Document:

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                                                                   EXHIBIT 10.12

                       SENIOR MANAGER AMENDED AND RESTATED
                           RESTRICTED STOCK AGREEMENT

            This Senior Manager Amended and Restated Restricted Stock Agreement
(this "Agreement") is made as of this 3rd day of April, 2006 (the "Effective
Date") between Simmons Company, a Delaware corporation (the "Company"), and the
undersigned (the "Restricted Shareholder"). Certain capitalized terms used
herein are defined in Section 6 hereof.

            WHEREAS, the Company believes it to be in the best interests of the
Company and its shareholders to take action to promote work-force stability, to
reward performance and otherwise align the Restricted Shareholder's interests
with those of the Company;

            WHEREAS, accordingly, the Company issued restricted stock to the
Restricted Shareholder in accordance with the provisions of a Senior Manager
Restricted Stock Agreement between the Company and the Restricted Shareholder
dated as of December 19, 2003 (the "Original Agreement");

            WHEREAS, the Company desires to be assured that the confidential
information and goodwill of the Company will be preserved for the exclusive
benefit of the Company; and

            WHEREAS, the Company and the Restricted Shareholder desire to amend
and restate the Original Agreement in its entirety as set forth herein and to
cause the Original Agreement to be of no further force and effect as of the
Effective Date hereof.

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

            1.    PURCHASE AND SALE OF RESTRICTED SHAREHOLDER STOCK.

            (a) Upon execution of the Original Agreement and payment of the
Original Purchase Price (as hereinafter defined), the Company issued to the
Restricted Shareholder that number of shares of Class B Common Stock, par value
$0.01 per share, of the Company (the "Class B Common Stock") set forth below
such Restricted Shareholder's name on the signature page attached hereto, for a
purchase price of $0.01 per share (the "Original Purchase Price"). All of such
shares of Class B Common Stock purchased by the Restricted Shareholder pursuant
to the Original Agreement are referred to herein as "Restricted Shareholder
Stock." To secure the Company's rights under the Repurchase Option in Section 3,
the Company has retained possession of the certificates representing the
Restricted Shareholder Stock and has provided the Restricted Shareholder with
copies thereof.

            (b) The Restricted Shareholder, in his or her sole discretion, may
have made an effective election with the Internal Revenue Service (the "IRS")
under Section 83(b) of the Code and the regulations promulgated thereunder. The
Restricted Shareholder understands that under applicable law such election must
have been filed with the IRS no later than thirty (30) days after any
acquisition of the Restricted Shareholder Stock to be effective. If the
Restricted Shareholder

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filed an effective election, the excess of the fair market value of the
Restricted Shareholder Stock (which the IRS may assert is different from the
fair market value determined by the parties) covered by such election over the
amount paid by the Restricted Shareholder for the stock would have been treated
as ordinary income received by the Restricted Shareholder, and the Company or
its subsidiary, Simmons Bedding Company, would have withheld from the Restricted
Shareholder's compensation all amounts required under applicable law. If the
Restricted Shareholder did not file an effective election, all appreciation on
the Restricted Shareholder Stock from the date of the Original Agreement would
generally be taxable as ordinary income when such stock vests pursuant to the
Original Agreement, as amended and restated hereby.

            (c) In connection with the acquisition of the Restricted Shareholder
Stock pursuant to the Original Agreement, the Restricted Shareholder represented
and warranted to the Company, and hereby reaffirms such representations and
warranties as of the date hereof, that:

                     (i) the Restricted Shareholder Stock acquired by the
      Restricted Shareholder has been acquired for the Restricted Shareholder's
      own account, for investment only and not with a view to, or intention of,
      distribution thereof in violation of the Securities Act, or any applicable
      state securities laws, and the Restricted Shareholder Stock will not be
      disposed of in contravention of the Securities Act or any applicable state
      securities laws or this Agreement or the Securityholders' Agreement;

                     (ii) the Restricted Shareholder, either alone or acting in
      conjunction with a Purchaser Representative (as such term is defined in
      Regulation D of the Securities Act), generally has such knowledge and
      experience in business and financial matters and with respect to
      investments in securities of privately held companies so as to enable the
      Restricted Shareholder to understand and evaluate the risks and benefits
      of his or her investment in the Restricted Shareholder Stock;

                     (iii) the Restricted Shareholder has no need for liquidity
      in his or her investment in the Restricted Shareholder Stock and is able
      to bear the economic risk of his or her investment in the Restricted
      Shareholder Stock for an indefinite period of time and understands that
      the Restricted Shareholder Stock has not been registered or qualified
      under the Securities Act or any applicable state securities laws, by
      reason of the issuance of the Restricted Shareholder Stock in a
      transaction exempt from the registration and qualification requirements of
      the Securities Act or such state securities laws and, therefore, cannot be
      sold unless subsequently registered or qualified under the Securities Act
      or such state securities laws or an exemption from such registration or
      qualification is available;

                     (iv) the Restricted Shareholder acknowledges that he or she
      is aware that the Shares may not be sold pursuant to Rule 144 promulgated
      under the Securities Act unless all of the conditions of that Rule are
      met. Among the current conditions for use of Rule 144 by certain holders
      is the availability to the public of current information about the
      Company. Such information is not now available, and the Company has no
      current plans to make such information available;

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                     (v) the Restricted Shareholder has had an opportunity to
      ask questions and receive answers concerning the terms and conditions of
      the offering of the Restricted Shareholder Stock and has had full access
      to or been provided with such other information concerning the Company as
      the Restricted Shareholder has requested; and

                     (vi) This Agreement constitutes the legal, valid and
      binding obligation of the Restricted Shareholder, enforceable in
      accordance with its terms, and the execution, delivery and performance of
      this Agreement by the Restricted Shareholder does not and will not
      conflict with, violate or cause a breach of any agreement, contract or
      instrument to which the Restricted Shareholder is a party or any judgment,
      order or decree to which the Restricted Shareholder is subject.

