future in an
area identified by the Federal Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the
National Flood Insurance Reform Act of 1994 (as such acts may from time to time be amended) in an amount at least equal to the lesser of the maximum amount of the Loan or the maximum limit of coverage available under said acts. Any such flood
insurance policy shall be issued in accordance with the requirements and current guidelines of the Federal Insurance Administration. Borrower shall maintain use and occupancy insurance for each Project covering, as applicable, rental income or
business interruption, with coverage in an amount not less than twelve (12) months anticipated gross rental income or gross business earnings, as applicable in each case, attributable to such Project. Borrower shall not maintain any separate or
additional insurance which is contributing in the event of loss unless it is properly endorsed and otherwise reasonably satisfactory to Lender in all respects. The proceeds of insurance paid on account of any damage or destruction to any Project
shall be paid to Lender to be applied as provided in Section 3.2. 
  
 (b) Liability. Borrower shall maintain (i) commercial general liability insurance with respect to each Project providing for limits of liability of not less than $5,000,000 for both injury to or death of
a person and for property damage per occurrence, and (ii) other liability insurance as reasonably required by Lender. 
  
 (c) Form and Quality. All insurance policies shall be endorsed in form and substance acceptable to Lender to name Lender as
an additional insured, loss payee or mortgagee thereunder, as its interest may appear, with loss payable to Lender, without contribution, under a standard New York (or local equivalent) mortgagee clause. All such insurance policies and endorsements
shall be fully paid for and contain such provisions and expiration dates and be in such form and issued by such insurance companies licensed to do business in the State, with a general company and financial size rating of “A-:IX” or better
as established by Best’s Rating Guide and “AA” or better by Standard & Poor’s Ratings Group. Each policy shall provide that such policy may not be canceled or materially changed except upon thirty (30) days’ prior
written notice of intention of non-renewal, cancellation or material change to Lender and that no act or thing done by Borrower shall invalidate any policy as against Lender. Blanket policies shall be permitted only if Lender receives appropriate
endorsements and/or duplicate policies containing Lender’s right to continue coverage on a pro rata pass-through basis and that coverage will not be affected by any loss on other properties covered by the policies. Borrower authorizes Lender to
pay the premiums for such policies (the “Insurance Premiums”) from the Tax and Insurance Escrow Fund as the same become due and payable annually in advance. If Borrower fails to deposit funds into the Tax and Insurance Escrow
Fund sufficient to permit Lender to pay the premiums when due, Lender may obtain such insurance and pay the premium therefor and Borrower shall, on demand, reimburse Lender for all expenses incurred in connection therewith. Borrower shall assign the
policies or proofs of 

  

 LOAN AGREEMENT – Page 6 

 
insurance to Lender, in such manner and form that Lender and its successors and assigns shall at all times have and hold the same as security for the payment
of the Loan. Borrower shall deliver copies of all original policies certified to Lender by the insurance company or authorized agent as being true copies, together with the endorsements required hereunder. The proceeds of insurance policies coming
into the possession of Lender shall not be deemed trust funds, and Lender shall be entitled to apply such proceeds as herein provided. 
  
 (d) Adjustments. Borrower shall give immediate written notice of any loss to the insurance carrier and to Lender. Borrower
hereby irrevocably authorizes and empowers Lender, as attorney-in-fact for Borrower coupled with an interest, to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from such
insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender’s reasonable expenses incurred in the collection of such proceeds. Nothing contained in this Section 3.l(d), however, shall require Lender to incur
any expense or take any action hereunder. 
  
 Section 3.2
Use and Application of Insurance Proceeds. 
  
 (a) If any Project shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt notice thereof to Lender. Following the occurrence of a Casualty, Borrower,
regardless of whether insurance proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the same to be of at least equal value and of substantially the same character as prior to such damage or destruction, all to be
effected in accordance with applicable law. 
  
 (b) Lender shall apply insurance proceeds to costs of restoring a Project or to the payment of the Loan as follows: 
  
 (i) if the loss is less than or equal to $100,000, Lender shall apply the insurance proceeds to restoration provided (A) no Event of
Default or Potential Default exists, and (B) Borrower promptly commences and is diligently pursuing restoration of the Project; 
  
 (ii) if the loss exceeds $100,000 but is not more than 25% of the replacement value of the improvements, Lender shall apply the insurance
proceeds to restoration provided that (A) at all times during such restoration no Event of Default or Potential Default exists; (B) Lender determines throughout the restoration that there are sufficient funds available to restore and repair the
Project to a condition approved by Lender; (C) Lender determines that the net operating income of the Projects during restoration, taking into account rent loss or business interruption insurance, will be sufficient to pay Debt Service; (D) Lender
determines (based on leases which will remain in effect after restoration is complete if the Project is not a multi-family project) that after restoration the ratio of net operating income to Debt Service will equal at least the ratio that existed
on the Closing Date; (E) Lender determines that the ratio of the outstanding principal balance of the Loan to appraised value of the Projects after restoration will not exceed the loan-to-value ratio that existed on the Closing Date; (F) Lender
determines that restoration and repair of the Project to a condition approved by Lender will be completed within six months after the date of loss or casualty and in any event ninety (90) days prior to the Maturity Date; (G) Borrower promptly
commences and is diligently pursuing restoration of the Project; and (H) the Project after the restoration will be in compliance with and permitted under all applicable zoning, building and land use laws, rules, regulations and ordinances; and

  
 (iii) if the conditions set forth in (i) and
(ii) above are not satisfied in Lender’s reasonable discretion, Lender may apply any insurance proceeds it may receive to the payment of the Loan or allow all or a portion of such proceeds to be used for the restoration of the Project.

  

 LOAN AGREEMENT – Page 7 

 (c) Insurance proceeds applied to restoration will be disbursed on receipt of reasonably
satisfactory plans and specifications, contracts and subcontracts, schedules, budgets, lien waivers and architects’ certificates, and otherwise in accordance with prudent commercial construction lending practices for construction loan advances
(including appropriate retainages to ensure that all work is completed in a workmanlike manner). 
  
 Section 3.3 Condemnation Awards. Borrower shall promptly give Lender written notice of the actual or threatened commencement of any
condemnation or eminent domain proceeding (a “Condemnation”) and shall deliver to Lender copies of any and all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower,
regardless of whether any award or compensation (an “Award”) is available, shall promptly proceed to restore, repair, replace or rebuild the applicable Project to the extent practicable to be of at least equal value and of
substantially the same character as prior to such Condemnation, all to be effected in accordance with applicable law. Lender may participate in any such proceeding and Borrower will deliver to Lender all instruments necessary or required by Lender
to permit such participation. Without Lender’s prior consent, Borrower (a) shall not agree to any Award, and (b) shall not take any action or fail to take any action which would cause the Award to be determined. All Awards for the taking or
purchase in lieu of condemnation of any Project or any part thereof are hereby assigned to and shall be paid to Lender. Borrower authorizes Lender to collect and receive such Awards, to give proper receipts and acquittances therefor, and in
Lender’s sole discretion to apply the same toward the payment of the Loan, notwithstanding that the Loan may not then be due and payable, or to the restoration of the affected Project; provided, however, if the Award is less than or equal to
$100,000 and Borrower requests that such proceeds be used for non-structural site improvements (such as landscape, driveway, walkway and parking area repairs) required to be made as a result of such condemnation, Lender will apply the Award to such
restoration in accordance with disbursement procedures applicable to insurance proceeds provided there exists no Potential Default or Event of Default. Borrower, upon request by Lender, shall execute all instruments requested to confirm the
assignment of the Awards to Lender, free and clear of all liens, charges or encumbrances. 
  
 Section 3.4 Impounds. Borrower shall deposit with Lender, monthly, (a) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to
accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded
by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (a) and (b) above
hereinafter called the “Tax and Insurance Escrow Fund”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of
such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender’s estimate from time to time of the charges for the current year (after giving
effect to any reassessment or, at Lender’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and
may be commingled with Lender’s general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied
in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of
law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the
amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, 

  

 LOAN AGREEMENT – Page 8 

 
is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount
on deposit with Lender is sufficient to pay such charges and Lender has received a bill for such charges. 
  
 ARTICLE 4 
  
 ENVIRONMENTAL MATTERS 
  
 Section 4.1
Certain Definitions. As used herein, the following terms have the meanings indicated: 
  
 (a) “Environmental Laws” means any federal, state or local law (whether imposed by statute, ordinance, rule,
regulation, administrative or judicial order, or common law), now or hereafter enacted, governing health, safety, industrial hygiene, the environment or natural resources, or Hazardous Materials, including, without limitation, such laws governing or
regulating (i) the use, generation, storage, removal, recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous Materials, (ii) the transfer of property upon a negative declaration or other
approval of a governmental authority of the environmental condition of such property, or (iii) requiring notification or disclosure of releases of Hazardous Materials or other environmental conditions whether or not in connection with a transfer of
title to or interest in property. 
  
 (b)
“Hazardous Materials” means (i) petroleum or chemical products, whether in liquid, solid, or gaseous form, or any fraction or by-product thereof, (ii) asbestos or asbestos-containing materials, (iii) polychlorinated biphenyls
(pcbs), (iv) radon gas, (v) underground storage tanks, (vi) any explosive or radioactive substances, (vii) lead or lead-based paint, or (viii) any other substance, material, waste or mixture which is or shall be listed, defined, or otherwise
determined by any governmental authority to be hazardous, toxic, dangerous or otherwise regulated, controlled or giving rise to liability under any Environmental Laws. 
  
 Section 4.2 Representations and Warranties on Environmental Matters. To Borrower’s knowledge, except as
set forth in the Site Assessments obtained by Lender in connection with the Loan closing (copies of which have been provided to Borrower), (a) no Hazardous Material is now or was formerly used, stored, generated, manufactured, installed, treated,
discharged, disposed of or otherwise present at or about any Project or any property adjacent to any Project (except for cleaning and other products currently used in connection with the routine maintenance or repair of the Projects in full
compliance with Environmental Laws) and no Hazardous Material was removed or transported from any Project, (b) all permits, licenses, approvals and filings required by Environmental Laws have been obtained, and the use, operation and condition of
the Projects do not, and did not previously, violate any Environmental Laws, (c) no civil, criminal or administrative action, suit, claim, hearing, investigation or proceeding has been brought or been threatened, nor have any settlements been
reached by or with any parties or any liens imposed in connection with any Project concerning Hazardous Materials or Environmental Laws; and (d) no underground storage tanks exist on any part of any Project. 
  
 Section 4.3 Covenants on Environmental Matters. 
  
 (a) Borrower shall (i) comply strictly and in all respects
with applicable Environmental Laws; (ii) notify Lender immediately upon Borrower’s discovery of any spill, discharge, release or presence of any Hazardous Material at, upon, under, within, contiguous to or otherwise affecting any Project; (iii)
promptly remove such Hazardous Materials and remediate such Project in full compliance with Environmental Laws or as reasonably required by Lender based upon the recommendations and specifications of an independent environmental consultant approved
by Lender; 

  

 LOAN AGREEMENT – Page 9 

 
and (iv) promptly forward to Lender copies of all orders, notices, permits, applications or other communications and reports in connection with any spill,
discharge, release or the presence of any Hazardous Material or any other matters relating to the Environmental Laws or any similar laws or regulations, as they may affect any Project or Borrower. 
  
 (b) Borrower shall not cause, shall prohibit any other
Person within the control of Borrower from causing, and shall use prudent, commercially reasonable efforts to prohibit other Persons (including tenants) from (i) causing any spill, discharge or release, or the use, storage, generation, manufacture,
installation, or disposal, of any Hazardous Materials at, upon, under, within or about any Project or the transportation of any Hazardous Materials to or from any Project (except for cleaning and other products used in connection with routine
maintenance or repair of the Projects in full compliance with Environmental Laws), (ii) installing any underground storage tanks at any Project, or (iii) conducting any activity that requires a permit or other authorization under Environmental Laws.

