Document:

exv10w26

 

Exhibit 10.26

NONCOMPETITION AGREEMENT

     THIS NONCOMPETITION AGREEMENT (this “Agreement”) is entered into as of
October 27, 2004 by and between U-STORE-IT TRUST, a Maryland real estate
investment trust (the “Company”), and Barry L. Amsdell (the “Trustee”).

     WHEREAS, the Company and U-Store-It, L.P., a Delaware limited partnership,
of which the Company is the general partner (the “Operating Partnership”), are
engaging in various related transactions pursuant to which, among other things,
the Company will effect an initial public offering of its common shares and
contribute the proceeds therefrom for units of partnership interest in the
Operating Partnership (the “U-Store-It IPO,” and together with all related
transactions, the “U-Store-It IPO Transactions”); and

     WHEREAS, the Company and the Trustee agree that, as part of the U-Store-It
IPO Transactions, the Trustee will not engage in competition with the Company
and will refrain from taking certain other actions pursuant to the terms and
conditions hereof in an effort to protect the Company’s legitimate business
interests and goodwill and for other business purposes.

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

     1. Noncompetition. The Trustee agrees with the Company that for
the longer of (i) the three-year period beginning on the date of this Agreement
or (ii) the period during which the Trustee is employed by, or serving as an
officer or trustee or director of, the Company, the Operating Partnership or
any of their direct or indirect subsidiaries (collectively, the “REIT”), and
for one year thereafter (the “Restricted Period”), the Trustee will not, (a)
directly or indirectly, engage in any business involving self-storage facility
development, construction, acquisition or operation, whether such business is
conducted by the Trustee individually or as a principal, partner, member,
stockholder, director, trustee, officer, employee or independent contractor of
any Person (as defined below) or (b) own any interests in any self-storage
facilities, in each case in the United States of America; provided,
however, that this Section 1 shall not be deemed to prohibit any of the
following: (I) the Trustee’s ownership, development, management, leasing,
marketing, sale, transfer or exchange of any of the Trustee’s interests in
Rising Tide Development, LLC (or any of the self-storage facilities owned by
Rising Tide Development, LLC on the date hereof or subsequently acquired by it
as contemplated in the Option Agreement), and (II) the direct or indirect
ownership by the Trustee of up to five percent of the outstanding equity
interests of any public company. For purposes of this Agreement, “Person”
means any individual, firm, corporation, partnership, company, limited
liability company, trust, joint venture, association or other entity.

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

 

 

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

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

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

     5. Miscellaneous Provisions.

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

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

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

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

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

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

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

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

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

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

	(i)	 	if to the Trustee, to
the address set forth in the records of the
Company; and
	 
	(ii)	 	if to the Company,
	 
	 	 	U-Store-It Trust

6745 Engle Road

Suite 300

Middleburg Heights, OH 44130

Attn: Steven G. Osgood

Telecopy No.: (440) 234-8776

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

*    
*     *

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

	 	 	 	 	 
	 	THE TRUSTEE:

 	 
	 	/s/ Barry L. Amsdell
 	 
	 	Barry L. Amsdell 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	THE COMPANY:
	 
	 	 	 	 
	 	 	U-STORE-IT TRUST
	 
	 	 	 	 
	

	 	By:
	 	/s/ Steven G. Osgood

	

	 	Name:
	 	Steven G. Osgood
	

	 	Title:
	 	 Presidentexv10w27

 

Exhibit 10.27

ROBERT J. AMSDELL

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of October 27,
2004, by and between U-STORE-IT TRUST, a Maryland real estate investment trust
(the “Company”), and Robert J. Amsdell (the “Executive”).