              (d) As an inducement to the Company to issue the Restricted
Shareholder Stock to the Restricted Shareholder and as a condition thereto, the
Restricted Shareholder acknowledged and agreed, and hereby reaffirms as of the
date hereof, that:

                     (i) neither the issuance of the Restricted Shareholder
      Stock to the Restricted Shareholder nor any provision contained herein
      shall entitle the Restricted Shareholder to remain on the Board of or in
      the employment of the Company or any of its Subsidiaries, if any, or
      affect the rights of the Company, its shareholders or any of its
      Subsidiaries to terminate the Restricted Shareholder's service to or
      employment with the Company or any of its Subsidiaries at any time for any
      reason; and

                     (ii) except as provided in any other agreement between the
      Company and/or Simmons Bedding Company or any Subsidiary thereof and the
      Restricted Shareholder, the Company shall have no duty or obligation to
      disclose to the Restricted Shareholder, and the Restricted Shareholder
      shall have no right to be advised of, any material information regarding
      the Company and its Subsidiaries, if any, at any time prior to, upon or in
      connection with the forfeiture of the Restricted Shareholder Stock upon
      the termination of the Restricted Shareholder's service to or employment
      with the Company or a Subsidiary thereof.

              (e) In connection with the issuance and sale by the Company to the
Restricted Shareholder of the Restricted Shareholder Stock, the Company
represented and warranted, and hereby reaffirms as of the date hereof, that:

                     (i) the Company is a corporation duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      incorporation and has all requisite corporate power and authority to own,
      lease and operate the assets used in its business, to carry on its
      business as presently conducted, to enter into this Agreement, to perform
      its obligations hereunder, and to consummate the transactions contemplated
      hereby;

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                     (ii) the Company has taken all corporate action necessary
      to authorize its execution and delivery of this Agreement, its performance
      of its obligations thereunder, and its consummation of the transactions
      contemplated thereby;

                    (iii) this Agreement constitutes a valid and binding
      obligation of the Company, enforceable in accordance with its terms; and

                    (iv) the Restricted Shareholder Stock has been duly
      authorized and validly issued, fully paid and nonassessable and, as of the
      date of the Original Agreement was free of all Encumbrances created by or
      through the Company. For purposes of this clause, "Encumbrance" means any
      security interest, mortgage, lien, pledge, charge, easement, reservation,
      restriction, or similar right of any third party.

            2. VESTING OF RESTRICTED SHAREHOLDER STOCK.

            (a) General.

            (i) Vesting. The shares of Restricted Shareholder Stock granted
hereunder (the "Shares") will be deemed "vested" (the "Vested Shares") as
follows: (a) 18.75% of the Shares shall be deemed Vested Shares as of the date
hereof and (b) Shares that are not Vested Shares as of the date hereof shall
become Vested Shares in accordance with this Section 2, based upon the Company's
achievement of the Consolidated Adjusted EBITDA targets set forth below (each,
the "Target EBITDA") for each of the Company's fiscal years ending December 30,
2006, December 29, 2007 and December 27, 2008 (the "Measurement Years").

                                 EBITDA TARGETS
                              (dollars in millions)

<Table>
<Caption>
                              CUMULATIVE
                                TARGET                      90% OF        ELIGIBLE
   MEASUREMENT     TARGET       EBITDA    90% OF TARGET   CUMULATIVE       SHARES
      YEARS        EBITDA                    EBITDA     TARGET EBITDA
  --------------------------------------------------------------------------------------
<S>                <C>        <C>         <C>           <C>            <C>
      2006                                                             21.25% of
                                                                       Restricted
                                                                       Shareholder Stock

      2007                                                             30% of
                                                                       Restricted
                                                                       Shareholder Stock

      2008                                                             30% of
                                                                       Restricted
                                                                       Shareholder Stock
</Table>

The minimum Target EBITDA numbers set forth above shall be equitably adjusted by
the Board for acquisitions and dispositions made by the Company (whether by
purchase or sale of assets or stock, merger, consolidation or otherwise) and
such adjustments may take into account the pro

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forma annual Consolidated Adjusted EBITDA of any acquired business, as
determined by the Board.

                  (A) Performance Based Vesting. At the end of each Measurement
Year, on the Measurement Date, the percentage of Shares set forth above shall be
eligible to vest (the "Eligible Shares"). On each Measurement Date, 50% of the
Eligible Shares shall become Vested Shares if at least 90% of the Target EBITDA
amount was met for the prior Measurement Year. If more than 90% of the Target
EBITDA amount was met for the prior Measurement Year, then the Eligible Shares
shall become Vested Shares on a straight line basis such that an additional 5%
of Eligible Shares shall become Vested Shares for each 1% that actual
Consolidated Adjusted EBITDA exceeds 90% of the Target EBITDA amount.

             (ii) Change of Control.

