Document:

exv4w1

 

Exhibit 4.1

1988 NONQUALIFIED STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS

OF

NOBLE ENERGY, INC.

(As Amended Through April 27, 2004)

RECITALS

     A. Effective as of July 26, 1988 (the “Effective Date”), the board of
directors (the “Board of Directors”) of Noble Energy, Inc. (formerly known as
Noble Affiliates, Inc.), a Delaware corporation (the “Company”), adopted this
1988 Nonqualified Stock Option Plan for Non-Employee Directors (the “Plan”).

     B. The purposes of the Plan are to provide to each of the directors of the
Company who is not also either an employee or an officer of the Company added
incentive to continue in the service of the Company and a more direct interest
in the future success of the operations of the Company by granting to such
directors options (the “Options”, or individually, the “Option”) to purchase
shares of the Company’s common stock, $3.33-1/3 par value (the “Common Stock”),
subject to the terms and conditions described below.

ARTICLE I

GENERAL

     1.01 Definitions. For purposes of this Plan and as used herein,
“non-employee director” shall mean an individual who (a) is now, or hereafter
becomes, a member of the Board of Directors by virtue of an election by the
shareholders of the Company, (b) is neither an employee nor an officer of the
Company and (c) has not elected to decline to participate in the Plan pursuant
to the next succeeding sentence. A director otherwise eligible to participate
in the Plan may make an irrevocable, one-time election, by written notice to
the Company within 30 days after his initial election to the Board of Directors
or, in the case of the directors in office on the Effective Date, prior to
shareholder approval of the Plan, to decline to participate in the Plan. For
purposes of this Plan, “employee” shall mean an individual whose wages are
subject to the withholding of federal income tax under Section 3401 of the
Internal Revenue Code of 1986, as amended from time to time (the “Code”), and
“officer” shall mean an individual elected or appointed by the Board of
Directors or chosen in such other manner as may be prescribed in the By-laws of
the Company to serve as such, except that for the purposes of this Plan, the
Chairman of the Board will not be deemed to be an officer of the Company.

     For purposes of this Plan, and as used herein, the “fair market value” of
a share of Common Stock is the closing sales price on the date in question (or,
if there was no reported sale on such date, on the last preceding day on which
any reported sale occurred) of the Common Stock on the New York Stock Exchange.

 

 

     1.02 Options. The Options granted hereunder shall be options that are not
qualified under Section 422A of the Code.

ARTICLE II

ADMINISTRATION

     The Plan shall be administered by the Board of Directors. The Board of
Directors shall have no authority, discretion or power to select the
participants who will receive Options, to set the number of shares to be
covered by each Option, or to set the exercise price or the period within which
the Options may be exercised, or to alter any other terms or conditions
specified herein, except in the sense of administering the Plan subject to the
express provisions of the Plan and except in accordance with Sections 3.02(a)
and 6.02 hereof. Subject to the foregoing limitations, the Board of Directors
shall have authority and power to adopt such rules and regulations and to take
such action as it shall consider necessary or advisable for the administration
of the Plan, and to construe, interpret and administer the Plan. The decisions
of the Board of Directors relating to the Plan shall be final and binding upon
the Company, the Holders, as defined hereinafter, and all other persons. No
member of the Board of Directors shall incur any liability by reason of any
action or determination made in good faith with respect to the Plan or any
stock option agreement entered into pursuant to the Plan.

ARTICLE III

OPTIONS

     3.01 Participation. Each non-employee director shall be granted Options
to purchase Common Stock under the Plan on the terms and conditions herein
described.

     3.02 Stock Option Agreements. Each Option granted under the Plan shall be
evidenced by a written stock option agreement, which agreement shall be entered
into by the Company and the non-employee director to whom the Option is granted
(the “Holder”), and which agreement shall include, incorporate or conform to
the following terms and conditions, and such other terms and conditions not
inconsistent therewith or with the terms and conditions of this Plan as the
Board of Directors considers appropriate in each case:

     (a) Option Grant Date. Options shall be granted initially as of the
Effective Date to each non-employee director serving the Company as a
director on such date. Thereafter, on each July 1 during the term of the
Plan until and including July 1, 2001, Options shall be granted
automatically to the incumbent non-employee directors serving the Company
as directors on such date. Beginning on February 1, 2002, Options shall
be granted to incumbent non-employee directors each year on February 1
during the term of the Plan. Options shall be granted to new
non-employee directors at the time of their election or appointment. The
date of grant of an Option pursuant to the Plan shall be referred to
hereinafter as the “Grant Date” of such Option. Notwithstanding anything
herein to the contrary, the Board of Directors may revoke, on or prior to
July 1, 2001 or on or prior to each subsequent February 1, the next
automatic grant of Options otherwise provided for by the

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Plan if no
options have been granted to employees since the preceding Grant Date
under the Company’s 1982 Stock Option Plan or any other employee stock
option plan that the Company might adopt hereafter.