     WHEREAS, the Company and U-Store-It, L.P., a Delaware limited partnership,
the general partner of which is the Company (“Operating Partnership"), are
engaging in various related transactions pursuant to which, among other things,
the Company will effect an initial public offering of its common shares and
contribute the proceeds therefrom for units of partnership interest in
Operating Partnership (the “U-Store-It IPO,” and together with all related
transactions, the “U-Store-It IPO Transactions”); and

     WHEREAS, in connection with the U-Store-It IPO Transactions, the Company
wishes to offer employment to the Executive, and the Executive wishes to accept
such offer, on the terms set forth below.

     Accordingly, the parties hereto agree as follows:

     1. Term. The Company hereby employs the Executive, and the
Executive hereby accepts such employment for an initial term commencing as of
the date hereof and ending on December 31, 2007, unless sooner terminated in
accordance with the provisions of Section 4 or Section 5 (the period during
which the Executive is employed hereunder being hereinafter referred to as the
"Term”). The Term shall be subject to automatic one-year renewals unless
either party hereto notifies the other, in accordance with Section 7.4, of
non-renewal at least ninety (90) days prior to the end of any such Term.
Notwithstanding the employment of the Executive by the Company, the Company
shall be entitled to pay the Executive from the payroll of any subsidiary of
the Company.

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

 

 

     3. Compensation.

          3.1 Salary. The Company shall pay the Executive during the Term a
base salary at the rate of $200,000 per annum (the “Annual Salary”), in
accordance with the customary payroll practices of the Company applicable to
senior executives generally. The Annual Salary may be increased annually by an
amount as may be approved by the Board or the Compensation Committee, and, upon
such increase, the increased amount shall thereafter be deemed to be the Annual
Salary for purposes of this Agreement.

          3.2 Bonus. The Executive will be eligible to participate in the
Company’s annual bonus plan (the “Bonus Plan”), the terms of which will be
established by the Compensation Committee. The Executive may be awarded such
restricted shares, share options and other equity-based awards under the
Company’s equity compensation plan (“Equity Awards”) as the Compensation
Committee determines to be appropriate.

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

          With respect to each such benefit plan and program, service with The
Amsdell Companies, Amsdell Partners, Inc., U-Store-It Mini Warehouse Co. or any
of their affiliates (as applicable) shall be included for purposes of
determining eligibility to participate (including waiting periods, and without
being subject to any entry date requirement after the waiting period has been
satisfied), vesting (as applicable) and entitlement to benefits. The medical
plan or plans maintained by the Company shall waive all limitations as to
pre-existing conditions, exclusions and waiting periods with respect to
participation and coverage requirements, to the extent the Executive has
already satisfied the participation and coverage requirements under a benefit
plan or program maintained by U-Store-It Mini Warehouse Co. With respect to
vacation benefits provided by the Company, the vacation benefit of Executive
shall include all hours of accrued but unused vacation and sick time hours,
respectively, with U-Store-It Mini Warehouse Co. for fiscal 2004 through the
date of this Agreement.

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

          3.5 Automobile. During the Term, the Company will provide the
Executive an allowance of $6,000 per year for the use of an automobile
(including the payment of vehicle insurance). At the option of the Company, in
lieu of providing such allowance, the Company will provide the Executive with
an automobile of suitable standard to the Executive’s position.

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

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services under this Agreement, pursuant to the
Company’s standard expense reimbursement policy as in effect from time to time,
so long as the Executive provides proper documentation establishing the amount,
date and business purpose of the expenses.