                  (A) Shares that are not Vested Shares will accelerate as set
forth below upon a Change of Control solely if the Company (a) achieves at least
90% of the Target EBITDA for the Measurement Year immediately preceding the year
in which the Change of Control occurs, and (b) the actual Consolidated Adjusted
EBITDA for the Measurement Year immediately preceding the year in which the
Change of Control occurs exceeds the actual Consolidated Adjusted EBITDA for the
preceding year. If (x) the conditions set forth in clauses (a) and (b) above are
met, and (y) the Company achieves 90% of the Cumulative Target EBITDA above for
the Measurement Year completed immediately prior to the Change of Control, then
50% of the Shares that were Eligible Shares but which did not previously become
Vested Shares (the "Missed Shares") and 50% of the Shares that are not yet
Eligible Shares shall become Vested Shares. If the Company achieves more than
90% of the Cumulative Target EBITDA above for the immediately preceding
Measurement Year, then a number of Missed Shares and Shares that are not yet
Eligible Shares will become Vested Shares, determined on a straight line basis
such that an additional 5% of the Missed Shares and 5% of the Shares that are
not yet Eligible Shares will become Vested Shares for each 1% that actual
Consolidated Adjusted EBITDA for the immediately preceding Measurement Year
exceeds 90% of the Cumulative Target EBITDA set forth above.

                  (B) Notwithstanding the foregoing paragraph, Shares that are
not Vested Shares will accelerate upon a Change of Control which occurs in the
Measurement Year ending December 30, 2006 as follows: if the Company achieves
90% of the 2006 Year to Date Target EBITDA (as defined below) for the month
completed immediately prior to the Change of Control, then 50% of the Shares
that are not yet Eligible Shares shall become Vested Shares. The Target EBITDA
for each month in 2006 is set forth below and the 2006 Year to Date Target
EBITDA represents the cumulative Target EBITDA for the period commencing January
1, 2006 and ending on the last day of such month (the "Year to Date Target
EBITDA"). If the Company achieves more than 90% of the 2006 Year to Date Target
EBITDA for the month completed immediately prior to the Change of Control, then
a number of Shares that are not yet Eligible Shares will become Vested Shares,
determined on a straight line basis such that an additional 5% of the Shares
that are not yet Eligible Shares will become Vested Shares for each 1% that
actual

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Consolidated Adjusted EBITDA for the period commencing January 1, 2006 and
ending on the last day of the month immediately preceding the Change of Control
exceeds 90% of the 2006 Year to Date Target EBITDA.

<Table>
<Caption>
           MONTH                   2006 MONTHLY           2006 YEAR TO DATE
                                  TARGET EBITDA             TARGET EBITDA
                              (DOLLARS IN MILLIONS)     (DOLLARS IN MILLIONS)
--------------------------------------------------------------------------------
<S>                           <C>                       <C>
          January
          February
           March
           April
            May
            June
            July
           August
         September
          October
          November
          December
</Table>

              (b) In the event the Restricted Shareholder ceases to serve on the
Board of, or be employed by the Company or any of its Subsidiaries on a
full-time basis for any reason, then (i) all Shares of Restricted Shareholder
Stock shall cease vesting effective as of the date upon which the Restricted
Shareholder ceases to so serve or be so employed (the "Termination Date") and,
(ii) in the event that the Company achieves the Target EBITDA with respect to
the Measurement Year in which such termination occurs, then the Eligible Shares
with respect to such year multiplied by a fraction, the numerator of which shall
equal the number of whole months during such year that the Restricted
Shareholder served on the Board or remained employed with the Company and the
denominator of which is 12, shall become Vested Shares as of the end of such
year.

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            3. REPURCHASE OF SHARES.

              (a) In the event that the Restricted Shareholder ceases to serve
on the Board of, or be employed by the Company or any of its Subsidiaries on a
full-time basis for any reason, then all Shares of Restricted Shareholder Stock
(whether held by the Restricted Shareholder or by one or more of the Restricted
Shareholder's transferees) which as of the date of termination:

                     (i) have not vested pursuant to Section 2 hereof, will be
      subject to repurchase by the Company, at its option (the "Non-Vested
      Repurchase Option"), for the lower of the Original Purchase Price of the
      Restricted Shareholder Stock and Fair Market Value as of the date of
      repurchase;

                     (ii) have vested pursuant to Section 2 hereof, will be
      subject to repurchase by the Company, at its option (the "Vested
      Repurchase Option"), for Fair Market Value as of the date of repurchase.

              (b) In the event of a Change of Control, then all Shares of
Restricted Shareholder Stock (whether held by the Restricted Shareholder or by
one or more of the Restricted Shareholder's transferees) which, as of the date
of such Change of Control, have not become Vested Shares pursuant to Section 2,
will be subject to repurchase by the Company, at its option (the "Non-Vested
Change of Control Repurchase Option") for the lower of the Original Purchase
Price of the Restricted Shareholder Stock and Fair Market Value.

              (c) The Non-Vested Change of Control Repurchase Option, together
with the Non-Vested Repurchase Option and the Vested Repurchase Option, are
referred to collectively as the "Repurchase Options." The Repurchase Options
shall be exercised by the Company, or its designee, from time to time, by
delivering to the Restricted Shareholder a written notice of exercise and a
check in the amount of the Original Purchase Price or Fair Market Value, as
determined in accordance with Sections 3(a) and (b) above. Upon delivery of such
notice and payment of the purchase price as described above, the Company, or its
designee, shall become the legal and beneficial owner of the Shares of
Restricted Shareholder Stock being repurchased and all rights and interest
therein or related thereto, and the Company, or its designee, shall have the
right to transfer to its own name the number of Shares of Restricted Shareholder
Stock being repurchased without further action by the Restricted Shareholder or
any of his or her transferees. If the Company or its designee elect to exercise
the repurchase rights pursuant to this Section 3 and the Restricted Shareholder
or his or her transferee fails to deliver the Shares of Restricted Shareholder
Stock in accordance with the terms hereof, the Company, or its designee, may, at
its option, in addition to all other remedies it may have, deposit the purchase
price in an escrow account administered by an independent third party (to be
held for the benefit of and payment over to the Restricted Shareholder or his or
her transferee in accordance herewith), whereupon the Company shall by written
notice to the Restricted Shareholder cancel on its books the certificates(s)
representing such Shares of Restricted Shareholder Stock registered in the name
of the Restricted Shareholder and all of the Restricted Shareholder's or his or
her transferee's right, title, and interest in and to such Shares of Restricted
Shareholder Stock shall terminate in all respects.