  
 (c) Borrower shall provide to Lender, at
Borrower’s expense promptly upon the written request of Lender from time to time, a Site Assessment for each Project or, if required by Lender, an update to any existing Site Assessment for each Project, to assess the presence or absence of any
Hazardous Materials and the potential costs in connection with abatement, cleanup or removal of any Hazardous Materials found on, under, at or within such Project. Borrower shall pay the cost of no more than one such Site Assessment or update for
each Project in any twelve (12)-month period, unless Lender’s request for a Site Assessment is based on information provided under Section 4.3(a), a reasonable suspicion of Hazardous Materials at or near a Project, a breach of representations
under Section 4.2, or an Event of Default, in which case any such Site Assessment or update shall be at Borrower’s expense. 
  
 (d) Borrower acknowledges that the Site Assessment for the “Casitas” Project located on the land described in
Exhibit A-1 identified the possible presence of perchloroethylene and trichloroethylene in the soil and/or groundwater beneath such Project. Borrower shall not undertake any excavation or other activities which could
disturb the soils or groundwater at the Casitas Project unless Borrower has established, and follows, procedures which comply with applicable Environmental Laws (and any other applicable laws) with respect to worker health and safety, and any
affected soil or groundwater encountered is properly handled and disposed of in accordance with applicable Environmental Laws. 
  
 (e) From and after the Closing Dated, Borrower shall implement improved cleaning and maintenance practices at the “Forest Hill”
Project located on the land described in Exhibit A-3 to minimize potential for future releases near building C, unit nos. 16-17 and building H, unit no. 47 where oily
staining was observed, as noted in the Site Assessment for this Project. 
  
 (f) Within ninety (90) days after the Closing Date, Borrower shall provide Lender with satisfactory evidence that Borrower has properly closed, in accordance with applicable Environmental Laws, the three monitoring
wells at the “Military Trail” Project located on the land described in Exhibit A-4. 
  
 Section 4.4 Allocation of Risks and Indemnity. As between Borrower and Lender, all risk of loss associated with non-compliance with
Environmental Laws, or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting the Projects, shall lie solely with Borrower. Accordingly, Borrower shall bear all risks and costs associated with any loss
(including any loss in value attributable to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous Materials or other remediation required by Lender or by law. Borrower shall indemnify, defend and hold
Lender and its shareholders, directors, officers, employees and agents harmless from and 

  

 LOAN AGREEMENT – Page 10 

 
against all loss, liabilities, damages, claims, costs and expenses (including reasonable costs of defense and consultant fees, investigation and laboratory
fees, court costs, and other litigation expenses) arising out of or associated, in any way, with (a) the non-compliance with Environmental Laws, or (b) the existence of Hazardous Materials in, on, or about any Project, (c) any personal injury
(including wrongful death) or property damage (real or personal) arising out of or related to Hazardous Materials; (d) any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Materials, (e) a breach of
any representation, warranty or covenant contained in this Article 4, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law, or (f) the imposition of any environmental lien
encumbering any Project; provided, however, Borrower shall not be liable under such indemnification to the extent such loss, liability, damage, claim, cost or expense results solely from Lender’s gross negligence or willful misconduct.
Borrower’s obligations under this Section 4.4 shall arise whether or not any governmental authority has taken or threatened any action in connection with the presence of any Hazardous Material, and whether or not the existence of any such
Hazardous Material or potential liability on account thereof is disclosed in a Site Assessment and shall continue notwithstanding the repayment of the Loan or any transfer or sale of any right, title and interest in the Projects (by foreclosure,
deed in lieu of foreclosure or otherwise). Any amounts payable to Lender by reason of the application of this Section 4.4 shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained
by Lender until paid. The obligations and liabilities of Borrower under this Section 4.4 shall survive any termination, satisfaction, assignment, entry of a judgment of foreclosure or delivery of a deed in lieu of foreclosure. 
  
 Section 4.5 No Waiver. Notwithstanding any provision in this
Article 4 or elsewhere in the Loan Documents, or any rights or remedies granted by the Environmental Indemnity Agreement or the Loan Documents, Lender does not waive and expressly reserves all rights and benefits now or hereafter accruing to Lender
under the “security interest” or “secured creditor” exception under applicable Environmental Laws, as the same may be amended. No action taken by Lender pursuant to the Environmental Indemnity Agreement or the Loan Documents
shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits under the “security interest exception.” 
  
 Section 4.6 Lender Cure Rights. If there is a release of Hazardous Materials affecting any Project, whether or not the release originates or
emanates from such Project or any contiguous real estate, or if Borrower shall fail to comply with any Environmental Laws, Lender may at its election, but without the obligation to do so, upon three (3) Business Days’ notice to Borrower
(provided the delay caused by the giving of notice shall not, in Lender’s sole opinion, cause substantial damage such Project), take any and all actions as Lender shall deem necessary or advisable in order to remedy the release of Hazardous
Materials or cure said failure of compliance, and any amounts paid by Lender as a result thereof, together with interest thereon at the Default Rate from the date of payment by Lender, shall be immediately due and payable by Borrower to Lender and
until paid shall be added to and become part of the Loan and shall have the benefit of the lien created by the Loan Documents. 
  
 ARTICLE 5 
  
 LEASING MATTERS 
  
 Section 5.1 Representations and Warranties on Leases. Borrower represents and warrants to Lender with respect to leases of each Project that: (a) the rent roll delivered to Lender is true and correct,
and the leases are valid and in and full force and effect; (b) the leases (including amendments) are in writing, and there are no oral agreements with respect thereto; (c) the copies of the leases (if any) delivered to Lender are true and complete;
(d) the landlord is not in default under any of the leases, and not more than (i) five percent (5%) of the tenants at any one Project, and (ii) three percent (3%) of all 

  

 LOAN AGREEMENT – Page 11 

 
tenants at all Projects are more than 30 days delinquent in payment of rent or are otherwise in default in a manner entitling the landlord to terminate their
leases; (e) Borrower has not assigned or pledged any of the leases, the rents or any interests therein except to Lender; (f) no tenant or other party has an option to purchase all or any portion of any Project; (g) no tenant has the right to
terminate its lease prior to expiration of the stated term of such lease; (h) not more than five percent (5%) of the tenants at any Project have prepaid more than one month’s rent in advance (except for bona fide security deposits not in excess
of an amount equal to two months’ rent), and no tenants have prepaid more than twelve (12) months’ rent in advance; and (i) all existing leases are subordinate to the Mortgages either pursuant to their terms or a recorded subordination
agreement. 
  
 Section 5.2 Standard Lease Form; Approval
Rights. All leases and other rental arrangements shall in all respects be approved by Lender and shall be on a standard lease form approved by Lender with no modifications (except as approved by Lender, which approval will not be
unreasonably withheld or delayed). Borrower shall hold, in trust, all tenant security deposits in a segregated account, and, to the extent required by applicable law, shall not commingle any such funds with any other funds of Borrower. Within ten
(10) days after Lender’s request, Borrower shall furnish to Lender a statement of all tenant security deposits and copies of all leases, certified by Borrower as being true and correct. Notwithstanding anything contained in the Loan Documents,
Lender’s approval shall not be required for future leases or lease extensions at a Project if the following conditions are satisfied: (i) there exists no Potential Default or Event of Default; (ii) the lease is on the standard lease form
approved by Lender with no modifications (except as approved by Lender); (iii) the lease does not conflict with any restrictive covenant affecting the Project or any other lease for space in the Project; and (iv) the effective rental rate is at
least a market rate. 
  
 Section 5.3 Covenants.
Borrower (a) shall perform the obligations which Borrower is required to perform under the leases; (b) shall enforce the obligations to be performed by the tenants; (c) shall not collect from more than five percent (5%) of the tenants at any Project
(and then, only at the request of such tenants) any rents for more than thirty (30) days in advance of the time when the same shall become due (and in no event shall Borrower collect from any tenant any rents more than twelve (12) months in advance
of the time when the same shall become due), except for bona fide security deposits not in excess of an amount equal to two month’s rent; (d) shall not enter into any ground lease or master lease of any part of any Project; (e) shall not
further assign or encumber any lease; (f) shall not, except with Lender’s prior written consent, cancel or accept surrender or termination of any lease except in the ordinary course of business, consistent with prudent property management
practices for self-storage facilities; (g) shall not, except with Lender’s prior written consent, modify or amend any lease (except for minor modifications and amendments entered into in the ordinary course of business, consistent with prudent
property management practices for self-storage facilities, not affecting the economic terms of the lease); and (h) shall maintain all last month’s rent and security deposits under leases at each Project in accordance with the requirements of
the laws of the state in which such Project is located. Any action in violation of clauses (d), (e), (f), and (g) of this Section 5.3 shall be void at the election of Lender. 
  
 Section 5.4 Tenant Estoppels. At Lender’s request, Borrower shall obtain and furnish to Lender, written
estoppels in form and substance reasonably satisfactory to Lender, executed by tenants under any “corporate” or master leases of any part of any Project and confirming the term, rent, and other provisions and matters relating to the
leases. 
  

 LOAN AGREEMENT – Page 12 

 ARTICLE 6 
  

REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents, warrants and covenants to Lender that: 
  
 Section 6.1 Organization, Power and Authority. Borrower and each Borrower Party (a) is duly organized, validly existing and in good standing
under the laws of the state of its formation or existence, (b) is in compliance with all legal requirements applicable to doing business in the State, and (c) has the necessary governmental approvals to own and operate the Projects and conduct the
business now conducted or to be conducted thereon. Borrower has the full power, authority and right to execute, deliver and perform its obligations pursuant to this Loan Agreement and the other Loan Documents, and to mortgage the Projects pursuant
to the terms of the Mortgages and to keep and observe all of the terms of this Loan Agreement and the other Loan Documents on Borrower’s part to be performed. Borrower is not a “foreign person” within the meaning of § 1445(f)(3)
of the Internal Revenue Code. 
  
 Section 6.2 Validity of
Loan Documents. The execution, delivery and performance by Borrower and each Borrower Party of the Loan Documents: (a) are duly authorized and do not require the consent or approval of any other party or governmental authority which has not
been obtained; and (b) will not violate any law or result in the imposition of any lien, charge or encumbrance upon the assets of any such party, except as contemplated by the Loan Documents. The Loan Documents constitute the legal, valid and
binding obligations of Borrower and each Borrower Party, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, or similar laws generally affecting the enforcement of creditors’ rights. 

 
 Section 6.3 Liabilities; Litigation. 
  
 (a) The financial statements delivered by Borrower and each
Borrower Party are true and correct with no significant change since the date of preparation. Except as disclosed in such financial statements, there are no liabilities (fixed or contingent) affecting any Project, Borrower or any Borrower Party.
Except as disclosed in such financial statements, there is no litigation, administrative proceeding, investigation or other legal action (including any proceeding under any state or federal bankruptcy or insolvency law) pending or, to the knowledge
of Borrower, threatened, against any Project, Borrower or any Borrower Party which if adversely determined could have a material adverse effect on such party, such Project or the Loan. 
  
 (b) Neither Borrower nor any Borrower Party is contemplating either the filing of a petition by it under
state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any Person contemplating the filing of any such petition against it.

  
 Section 6.4 Taxes and Assessments. Each Project
is comprised of one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot. There are no pending or, to Borrower’s best knowledge, proposed, special or other assessments for
public improvements or otherwise affecting any Project, nor are there any contemplated improvements to any Project that may result in such special or other assessments. 
  