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

          Upon death or other termination of employment by virtue of disability (i)
the Executive (or the Executive’s estate or beneficiaries in the case of the
death of the Executive) shall have no right to receive any compensation or
benefit hereunder on and after the Effective Date of the Termination other than
Annual Salary earned and accrued under this Agreement prior to the Effective
Date of the Termination, any bonus for the prior year not yet paid, and other
benefits, including payment for accrued but unused vacation, earned and accrued
under this Agreement prior to the Effective Date of the Termination (and
reimbursement under this Agreement for expenses incurred but not paid prior to
the Effective Date of the Termination) and an amount equal to the product of
(x) the Executive’s target annual bonus for the fiscal year of the Executive’s
death or disability and (y) a fraction, the numerator of which is the number of
days in the current fiscal year through the Effective Date of the Termination,
and the denominator of which is 365; (ii) all Equity Awards held by the
Executive shall become fully vested and exercisable; and (iii) this Agreement
shall otherwise terminate upon the Effective Date of the Termination and there
shall be no further rights with respect to the Executive hereunder (except as
provided in Section 7.13). For purposes of this Section 4, the “Effective Date
of the Termination” shall mean the date of death or the date on which a notice
of termination by virtue of disability is given or any later date (within
thirty (30) days after the giving of such notice) set forth in such notice of
termination.

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

     5. Other Terminations of Employment.

          5.1 Termination for Cause; Termination of Employment by the Executive
Without Good Reason.

               (a) For purposes of this Agreement, “Cause” shall mean:

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

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

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

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

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

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

               (b) For purposes of this Agreement, “Good Reason” shall mean, unless
otherwise consented to by the Executive:

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

          (ii) a reduction in Annual Salary of the Executive;

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

          (iv) a change in control (for purposes of this Section,
“Change in Control” shall mean:

(A) the dissolution or liquidation of the Company, (B)
the merger, consolidation, or reorganization of the
Company with one or more other entities in which the
Company is not the surviving entity or immediately
following which the persons or entities who were
beneficial owners (as determined pursuant to Rule 13d-3
under the

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Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of voting securities of the Company
immediately prior thereto cease to beneficially own
more than 50% of the voting securities of the surviving
entity immediately thereafter, (C) a sale of all or
substantially all of the assets of the Company to
another person or entity other than an affiliate of the
Company, (D) any transaction (including without
limitation a merger or reorganization in which the
Company is the surviving entity) that results in any
person or entity or “group” (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act)
(other than persons who are shareholders or affiliates
immediately prior to the transaction) owning thirty
percent (30%) or more of the combined voting power of
all classes of shares of the Company, or (E)
individuals who, as of the date hereof, 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 trustee
subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders,
was approved by a vote of at least a majority of the
trustees then comprising the Incumbent Board (either by
a specific vote or by approval of the proxy statement
of the Company in which such person is named as a
nominee for trustee, without written objection to such
nomination) 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 trustees or other actual or
threatened solicitation of proxies or contests by or on
behalf of a person other than the Board. For the
avoidance of doubt, the U-Store-It IPO transactions
shall not be considered a Change in Control;

          (v) a requirement by the Company that the Executive’s work
location be moved more than fifty (50) miles from the Company’s
principal place of business in Cleveland, Ohio unless the
relocation results in the work location being closer to Executive’s
residence; or

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

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

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               (c) The Company may terminate the Executive’s employment hereunder for
Cause and such termination in and of itself shall not be, nor shall it be
deemed to be, a breach of this Agreement. If the Company terminates the
Executive for Cause, (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the
Termination other than Annual Salary and other benefits, including payment for
accrued but unused vacation (but excluding any bonuses except as provided in
the Bonus Plan) earned and accrued under this Agreement prior to the Effective
Date of the Termination (and reimbursement under this Agreement for expenses
incurred but not paid prior to the Effective Date of the Termination); and (ii)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13). For purposes of this Section 5.1(c), the “Effective
Date of the Termination” shall mean the date on which a notice of termination
is given or any later date (within thirty (30) days after the giving of such
notice) set forth in such notice of termination.

               (d) The Executive may terminate his employment without Good Reason. If
the Executive terminates the Executive’s employment with the Company without
Good Reason: (i) the Executive shall have no right to receive any compensation
or benefit hereunder on and after the Effective Date of the Termination other
than Annual Salary and other benefits, including payment for accrued but unused
vacation (but excluding any bonuses except as provided in the Bonus Plan)
earned and accrued under this Agreement prior to the Effective Date of the
Termination (and reimbursement under this Agreement for expenses incurred but
not paid prior to the Effective Date of the Termination); and (ii) this
Agreement shall otherwise terminate upon the Effective Date of the Termination
and the Executive shall have no further rights hereunder (except as provided in
Section 7.13). For purposes of this Section 5.1(d), the “Effective Date of the
Termination” shall mean the date on which a notice of termination is given or
any later date (within thirty (30) days after the giving of such notice) set
forth in such notice of termination.