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              (d) Notwithstanding the foregoing, if at any time the Company
elects to purchase any Class B Common Stock pursuant to this Section 3, the
Company shall pay the purchase price for the Class B Common Stock it purchases
(i) first, by offsetting indebtedness, if any, owing from such Restricted
Shareholder to the Company and (ii) then, by the Company's delivery of cash for
the remainder of the purchase price, if any, against delivery of the
certificates or other instruments representing the Class B Common Stock so
purchased, duly endorsed; provided that, if any such cash payment at the time
such payment is required to be made would result (A) in a violation of any law,
statute, rule, regulation, policy, order, writ, injunction, decree or judgment
promulgated or entered by any federal, state, local or foreign court or
governmental authority applicable to the Company or any of its Subsidiaries or
any of its or their property or (B) after giving effect thereto, a Financing
Default, or (C) if the Board determines in good faith that immediately prior to
such purchase there shall exist a Financing Default which prohibits such
purchase, dividend or distribution ((A) through (C) collectively the "Cash
Deferral Conditions"), the portion of the cash payment so affected may be made
by the Company's delivery of a promissory note or senior preferred shares of the
Company with a liquidation preference equal to the balance of the purchase
price. The promissory note or senior preferred shares shall accrue interest or
yield, as the case may be, annually at the "prime rate" published in The Wall
Street Journal on the date of issuance, which interest or yield, as the case may
be, shall be payable at maturity or upon payment of distributions by the
Company. The value of each such senior preferred share shall as of its issuance
be deemed to equal (A) the portion of the cash payment paid by the issuance of
such preferred shares divided by (B) the number of senior preferred shares so
issued. Any senior preferred shares or the promissory note shall be redeemed or
payable when and to the extent the Cash Deferral Condition which prompted their
issuance no longer exists.

              (e) In the event that Restricted Shareholder Stock is repurchased
pursuant to this Section 3, the Restricted Shareholder and his or her
successors, assigns or Representatives shall take (at the Company's expense) all
steps necessary and desirable to obtain all required third-party, governmental
and regulatory consents and approvals and take all other actions necessary and
desirable to facilitate consummation of such repurchase in a timely manner.

            4. LEGEND.

            The certificates representing the Restricted Shareholder Stock will
bear the following legend:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
      REPURCHASE AND CERTAIN OTHER AGREEMENTS SET FORTH IN A SENIOR MANAGER
      AMENDED AND RESTATED RESTRICTED STOCK AGREEMENT DATED AS OF APRIL 3, 2006
      BETWEEN THE COMPANY AND THE OTHER SIGNATORY THERETO. A COPY OF SUCH
      AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY'S PRINCIPAL
      PLACE OF BUSINESS WITHOUT CHARGE.

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            THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, OR ENCUMBRANCE OF THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF THE HOLDER OF
      SUCH SECURITIES IN RESPECT OF THE ELECTION OF DIRECTORS ARE SUBJECT TO A
      SECURITYHOLDERS' AGREEMENT DATED DECEMBER 19, 2003 AMONG THL BEDDING
      HOLDING COMPANY AND CERTAIN HOLDERS OF ITS OUTSTANDING CAPITAL STOCK.
      COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST
      MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THL
      BEDDING HOLDING COMPANY.

            THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
      FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY LAWS. THESE
      SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
      REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR LAWS."

            5. RESTRICTIONS ON TRANSFER, CONVERSION AND VOTING.

            (a) The Company and the Restricted Shareholder acknowledge and agree
that the Shares of Restricted Shareholder Stock are subject to and restricted by
the Securityholders' Agreement and with respect to such Shares of Restricted
Shareholder Stock, the Restricted Shareholder shall be an "Employee" or "Senior
Manager," as the case may be, and as each such term is used in the
Securityholders' Agreement. Notwithstanding anything to the contrary contained
in the Securityholders' Agreement, no Shares of Restricted Shareholder Stock
that have not become Vested Shares pursuant to Section 2 hereof may be
transferred to any Person and no Shares of Restricted Shareholder Stock that are
Vested Shares may be transferred to any Person who is not an Affiliate of the
Restricted Shareholder. The Vested Shares may be transferred by will or the laws
of descent and distribution.

            (b) Prior to any Transfer, the transferee shall agree, by execution
of a Joinder Agreement, to be bound by this Agreement as holder of Restricted
Shareholder Stock and by the Securityholders' Agreement as an "Employee" or
"Senior Manager", as the case may be. Any Transfer or attempted Transfer of any
Restricted Shareholder Stock in violation of the preceding sentence shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Restricted Shareholder Stock as the owner of such
stock for any purpose.