 Section 6.5 Other Agreements; Defaults. Neither Borrower nor any Borrower Party is a party to any agreement or
instrument or subject to any court order, injunction, permit, or restriction which might adversely affect any Project or the business, operations, or condition (financial or otherwise) of Borrower or any Borrower Party. Neither Borrower nor any
Borrower Party is in violation of any agreement which violation would have an adverse effect on any Project, Borrower, or any Borrower Party or Borrower’s or any Borrower Party’s business, properties, or assets, operations or condition,
financial or otherwise. 
  
 Section 6.6 Compliance with
Law. Borrower and each Borrower Party have all requisite licenses, permits, franchises, qualifications, certificates of occupancy or other governmental 

  

 LOAN AGREEMENT – Page 13 

 
authorizations to own, lease and operate the Projects and carry on its business, and each Project is in compliance with all applicable legal requirements and
is free of structural defects, and except as set forth in the property condition reports obtained by Lender in connection with the Loan, all building systems contained therein are in good working order, subject to ordinary wear and tear. No Project
constitutes, in whole or in part, a legally non-conforming use under applicable legal requirements; 
  
 (b) No condemnation has been commenced or, to Borrower’s knowledge, is contemplated with respect to all or any portion of any Project
or for the relocation of roadways providing access to any Project; and 
  
 (c) Each Project has adequate rights of access to public ways and is served by adequate water, sewer, sanitary sewer and storm drain facilities. All public utilities necessary or convenient to the full use and
enjoyment of each Project are located in the public right-of-way abutting such Project, and all such utilities are connected so as to serve such Project without passing over other property, except to the extent such other property is subject to a
perpetual easement for such utility benefitting such Project. All roads necessary for the full utilization of each Project for its current purpose have been completed and dedicated to public use and accepted by all governmental authorities.

  
 Section 6.7 Location of Borrower.
Borrower’s principal place of business and chief executive offices are located at the address stated in Section 11.1. 
  
 Section 6.8 ERISA. 
  
 (a) As of the Closing Date and throughout the term of the Loan, (i) Borrower is not and will not be an “employee benefit plan”
as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I of ERISA, and (ii) the assets of Borrower do not and will not constitute “plan
assets” of one or more such plans for purposes of Title I of ERISA; and 
  
 (b) As of the Closing Date and throughout the term of the Loan (i) Borrower is not and will not be a “governmental plan” within the meaning of Section 3(3) of ERISA and (ii) transactions by or with Borrower
are not and will not be subject to state statutes applicable to Borrower regulating investments of and fiduciary obligations with respect to governmental plans. 
  

Section 6.9 Forfeiture. There has not been and shall never be committed by Borrower or any other person in occupancy of or involved with
the operation or use of the Projects any act or omission affording the federal government or any state or local government the right of forfeiture as against the Projects or any part thereof or any monies paid in performance of Borrower’s
obligations under any of the Loan Documents. Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. 
  
 Section 6.10 Tax Filings. Borrower and each Borrower Party have filed (or have obtained effective extensions
for filing) all federal, state and local tax returns required to be filed and have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by Borrower and each Borrower Party,
respectively. Borrower and each Borrower Party believe that their respective tax returns properly reflect the income and taxes of Borrower and each Borrower Party, respectively, for the periods covered thereby, subject only to reasonable adjustments
required by the Internal Revenue Service or other applicable tax authority upon audit. 
  
 Section 6.11 Solvency. Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total
liabilities, 

  

 LOAN AGREEMENT – Page 14 

 
including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and
will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its Debts as such Debts become absolute and matured, Borrower’s assets do
not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur Debts
and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such Debts as they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in
respect of obligations of Borrower). Except as expressly disclosed to Lender in writing, no petition in bankruptcy has been filed against Borrower or any Borrower Party in the last seven (7) years, and neither Borrower or any Borrower Party in the
last seven (7) years has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. 
  
 Section 6.12 Full and Accurate Disclosure. No statement of fact made by or on behalf of Borrower or any Borrower Party in this Agreement or
in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no fact presently known to Borrower which has
not been disclosed to Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, any Project or the business, operations or condition (financial or otherwise) of Borrower or any Borrower Party. 
  
 Section 6.13 Flood Zone. No portion of the improvements
comprising any Project is located in an area identified by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood Disaster
Protection Act of 1973 or the National Flood Insurance Act of 1994, as amended, or any successor law, or, if located within any such area, Borrower has obtained and will maintain the insurance prescribed in Section 3.1 hereof. 
  
 Section 6.14 Single Purpose Entity/Separateness. Borrower
represents, warrants and covenants as follows: 
  
 (a) Borrower has not owned, does not own, and will not own any asset or property other than (i) the Projects, and (ii) incidental personal property necessary for the ownership or operation of the Projects. 
  
 (b) Borrower will not engage in any business other than the
ownership, management and operation of the Projects and Borrower will conduct and operate its business as presently conducted and operated. 
  
 (c) Borrower will not enter into any contract or agreement with any Affiliate of the Borrower, any constituent party of Borrower, or any
Affiliate of any constituent party, except upon terms and conditions that are intrinsically fair and substantially similar to those that would be available on an arms-length basis with third parties other than any such party. 
  
 (d) Borrower has not incurred and will not incur any Debt
other than (i) the Loan, (ii) trade and operational debt incurred in the ordinary course of business with trade creditors and in amounts as are normal and reasonable under the circumstances, provided such debt is not evidenced by a note and is paid
when due, and (iii) Debt incurred in the financing of equipment and other personal property used on the Projects. No indebtedness other than the Loan may be secured (subordinate or pari passu) by any Project. 
  

 LOAN AGREEMENT – Page 15 

 (e) Borrower has not made and will not make any loans or advances to any third party
(including any Affiliate or constituent party or any Affiliate of any constituent party), and shall not acquire obligations or securities of its Affiliates or any constituent party. 
  
 (f) Borrower is and will remain solvent and Borrower will pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its own funds and assets as the same shall become due. 
  
 (g) Borrower has done or caused to be done and will do all things necessary to observe organizational formalities and preserve its
existence, and Borrower will not, nor will Borrower permit any constituent party to amend, modify or otherwise change the partnership certificate, partnership agreement, articles of incorporation and bylaws, operating agreement, trust or other
organizational documents of Borrower or such constituent party without the prior written consent of Lender. 
  
 (h) Borrower will maintain all of its books, records, financial statements and bank accounts separate from those of its Affiliates and any
constituent party and Borrower will file its own tax returns, if any, as may be required under applicable law, to the extent not part of a consolidated group filing a consolidated return, and pay any taxes so required to be paid under applicable
law. Borrower shall maintain its books, records, resolutions and agreements as official records. 
  
 (i) Borrower will be, and at all times will hold itself out to the public as, a legal entity separate and distinct from any other entity
(including any Affiliate of Borrower, any constituent party of Borrower, or any Affiliate of any constituent party), shall correct any known misunderstanding regarding its status as a separate entity, shall conduct business in its own name, shall
not identify itself or any of its Affiliates as a division or part of the other and shall maintain and utilize a separate telephone number, if any, and separate stationery, invoices and checks. 
  
 (j) Borrower will maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations. 
  
 (k) Neither Borrower nor any constituent party will seek the dissolution, winding up, liquidation, consolidation or merger in whole or in
part, of the Borrower. 
  
 (l) Borrower will not
commingle the funds and other assets of Borrower with those of any Affiliate or constituent party, or any Affiliate of any constituent party, or any other Person. 
  
 (m) Borrower has and will maintain its assets in such a manner that it will not be costly or difficult to
segregate, ascertain or identify its individual assets from those of any Affiliate or constituent party, or any Affiliate of any constituent party, or any other Person. 
  
 (n) Borrower does not and will not hold itself out to be responsible for the debts or obligations of any
other Person. 
  
 (o) If Borrower is a limited
partnership or a limited liability company, each general partner or managing member (each, an “SPC Party”) shall be a limited liability company whose sole asset is its interest in Borrower and each such SPC Party will at all
times comply, and will cause Borrower to comply, with each of the representations, warranties, and covenants contained in this Section 6.14 as if such representation, warranty or covenant was made directly by such SPC Party. 
  
 (p) Borrower shall at all times cause there to be at least
one duly appointed special manager (an “Independent Director”) of each SPC Party in Borrower who shall not have been at the 

  

 LOAN AGREEMENT – Page 16 

 
time of such individual’s appointment, and may not have been at any time during the preceding five years (i) a shareholder of, or an officer, director,
partner, member, or employee of, Borrower or any of their Affiliates, (ii) affiliated with a customer of, or supplier to, the SPC Party, Borrower or any of their Affiliates, or (iii) a spouse, parent, sibling, child, or other family relative of any
person described by (i) or (ii) above. As used herein, the term “Affiliate” means any Person other than the SPC Party (A) which owns beneficially, directly or indirectly, any outstanding shares of the SPC Party’s stock
or interest in the Borrower or (B) which controls or is under common control with the SPC Party or the Borrower. As used herein, the term “control” means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
  
 (q) Borrower shall not cause or permit the manager of each SPC Party in Borrower to take any action which, under the terms of such SPC
Party’s operating agreement, requires the vote of the Independent Director of such SPC Party unless at the time of such action there shall be at least one manager of such SPC Party who is an Independent Director. 
  
 (r) Borrower shall conduct its business so that the
assumptions made with respect to Borrower in that certain opinion letter dated as of the Closing Date (the “Insolvency Opinion”) delivered by Goodwin Procter LLP in connection with the Loan shall be true and correct in all
respects. 
  
 Section 6.15 Compliance with Anti-Terrorism
Orders. 
  
 (a) Borrower, each member in
Borrower, all beneficial owners of Borrower and, to the best of Borrower’s knowledge, all beneficial owners of any such member, are in compliance with all laws, statutes, rules and regulations of any federal, state or local governmental
authority in the United States of America applicable to such Persons, including, without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar
requirements contained in the rules and regulations of the Office of Foreign Asset Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other Executive Orders in respect thereof (the Order and such
other rules, regulations, legislation, or orders are collectively called the “Orders”). Borrower agrees to make its policies, procedures and practices regarding compliance with the Orders of any Persons who, pursuant to
transfers permitted by the Mortgage, become stockholders, members, partners or other investors of Borrower available to Lender for its review and inspection during normal business hours and upon reasonable prior notice. 
  
 (b) Neither Borrower or any member in Borrower nor the
beneficial owner of Borrower or any such member: 
  
 (i) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations
of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”); 
  
 (ii) is a Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; 
  
 (iii) is owned or controlled by, nor acts for or on behalf
of, any Person on the Lists or any other Person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; 
  

 LOAN AGREEMENT – Page 17 

 (iv) shall transfer or permit the transfer of any interest in Borrower or any Borrower
Party to any Person who is or whose beneficial owners are listed on the Lists; or 
  
 (v) shall knowingly lease space in any Project to any Person who is listed on the Lists or who is engaged in illegal activities.

  
 (c) If Borrower obtains knowledge that
Borrower or any of its members or their beneficial owners become listed on the Lists or are indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall immediately notify
Lender. 
  
 (d) If Borrower obtains knowledge
that any tenant in any Project has become listed on the Lists or is convicted, pleads nolo contendere, indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Borrower shall
immediately notify Lender. 
  
 (e) If Borrower
obtains knowledge that a tenant at any Project is listed on the Lists or is convicted or pleads nolo contendere to charges related to activity prohibited in the Orders, then proceeds from the rents of such tenant shall not be used to pay Debt
Service and Borrower shall provide Lender such representations and verifications as Lender shall reasonably request that such rents are not being so used. 
  
 (f) If a tenant at any Project is arrested on such charges, and such charge is not dismissed within thirty (30) days thereafter, Lender
may at its option notify Borrower to exclude such rents from the Debt Service payments. 
  