     (b) Number. Each non-employee director serving the Company as a
director on the Effective Date shall be granted, as of such date, an
Option to purchase a number of shares of Common Stock equal to the
product obtained by multiplying (i) the number of completed years such
director has served the Company as a director by (ii) 500. Thereafter,
as of each subsequent Grant Date prior to July 1, 2001, each then current
non-employee director shall be granted an Option to purchase the number
of shares of Common Stock equal to the nearest number of whole shares
determined in accordance with the following formula, subject to
adjustment in accordance with Section 5.02 hereof:

	 	 	 	 	 
	     30,000     

	 	=
	 	Number of Shares of
	Number of Non-Employee Directors

	 	 	 	Common Stock

     “Number of Non-Employee Directors” shall mean the number of
non-employee directors serving the Company as a director on such Grant
Date. The formula set forth above will not be affected by any decision
of the Board of Directors to revoke an automatic grant.

     If, on any July 1 during the term of the Plan prior to July 1, 2001,
fewer than 30,000 shares of Common Stock (subject to adjustment in
accordance with Section 5.02 hereof) remain available for grant on such
date, such smaller number will be substituted for 30,000 as the numerator
in the formula described above to determine the number of shares of
Common Stock to be subject to each Option to be granted to each
non-employee director on such date.

     Beginning on July 1, 2001 and on each Grant Date thereafter, each
new non-employee director shall be granted an Option to purchase 10,000
shares of Common Stock, upon election to the Board of Directors as a
director, for his or her first year of service as a director. On each
subsequent Grant Date, each then current incumbent non-employee director
who has completed his or her first year of service as a director shall be
granted an Option to purchase 5,000 shares of Common Stock.

     (c) Price. The price at which each share of Common Stock covered by
an Option may be purchased pursuant to this Plan shall be the fair market
value of the shares on the Grant Date of such Option.

     (d) Option Period. Each Option shall be exercisable from time to
time over a period (the “Option Period”) commencing one year from the
Grant Date of such Option and ending upon the expiration of ten years
from the Grant Date, unless terminated sooner pursuant to the provisions
described in Section 3.02(e) below; provided, however, that any Option
granted pursuant to the lan shall become exercisable in full upon the mandatory retirement
of the Holder as a regular director because of age in accordance with
Article III of the By-laws of the Company.

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     (e) Termination of Service, Death, Etc. Each stock option agreement
shall provide as follows with respect to the exercise of the Option
granted thereby in the event that the Holder ceases to be a non-employee
director for the reasons described in this Section 3.02(e):

     (i) If the Holder ceases to be a director of the Company on
account of such Holder’s (A) fraud or intentional
misrepresentation, or (B) embezzlement, misappropriation or
conversion of assets or opportunities of the Company or any direct
or indirect majority-owned subsidiary of the Company, then the
Option shall automatically terminate and be of no further force or
effect as of the date the Holder’s directorship terminated;

     (ii) If the Holder shall die during the Option Period while a
director of the Company (or during the additional five-year period
provided by paragraph (iii) of this Section 3.02(e)), the Option
may be exercised, to the extent that the Holder was entitled to
exercise it at the date of Holder’s death, within five years after
such death (if otherwise within the Option Period), but not
thereafter, by the executor or administrator of the estate of the
Holder, or by the person or persons who shall have acquired the
Option directly from the Holder by bequest or inheritance or
permitted transfer; or

     (iii) If the directorship of a Holder is terminated for any
reason (other than the circumstances specified in paragraphs (i)
and (ii) of this Section 3.02(e)) within the Option Period, the
Option may be exercised, to the extent the Holder was able to do so
at the date of termination of the directorship, within five years
after such termination (if otherwise within the Option Period), but
not thereafter.

     (f) Transferability. Except as provided in this subsection (f), no
Option granted under the Plan shall be (i) transferable otherwise than by
will or the laws of descent and distribution, or (ii) exercisable during
the lifetime of the Holder by anyone other than the Holder. An Option
granted under the Plan to a Holder may be transferred by such Holder to a
permitted transferee (as defined below), provided that (i) there is no
consideration for such transfer (other than receipt by the Holder of
interests in an entity that is a permitted transferee); (ii) the Holder
(or such Holder’s estate or representative) shall remain obligated to
satisfy all income or other tax withholding obligations associated with
the exercise of such Option; (iii) the Holder shall notify the Company in
writing that such transfer has occurred and disclose to the Company the
name and address of the permitted transferee and the relationship of the
permitted transferee to the Holder; and (iv) such transfer shall be
effected pursuant to transfer documents in a form approved by the Board
of Directors. A permitted transferee may not further assign or transfer
any such transferred Option otherwise than by will or the laws of descent
and distribution. Following the transfer of an Option to a permitted
transferee, such Option shall continue to be subject to the same terms
and conditions that applied to it prior to its transfer by the Holder,
except that it shall be exercisable by the permitted transferee to whom
such transfer was made rather than by the transferring Holder. For the
purposes of the Plan, he term “permitted transferee” means, with respect to a Holder, (i)
any child, stepchild, grandchild, parent, stepparent, grandparent,

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spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law of the Holder, including adoptive relationships, (ii) any
person sharing the Holder’s household (other than a tenant or an
employee), (iii) a trust in which the persons described in clauses (i)
and (ii) above have more than fifty percent of the beneficial interest,
(iv) a foundation in which the Holder and/or persons described in clauses
(i) and (ii) above control the management of assets, and (v) any other
entity in which the Holder and/or persons described in clauses (i) and
(ii) above own more than fifty percent of the voting interests.