            (c) The Restricted Shareholder agrees that so long as the Restricted
Shareholder owns Shares of Restricted Shareholder Stock which have not become
Vested Shares pursuant to Section 2 hereof, the Restricted Shareholder shall be
obligated to vote all of his, her or its Shares of Restricted Shareholder Stock
which have not become Vested Shares pursuant to Section 2 hereof in the same
manner and proportions as the votes cast by the holders of a majority of the
Company's voting capital stock not subject to such repurchase rights. If the
Restricted Shareholder fails or refuses to vote his, her or its Shares of
Restricted Shareholder Stock which

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have not become Vested Shares pursuant to Section 2 hereof as required by, or
votes his, her or its Shares of Restricted Shareholder Stock which have not
become Vested Shares pursuant to Section 2 hereof in contravention of this
Section 5(c), then the Restricted Shareholder hereby grants to each of the
President and Treasurer of the Company, acting solely in his or her capacity as
such, an irrevocable proxy, coupled with an interest, to vote such Shares in
accordance with Section 5(c).

            6. DEFINITIONS.

            The following terms shall have the meanings ascribed below:

            "Affiliate" of any particular Person means any other Person
controlling, controlled by or under common control with such particular Person
or, with respect to any individual, such individual's spouse and descendants
(whether natural or adopted) and any trust, partnership, limited liability
company or similar vehicle established and maintained solely for the benefit of
(or the sole members or partners of which are) such individual, such
individual's spouse and/or such individual's descendants.

            "Board" means the Board of Directors of the Company.

            "Change of Control" shall mean the consummation of a transaction,
whether in a single transaction or in a series of related transactions that are
consummated contemporaneously (or consummated pursuant to contemporaneous
agreements), with any other party or parties, other than an Affiliate of THL, on
an arm's-length basis, pursuant to which (a) a party or group (as defined under
Rule 13d under the Securities Exchange Act of 1934, as amended) who is not a
stockholder of the Company on the Effective Date, acquires, directly or
indirectly (whether by merger, stock purchase, recapitalization, reorganization,
redemption, issuance of capital stock or otherwise), more than 50% of the voting
stock of the Company, (b) such party or parties, directly or indirectly, acquire
assets constituting all or substantially all of the assets of the Company and
its Subsidiaries on a consolidated basis, or (c) prior to an initial public
offering of the Company common stock pursuant to an offering registered under
the Securities Act, Thomas H. Lee Equity Fund V, L.P., a Delaware limited
partnership, and its affiliates cease to have the ability to elect, directly or
indirectly, a majority of the Board.

            "Class A Common Stock" means the Company's Class A Common Stock,
$0.01 par value per share.

            "Class B Common Stock" has the meaning set forth in Section 1(a)
hereof.

            "Code" shall mean the Internal Revenue Code of 1986, as amended.

            "Consolidated Adjusted EBITDA" has the meaning set forth in the
Credit Agreement.

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            "Credit Agreement" shall mean the Amended and Restated Credit and
Guaranty Agreement, dated as of August 27, 2004, among Simmons Bedding Company,
as Company, THL-SC Bedding Company and certain subsidiaries of the Company, as
Guarantors, the financial institutions listed therein, as Lenders, UBS
Securities LLC, as Joint Lead Arranger and as Co-Syndication Agent, Deutsche
Bank AG, New York Branch, as Administrative Agent and Collateral Agent, General
Electric Capital Corporation, as Co-Documentation Agent, CIT Lending Services
Corporation, as Co-Documentation Agent, and Goldman Sachs Credit Partners L.P.,
as Sole Bookrunner, a Joint Lead Arranger and as Co-Syndication Agent.

            "Fair Market Value" shall be determined by the Board in good faith.
Upon such determination, the Company shall promptly provide the Restricted
Shareholder with notice of the Fair Market Value so determined (the "Board
Notice"). In the event of a determination of Fair Market Value with respect to
Class B Common Stock owned by a Senior Manager, such Senior Manager shall have
the right to contest such determination in good faith, by delivery of written
notice to the Company within ten (10) days of delivery of the Board Notice. If
the Senior Manager does not notify the Company of any disagreement therewith,
then the Fair Market Value shall be as set forth in the Board Notice. If the
Senior Manager does notify the Company of his or her disagreement with the Fair
Market Value set forth in the Board Notice within such 10-day time period, then
the Company must retain an independent third party appraiser to make such Fair
Market Value determination (the "Final Determination"), and such Final
Determination shall govern; provided, however, that if the Final Determination
of Fair Market Value equals less than 110% of the Fair Market Value set forth in
the Board Notice, then the Senior Manager shall pay for all costs and expenses
of the third party appraiser.

            "Financing Default" means any event of default or breach under (i)
the Credit Agreement, (ii) that certain senior unsecured floating rate loan
facility by and among THL-SC Bedding Company, certain of its subsidiaries,
certain lenders, party thereto and Deutsche Bank, A.G., Cayman Islands Branch,
as administrative agent, as amended, modified, restated or refinanced from time
to time, (iii) the covenant contained in the Indenture which permits repurchases
by the Company of employee stock not exceeding a specified amount in the
aggregate, or (iv) any other similar notes or instruments that the Company or
its Subsidiaries may issue from time to time.

            "Fully Diluted Shares" means, as of any date of determination, the
number of shares of Class A Common Stock and Class B Common Stock outstanding,
plus (without duplication) shares of Class A Common Stock and Class B Common
Stock issuable, whether at such time or upon the passage of time or the
occurrence of future events, upon the exercise, conversion or exchange of all
then-outstanding rights, warrants, options, convertible securities, or
exchangeable securities or indebtedness, or other rights, exercisable for or
convertible or exchangeable into, directly or indirectly, Class A Common Stock
or Class B Common Stock or securities exercisable for or convertible or
exchangeable into Class A Common Stock or Class B Common Stock, as the case may
be, whether at the time of issuance or upon the passage of time or the
occurrence of some future event.