 (g) If Borrower or any Borrower Party is listed on the Lists, no earn-out disbursements, escrow disbursements, or other disbursements
under the Loan Documents shall be made and all of such funds shall be paid in accordance with the direction of a court of competent jurisdiction. 
  
 ARTICLE 7 
  
 FINANCIAL REPORTING 
  
 Section 7.1 Financial Statements. 
  
 (a) Monthly Reports. Until the Loan is sold in a Secondary Market Transaction, Borrower shall furnish to Lender within
twenty-one (21) days after the end of each calendar month, a current rent roll and a detailed operating statement (showing monthly activity and year-to-date) for each Project stating operating revenues, operating expenses, operating income and net
cash flow for the calendar month just ended. 
  
 (b) Quarterly Reports. Within forty-five (45) days after the end of each calendar quarter, Borrower shall furnish to Lender a current rent roll and a detailed operating statement (showing quarterly activity and year-to-date)
for each Project stating operating revenues, operating expenses, operating income and net cash flow for the calendar quarter just ended. 
  
 (c) Annual Reports. Within ninety (90) days after the end of each fiscal year of Borrower’s operation of the Projects
(on a Project-by-Project basis and on a consolidated basis), Borrower shall furnish to Lender a current (as of the end of such fiscal year) balance sheet, a detailed operating statement stating operating revenues, operating expenses, operating
income and net cash flow for each of 

  

 LOAN AGREEMENT – Page 18 

 
Borrower and the Projects, and, if required by Lender, audited financial statements prepared by an independent public accountant reasonably satisfactory to
Lender. 
  
 (d) Certification; Supporting
Documentation. Each such financial statement shall be in scope and detail reasonably satisfactory to Lender and certified by the chief financial representative of Borrower. 
  
 Section 7.2 Accounting Principles. All financial statements shall be prepared in accordance with generally
accepted accounting principles in the United States of America in effect on the date so indicated and consistently applied (or such other accounting basis reasonably acceptable for Lender). 
  
 Section 7.3 Other Information; Access. Borrower shall deliver
to Lender such additional information regarding Borrower, its subsidiaries, its business, any Borrower Party, and the Projects within 30 days after Lender’s request therefor. Borrower shall permit Lender to examine such records, books and
papers of Borrower which reflect upon its financial condition and the income and expenses of the Projects. In the event that Borrower fails to forward the financial statements required in this Article 7 within thirty (30) days after written request,
Lender shall have the right to audit such records, books and papers at Borrower’s expense. 
  
 Section 7.4 Annual Budget. At least thirty (30) days prior to the commencement of each fiscal year, Borrower will provide to Lender its
proposed annual operating and capital improvements budget for each Project for such fiscal year for review and approval by Lender. 
  
 ARTICLE 8  
  
 COVENANTS 
  
 Borrower covenants and agrees with Lender as follows: 
  
 Section 8.1 Due On Sale and Encumbrance; Transfers of Interests. Without the prior written consent of Lender, neither Borrower nor any other
Person having an ownership or beneficial interest in Borrower shall sell, transfer, convey, mortgage, pledge, or assign any interest in any Project or any part thereof or further encumber, alienate, grant a Lien or grant any other interest in any
Project or any part thereof, whether voluntarily or involuntarily, in violation of the covenants and conditions set forth in the Mortgages. 
  
 Section 8.2 Taxes; Utility Charges. Except to the extent sums sufficient to pay all Taxes (defined herein) have been previously deposited
with Lender as part of the Tax and Insurance Escrow Fund and subject to Borrower’s right to contest in accordance with Section 11.8 hereof, Borrower shall pay before any fine, penalty, interest or cost may be added thereto, and shall not enter
into any agreement to defer, any real estate taxes and assessments, franchise taxes and charges, and other governmental charges (the “Taxes”) that may become a Lien upon any Project or become payable during the term of the
Loan. Borrower’s compliance with Section 3.4 of this Agreement relating to impounds for Taxes shall, with respect to payment of such Taxes, be deemed compliance with this Section 8.2. Borrower shall not suffer or permit the joint assessment of
any Project with any other real property constituting a separate tax lot or with any other real or personal property. Borrower shall promptly pay for all utility services provided to the Projects. 
  
 Section 8.3 Control; Management. Except as expressly permitted
in Section 3.9 of the Mortgages, there shall be no change in the day-to-day control and management of Borrower or Borrower’s general partner or managing member without the prior written consent of Lender. Borrower 

  

 LOAN AGREEMENT – Page 19 

 
shall not terminate, replace or appoint any property manager or terminate or amend the property management agreement for any Project without Lender’s
prior written approval, which approval shall not be unreasonably withheld. Any change in ownership or control of the property manager shall be cause for Lender to re-approve such property manager and property management agreement. Each property
manager shall hold and maintain all necessary licenses, certifications and permits required by law. Borrower shall fully perform all of its covenants, agreements and obligations under the property management agreements. The property management fee
payable under each property management agreement shall not exceed six percent (6.0%) of gross revenues collected. 
  
 Section 8.4 Operation; Maintenance; Inspection. Borrower shall observe and comply with all legal requirements applicable to the ownership,
use and operation of the Projects. Borrower shall maintain the Projects in good condition and promptly repair any damage or casualty. Borrower shall permit Lender and its agents, representatives and employees, upon reasonable prior notice to
Borrower, to inspect the Projects and conduct such environmental and engineering studies as Lender may require, provided such inspections and studies do not materially interfere with the use and operation of the Projects. 
  
 Section 8.5 Taxes on Security. Borrower shall pay all taxes,
charges, filing, registration and recording fees, excises and levies payable with respect to the Note or the Liens created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Lender. If there shall be
enacted any law (a) deducting all or a portion of the Loan from the value of any Project for the purpose of taxation, (b) affecting any Lien on any Project, or (c) changing existing laws of taxation of mortgages, deeds of trust, security deeds, or
debts secured by real property, or changing the manner of collecting any such taxes, Borrower shall promptly pay to Lender, on demand, all taxes, costs and charges for which Lender is or may be liable as a result thereof; however, if such payment
would be prohibited by law or would render the Loan usurious, then instead of collecting such payment, Lender may declare all amounts owing under the Loan Documents to be immediately due and payable. 
  
 Section 8.6 Legal Existence; Name, Etc. Borrower and each SPC
Party shall preserve and keep in full force and effect its entity status, franchises, rights and privileges under the laws of the state of its formation, and all qualifications, licenses and permits applicable to the ownership, use and operation of
the Projects. Neither Borrower nor any general partner or managing member of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into, or convey, sell, assign, transfer, lease, or otherwise dispose of all or
substantially all of its assets, or acquire all or substantially all of the assets of the business of any Person, or permit any subsidiary or Affiliate of Borrower to do so (except as permitted in Section 3.9 of the Mortgages with respect to Extra
Space Storage LLC). Borrower shall not change its name, identity, state of formation, or organizational structure, or the location of its chief executive office or principal place of business unless Borrower (a) shall have obtained the prior written
consent of Lender to such change, and (b) shall have taken all actions necessary or requested by Lender to file or amend any financing statement or continuation statement to assure perfection and continuation of perfection of security interests
under the Loan Documents. The name of Borrower, type of entity, organization number, and state of formation set forth in this Agreement accurately reflect such information as shown on the public record of Borrower’s jurisdiction of
organization. 
  
 Section 8.7 Further Assurances.
Borrower shall promptly (a) cure any defects in the execution and delivery of the Loan Documents and the Environmental Indemnity Agreement, and (b) execute and deliver, or cause to be executed and delivered, all such other documents, agreements and
instruments as Lender may reasonably request to further evidence and more fully describe the collateral for the Loan, to correct any omissions in the Loan Documents, to perfect, protect or preserve any liens created under any of the Loan Documents
and the Environmental Indemnity Agreement, or to make any recordings, file any notices, or obtain any consents, as may be necessary or appropriate in connection 

  

 LOAN AGREEMENT – Page 20 

 
therewith. Borrower grants Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights
and remedies available to Lender under the Loan Documents and the Environmental Indemnity Agreement, at law and in equity, including without limitation such rights and remedies available to Lender pursuant to this Section 8.7. 
  
 Section 8.8 Estoppel Certificates. Borrower, within ten (10)
days after request, shall furnish to Lender a written statement, duly acknowledged, setting forth the amount due on the Loan, the terms of payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist against
the Loan and, if any are alleged to exist, the nature thereof in detail, and such other matters as Lender reasonably may request. 
  
 Section 8.9 Notice of Certain Events. Borrower shall promptly notify Lender of (a) any Potential Default or Event of Default, together with
a detailed statement of the steps being taken to cure such Potential Default or Event of Default; (b) any notice of default received by Borrower under other obligations relating to any Project or otherwise material to Borrower’s business; and
(c) any threatened or pending legal, judicial or regulatory proceedings, including any dispute between Borrower and any governmental authority, affecting Borrower or any Project. 
  
 Section 8.10 Indemnification. Except for matters caused by Lender’s gross negligence or willful
misconduct, Borrower shall protect, defend, indemnify and save harmless Lender its shareholders, directors, officers, employees and agents from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and
expenses (including without limitation reasonable attorneys’ fees and expenses), imposed upon or incurred by or asserted against Lender by reason of (a) ownership of the Mortgages, the Projects or any interest therein or receipt of any rents;
(b) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) any
use, nonuse or condition in, on or about any Project or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (d) performance of any labor or services or the furnishing of any materials
or other property in respect of any Project or any part thereof; and (e) the failure of any Person to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate, Broker and Barter
Exchange Transactions, which may be required in connection with this Agreement, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which this Agreement is made. Any amounts payable
to Lender by reason of the application of this section shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid. 
  
 Section 8.11 Cooperation. Borrower acknowledges that Lender and
its successors and assigns may (a) sell this Agreement, the Mortgages, the Note, the other Loan Documents, and the Environmental Indemnity Agreement, and any and all servicing rights thereto to one or more investors as a whole loan, (b) participate
the Loan to one or more investors, (c) deposit this Agreement, the Note, other Loan Documents, and the Environmental Indemnity Agreement with a trust, which trust may sell certificates to investors evidencing an ownership interest in the trust
assets, or (d) otherwise sell the Loan or interest therein to investors (the transactions referred to in clauses (a) through (d) are hereinafter each referred to as a “Secondary Market Transaction”). Borrower shall cooperate
with Lender in effecting any such Secondary Market Transaction and shall cooperate to implement all requirements imposed by any Rating Agency involved in any Secondary Market Transaction. Borrower shall provide such information, legal opinions and
documents relating to the Borrower, the Projects and any tenants of the Projects as Lender may reasonably request in connection with such Secondary Market Transaction at no third-party professional expense to Borrower unless otherwise required by
the Loan Documents. In addition, Borrower shall make available to Lender all information concerning its business and operations, 

  

 LOAN AGREEMENT – Page 21 

 
and any other matters contemplated by the Loan Documents, that Lender may reasonably request. Lender shall be permitted to share all such information with
the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms involved with the Loan and the Loan Documents or the applicable Secondary Market Transaction. It is understood that the information
provided by Borrower to Lender may ultimately be incorporated into the offering documents for the Secondary Market Transaction and thus various investors may also see some or all of the information. Lender and all of the aforesaid third-party
advisors and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Borrower and Borrower indemnifies Lender as to any losses, claims, damages or liabilities that arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in such information or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in such information or necessary in
order to make the statements in such information, or in light of the circumstances under which they were made, not misleading. 
  