     (g) Agreement to Continue in Service. Each Holder shall agree to
remain in the continuous service of the Company, at the pleasure of the
Company’s shareholders, at least until the earlier of one year after the
date of the grant of any Option or the mandatory retirement of the Holder
as a regular director because of age in accordance with Article III of
the By-laws of the Company, at the retainer rate and fee schedule then in
effect or at such changed rate or schedule as the Company from time to
time may establish.

     (h) Exercise, Payments, Etc. Each stock option agreement shall
provide that the method for exercising the Option granted thereby shall
be by delivery to the President of the Company of, or by sending by
United States registered or certified mail, postage prepaid, addressed to
the Company (for the attention of its President) of, written notice
signed by Holder specifying the number of shares of Common Stock with
respect to which such Option is being exercised. Such notice shall be
accompanied by the full amount of the purchase price of such shares. Any
such notice shall be deemed to be given on the date on which the same was
deposited in a regularly maintained receptacle for the deposit of United
States mail, addressed and sent as above-stated. In addition to the
foregoing, promptly after demand by the Company, the exercising Holder
shall pay to the Company an amount equal to applicable withholding taxes,
if any, due in connection with such exercise.

ARTICLE IV

[Deleted]

ARTICLE V

AUTHORIZED COMMON STOCK

     5.01 Common Stock. The total number of shares of Common Stock as to which
Options may be granted pursuant to the Plan shall be 750,000, in the aggregate,
except as such number of shares shall be adjusted from and after the Effective
Date in accordance with the provisions of Section 5.02 hereof. If any
outstanding Option under the Plan shall expire or be terminated for any reason
before the end of the Option Period, the shares of Common Stock allocable to
the unexercised portion of such Option may again be subject to the Plan. The
Company shall, at all times during the life of any outstanding Options, retain
as authorized and unissued Common Stock at least the number of shares from
time to time included in the outstanding Options or otherwise assure itself of
its ability to perform its obligation under the Plan.

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     5.02 Adjustments Upon Changes in Common Stock. In the event the Company
shall effect a split of the Common Stock or dividend payable in Common Stock,
or in the event the outstanding Common Stock shall be combined into a smaller
number of shares, the maximum number of shares as to which Options may be
granted under the Plan shall be increased or decreased proportionately. In the
event that before delivery by the Company of all of the shares of Common Stock
in respect of which any Option has been granted under the Plan, the Company
shall have effected such a split, dividend or combination, the shares still
subject to the Option shall be increased or decreased proportionately and the
purchase price per share shall be increased or decreased proportionately so
that the aggregate purchase price for all the then optioned shares shall remain
the same as immediately prior to such split, dividend or combination.

     In the event of a reclassification of the Common Stock not covered by the
foregoing, or in the event of a liquidation or reorganization, including a
merger, consolidation or sale of assets, the Board of Directors of the Company
shall make such adjustments, if any, as it may deem appropriate in the number,
purchase price and kind of shares covered by the unexercised portions of
Options theretofore granted under the Plan. The provisions of this Section
5.02 shall only be applicable if, and only to the extent that, the application
thereof does not conflict with any valid governmental statute, regulation or
rule.

ARTICLE VI

GENERAL PROVISIONS

     6.01 Termination of the Plan. The Plan shall terminate whenever the Board
of Directors adopts a resolution to that effect. If not sooner terminated
under the preceding sentence, the Plan shall wholly cease and expire at the
close of business on July 25, 2006. After termination of the Plan, no Options
shall be granted under this Plan, but the Company shall continue to recognize
Options previously granted.

     6.02 Amendment of the Plan. Subject to the limitations set forth in this
Section 6.02, the Board of Directors may from time to time amend, modify,
suspend or terminate the Plan. No such amendment, modification, suspension or
termination shall (a) impair any Options theretofore granted under the Plan or
deprive any Holder of any shares of Common Stock which he might have acquired
through or as a result of the Plan, or (b) be made without the approval of the
shareholders of the Company where such change would (i) increase the total
number of shares of Common Stock which may be granted under the Plan or
decrease the purchase price under the Plan (other than as provided in Section
5.02 hereof), (ii) materially alter the class of persons eligible to be granted
Options under the Plan, (iii) materially increase the benefits accruing to
Holders under the Plan or (iv) extend the term of the Plan or the Option
Period.

     6.03 Treatment of Proceeds. Proceeds from the sale of Common Stock
pursuant to Options granted under the Plan shall constitute general funds of
the Company.

     6.04 Effectiveness. The Plan as originally adopted became effective as of
the Effective Date. The Plan as amended and restated January 29, 2002, was
approved and adopted by the Board of Directors on January 29, 2002, to be
effective as of that date. The Plan was amended by the Board

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of Directors on
January 27, 2004 subject to the approval of such amendment by the affirmative
vote of the holders a majority of the outstanding shares of Common Stock
present in person or by proxy entitled to vote at the annual meeting of the
stockholders of the Company held on April 27, 2004.

     6.05 Paragraph Headings. The paragraph headings included herein are only
for convenience, and they shall have no effect on the interpretation of the
Plan.

7exv10w2

 

Exhibit 10.2

CONTRIBUTION AGREEMENT

(Lantana Property)

                THIS CONTRIBUTION AGREEMENT (this “Agreement”) is entered into as of July
30, 2004 by and between Acquiport/Amsdell I Limited Partnership (the “Operating
Partnership”) and Robert J. Amsdell, Trustee (the “Contributor”).