               (e) In the event the Company elects not to renew this Agreement as
contemplated in Section 1 above, the Executive shall receive a cash payment
equal to one (1) times the sum of: (i) the Executive’s Annual Salary in effect
on the day of expiration of the Term and (ii) the average bonus actually paid
to the Executive with respect to the prior two (2) calendar years, payable no
later than 30 days after the day of expiration of the Term.

          5.2 Termination Without Cause; Termination for Good Reason. The
Company may terminate the Executive’s employment at any time without Cause, for
any reason or no reason and the Executive may terminate the Executive’s
employment with the Company for Good Reason. If the Company or the Executive
terminates the Executive’s employment and such termination is not described in
Section 4 or Section 5.1, (i) the Executive shall have no right to receive any
compensation or benefit hereunder on and after the Effective Date of the
Termination other than Annual Salary earned and accrued under this Agreement
prior to the Effective Date of the Termination, any bonus for the prior year
which has been awarded but not yet paid, and other benefits, including payment
for accrued but unused vacation, earned and accrued under this Agreement prior
to the Effective Date of the Termination (and reimbursement under this
Agreement for expenses incurred but not paid prior to the Effective Date of the
Termination) and an amount equal to the product of (x) the Executive’s target
annual bonus for the fiscal year of the Executive’s termination of employment
and (y) a fraction, the numerator
of which is the number of days in the current fiscal year through the
Effective Date of the Termination, and the denominator

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of which is 365; (ii)
the Executive shall receive a cash payment equal to the Severance Payment
payable no later than 30 days after the Effective Date of the Termination;
(iii) for eighteen (18) months after the Effective Date of the Termination, the
Company shall continue medical, prescription and dental benefits to the
Executive and/or the Executive’s family at least equal to those which would
have been provided to them in accordance with the welfare benefit plans,
practices, policies and programs provided by the Company to the extent
applicable generally to other peer employees of the Company and its affiliated
companies, as if the Executive’s employment had not been terminated;
provided, however, that if the Executive becomes reemployed with
another employer and is eligible to receive medical, prescription and dental
benefits under another employer provided plan, the medical, prescription and
dental benefits described herein shall be secondary to those provided under
such other plan during such applicable period of eligibility; (iv) all Equity
Awards held by the Executive shall become fully vested and exercisable
(notwithstanding anything to the contrary contained in Section 14 of the
Company’s 2004 Equity Incentive Plan or any other provision thereof); and (v)
this Agreement shall otherwise terminate upon the Effective Date of the
Termination and the Executive shall have no further rights hereunder (except as
provided in Section 7.13). The “Severance Payment” means three (3) times the
sum of: (i) the Executive’s Annual Salary in effect on the day of termination
and (ii) the Executive’s Average Annual Bonus. The Executive’s “Average Annual
Bonus” means the average bonus actually paid to the Executive with respect to
the prior two (2) calendar years. For purposes of this Section 5.2, the
“Effective Date of the Termination” shall mean the date on which a notice of
termination is given or any later date (within thirty (30) days after the
giving of such notice) set forth in such notice of termination, or in the case
of termination of employment by the Executive for Good Reason, the date of
termination specified in such Executive’s notice of termination.

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

     6. Confidential and Proprietary Information.

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

          6.2 Return of Documents; Rights to Products. All memoranda, notes,
lists, records, property and any other tangible product and documents (and all
copies thereof) made, produced or compiled by the Executive or made available to
the Executive concerning the businesses and investments of the Company and its
affiliates shall be the Company’s property and

7

 

shall be delivered to the
Company at any time on request. The Executive shall assign to the Company all
rights to trade secrets and other products relating to the Company’s business
developed by him alone or in conjunction with others at any time while employed
by the Company.