 Section 8.12 Payment For Labor and Materials. Subject to Borrower’s right to contest in accordance with Section 11.8 hereof, Borrower
will promptly pay when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with any Project and never permit to exist beyond the due date thereof in respect of such Project or any part thereof
any Lien, even though inferior to the Liens hereof, and in any event never permit to be created or exist in respect of any Project or any part thereof any other or additional Lien other than the Liens hereof, except for the Permitted Encumbrances
(defined in the Mortgage encumbering such Project). 
  
 ARTICLE
9 
  
 EVENTS OF DEFAULT 
  
 Each of the following shall constitute an Event of Default under the Loan:

  
 Section 9.1 Payments. Borrower’s failure to
pay any regularly scheduled installment of principal, interest or other amount due under the Loan Documents within five (5) days of (and including) the date when due, or Borrower’s failure to pay the Loan at the Maturity Date, whether by
acceleration or otherwise. 
  
 Section 9.2
Insurance. Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement. 
  
 Section 9.3 Sale, Encumbrance, Etc. The sale, transfer, conveyance, pledge, mortgage or assignment of any part or all of any Project,
or any interest therein, or of any interest in Borrower, in violation of the Mortgage encumbering such Project. 
  
 Section 9.4 Covenants. Borrower’s failure to perform or observe any of the agreements and covenants contained in this Agreement or in
any of the other Loan Documents (other than payments under Section 9.1, insurance requirements under Section 9.2, transfers and encumbrances under Section 9.3, and the Events of Default described in Sections 9.7, 9.8 and 9.9 below), and the
continuance of such failure for ten (10) days after notice by Lender to Borrower; however, subject to any shorter period for curing any failure by Borrower as specified in any of the other Loan Documents, Borrower shall have an additional sixty (60)
days to cure such failure if (a) such failure does not involve the failure to make payments on a monetary obligation; (b) such failure cannot reasonably be cured within ten (10) days; (c) Borrower is diligently undertaking to cure such default; and
(d) Borrower has provided Lender with security reasonably satisfactory to Lender against any interruption of payment or impairment of collateral as a result of such continuing failure. 
  

 LOAN AGREEMENT – Page 22 

 Section 9.5 Representations and Warranties. Any representation or warranty made in any Loan
Document proves to be untrue in any material respect when made or deemed made. 
  
 Section 9.6 Other Encumbrances. Any default under any document or instrument, other than the Loan Documents, evidencing or creating a Lien on any Project or any part thereof, not cured within any
applicable grace or cure period therein. 
  
 Section 9.7
Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary case or other proceeding against Borrower, any Borrower Party or any other Person having an ownership or security interest in any Project (each, a
“Bankruptcy Party”) which seeks liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeks the
appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property, and such involuntary case or other proceeding shall remain undismissed or unstayed for a period of 60 days; or an order for relief
against a Bankruptcy Party shall be entered in any such case under the Federal Bankruptcy Code. 
  
 Section 9.8 Voluntary Petitions, Etc. Commencement by a Bankruptcy Party of a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its Debts or other liabilities under any bankruptcy, insolvency or other similar law or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official for it
or any of its property, or consent by a Bankruptcy Party to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or the making by a Bankruptcy Party of a
general assignment for the benefit of creditors, or the failure by a Bankruptcy Party, or the admission by a Bankruptcy Party in writing of its inability, to pay its debts generally as they become due, or any action by a Bankruptcy Party to
authorize or effect any of the foregoing. 
  
 Section 9.9
Anti-Terrorism. If Borrower or any Borrower Party is listed on the Lists or is convicted or pleads nolo contendere to charges related to activity prohibited in the Orders, or if Borrower or any Borrower Party is arrested on charges
related to activity prohibited in the Orders and such charge is not dismissed within sixty (60) days thereafter. 
  
 ARTICLE 10  
  
 REMEDIES 
  
 Section 10.1 Remedies - Insolvency Events. Upon the occurrence of any Event of Default described in Section 9.7 or 9.8, all amounts due under the Loan Documents immediately shall become due and payable, all without written
notice and without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or any other notice of default of any kind, all of which are hereby
expressly waived by Borrower; however, if the Bankruptcy Party under Section 9.7 or 9.8 is other than Borrower, then all amounts due under the Loan Documents shall become immediately due and payable at Lender’s election, in Lender’s sole
discretion. 
  
 Section 10.2 Remedies - Other
Events. Except as set forth in Section 10.1 above, while any Event of Default exists, Lender may (a) declare the entire Loan to be immediately due and payable without presentment, demand, protest, notice of protest or dishonor, notice of
intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of default of any kind, all of which are hereby expressly waived by Borrower, and (b) exercise all rights and remedies therefor under the Loan
Documents and at law or in equity. 
  

 LOAN AGREEMENT – Page 23 

 Section 10.3 Lender’s Right to Perform the Obligations. If Borrower shall fail, refuse
or neglect to make any payment or perform any act required by the Loan Documents, then while any Event of Default exists, and without notice to or demand upon Borrower and without waiving or releasing any other right, remedy or recourse Lender may
have because of such Event of Default, Lender may (but shall not be obligated to) make such payment or perform such act for the account of and at the expense of Borrower, and shall have the right to enter upon the Projects for such purpose and to
take all such action thereon and with respect to the Projects as it may deem necessary or appropriate. If Lender shall elect to pay any sum due with reference to any Project, Lender may do so in reliance on any bill, statement or assessment procured
from the appropriate governmental authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to be created by the Loan Documents, Lender shall not be
bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same. Borrower shall indemnify Lender for all losses, expenses,
damages, claims and causes of action, including reasonable attorneys’ fees, incurred or accruing by reason of any acts performed by Lender pursuant to the provisions of this Section 10.3. All sums paid by Lender pursuant to this Section 10.3,
and all other sums expended by Lender to which it shall be entitled to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure until paid, shall constitute additions to the Loan, shall be
secured by the Loan Documents and shall be paid by Borrower to Lender upon demand. 
  
 ARTICLE 11 
  
 MISCELLANEOUS 
  
 Section 11.1
Notices. Any notice required or permitted to be given under this Agreement shall be in writing and either shall be mailed by certified mail, postage prepaid, return receipt requested, or sent by overnight air courier service, or
personally delivered to a representative of the receiving party, or sent by telecopy (provided an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise provided in this Section 11.1). All such
communications shall be mailed, sent or delivered, addressed to the party for whom it is intended at its address set forth below. 
  

			
	 If to Borrower:
	  	 Extra Space Properties Eight LLC

	 	  	 2795 East Cottonwood Parkway, Suite 400

	 	  	 Salt Lake City, Utah 84121

	 	  	 Attention: David L. Rasmussen, General Counsel

	 	  	 Telecopy: (801) 365-4947

		
	 If to Lender:
	  	 General Electric Capital Corporation

	 	  	 c/o GEMSA Loan Services, L.P.

	 	  	 1500 City West Boulevard, Suite 200

	 	  	 Houston, Texas 77042-2300

	 	  	 Attention: Portfolio Manager/Access Program

	 	  	 Telecopy: (713) 458-7500

  

 LOAN AGREEMENT – Page 24 

			
	 with a copy to:
	  	 General Electric Capital Corporation

	 	  	 Two Bent Tree Tower

	 	  	 16479 Dallas Parkway, Suite 500

	 	  	 Addison, Texas 75001

	 	  	 Attention: David R. Martindale

	 	  	 Telecopy: (972) 728-7650

  
 Any communication so addressed and
mailed shall be deemed to be given on the earliest of (a) when actually delivered, (b) on the first Business Day after deposit with an overnight air courier service, or (c) on the third Business Day after deposit in the United States mail, postage
prepaid, in each case to the address of the intended addressee, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by Lender or Borrower, as the case may be. If given by telecopy, a
notice shall be deemed given and received when the telecopy is transmitted to the party’s telecopy number specified above and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next
Business Day if not confirmed during normal business hours. Either party may designate a change of address by written notice to the other by giving at least ten (10) days prior written notice of such change of address. 
  
 Section 11.2 Amendments and Waivers. No amendment or waiver of
any provision of the Environmental Indemnity Agreement and the Loan Documents shall be effective unless in writing and signed by the party against whom enforcement is sought. 
  
 Section 11.3 Limitation on Interest. It is the intention of the parties hereto to conform strictly to
applicable usury laws. Accordingly, all agreements between Borrower and Lender with respect to the Loan are hereby expressly limited so that in no event, whether by reason of acceleration of maturity or otherwise, shall the amount paid or agreed to
be paid to Lender or charged by Lender for the use, forbearance or detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law. If the Loan would be usurious under applicable law (including the laws of the
State and the laws of the United States of America), then, notwithstanding anything to the contrary in the Loan Documents: (a) the aggregate of all consideration which constitutes interest under applicable law that is contracted for, taken,
reserved, charged or received under the Loan Documents shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited on the Note by the holder thereof; and (b) if maturity is
accelerated by reason of an election by Lender, or in the event of any prepayment, then any consideration which constitutes interest may never include more than the maximum amount allowed by applicable law. In such case, excess interest, if any,
provided for in the Loan Documents or otherwise, to the extent permitted by applicable law, shall be amortized, prorated, allocated and spread from the date of advance until payment in full so that the actual rate of interest is uniform through the
term hereof. If such amortization, proration, allocation and spreading is not permitted under applicable law, then such excess interest shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall
be credited on the Note. The terms and provisions of this Section 11.3 shall control and supersede every other provision of the Loan Documents. The Loan Documents are contracts made under and shall be construed in accordance with and governed by the
laws of the State, except that if at any time the laws of the United States of America permit Lender to contract for, take, reserve, charge or receive a higher rate of interest than is allowed by the laws of the State (whether such federal laws
directly so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the rate of interest which Lender may contract for, take, reserve, charge or receive under the Loan Documents. 
  
 Section 11.4 Invalid Provisions. If any provision of any Loan
Document or the Environmental Indemnity Agreement is held to be illegal, invalid or unenforceable, such provision shall 

  

 LOAN AGREEMENT – Page 25 

 
be fully severable; the Environmental Indemnity Agreement and the Loan Documents shall be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance therefrom; and in lieu of such illegal,
invalid or unenforceable provision there shall be added automatically as a part of such Environmental Indemnity Agreement and such Loan Document a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible
to be legal, valid and enforceable. 
  
 Section 11.5
Reimbursement of Expenses. Borrower shall pay all reasonable expenses incurred by Lender in connection with the Loan, including reasonable fees and expenses of Lender’s attorneys, environmental, engineering and other consultants, and
fees, charges or taxes for the recording or filing of Loan Documents. Borrower shall pay all expenses of Lender in connection with the administration of the Loan, including audit costs, inspection fees, settlement of condemnation and casualty
awards, premiums for title insurance and endorsements thereto, and Rating Agency fees and expenses in connection with confirmation letters, if required. Borrower shall, upon request, promptly reimburse Lender for all amounts expended, advanced or
incurred by Lender to collect the Note, or to enforce the rights of Lender under this Agreement, the Environmental Indemnity Agreement, or any Loan Document, or to defend or assert the rights and claims of Lender under the Environmental Indemnity
Agreement or the Loan Documents or with respect to the Projects (by litigation or other proceedings), which amounts will include all court costs, reasonable attorneys’ fees and expenses, fees of auditors and accountants, and investigation
expenses as may be incurred by Lender in connection with any such matters (whether or not litigation is instituted), together with interest at the Default Rate on each such amount from the date of disbursement until the date of reimbursement to
Lender, all of which shall constitute part of the Loan and shall be secured by the Loan Documents. 
  