                WHEREAS, in connection with the initial public offering (the “IPO”) of the
common shares of U-Store-It Trust, a Maryland real estate investment trust
(“USI”), USI, the Operating Partnership and their affiliates will complete a
series of related corporate transactions (collectively with the IPO, the “IPO
Transactions”);

                WHEREAS, in connection with the IPO Transactions, the Contributor desires
to contribute to the Operating Partnership, and the Operating Partnership
desires to acquire, all of Contributor’s right, title and interest in certain
real estate property and related assets, in exchange for Class A units of
limited partnership interest (“Units”) in the Operating Partnership, on the
terms and subject to the conditions set forth herein; and

                WHEREAS, the Operating Partnership has agreed to assume certain
liabilities and obligations in connection with the contribution hereunder.

                NOW THEREFORE, in consideration of the foregoing and the mutual covenants
and conditions set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Operating
Partnership and the Contributor agree as follows:

ARTICLE I: CONTRIBUTION OF PROPERTY

               1.1      Contribution of the Property and the Assumed Liabilities.

                (a)     Subject to the terms and conditions hereof, the Contributor shall
contribute or otherwise transfer to the Operating Partnership, and the
Operating Partnership agrees to acquire and accept from the Contributor, at the
Closing (as hereinafter defined), all of the Contributor’s right, title and
interest in and to (i) that certain tract or parcel of land described on
Exhibit A attached hereto and made a part hereof, together with all and
singular the rights and appurtenances pertaining to such property, including
any right, title and interest of Contributor in and to adjacent streets, alleys
or rights-of-way (herein referred to collectively as the “Land”), (ii) the
buildings, structures, fixtures and other improvements on the Land (herein
referred to collectively as the “Improvements”), (iii) the tangible and
intangible personal property owned by the Contributor used or useful in
connection with the Contributor’s businesses being carried out on the Land and
the Improvements (the “Personal Property”), and (iv) each of the following:
(A) each lease and other occupancy agreement for any portion of the Land or the
Improvements (collectively, the “Leases”), including all deposits and escrows
held in connection therewith, (B) each management agreement in effect for all
or any portion of the Land and Improvements (the “Management Contracts”), and
(C) each other contract of the Contributor relating to the Property (the “Other
Contracts”), in each case referred to in subsections (A) through (C), to be
identified by the Operating Partnership with the

 

 

assistance of the Contributor as of the Closing. All of the foregoing clauses
(i) through (iv) above shall collectively shall be known as the “Property”).

                (b)     Subject to the terms and conditions hereof, at the Closing, the
Operating Partnership shall assume and thereafter pay, honor, discharge and
perform, in accordance with their respective terms, all of the liabilities and
obligations of the Contributor or otherwise relating to the Property identified
on Schedule 1 hereto (the “Assumed Liabilities”).

                (c)     Notwithstanding anything to the contrary set forth herein, the
Contributor shall not transfer to the Operating Agreement pursuant to this
Agreement any of the Contributor’s Mortgage Loan Liabilities to the Mortgage
Lender (as such terms are defined below), and nothing herein shall, or be
deemed to, release or relieve the Contributor with respect to any of its
liabilities or obligations to the Mortgage Lender. However, from and after the
effective time of the Closing, in consideration of the transfer of the Property
to the Operating Partnership, the Operating Partnership shall indemnify, defend
and hold harmless the Contributor from and against any and all liabilities and
obligations incurred by, or that may be or become due and payable by, the
Contributor under or in respect of the Mortgage Loan Documents (as defined
below), and the Operating Partnership shall, at the Contributor’s request, duly
and promptly (i) pay any amounts that become due and payable by the Contributor
under or in respect of the Mortgage Loan Documents, and (ii) perform any and
all covenants and obligations of the Contributor under the Loan Documents, and
satisfy any and all conditions to be satisfied by the Contributor under the
Loan Documents, relating to the ownership, operation, maintenance, use and/or
management of the Property. The term “Mortgage Loan Liabilities” shall mean
the liabilities and obligations of the Contributor to Wachovia Bank, National
Association, as successor-in-interest to First Union National Bank (the
“Mortgage Lender”) in respect of the loans evidenced by the Renewal Promissory
Note, dated October 17, 2001, made by the Contributor to the order of the
Mortgage Lender in the original principal amount of $6,182,654.46 (as the same
may be extended, modified, renewed or replaced) and the Future Advance
Promissory Note, dated December 19, 2001, made by the Contributor to the order
of the Mortgage Lender in the original principal amount of $2,000,000.00, and
secured by, inter alia, the Mortgage and Security Agreement, dated August 20,
1999, between the Contributor and the Mortgage Lender, as modified by the
Modification of Mortgage and Extension Agreement, dated as of October 17, 2001
and the Mortgage and Modification Agreement, dated as of December 19, 2001,
each between the Contributor and the Mortgage Lender, and under the other
instruments, security agreements, assignments, pledge agreements, environmental
indemnities, indemnification agreements, subordination agreements, guaranties
and other documents and agreements executed and by the Borrower in connection
with such loans (such promissory notes, mortgage and mortgage modifications and
other documents being referred to herein as the “Mortgage Loan Documents”);
provided, however, that the term “Mortgage Loan Liabilities” shall not include
the obligations and liabilities of the Contributor under (and the term
“Mortgage Loan Documents” shall not include) the Assignment of Leases, Rents,
Profits, Permits, Deposits, Approvals, Licenses, Warranties and Other
Agreement, dated August 20, 1999, by the Contributor in favor of the Mortgage
Lender (the “Assignment of Rents”); it being agreed that the Contributor’s
rights, obligations and liabilities under and in respect of the Assignment of
Rents shall be assigned by the Contributor and accepted