                                       11
<PAGE>
            "Indenture" shall mean that certain Indenture, dated as of December
19, 2003, governing the Company's Senior Subordinated Notes due 2013, as
amended, modified, restated or refinanced from time to time.

            "Measurement Date" shall mean the date upon which the Company shall
have received its audited financial statements for the prior Measurement Year,
beginning with the Measurement Year ending December 30, 2006.

            "Person" shall be construed broadly and shall include, without
limitation, an individual, a partnership, an investment fund, a limited
liability company, a corporation, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization and a governmental entity
or any department, agency or political subdivision thereof.

            "Representative" means, with respect to the deceased Restricted
Shareholder, the duly appointed, qualified and acting personal representative
(or personal representatives collectively) of the estate of the deceased
Restricted Shareholder (or portion of such estate that includes Restricted
Shareholder Stock), whether such personal representative holds the position of
executor, administrator or other similar position qualified to act on behalf of
such estate.

            "Restricted Shareholder Stock" has the meaning set forth in Section
1(a) hereof. The Restricted Shareholder Stock will continue to be Restricted
Shareholder Stock in the hands of any holder other than the Restricted
Shareholder (except for the Company and except for transferees in a Public Sale)
and, except as otherwise provided herein, each such other holder of the
Restricted Shareholder Stock will succeed to all rights and obligations
attributable to the Restricted Shareholder as a holder of the Restricted
Shareholder Stock hereunder. The Restricted Shareholder Stock will also include
shares of the Company's capital stock issued with respect to the Restricted
Shareholder Stock by way of a stock split, stock dividend or other
recapitalization.

            "Securities Act" means the Securities Act of 1933, as amended, or
any successor federal law then in force.

            "Securityholders' Agreement" means the Securityholders' Agreement
dated December 19, 2003 between the Company and certain stockholders of the
Company, as amended, modified or supplemented from time to time.

            "Senior Manager" shall mean each of Charles Roy Eitel, William S.
Creekmuir, and Rhonda C. Rousch, and/or any other Persons designated by the
Board as Senior Managers (collectively, the "Senior Managers").

            "Subsidiary" means any Person of which (i) a majority of the
outstanding share capital, voting securities or other equity interests are
owned, directly or indirectly, by the Company or (ii) the Company is entitled,
directly or indirectly, to appoint a majority of the board of directors or
managers or comparable supervisory body of such Person.

                                       12
<PAGE>
            "THL" means Thomas H. Lee Equity Fund V, L.P., a Delaware limited
partnership, Thomas H. Lee Parallel Fund V, L.P., Thomas H. Lee Cayman Fund V,
L.P., 1997 Thomas H. Lee Nominee Trust, Thomas H. Lee Investors Limited
Partnership, Putnam Investments Holdings, LLC, Putnam Investments Employees'
Securities Company I LLC, and Putnam Investments Employees' Securities Company
II, LLC.

            "Transfer" means the sale, transfer, assignment, pledge or other
disposal (whether with or without consideration and whether voluntarily or
involuntarily or by operation of law) of any Restricted Shareholder Stock.

            7. GENERAL PROVISIONS.

            (a) Severability. It is the desire and intent of the parties hereto
that the provisions of this Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated by a court of competent jurisdiction to be
invalid, prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of this
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be
more narrowly drawn so as not to be invalid, prohibited or unenforceable in such
jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

            (b) Entire Agreement. This Agreement and the Securityholders'
Agreement embody the complete agreement and understanding among the parties
hereto with respect to the subject matter hereof and supersedes and preempts any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way,
including the Original Agreement.

            (c) Counterparts. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

            (d) Successors and Assigns. Except as otherwise provided herein,
this Agreement shall bind and inure to the benefit of and be enforceable by the
Restricted Shareholder, the Company, and their respective successors, assigns,
heirs, representative and estate, as the case may be (including subsequent
holders of Restricted Shareholder Stock); provided that the rights and
obligations of the Restricted Shareholder under this Agreement shall not be
assignable except in connection with a permitted transfer of Restricted
Shareholder Stock hereunder.

            (e) Governing Law and Remedies. The parties acknowledge and agree
that they are bound by their arbitration obligations under Exhibit A attached
hereto, which the parties also

                                       13
<PAGE>
hereby agree to execute contemporaneously and is an integral part of this
Agreement. The parties agree and acknowledge that all provisions of this
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware exclusively and without reference to principles of conflict of
laws. The Federal Arbitration Act ("FAA") will supersede state laws to the
extent inconsistent. The Arbitrator(s) shall have no authority to apply the law
of any other jurisdiction.

_/RCR__ RESTRICTED SHAREHOLDER'S INITIALS TO ACKNOWLEDGE AGREEMENT TO GOVERNING
LAW AND REMEDIES PROVISION IN SECTION 7(e).

            (f) Remedies. Each of the parties to this Agreement and any such
Person granted rights hereunder whether or not such Person is a signatory hereto
shall be entitled to enforce its rights under this Agreement specifically to
recover damages and costs (including reasonable attorney's fees) for any breach
of any provision of this Agreement and to exercise all other rights existing in
its favor. The parties hereto agree and acknowledge that money damages may not
be an adequate remedy for any breach of the provisions of this Agreement and
that any party and any such Person granted rights hereunder whether or not such
Person is a signatory hereto may in its sole discretion submit the matter to
arbitration for specific performance and/or other injunctive relief (without
posting any bond or deposit) in order to enforce or prevent any violations of
the provisions of this Agreement.