 Section 11.6 Approvals; Third Parties; Conditions. All approval rights retained or exercised by Lender with respect to leases, contracts,
plans, studies and other matters are solely to facilitate Lender’s credit underwriting, and shall not be deemed or construed as a determination that Lender has passed on the adequacy thereof for any other purpose and may not be relied upon by
Borrower or any other Person. This Agreement is for the sole and exclusive use of Lender and Borrower and may not be enforced, nor relied upon, by any Person other than Lender and Borrower. All conditions of the obligations of Lender hereunder,
including the obligation to make advances, are imposed solely and exclusively for the benefit of Lender, its successors and assigns, and no other Person shall have standing to require satisfaction of such conditions or be entitled to assume that
Lender will refuse to make advances in the absence of strict compliance with any or all of such conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely
waived in whole or in part by Lender at any time in Lender’s sole discretion. 
  
 Section 11.7 Lender Not in Control; No Partnership. None of the covenants or other provisions contained in this Agreement shall, or shall be deemed to, give Lender the right or power to exercise control
over the affairs or management of Borrower, the power of Lender being limited to the rights to exercise the remedies referred to in the Environmental Indemnity Agreement or the Loan Documents. The relationship between Borrower and Lender is, and at
all times shall remain, solely that of debtor and creditor. No covenant or provision of the Environmental Indemnity Agreement or the Loan Documents is intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or
common interest in profits or income between Lender and Borrower or to create an equity in the Projects in Lender. Lender neither undertakes nor assumes any responsibility or duty to Borrower or to any other person with respect to the Projects or
the Loan, except as expressly provided in the Environmental Indemnity Agreement and the Loan Documents; and notwithstanding any other provision of the Environmental Indemnity Agreement or the Loan Documents: (a) Lender is not, and shall not be
construed as, a partner, joint venturer, alter ego, manager, controlling person or other business associate 

  

 LOAN AGREEMENT – Page 26 

 
or participant of any kind of Borrower or its stockholders, members, or partners and Lender does not intend to ever assume such status; (b) Lender shall in
no event be liable for any Debts, expenses or losses incurred or sustained by Borrower; and (c) Lender shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or its stockholders, members, or partners.
Lender and Borrower disclaim any intention to create any partnership, joint venture, agency or common interest in profits or income between Lender and Borrower, or to create an equity in the Projects in Lender, or any sharing of liabilities, losses,
costs or expenses. 
  
 Section 11.8 Contest of Certain
Claims. Borrower may contest the validity of Taxes or any mechanic’s or materialman’s lien asserted against any Project so long as (a) Borrower notifies Lender that it intends to contest such Taxes or liens, as applicable, (b)
Borrower provides Lender with an indemnity, bond or other security reasonably satisfactory to Lender assuring the discharge of Borrower’s obligations for such Taxes or liens, as applicable, including interest and penalties, (c) Borrower is
diligently contesting the same by appropriate legal proceedings in good faith and at its own expense and concludes such contest prior to the tenth (10th) day preceding the earlier to occur of the Maturity Date or the date on which such Project is
scheduled to be sold for non-payment, (d) Borrower promptly upon final determination thereof pays the amount of any such Taxes or liens, as applicable, together with all costs, interest and penalties which may be payable in connection therewith, and
(e) notwithstanding the foregoing, Borrower shall immediately upon request of Lender pay any such Taxes or liens, as applicable, notwithstanding such contest if, in the opinion of Lender, such Project or any part thereof or interest therein may be
in danger of being sold, forfeited, foreclosed, terminated, canceled or lost. Lender may pay over any cash deposit or part thereof to the claimant entitled thereto at any time when, in the reasonable judgment of Lender, the entitlement of such
claimant is established. 
  
 Section 11.9 Time of the
Essence. Time is of the essence with respect to this Agreement and the other Loan Documents. 
  
 Section 11.10 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Lender and Borrower and their
respective successors and assigns, provided that neither Borrower nor any other Borrower Party shall, without the prior written consent of Lender, assign any rights, duties or obligations hereunder. 
  
 Section 11.11 Renewal, Extension or Rearrangement. All
provisions of the Environmental Indemnity Agreement and the Loan Documents shall apply with equal effect to each and all promissory notes and amendments thereof hereinafter executed which in whole or in part represent a renewal, extension, increase
or rearrangement of the Loan. 
  
 Section 11.12
Waivers. No course of dealing on the part of Lender, its officers, employees, consultants or agents, nor any failure or delay by Lender with respect to exercising any right, power or privilege of Lender under the Environmental Indemnity
Agreement and any of the Loan Documents, shall operate as a waiver thereof. 
  
 Section 11.13 Cumulative Rights; Joint and Several Liability. Rights and remedies of Lender under the Environmental Indemnity Agreement and the Loan Documents shall be cumulative, and the exercise or
partial exercise of any such right or remedy shall not preclude the exercise of any other right or remedy. If more than one person or entity has executed this Agreement as “Borrower,” the obligations of all such persons or entities
hereunder shall be joint and several. 
  
 Section 11.14
Singular and Plural. Words used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement in the singular, where the context so permits, shall be deemed to include the plural and vice versa. The definitions of
words in the singular in this 

  

 LOAN AGREEMENT – Page 27 

 
Agreement, the other Loan Documents, and the Environmental Indemnity Agreement shall apply to such words when used in the plural where the context so permits
and vice versa. 
  
 Section 11.15 Phrases. Except as
otherwise expressly provided herein, when used in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement, the phrase “including” shall mean “including, but not limited to,” the phrase
“satisfactory to Lender” shall mean “in form and substance satisfactory to Lender in all respects,” the phrase “with Lender’s consent” or “with Lender’s approval” shall mean such consent or approval
at Lender’s sole discretion, and the phrase “acceptable to Lender” shall mean “acceptable to Lender at Lender’s sole discretion.” 
  

Section 11.16 Exhibits and Schedules. The exhibits and schedules attached to this Agreement are incorporated herein and shall be
considered a part of this Agreement for the purposes stated herein. 
  
 Section 11.17 Titles of Articles, Sections and Subsections. All titles or headings to articles, sections, subsections or other divisions of this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement or
the exhibits hereto and thereto are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other content of such articles, sections, subsections or other divisions, such other content
being controlling as to the agreement between the parties hereto. 
  
 Section 11.18 Promotional Material. Borrower authorizes Lender to issue press releases, advertisements and other promotional materials in connection with Lender’s own promotional and marketing activities, including in
connection with a Secondary Market Transaction, and such materials may describe the Loan in general terms or in detail and Lender’s participation therein in the Loan. All references to Lender contained in any press release, advertisement or
promotional material issued by Borrower shall be approved in writing by Lender in advance of issuance. 
  
 Section 11.19 Survival. All of the representations, warranties, covenants, and indemnities hereunder (including environmental matters under
Article 4), under the indemnification provisions of the other Loan Documents and under the Environmental Indemnity Agreement, shall survive the repayment in full of the Loan and the release of the liens evidencing or securing the Loan, and shall
survive the transfer (by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the Projects to any party, whether or not an Affiliate of Borrower. 
  
 Section 11.20 Waiver of Jury Trial. To the maximum extent
permitted by law, Borrower and Lender hereby knowingly, voluntarily and intentionally waive the right to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this Agreement, any other Loan Document,
or the Environmental Indemnity Agreement, or any course of conduct, course of dealing, statement (whether verbal or written) or action of either party or any exercise by any party of their respective rights under the Loan Documents and the
Environmental Indemnity Agreement or in any way relating to the Loan or the Projects (including, without limitation, any action to rescind or cancel this Agreement, and any claim or defense asserting that this Agreement was fraudulently induced or
is otherwise void or voidable): This waiver is a material inducement for Lender to enter this Agreement. 
  
 Section 11.21 Waiver of Punitive or Consequential Damages. Neither Lender nor Borrower shall be responsible or liable to the other or to any
other Person for any punitive, exemplary or consequential damages which may be alleged as a result of the Loan or the transaction contemplated hereby, including any breach or other default by any party hereto. 
  
 Section 11.22 Governing Law. Except as otherwise expressly
provided in any of the other Loan Documents, in all respects, including all matters of construction, validity and performance, this 

  

 LOAN AGREEMENT – Page 28 

 
Agreement, the other Loan Documents and the Environmental Indemnity Agreement, and the obligations arising hereunder and thereunder, shall be governed by,
and construed and enforced in accordance with, the laws of the State of Utah applicable to contracts made and performed in such state, without regard to the principals thereof regarding conflict of laws, and any applicable laws of the United States
of America. Lender and Borrower agree to submit to personal jurisdiction and to waive any objection as to venue in the County of Salt Lake, State of Utah. Nothing herein shall preclude Lender or Borrower from bringing suit or taking other legal
action in any other jurisdiction. 
  
 Section 11.23 Entire
Agreement. This Agreement, the other Loan Documents and the Environmental Indemnity Agreement embody the entire agreement and understanding between Lender and Borrower and supersede all prior agreements and understandings between such
parties relating to the subject matter hereof and thereof. Accordingly, the Loan Documents and the Environmental Indemnity Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There
are no unwritten oral agreements between the parties. 
  
 Section 11.24 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one document. 
  
 ARTICLE 12 
  
 LIMITATIONS ON LIABILITY 
  
 Section 12.1 Limitation on Liability. Except as provided below,
Borrower shall not be personally liable for amounts due under the Loan Documents. Borrower shall be personally liable to Lender for any deficiency, loss or damage suffered by Lender because of: (a) Borrower’s commission of a criminal act; (b)
the failure to comply with provisions of the Loan Documents prohibiting the sale, transfer or encumbrance of the Projects, any other collateral, or any direct or indirect ownership interest in Borrower; (c) the misapplication by Borrower or any
Borrower Party of any funds derived from the Projects, including security deposits, insurance proceeds and condemnation awards in violation of this Agreement or any of the other Loan Documents; (d) the fraud or misrepresentation by Borrower or any
Borrower Party made in or in connection with the Loan Documents or the Loan; (e) Borrower’s collection of rents more than one month in advance or entering into or modifying leases, or receipt of monies by Borrower or any Borrower Party in
connection with the modification of any leases, in violation of this Agreement or any of the other Loan Documents; (f) Borrower’s failure to apply proceeds of rents or any other payments in respect of the leases and other income of the Projects
or any other collateral when received to the costs of maintenance and operation of the Projects and to the payment of taxes, lien claims, insurance premiums, Debt Service, the Funds, and other amounts due under the Loan Documents to the extent the
Loan Documents require such proceeds to be then so applied; (g) Borrower’s interference with Lender’s exercise of rights under the Assignments of Leases and Rents; (h) Borrower’s failure to maintain insurance as required by this
Agreement; (i) damage or destruction to any Project caused by the acts or omissions of Borrower, its agents, employees, or contractors; (j) Borrower’s obligations with respect to environmental matters under Article 4; (k) Borrower’s
failure to pay for any loss, liability or expense (including attorneys’ fees) incurred by Lender arising out of any claim or allegation made by Borrower, its successors or assigns, or any creditor of Borrower, that this Agreement or the
transactions contemplated by the Loan Documents and the Environmental Indemnity Agreement establishes a joint venture, partnership or other similar arrangement between Borrower and Lender; (1) any brokerage commission or finder’s fees claimed
in connection with the transactions contemplated by the Loan Documents; (m) the filing by Borrower or any of its members, partners, or shareholders, or the filing against Borrower, of a petition under the United States Bankruptcy Code or similar
state insolvency laws; or (n) uninsured damage to any Project resulting from acts of terrorism. Nothing herein shall be deemed 

  

 LOAN AGREEMENT – Page 29 

 
to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 111l(b) or any other provision of the United States Bankruptcy Code, to file
a claim for the full amount due to Lender under the Loan Documents or to require that all collateral shall continue to secure the amounts due under the Loan Documents. 
  
 Section 12.2 Limitation on Liability of Lender’s Officers, Employees, Etc. Any obligation or liability
whatsoever of Lender which may arise at any time under this Agreement, any other Loan Document, or the Environmental Indemnity Agreement shall be satisfied, if at all, out of the Lender’s assets only. No such obligation or liability shall be
personally binding upon, nor shall resort for the enforcement thereof be had to, the property of any of Lender’s shareholders, directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of
contract, tort or otherwise. 
  