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

     7. Other Provisions.

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

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

          7.3 Attorneys’ Fees. In the event of any legal proceeding relating
to this Agreement or any term or provision thereof, the losing party shall be
responsible to pay or reimburse the prevailing party for all reasonable
attorneys’ fees incurred by the prevailing party in connection with such
proceeding; provided, however, the Executive shall not be required to pay or
reimburse the Company unless the claim or defense asserted by the Executive was
unreasonable.

          7.4 Notices. All notices, requests, demands, claims, and other
communications hereunder shall be in writing. Any notice, request, demand,
claim, or other communication hereunder shall be deemed duly delivered (i) two
business days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, (ii) when received if it is sent by facsimile

8

 

communication during normal business hours on a business day or one business
day after it is sent by facsimile and received if sent other than during
business hours on a business day, (iii) one business day after it is sent via a
reputable overnight courier service, charges prepaid, or (iv) when received if
it is delivered by hand, in each case to the intended recipient as set forth
below:

	(i)	 	If to the Company, to:
	 
	 	 	U-Store-It Trust

6745 Engle Road

Suite 300

Middleburg Heights, OH 44130

Attention: Steven G. Osgood

Facsimile: (440) 234-8776
	 
	 	 	with a copy to:
	 
	 	 	Hogan & Hartson L.L.P.

555 13th Street, NW

Washington, DC 20004

Attention: William L. Neff, Esq.

Facsimile: (212) 637-5910
	 
	(ii)	 	If to the Executive, to:
	 
	 	 	Robert J. Amsdell

21050 Avalon Drive

Rocky River, OH 44116

Tel: (440) 333-3747

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

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

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

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

9

 

          7.8 Assignment. This Agreement, and the Executive’s rights and
obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void. In the
event of any Change in Control, the Company may assign this Agreement and its
rights hereunder.

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

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

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

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

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

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

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

          7.16 Parachute Provisions. If any amount payable to or other
benefit receivable by the Executive pursuant to this Agreement is deemed to
constitute a Parachute
Payment (as defined below), alone or when added to any other amount
payable or paid to or other benefit receivable or received by the Executive
which is deemed to constitute a Parachute Payment (whether or not under an
existing plan, arrangement or other agreement), and would result in the
imposition on the Executive of an excise tax under Section 4999 of the Internal
Revenue Code of 1986, as amended, then, in addition to any other benefits to
which the Executive is entitled under this Agreement, the Executive shall be
paid by the Company an amount in cash equal to the sum of the excise taxes
payable by the Executive by reason of receiving Parachute Payments plus the
amount necessary to put the Executive in the same after-tax position (taking
into account any and

10

 

all applicable federal, state and local excise, income or
other taxes at the highest applicable rates on such Parachute Payments and on
any payments under this Section 7.16) as if no excise taxes had been imposed
with respect to Parachute Payments. The amount of any payment under this
Section 7.16 shall be computed by a certified public accounting firm mutually
and reasonably acceptable to the Executive and the Company, the computation
expenses of which shall be paid by the Company. “Parachute Payment” shall mean
any payment deemed to constitute a “parachute payment” as defined in Section
280G of the Internal Revenue Code of 1986, as amended.

          7.17 Certain Definitions. For purposes of this Agreement:

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

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

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

*     *     *

11

 

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

	 	 	 	 	 
	 	U-STORE-IT TRUST

 	 
	 	By:  	/s/ Steven G. Osgood
 	 
	 	Title: Steven G. Osgood
Name: President	 
	 
	 	EXECUTIVE

 	 
	 	/s/  Robert J. Amsdell
 	 
	 	Robert J. Amsdell

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