            (g) Amendment and Waiver. The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company and the
Restricted Shareholder and no course of conduct or failure or delay in enforcing
the provisions of this Agreement shall be construed as a waiver of such
provisions or affect the validity, binding effect or enforceability of this
Agreement or any provision hereof.

            (h) Notices. Any notice provided for in this Agreement must be in
writing and must be either personally delivered, transmitted via facsimile,
mailed by first class mail (postage prepaid and return receipt requested) or
sent by reputable overnight courier service (charges prepaid) to the recipient
at the address below indicated or at such other address or to the attention of
such other person as the recipient party has specified by prior written notice
to the sending party. Notices will be deemed to have been given hereunder and
received when delivered personally, when received if transmitted via facsimile,
five (5) days after deposit in the U.S. mail and one (1) day after deposit with
a reputable overnight courier service.

                  If to the Company, to:

                        Simmons Company
                        One Concourse Parkway, Suite 800
                        Atlanta, GA  30328
                        Attention:  Chief Financial Officer and General Counsel

                  With a copy to:

                                       14
<PAGE>
                         Thomas H. Lee Partners, L.P.
                         100 Federal Street, 35th Floor
                         Boston, MA  02110
                         Attention:  Scott A. Schoen
                                     Todd M. Abbrecht
                                     George Taylor

If to the Restricted Shareholder, to the address set forth underneath the
Restricted Shareholder's name on the signature pages hereto.

            (i) Business Days. If any time period for giving notice or taking
action hereunder expires on a day which is a Saturday, Sunday or holiday in the
state in which the Company's chief executive office is located, the time period
for giving notice or taking action shall be automatically extended to the
business day immediately following such Saturday, Sunday or holiday.

            (j) Survival of Representations, Warranties and Agreements. All
representations, warranties and agreements contained herein shall survive the
consummation of the transactions contemplated hereby and the termination of this
Agreement indefinitely.

            (k) Descriptive Headings. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

            (l) Construction. Where specific language is used to clarify by
example a general statement contained herein, such specific language shall not
be deemed to modify, limit or restrict in any manner the construction of the
general statement to which it relates. The language used in this Agreement shall
be deemed to be the language chosen by the parties to express their mutual
intent, and no rule of strict construction shall be applied against any party.

            (m) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

            (n) Nouns and Pronouns. Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

            (o) Acknowledgement and Waiver; Termination of Original Agreement.
The Restricted Shareholder hereby represents and warrants that he or she has
access to adequate information regarding the terms of this Agreement, the scope
and effect of the provisions set forth herein, including the effect of this
Agreement on the vesting provisions contained in the Original Agreement, and all
other matters encompassed by this Agreement, to make an informed and
knowledgeable decision with regard to enter into this Agreement. The Restricted
Shareholder further represents and warrants that he or she has not relied on the
Company in

                                       15
<PAGE>
deciding to enter into this Agreement and has instead made his or her
own independent analysis and decision to enter into this Agreement. By execution
of this Agreement, the Restricted Shareholder hereby agrees and acknowledges
that the Original Agreement shall be of no further force and effect as of the
date hereof.

                  [Remainder of Page Intentionally Left Blank]

                                       16
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have executed this Senior Manager
Amended and Restated Restricted Stock Agreement as of the date first written
above.

                                    SIMMONS COMPANY

                                            /s/ William S. Creekmuir

                                    By:  __________________________
                                         William S. Creekmuir
                                         Executive Vice President and
                                         Chief Financial Officer
<PAGE>
                                    RESTRICTED SHAREHOLDER:

                                    Rhonda C. Rousch

                                    /s/ Rhonda C. Rousch

                                    ______________________________
                                    Signature

                                    Address: _____________________

                                    ______________________________

                                    ______________________________

                                    ______________________________

                                    Shares of Restricted Shareholder Stock
                                    Purchased 57,353
<PAGE>
                         EXHIBIT A - ARBITRATION CLAUSE

      (1) In consideration of the benefits described in the Senior Manager
Amended and Restated Restricted Stock Agreement executed by Rhonda C. Rousch
(the "Restricted Shareholder" or "you") and Simmons Company, a Delaware
corporation (the "Company"), on the same date hereto and into which this Exhibit
A is incorporated, ("Agreement"), the Company and you hereby agree that any
controversy or claim arising under federal, state and local statutory or common
or contract law between the Company and you involving the construction or
application of any of the terms, provisions, or conditions of the Agreement,
including, but not limited to, breach of contract, tort, and/or fraud, must be
submitted to arbitration on the written request of either party served on the
other. Arbitration shall be the exclusive forum for any such controversy. For
example, if the Company and you have a dispute concerning the interpretation or
enforceability of one or more restrictive covenants, the parties will resolve
the dispute exclusively through arbitration. The Arbitrator's decision shall be
final and binding on both parties.

      (2) If any claim or cause of action at law or in equity is filed by either
party in any state or federal court which results in arbitration being compelled
and/or the claim or cause of action being dismissed, stayed, and/or removed to
arbitration pursuant to this Agreement, the party who instituted the claim or
cause of action in state or federal court, either wholly or in substantial part,
shall, at the discretion of the Arbitrator(s), reimburse the respondent for its
reasonable attorneys' fees, costs, and necessary disbursements to the extent
permitted by law, in addition to any other relief to which it may be entitled,
related to the state or federal court claim or action.