 [Remainder of page intentionally left blank.] 
  

 LOAN AGREEMENT – Page 30 

 EXECUTED as of the date first written above. 
  

			
	 LENDER:

	
	 GENERAL ELECTRIC CAPITAL CORPORATION,
 a Delaware corporation

		
	 By:
	 	 /s/ David R. Martindale

	 	 	 David R. Martindale

	 	 	 Managing Director

	
	 BORROWER:

	
	 EXTRA SPACE PROPERTIES EIGHT LLC,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Kent W. Christensen

	 	 	 Kent W. Christensen

	 	 	 Manager

  

 LOAN AGREEMENT – Page S-1 

 JOINDER 
  
 By executing this Joinder (the “Joinder”), the undersigned (“Joinder Parties”) jointly and severally
guaranty the performance by Borrower of all obligations and liabilities for which Borrower is personally liable under Section 12.1 of this Agreement. This Joinder is a guaranty of full and complete payment and performance and not of collectability.

  
 1. Waivers. To the fullest extent permitted by
applicable law, each Joinder Party waives all rights and defenses of sureties, guarantors, accommodation parties and/or co-makers and agrees that its obligations under this Joinder shall be primary, absolute and unconditional, and that its
obligations under this Joinder shall be unaffected by any of such rights or defenses, including: 
  
 (a) the unenforceability of any Loan Document against Borrower and/or any other Joinder Party; 
  
 (b) any release or other action or inaction taken by Lender
with respect to the collateral, the Loan, Borrower and/or other Joinder Party, whether or not the same may impair or destroy any subrogation rights of any Joinder Party, or constitute a legal or equitable discharge of any surety or indemnitor;

  
 (c) the existence of any collateral or other
security for the Loan, and any requirement that Lender pursue any of such collateral or other security, or pursue any remedies it may have against Borrower and/or any other Joinder Party; 
  
 (d) any requirement that Lender provide notice to or obtain
a Joinder Party’s consent to any modification, increase, extension or other amendment of the Loan, including the guaranteed obligations; 
  
 (e) any right of subrogation (until payment in full of the Loan, including the guaranteed obligations, and the expiration of any
applicable preference period and statute of limitations for fraudulent conveyance claims); 
  
 (f) any defense based on any statute of limitations; 
  
 (g) any payment by Borrower to Lender if such payment is held to be a preference or fraudulent conveyance
under bankruptcy laws or Lender is otherwise required to refund such payment to Borrower or any other party; and 
  
 (h) any voluntary or involuntary bankruptcy, receivership, insolvency, reorganization or similar proceeding affecting Borrower or any of
its assets. 
  
 2. Agreements. Each Joinder Party
further represents, warrants and agrees that: 
  
 (a) The obligations under this Joinder are enforceable against each such party and are not subject to any defenses, offsets or counterclaims; 
  
 (b) The provisions of this Joinder are for the benefit of Lender and its successors and assigns; 
  

 JOINDER – Page 1 

 (c) Lender shall have the right to (i) renew, modify, extend or accelerate the Loan, (ii)
pursue some or all of its remedies against Borrower or any Joinder Party, (iii) add, release or substitute any collateral for the Loan or party obligated thereunder, and (iv) release Borrower or any Joinder Party from liability, all without notice
to or consent of any Joinder Party (or other Joinder Party) and without affecting the obligations of any Joinder Party (or other Joinder Party) hereunder; 
  
 (d) Each Joinder Party covenants and agrees to furnish to Lender, within ninety (90) days after the end of each fiscal year of such
Joinder Party, a current (as of the end of such fiscal year) balance sheet of such Joinder Party, in scope and detail reasonably satisfactory to Lender, certified by the chief financial representative of such Joinder Party and, if required by
Lender, prepared on a review basis and certified by an independent public accountant reasonably satisfactory to Lender; and 
  
 (e) To the maximum extent permitted by law, each Joinder Party hereby knowingly, voluntarily and intentionally waives the right to a trial
by jury in respect of any litigation based hereon. This waiver is a material inducement to Lender to enter into this Agreement. 
  
 This Joinder shall be governed by the laws of the State. 
  
 Executed as of March 8, 2004. 
  

	
	JOINDER PARTIES:
	
	 /s/ Kenneth M. Woolley

	 KENNETH M. WOOLLEY

  

 JOINDER – Page 2 

 EXHIBIT A-1 
  
 [LEGAL DESCRIPTION OF CASITAS PROJECT] 
  
 LOT 1 OF TRACT 51322, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1221, PAGES 92 AND
93 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 
  

 EXHIBIT A-1 – Page 1 

 EXHIBIT A-2 
  
 [LEGAL DESCRIPTION OF LAMONT PROJECT]  
  
 PARCEL 1: 
  
 THAT PORTION OF THE NORTHEAST QUARTER (NE 1/4) OF THE SOUTHEAST QUARTER (SE 1/4) OF SECTION 8, TOWNSHIP 20 SOUTH, RANGE 62 EAST, M.D.B.&M., MORE PARTICULARLY
DESCRIBED AS PARCEL FOUR (4) AS SHOWN BY PARCEL MAP IN FILE 54, PAGE 81, RECORDED NOVEMBER 13, 1987 AS DOCUMENT NO. 00558 OF OFFICIAL RECORDS, CLARK COUNTY, NEVADA. 
  
 PARCEL II: 
  
 A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS AS CREATED BY THAT CERTAIN EASEMENT FOR INGRESS AND EGRESS RECORDED OCTOBER 26, 1987 IN BOOK 871026 OF OFFICIAL RECORDS,
CLARK COUNTY NEVADA, AS DOCUMENT NO. 00517. 
  
 PARCEL III: 
  
 AN EASEMENT FOR THE PERMANENT MAINTENANCE TO A SIGN ON THE BLOCK WALL ALONG THE WALL AREA AS
CREATED BY THAT CERTAIN SIGN EASEMENT RECORDED JUNE 9, 1999 IN BOOK 990609 OF OFFICIAL RECORDS, CLARK COUNTY NEVADA, AS DOCUMENT NO. 00536. 
  

 EXHIBIT A-2 – Page 1 

 EXHIBIT A-3 
  
 [LEGAL DESCRIPTION OF FOREST HILL PROJECT] 
  
 The South one-half (S  1/2) the West one-half (W  1/2) of Lot 4, Block 4, LESS the East 100 feet of the South 260
feet of the East one-half (E  1/2) of the West one-half (W  1/2) of Lot 4, Block 4, all of the sub-division of Section 7, Township 44 South, Range 43 East, according to the Palm Beach Plantations Company Plat thereof
on file in the Office of the Clerk of the Circuit Court, in and for Palm Beach County, Florida, in Plat Book 10, Page 20, TOGETHER WITH the West 12 feet of the South 600 feet of the East one-half (E 1/2) of the said Lot 4,
Block 4, of Section 7, Township 44 South, Range 43 East, according to the said Plat in Plat Book 10, Page 20, less and excepting therefrom the rights-of-way of Davis Road and Forest Hill Boulevard as now laid out and in use on the West 40 feet and
the South 60 feet thereof; being more particularly described as follows: 
  
 COMMENCE at the Southwest corner of Lot 4, Block 4, all of the Sub-Division of SECTION 7, TOWNSHIP 44 SOUTH, RANGE 43 EAST, according to the PALM BEACH PLANTATIONS COMPANY PLAT, thereof on file in the Office of the
Clerk of the Circuit Court, in and for Palm Beach County, Florida, in Plat Book 10, Page 20; thence N 00° 31’ 45” W along the West boundary of said Lot 4, a distance of 81.39 feet; thence N 89° 28’ 15” E, a distance of
40.04 feet to the POINT OF BEGINNING; thence N 00° 31’ 45” W along the East Right-of-Way line of Davis Road, a distance of 586.39 feet; thence S 87° 25’ 21” E, a distance of 291.15 feet; thence S 00° 09’ 25”
W along the East line of the West  1/2 of said Lot 4, a distance of 70.08 feet; thence S 88° 05’
30” E, a distance of 12.57 feet; thence S 00° 30’ 21” E, a distance of 540.78 feet to a point on the Northerly Right-of-Way line of Forest Hills Boulevard; thence N 87° 34’ 29” W, along said North Right-of-Way line,
a distance of 11.99 feet; thence N 00° 31’ 35” W, a distance of 200.30 feet; thence N 87° 20’ 26” W, a distance of 100.72 feet; thence S 00° 41’ 29” E, a distance of 200.15 feet to a point on the
aforementioned Right-of-Way line of Forest Hills Boulevard; thence N 87° 16’ 01” W, along said Right-of-Way line, a distance of 167.00 feet; thence continuing along said Right-of-Way line, N 43° 53’ 32” W, a distance of
34.26 feet to the POINT OF BEGINNING. 
  

 EXHIBIT A-3 – Page 1 

 EXHIBIT A-4 
  
 [LEGAL DESCRIPTION OF MILITARY TRAIL PROJECT] 
  
 PARCEL 1 – FEE ESTATE: 
  
 A parcel of land lying in the SW 1/4 of the NW 1/4 of the SE 1/4 of Section 24, Township 43 South, Range 42 East, Palm Beach County,
Florida, being more particularly described as follows: 
  
 COMMENCING at the
Southwest corner of the said SW 1/4; thence North 01° 23’ 24” East, along the West line of said SW 1/4, a distance of 170.00 feet; thence South 89° 08’ 36” East, along the North line of the South 170.0 feet of said SW
1/4, a distance of 60.00 feet to the East Right-of-Way line of Military Trail and the POINT OF BEGINNING; thence continue South 89° 08’ 36” East, along the said North line of the South 170.00 feet, a distance of 210.00 feet; thence
South 01° 23’ 24” West, along the East line of the West 270.00 feet of said SW 1/4, a distance of 170.00 feet; thence South 89° 08’ 36” East, along the South line of said SW 1/4, a distance of 403.72 feet; thence North
01° 21’ 13” East, along the East line of said SW 1/4, a distance of 490.02 feet; thence North 89° 01’ 48” West, along the South line of the North 170.00 feet of said SW 1/4, a distance of 218.40 feet; thence South 00°
51’ 24” West, a distance of 220.45 feet; thence North 89° 08’ 36” West, a distance of 397.05 feet to the said East Right-of-Way of Military Trail; thence South 01° 23’ 24” West, along said East right-of-way
line, a distance of 100.00 feet to the POINT OF BEGINNING. 
  
 PARCEL 2 – EASEMENT ESTATE: 
  
 That
certain Mutual Driveway Easement as set forth in Official Records Book 5087, Page 831, as modified and restated in Official Records Book 5126, Page 14, both of the Public Records of Palm Beach County, Florida, as more particularly described as
follows: 
  
 BEING a parcel of land lying in the Southeast one-quarter (SE 1/4) of
Section 24, Township 43 South, Range 42 East, Palm Beach County, Florida, and being more particularly described as follows: 
  
 COMMENCING at the South quarter corner of said Section 24; thence North 01° 23’ 24” East along the West line of said Southeast one-quarter (SE 1/4) of
Section 24, a distance of 1493.28 feet; thence departing said West line, South 88° 36’ 36” East, a distance of 60.00 feet to a point on the East right-of-way line of Military Trail (S.R. 809), as now laid out and in use; thence North
01° 23’ 24” East along said East right-of-way line, a distance of 100.00 feet to the POINT OF BEGINNING of an Access Easement; thence continue North 01° 23’ 24” East, a distance of 15.00 feet; thence South 89°
08’ 36” East, a distance of 13.63 feet to the beginning of a curve concave to the Southwest having a radius of 46.00 feet and a central angle of 47° 37’ 49”; thence Southeasterly along the arc of said curve, a distance of
38.24 feet; thence North 89° 08’ 36” West, a distance of 47.76 feet to the POINT OF BEGINNING. 
  