 

 

and assumed by the Operating Partnership as part of the Property and the
Assumed Liabilities, respectively pursuant to this Agreement. Notwithstanding
anything to the contrary herein, the Contributor and the Operating Partnership
hereby represent, warrant, acknowledge and agree that the Property shall be
conveyed, transferred and assigned by the Contributor, and shall be acquired,
accepted and held by the Operating Partnership, in each case, subject to the
continuation of any and all statutory or common law consensual or nonconsensual
mortgages, pledges, security interests, encumbrances, liens, rights of setoff,
claims or charges of any kind in favor or for the benefit of the Mortgage
Lender existing at the time of the Closing under the Mortgage Loan Documents
(including, without limitation, the Assignment of Rents).

               1.2      Contributor Exchange Amount.

                (a)     Units Delivered at Closing. Subject to the terms and
conditions of this Agreement, in exchange for the contribution of the Property
and for the assumption of the Assumed Liabilities, the Operating Partnership
shall issue to the Contributor, and upon execution and delivery of the Limited
Partner Acceptance (as defined below) by the Contributor, the Contributor shall
receive, at the Closing, a number of Units (rounded to the nearest whole Unit)
equal to the Contribution Unit Amount (as defined on Exhibit B), in a
transaction intended to qualify for nonrecognition of gain to the Contributor
pursuant to Section 721 of the Internal Revenue Code of 1986, as amended (the
“Code”). The rights of holders of the Units as of the Closing will be set
forth in the Second Amended and Restated Agreement of Limited Partnership of
the Operating Partnership, in substantially the form attached hereto as
Exhibit C, with such changes as may be proposed by the Operating
Partnership and not materially adversely affecting the Contributor (the
“Partnership Agreement”). The Contributor acknowledges and agrees that, with
respect to the Property, receipt of the Units in exchange for such Property
shall constitute receipt of the fair value of the Contributor’s interest in
such Property as of the Closing Date.

                (b)     Issuance of Units. At the Closing, the Operating Partnership
shall issue the Units to the Contributor (as determined pursuant to Section
1.2(a) above). The name of the Contributor and the number of Units issued to
the Contributor at the Closing shall be recorded in the books and records of
the Operating Partnership.

                (c)     Admission as a Limited Partner. Upon execution and delivery of
the Limited Partner Acceptance to the Partnership Agreement, attached hereto as
Exhibit D (the “Limited Partner Acceptance”), by the Contributor at the
Closing, and subject to the completion of the Closing, the Contributor shall be
admitted to the Operating Partnership as a limited partner of the Operating
Partnership and, as such, shall be subject to, and bound by, the Partnership
Agreement, including the power of attorney granted therein and all the terms
and conditions thereof.

ARTICLE II: REPRESENTATIONS, WARRANTIES AND COVENANTS OF CONTRIBUTOR

                As a material inducement to the Operating Partnership to enter into this
Agreement and to consummate the transactions contemplated hereby, the
Contributor hereby makes to the Operating Partnership each of the
representations, warranties and

 

 

covenants set forth in this Article II. The representations and
warranties set forth in this Article II are true and correct as of the date
hereof.

                2.1     Title to the Property. Contributor owns the Property and,
except as set forth below, at the Closing will own the Property free and clear
of any claim, lien (including tax liens), option, charge, security interest,
mortgage, deed of trust, encumbrance, rights of assignment, purchase rights or
other rights of any nature whatsoever (collectively, “Encumbrances”), and has
or will have at the Closing full power and authority to convey the
Contributor’s interests in the Property, free and clear of any Encumbrances,
upon delivery of a deed of conveyance (and other appropriate instruments of
transfer) by the Contributor relating to the Property and receipt by it of the
consideration for such Property as herein provided, and the Operating
Partnership (or its designee) will acquire good and valid title thereto, free
and clear of any Encumbrance, in each case, except (i) Encumbrances created in
favor of the Operating Partnership by the transactions contemplated hereby,
(ii) Encumbrances listed on Schedule 2 hereto, and (iii) the Assumed
Liabilities and the Mortgage Loan Liabilities (the foregoing clauses (i)
through (iii) collectively shall be known as the “Permitted Encumbrances”).

                2.2     Organization and Standing. Contributor is a corporation duly
organized, validly existing and in good standing under Ohio law, and has the
full and unrestricted corporate power and authority to own, operate its assets,
to carry on its business as currently conducted, to execute and deliver this
Agreement and to carry out the transactions contemplated hereby. The
Contributor is duly qualified to conduct business as a foreign corporation
where necessary and is in good standing in the states in which it is so
qualified.