      (3) Excluding the initial filing fee, which shall be borne by the
claimant, the cost of arbitration shall be borne by the Company, unless the
Arbitrator determines that any claim(s) brought by you was/were wholly frivolous
or fraudulent. If an arbitration or any action at law or in equity is necessary
to enforce or interpret the terms of this Agreement, the prevailing party,
either wholly or in substantial part, shall, at the discretion of the
Arbitrator, be entitled to its reasonable attorneys' fees, costs, and necessary
disbursements to the extent permitted by law, in addition to any other relief to
which it may be entitled.

      (4) If the Restricted Shareholder submits any controversy or claim to
arbitration, the arbitration will be conducted in Atlanta, Georgia and all
claims shall be submitted to and administered by the American Arbitration
Association's Southeast Case Management Center in Atlanta, Georgia. If the
Company submits any controversy or claim to arbitration, the arbitration shall
be conducted at the American Arbitration Association's Local or Regional Office
that is geographically closest to the Restricted Shareholder's place of
residence and all claims shall be submitted to and administered by the American
Arbitration Association's corresponding Case Management Center.

      (5) The arbitration shall comply with and be governed by the American
Arbitration Association's Commercial Arbitration Rules ("Rules") effective as of
the execution date below, to the extent such Rules are not contrary to the
express provisions of this Agreement. The parties
<PAGE>
also agree that the American Arbitration Association Optional Rules for
Emergency Measures of Protection ("Emergency Rules") shall apply to proceedings
brought by either party. The above Rules and Emergency Rules can be found at the
following page of the American Arbitration Association's website, www.adr.org:
http://www.adr.org/sp.asp?id=22440. You acknowledge that you should read these
Rules and Emergency Rules and that it is your responsibility to be familiar with
them prior to signing the Agreement. If you are unable to access the Rules
and/or Emergency Rules at the above website, you can request a copy of them from
a Company official prior to signing the Agreement.

      (6) The parties agree and acknowledge that all provisions of this
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware exclusively and without reference to principles of conflict of
laws. The Federal Arbitration Act ("FAA") will supersede state laws to the
extent inconsistent. Any claim(s) involving the construction or application of
this Agreement must be submitted to arbitration within the statute of
limitations period for such claim(s) under Delaware state law and shall be
dismissed if the statute of limitations period is not met. The Arbitrator(s)
shall have no authority to apply the law of any other jurisdiction.

      (7) The dispute shall be heard and determined by one Arbitrator, unless
both parties mutually consent in writing signed by you and an authorized
representative of Company to a panel of three (3) Arbitrators. Unless both
parties mutually consent otherwise, the parties agree and request that the
Arbitrator(s) issue a reasoned award in accordance with Commercial Arbitration
Rule R-42(b).

      I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT TO A
JURY TRIAL.

Executed effective as of this 3rd day of April, 2006.

                                         Simmons Company

/s/ Rhonda C. Rousch                            /s/ William S. Creekmuir
________________________                 By: ________________________
 Rhonda C. Rousch                               William S. Creekmuir
                                                Executive Vice President and
Social Security #:  __________________          Chief Financial OfficerEx-10.1

 

Exhibit 10.1

DEAN JERNIGAN

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of April 24, 2006 by and between
U-STORE-IT TRUST, a Maryland real estate investment trust (the “Company”), and Dean Jernigan (the
“Executive”).

     WHEREAS, the Company has determined that it is in the best interests of the Company and its
shareholders to enter into an employment agreement with the Executive and the Executive is willing
to serve as an employee of the Company, subject to the terms and conditions of this Agreement.
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 April 24, 2011,
unless sooner terminated in accordance with the provisions of Section 4 or Section 5 (the period
during which the Executive is employed hereunder being hereinafter referred to as the “Term”). The
Term shall be subject to automatic one-year renewals unless either party hereto notifies the other,
in accordance with Section 7.4, of non-renewal at least ninety (90) days prior to the end of any
such Term. Notwithstanding the employment of the Executive by the Company, the Company shall be
entitled to pay the Executive from the payroll of any subsidiary of the Company.

     2. Duties. The Executive, in his capacity as Chief Executive Officer and President,
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 $400,000 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. Beginning in 2007, 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’s annual bonus for 2006, if any, will be paid in an

 

 

amount and at such time as determined in the sole discretion of the Compensation Committee of
the Company’s Board of Trustees. 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.

          3.4 Vacation. During the Term, the Executive shall be entitled to vacation of four
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 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

2

 

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:

          (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.

3

 

               (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
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

4

 

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;

          (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.

     (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.

5

 

          (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 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.

6

 

          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 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

 

          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 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: Robert J. Amsdell
	 

	 	 	 	Facsimile: (440) 234-8776
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	U-Store-It Trust
	 

	 	 	 	6745 Engle Road
	 

	 	 	 	Suite 300
	 

	 	 	 	Middleburg Heights, OH 44130
	 

	 	 	 	Attention: Kathleen A. Weigand
	 

	 	 	 	Facsimile: (440) 260-2397

8

 

	 	 	 	 	 
	 

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

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

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

          7.6 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.

          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.

9

 

          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 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.

*
   *    *

10

 

     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/ Robert J. Amsdell 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:    Robert J. Amsdell	 	 
	 	 	Title:      Chairman of the Board of Trustees	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	/s/ Dean Jernigan	 	 
	 	 	 	 	 
	 	 	Dean Jernigan	 	 

11

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