 The bearings shown herein are relative to an assumed meridian; the North/South Mid-Section line of Section 24-43-42 is assumed to bear North 01° 23’ 24” West. 
  

 EXHIBIT A-4 – Page 1 

 EXHIBIT A-5 
  
 [LEGAL DESCRIPTION OF BURBANK PROJECT] 
  
 PARCEL 3, IN THE CITY OF BURBANK, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON PARCEL MAP 15782, FILED IN BOOK 165, PAGES 19 AND
20 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 
  

 EXHIBIT A-5 – Page 1 

 SCHEDULE 1.1 
  
 PROJECT INFORMATION 
  

									
	 Name

	  	 Address

	  	 City

	  	State

	  	 Project Type

					
	 Casitas
	  	 2904 Casitas
	  	 Los Angeles
	  	CA	  	 Self Storage

					
	 Lamont
	  	 3450 N. Lamont
	  	 Las Vegas
	  	NV	  	 Self Storage

					
	 Forest Hill
	  	 3455 Forest Hills Blvd.
	  	 West Palm Beach
	  	FL	  	 Self Storage

					
	 Military Trail
	  	 2300 N. Military Trail
	  	 West Palm Beach
	  	FL	  	 Self Storage

					
	 Burbank
	  	 175 W. Verdugo Avenue
	  	 Burbank
	  	CA	  	 Self Storage

  

 SCHEDULE 1.1 – Page 1 

 SCHEDULE I 
  
 DEFEASANCE 
  
 1. In accordance with Section 2.3 of the Loan Agreement, Borrower may obtain the release of all, but not less than all, of the Projects from the lien of
the Mortgages upon the satisfaction of the following conditions precedent: 
  
 (a) not less than thirty (30) days prior written notice to Lender specifying a regularly scheduled payment date (the “Release Date”) on which the Defeasance Deposit (hereinafter defined) is to
be made; 
  
 (b) the payment to Lender of
interest accrued and unpaid on the principal balance of the Note to and including the Release Date; 
  
 (c) the payment to Lender of all other sums, not including scheduled interest or principal payments, due under the Note, the Mortgages,
the Assignments of Leases and Rents, and the other Loan Documents; 
  
 (d) the payment to Lender of the Defeasance Deposit and a $5,000 non-refundable processing fee; 
  
 (e) the delivery to Lender of: 
  

	 	(i)	a security agreement in form and substance satisfactory to Lender, creating a first priority lien on the Defeasance Deposit and the U.S. Obligations (hereinafter defined) purchased
on behalf of Borrower with the Defeasance Deposit in accordance with this Schedule I (the “Security Agreement”); 

  

	 	(ii)	a release of each Project from the lien of the Mortgage encumbering such Project (for execution by Lender) in a form appropriate for the jurisdiction in which such Project is
located; 

  

	 	(iii)	an officer’s certificate of Borrower certifying that the requirements set forth in this subparagraph (e) have been satisfied; 

  

	 	(iv)	an opinion of counsel in form and substance, and rendered by counsel satisfactory to Lender at the expense of Borrower, stating, among other things, that Lender has a perfected
first priority security interest in the Defeasance Deposit and the U.S. Obligations purchased by or on behalf of Borrower and pledged to Lender and as to enforceability of the Security Agreement and other documents delivered in connection therewith;

  

	 	(v)	 if required by the Rating Agencies and/or pooling and servicing agreement relating to the Secondary Market Transaction, evidence in writing from the applicable
Rating Agencies to the effect that such release will not result in a qualification, downgrade or withdrawal of any 

  

 SCHEDULE I – Page 1 

	 	 
rating in effect immediately prior to such defeasance for any securities issued in connection with a Secondary Market Transaction; and

  

	 	(vi)	such other certificates, documents or instruments as Lender may reasonably request. 

  
 (f) if the Loan has been sold in a Secondary Market Transaction, Lender shall have received an opinion of
counsel acceptable to Lender in form satisfactory to Lender stating, among other things, that the substitution of collateral shall not cause the holder of the Loan to fail to maintain its status as a real estate mortgage investment conduit (REMIC);
and 
  
 (g) Lender shall have received a
certificate from a nationally recognized independent certified public accountant acceptable to Lender, in form and substance satisfactory to Lender, certifying that the U.S. Obligations purchased with the Defeasance Deposit will generate sufficient
sums to satisfy the obligations of Borrower under the Note and this Schedule I as and when such obligations become due. 
  
 In connection with the conditions set forth above, Borrower hereby appoints Lender as its agent and attorney-in-fact for the purpose of using the Defeasance Deposit to
purchase or cause to be purchased U.S. Obligations which provide payments on or prior to, but as close as possible to, all successive scheduled payment dates after the Release Date upon which interest and principal payments are required under the
Note (including the amounts due on the Maturity Date) and in amounts equal to the scheduled payments due on such dates under the Note plus Lender’s estimate of administrative expenses and applicable federal income taxes associated with or to be
incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan (the “Scheduled Defeasance Payments”). Borrower, pursuant to the Security Agreement or other appropriate document, shall authorize
and direct that the payments received from the U.S. Obligations may be made directly to Lender and applied to satisfy the obligations of Borrower under the Note and this Schedule I. 
  
 2. Upon compliance with the requirements of this Schedule I, each Project shall be released from the lien of the Mortgage
encumbering such Project and the pledged U.S. Obligations shall be the sole source of collateral securing the Note. Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the U.S. Obligations required by the preceding
paragraph and to otherwise satisfy the Borrower’s obligations under this Schedule I shall be remitted to Borrower with the release of the Projects from the lien of the Mortgages. In connection with such release, a successor entity meeting
Lender’s Single Purpose Entity criteria, adjusted, as applicable, for the Defeasance contemplated by this Schedule (the “Successor Borrower”) shall be established by Borrower subject to Lender’s approval (or at
Lender’s option, by Lender) and Borrower shall transfer and assign all obligations, rights and duties under and to the Note together with the pledged U.S. Obligations to such Successor Borrower pursuant to an assignment and assumption agreement
in form and substance satisfactory to Lender (the “Assignment Agreement”). Such Successor Borrower shall assume the obligations under the Note and the Security Agreement and Borrower shall be relieved of its obligations
thereunder, except that Borrower shall be required to perform its obligations pursuant to this Schedule I, including maintenance of the Successor Borrower, if applicable. Borrower shall pay $1,000.00 to any such Successor Borrower as consideration
for assuming the obligations under the Note and the Security Agreement pursuant to the Assignment Agreement. Notwithstanding anything in the Mortgages to the contrary, no other assumption fee shall be payable upon a transfer of the Note in
accordance with this paragraph, but Borrower shall pay all costs and expenses incurred by Lender in connection with this Schedule, including Lender’s reasonable attorneys’ fees and expenses, costs and expenses in obtaining review and
confirmation by the applicable Rating Agencies as required herein, and any administrative and tax expenses associated with or incurred by the Successor Borrower. 
  

 SCHEDULE I – Page 2 

 3. For purposes of this Schedule I, the following terms shall have the following meanings: 
  
 (a) The term “Defeasance Deposit”
shall mean an amount equal to the Yield Maintenance Amount, any costs and expenses incurred or to be incurred in the purchase of U.S. Obligations necessary to meet the Scheduled Defeasance Payments (including Lender’s estimate of administrative
expenses and applicable federal income taxes associated with or to be incurred by the Successor Borrower during the remaining term of, and applicable to, the Loan) and any revenue, documentary stamp or intangible taxes or any other tax or charge due
in connection with the transfer of the Note or otherwise required to accomplish the agreements of this Schedule I. 
  
 (b) The term “Yield Maintenance Amount” shall mean the amount which will be sufficient to purchase U.S.
Obligations providing the required Schedule Defeasance Payments; and 
  
 (c) The term “U.S. Obligations” shall mean “Government Securities” as defined in the REMIC regulations, specifically, Treasury Regulation § 1.860G-2(a)(8)(i). 
  

 SCHEDULE I – Page 3 

 SCHEDULE II 
  
 REQUIRED REPAIRS 
  

				
	 Burbank Project:
	  	 	 
		
	 Repair termite and dry rot damage on accent siding of building A and manager’s unit balcony
	  	$	5,500
		
	 Repair damaged drywall ceiling in storage unit 816 of building C
	  	 	 
		
	 Remove mold from storage unit 317 in building C
	  	 	 
		
	 Fix electrical deficiencies (i.e., fix exposed wires in building C, replace missing outlet covers in building C and fix unlabeled circuits and
open breaker slots in electrical subpanels)
	  	 	 
		
	 Replace improper seismic straps and install a temperature and pressure relief valve on the water heater
	  	 	 
		
	 Fix life safety system deficiencies (i.e., close wired open fire doors in building C and repair illuminated exit sign hanging from the conduit
in storage unit 848 at building C)
	  	 	 
		
	 Obtain five-year certification for fire sprinkler system and provide a spare fire sprinkler head cabinet
	  	 	 
		
	 Have an annual inspection of all hand-held fire extinguishers that are due for inspection performed
	  	 	 
		
	 Obtain and display a current inspection certificate/permit for elevators
	  	 	 
		
	 ADA Compliance (i.e., provide ADA parking stalls and bring the leasing office restroom into ADA compliance)
	  	 	 
		
	 Total
	  	$	5,500
		
	 Casitas Project:
	  	 	 
		
	 Repair open breaker slot in the electrical subpanel at building C and replace the missing circuit board card in the electrical subpanel at the
rear of the leasing office
	  	 	 
		
	 Post the five-year fire sprinkler system inspection tags
	  	 	 
		
	 Replace missing fire extinguisher in building B
	  	 	 
		
	 Total
	  	$	0

  

 SCHEDULE II – Page 1 

				
	 Forest Hill Project:
	  	 	 
		
	 ADA Compliance (i.e., install one ADA van accessible parking space with proper signage, install lever door hardware at the public restrooms
and leasing office, install ADA restroom signage on doors and install piping insulation beneath the restroom sinks)
	  	$	500
		
	 Total
	  	$	500
		
	 Military Trail Project:
	  	 	 
		
	 ADA compliance (i.e., install lever door hardware at one public restroom and install piping insulation beneath the restroom
sinks)
	  	 	 
		
	 Total
	  	$	0
		
	 Lamont Project:
	  	 	 
		
	 Remove and replace dry rot damaged wood at the fascia and door jams near storage units 1001, 1012, 1013, 3115/3116, 4096A and
4108
	  	$	2,000
		
	 Replace damaged stucco exterior walls throughout the property
	  	$	500
		
	 Paint the exterior of the buildings
	  	$	13,088
		
	 Repair and/or replace damaged and missing concrete title shingles throughout the property
	  	$	2,000
		
	 Label the electrical subpanels near the exit gate and at buildings 3 & 4
	  	 	 
		
	 Remove debris from the fire department hose connections and replace the missing caps
	  	 	 
		
	 Replace the missing fire extinguisher near storage unit 4059
	  	 	 
		
	 ADA compliance (i.e., install one ADA van accessible parking space with loading zone, install lever or bar type door handles at the building
entrances, install pipe insulation at the public restrooms, install international signage, accessible sink handles and reachable dispensers in the restrooms, and install visual alarms)
	  	 	 
		
	 Total
	  	$	17,588
		
	 TOTAL (ALL PROJECTS)
	  	$	23,588
	 	  	
	

		
	 125%
	  	$	29,485
	 	  	
	

  

 SCHEDULE II – Page 2

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