                2.3     Authority. Contributor has full right, authority, power and
capacity (a) to enter into this Agreement and each agreement, document and
instrument to be executed and delivered by or on behalf of the Contributor
pursuant to this Agreement; (b) to carry out the transactions contemplated
hereby and thereby; and (c) to transfer, sell and deliver all of its interests
in the Property to the Operating Partnership (or its designee) in accordance
with this Agreement. This Agreement and each agreement, document and
instrument executed and delivered by or on behalf of the Contributor pursuant
to this Agreement constitutes, or when executed and delivered will constitute,
the legal, valid and binding obligation of the Contributor, each enforceable in
accordance with its respective terms.

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

                2.5     No Agreements to Sell. Except to the extent contemplated or
referred to herein, Contributor is not currently a party to any agreement to
sell, transfer or otherwise encumber or dispose of the Property.

 

 

                2.6     Status as a United States Person. Contributor represents and
warrants that the Contributor is not a foreign person within the meaning of
Section 1445 of the Code (“Section 1445”). Contributor’s U.S. social security
number (in the case of an individual) or U.S. taxpayer identification number
(in the case of an entity) that has previously been provided to the Operating
Partnership is correct. Contributor’s home address (in the case of an
individual) or office address (in the case of an entity) is that most recent
address previously provided to the Operating Partnership. At the time of
Closing, Contributor shall provide to the Operating Partnership a certificate
of non-foreign status substantially in the form provided in Section
1.1445-5(b)(3)(D) of the Treasury regulations.

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

                2.8      No Brokers. Contributor represents that it has not entered
into, and covenants that it will not enter into, any agreement, arrangement or
understanding with any person or firm which will result in the obligation of
the Operating Partnership to pay any finder’s fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby.

                2.9      Conditional Nature of Transaction. Contributor acknowledges
and understands that it is a condition to the Operating Partnership’s
obligations to close the transactions contemplated hereby that the other IPO
Transactions shall have occurred (or are occurring simultaneously with the
Closing), that the occurrence of any of the other IPO Transactions is wholly
within the sole and absolute discretion of the Operating Partnership and its
affiliates, and that the Contributor has no right to require any of the other
IPO Transactions to occur, on any terms.

                2.10     Securities Law Matters; Transfer Restrictions.

                          (a)     Contributor acknowledges that the Operating Partnership intends the
offer and issuance of the Units to be exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”) and applicable state
securities laws by virtue of (i) the status of the Contributor as an
“accredited investor” within the meaning of the federal securities laws, and
(ii) Regulation D promulgated under Section 4(2) of the Securities Act
(“Regulation D”), and that the Operating Partnership will rely in part upon the
representations and warranties made by the Contributor in this Agreement in
making the determination that the offer and issuance of the Units qualify for
exemption under Rule 506 of Regulation D as an offer and sale only to
“accredited investors.”

                          (b)     Contributor is an “accredited investor” within the meaning of the
federal securities laws.

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

 

 

                          (d)      Contributor has sufficient knowledge and experience in financial, tax
and business matters to enable him to evaluate the merits and risks of
investment in the Units. Contributor has the ability to bear the economic risk
of acquiring the Units. Contributor acknowledges that (i) the transactions
contemplated by this Agreement involve complex tax consequences for the
Contributor, and the Contributor is relying solely on the advice of the
Contributor’s own tax advisors in evaluating such consequences, (ii) the
Operating Partnership has not made (nor shall it be deemed to have made) any
representations or warranties as to the tax consequences of such transaction to
the Contributor, and (iii) references in this Agreement to the intended tax
effect of the transactions contemplated hereby shall not be deemed to imply any
representation by Operating Partnership as to a particular tax effect that may
be obtained by the Contributor. The Contributor remains solely responsible for
all tax matters relating to the Contributor.

                          (e)      Contributor has been supplied with, or had access to, information to
which a reasonable investor would attach significance in making an investment
decision to acquire the Units and any other information the Contributor has
requested. The Contributor has had an opportunity to ask questions of, and
receive information and answers from, the Operating Partnership and USI
concerning the Operating Partnership, USI, the Units, the other IPO
Transactions and the Common Shares into which the Units may be redeemed, and to
assess and evaluate any information supplied to the Contributor by the
Operating Partnership or USI, and all such questions have been answered, and
all such information has been provided to the full satisfaction of the
Contributor.

                          (f)      The Contributor acknowledges that the Contributor is aware that there
are substantial restrictions on the transferability of the Units and that the
Units will not be registered under the Securities Act or any state securities
laws, and the Contributor has no right to require that they be so registered.
Contributor agrees that any Units it acquires will not be sold in the absence
of registration unless such sale is exempt from registration under the
Securities Act and applicable state securities laws. Contributor acknowledges
that the Contributor shall be responsible for compliance with all conditions on
transfer imposed by any securities authority and for any expenses incurred by
the Operating Partnership for legal or accounting services in connection with
reviewing such a proposed transfer or issuing opinions in connection therewith.

                          (g)      Contributor understands that no federal agency (including the
Securities and Exchange Commission) or state agency has made or will make any
finding or determination as to the fairness of an investment in the Units
(including as to the Contribution Unit Amount or the value determined pursuant
to Exhibit B)).

                          (h)      Contributor understands that there is no established public, private
or other market for the Units acquired by the Contributor hereunder and it is
not anticipated that there will be any public, private or other market for such
Units in the foreseeable future.

                          (i)      Contributor understands that Rule 144 promulgated under the Securities
Act is not currently available with respect to the sale of Units.

 

 

               2.11      Carrying On in the Ordinary Course of Business. From the date
hereof to the Closing Date, the Contributor shall conduct its business in the
ordinary course in all material respects, except that the Contributor may (a)
take such actions and execute such documents as may be required to effectuate
the IPO Transactions, and (b) effect distributions of cash to its equity
holders.

               2.12      Reliance. Contributor acknowledges that it understands the meaning
and legal consequences of the representations and warranties in this Article
II, and that the Operating Partnership may rely upon such representations and
warranties in determining whether to enter into this Agreement. Contributor
agrees to indemnify, defend and hold harmless the Operating Partnership, USI,
and the officers, directors and affiliates thereof, and any employees or agents
of any of the foregoing, against any and all loss, liability, claim, damage or
expense whatsoever (including, but not limited to, any and all expenses,
including attorneys’ fees, reasonably incurred in investigating, preparing or
defending against any claim or litigation commenced or threatened) due to or
arising out of a breach of any such representations or warranties.

ARTICLE III: CONDITIONS TO CLOSING

                3.1      Conditions to the Operating Partnership’s Obligation to Close.
The obligation of the Operating Partnership to consummate the Closing is
subject to the fulfillment, at or prior to the Closing, of the following
conditions (unless such conditions are waived in writing by the Operating
Partnership):

                          (a)      Other IPO Transactions. The other IPO Transactions, in such
form(s) as the Operating Partnership, in its sole and absolute discretion,
shall have determined to be acceptable, shall have occurred (or are occurring
simultaneously with the Closing).

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

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

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

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

 

 

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

                3.2      Conditions to the Contributor’s Obligation to Close. The
obligation of the Contributor to consummate the Closing is subject to the
fulfillment, at or prior to the Closing, of the following conditions (unless
such conditions are waived in writing by the Contributor):

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

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

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

                          (d)      Registration Rights Agreement. At or prior to the Closing, USI
shall have entered into a registration rights agreement with the Contributor
providing the Contributor with registration rights that either, at USI’s
option, (i) register the issuance of USI common shares received upon redemption
of the Units issued pursuant to this Agreement, or (ii) register the resale of
USI common shares issuable upon redemption of the Units issued pursuant to this
Agreement, such registration rights agreement to contain such other terms and
conditions customary for a transaction of this type (the “Registration Rights
Agreement”).

ARTICLE IV: CLOSING

                4.1      Closing. The closing hereunder (the “Closing”) shall occur, at
the election of the Operating Partnership, (i) one business day prior to the
closing of the IPO, (ii) concurrently with the closing of the IPO, or (iii) one
business day following the closing of the IPO, which date the Operating
Partnership shall designate in writing to the Contributor at least five
business day prior to such date, at the same location as the closing

 

 

of the IPO, provided that the conditions for the Closing as set forth in
Article III hereof applicable to the transaction with the Contributor shall
have occurred (or have been waived by the party that benefits from such
conditions), and this Agreement shall not have been terminated pursuant to
Article V hereof.

                4.2      Closing Deliveries by Contributor. At the Closing, the
Contributor shall execute and deliver to the Operating Partnership the
following:

                          (i)      a duly executed deed of conveyance, substantially in the form attached
hereto as Exhibit E, modified as necessary to conform to local
requirements, pursuant to which the Contributor shall grant and convey to the
Operating Partnership (or its designee) the Contributor’s right, title and
interests in the Land and Improvements, free and clear of Encumbrances, other
than Permitted Encumbrances;

                          (ii)      a duly executed Bill of Sale and Assignment and Assumption Agreement,
substantially in the form attached hereto as Exhibit F (“Assignment
Agreement”), pursuant to which (a) the Contributor shall assign and convey to
the Operating Partnership (or its designee) the Contributor’s right, title and
interests in (i) the Personal Property, the Leases, the Management Contracts
and the Other Contracts, free and clear of Encumbrances, other than the
Permitted Encumbrances, and (b) the Operating Partnership shall assume the
Assumed Liabilities;

                          (iii)      a Limited Partner Acceptance, substantially in the form attached
hereto as Exhibit D, duly executed by the Contributor;

                          (iv)      such documents and certificates as the Operating Partnership may
reasonably request (x) to establish the authority of the parties executing any
documents in connection with the Closing, (y) to reflect the parties’
intentions regarding the transfer of the Property and assumption of the Assumed
Liabilities, or (z) as may be reasonably required by the Operating
Partnership’s title insurer in connection with the issuance of a title
insurance policy for the Property; and

                          (v)      a non-foreign seller certification, substantially in the form attached
hereto as Exhibit G, executed by the Contributor.

                4.3      Closing Deliveries by The Operating Partnership. At the
Closing, the Operating Partnership shall execute and deliver to the Contributor
the following:

                          (i)      a duly executed Assignment Agreement; and

                          (ii)      a duly executed Registration Rights Agreement.

ARTICLE V: TERMINATION

                5.1      Termination by the Operating Partnership. The Operating
Partnership shall have the right to terminate this Agreement at any time
following the occurrence of any of the following events:

 

 

                          (i)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the IPO Transactions;

                          (ii)      the determination by the Operating Partnership, in its sole and
absolute discretion, not to proceed with the transfer of the Property on the
terms outlined herein;

                          (iii)      the determination that any representation or warranty of the
Contributor contained herein is no longer true or correct, and that such
representation or warranty cannot reasonably be expected to be true and correct
at the Closing; or

                          (iv)      at any time on or after February 15, 2005, for any reason.

                5.2      Termination by Contributor. The Contributor shall have the
right to terminate this Agreement at any time on or after February 15, 2005,
for any reason.

                5.3      Effect of Termination. Upon the termination of this Agreement
as to the Contributor pursuant to Section 5.1 or 5.2 hereof, neither the
Operating Partnership nor the Contributor shall have any liability to the other
in connection with the transactions contemplated hereby, or as a result of the
termination of this Agreement; provided, that the foregoing shall not relieve
the Operating Partnership or the Contributor of any liability as a result of a
breach of any of the terms of this Agreement.

ARTICLE VI: MISCELLANEOUS

                6.1      Closing Expenses and Transfer Taxes. Except as otherwise
specifically set forth in this Agreement, (a) the cost of the base title
policy, endorsements, reinsurance or coinsurance, all recording costs, all
escrow costs and other costs incurred in connection with the transactions
contemplated by this Agreement shall be paid by the Operating Partnership, and
(b) any and all transfer taxes and documentary stamp taxes incurred in
connection with the contribution of the Property shall be paid by the Operating
Partnership.

                6.2      Further Assurances. The Contributor shall execute and deliver
to the Operating Partnership all such other and further instruments and
documents and take or cause to be taken all such other and further actions as
the Operating Partnership may reasonably request in order to effect the
transactions contemplated by this Agreement, including instruments or documents
deemed necessary or desirable by the Operating Partnership to effect and
evidence the conveyance of the Property in accordance with the terms of this
Agreement.

                6.3      Amendment; Waiver. Any amendment hereto shall be effective
only if signed by all parties hereto. No waiver of any provisions of this
Agreement shall be valid unless in writing and signed by the party against whom
enforcement is sought.

                6.4      Entire Agreement; Counterparts; Applicable Law. This Agreement
shall (a) constitute the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to
the subject matter hereof, (b) may be executed in one or more counterparts,
each of which will be

 

 

deemed an original and all of which shall constitute one and the same
instrument, and (c) shall be governed in all respects, including validity,
interpretation and effect, by the laws of the State of Delaware without giving
effect to the conflict of law provisions thereof.

                6.5      Assignability. This Agreement shall be binding upon, and shall
be enforceable by and inure to the benefit of, the parties hereto and their
respective heirs, legal representatives, successors and assigns; provided,
however, that this Agreement may not be assigned (except by operation of law)
by any party without the prior written consent of the other parties, and any
attempted assignment without such consent shall be void and of no effect. The
Contributor may designate any other person or entity to receive the Units to be
issued pursuant to this Agreement; provided, however, that upon any such
designation, the designee shall make to the Operating Partnership each of the
representations, warranties and covenants set forth in Section 2.10 hereof.

                6.6      Severability. If any provision of this Agreement, or the
application thereof, is for any reason held to any extent to be invalid or
unenforceable, the remainder of this Agreement and application of such
provision to other persons or circumstances will be interpreted so as
reasonably to effect the intent of the parties hereto. The parties further
agree to replace such void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of the void or unenforceable provision
and to execute any amendment, consent or agreement deemed necessary or
desirable by the Operating Partnership to effect such replacement.

                6.7      Equitable Remedies. The parties hereto agree that irreparable
damage would occur if any provision of this Agreement were not performed in
accordance with its specific terms or was otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereof in any federal or state court located in the
State of Ohio (as to which the parties agree to submit to jurisdiction for the
purposes of such action), this being in addition to any other remedy to which
they are entitled at law or in equity.

                6.8      Attorneys’ Fees. In connection with any litigation or a court
proceeding arising out of this Agreement, the prevailing party shall be
entitled to recover all costs incurred, including reasonable attorneys’ fees
and legal assistants’ fees and costs whether incurred prior to trial, at trial,
or on appeal.

                6.9      Survival. It is the express intention and agreement of the
parties hereto that the representations, warranties and covenants of the
Contributor set forth in this Agreement shall survive the consummation of the
transactions contemplated hereby.

 

 

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

THE OPERATING PARTNERSHIP:

Acquiport/Amsdell I Limited Partnership

By: Amsdell Partners, Inc., its general partner

By: /s/ Robert J. Amsdell           

Name: Robert J. Amsdell

Title: President

CONTRIBUTOR:

Robert J. Amsdell, Trustee

By: /s/ Robert J. Amsdell           

Name: Robert J. Amsdell

Title: Trustee

 

 

Exhibit B

CONTRIBUTION UNIT AMOUNT

The “Contribution Unit Amount” shall be equal to the following:

(GPV — AL)

IPO Price

Where:

“GPV” shall mean gross property value, which shall be: $17,298,000

“AL” shall equal the aggregate amount of the Mortgage Loan Liabilities,
calculated as of the Closing.

“IPO Price” shall equal the issuance price per share of the common shares of
U-Store-It Trust at the IPO.

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