Document:

Exhibit 10.4

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”) dated as of August 28, 2008 (the “Effective
Date”), by and between Extra Space Storage Inc. (“REIT”) and Extra Space
Storage LP, with their principal place of business at 2795 East Cottonwood
Parkway, Suite 400, Salt Lake City, Utah 84121 (the “Operating Partnership”),
and Charles L. Allen, residing at the address set forth on the signature page hereof
(the “Executive”).

 

WHEREAS, the REIT and Executive are parties
to an Employment Agreement dated July 27, 2004 (the “Prior Agreement”);

 

WHEREAS, Executive has been providing
services to both the REIT and the Operating Partnership (collectively the “Company”)
as an employee; and

 

WHEREAS, the Company wishes to continue employing
the Executive, and the Executive wishes to continue to be employed, on the
terms set forth below:

 

Accordingly, the parties hereto agree as
follows:

 

1.                                      Term. The Company hereby agrees to
continue employing the Executive for an initial term (the “Initial Term”) commencing
as of the date hereof and continuing for a three-year period, unless sooner
terminated in accordance with the provisions of Section 4 or Section 5;
provided, however, upon the expiration of the Initial Term, such employment will
continue for successive one-year periods in accordance with the terms of this
Agreement (subject to termination as aforesaid) unless either party notifies
the other party of non-renewal in writing prior to 90 days before the expiration
of the Initial Term and each subsequent annual renewal, as applicable (the
period during which the Executive is employed hereunder being hereinafter
referred to as the “Term”).

 

2.                                      Duties. During the Term, the Executive
shall be employed by the Company as Chief Legal Officer and Executive Vice
President, and, as such, the Executive shall faithfully perform the duties of such
offices 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 (including,
without limitation, the performance of duties for affiliates and subsidiaries
of the Company). Excluding any periods of vacation and or other leave to which
the Executive is entitled, the Executive shall devote substantially all of his
business time and effort to the performance of his duties hereunder; provided
that in no event shall this sentence prohibit the Executive from performing
personal and charitable activities, and any other business interests as may be
approved by the Board. It is expressly understood and agreed that to the extent
that any such activities have been conducted by the Executive prior to the
Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective
Date shall not thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company; provided that no such activity
that violates any written non-competition agreement between the parties shall
be permitted.

 

3.                                      Compensation.

 

3.1                                Salary. The
Company shall pay the Executive during the Term a salary at the rate of $290,000
per annum (the “Annual Salary”), in accordance with the customary payroll
practices of the Company applicable to senior executives. At least annually,
the Company shall review the Executive’s Annual Salary and may provide for
increases therein as it may in its discretion deem appropriate. Any increase in
Annual Salary shall not serve to limit or reduce any other obligation to the
Executive under this Agreement. The Annual Salary shall not be reduced after
any such increase and the term “Annual Salary” as utilized in this Agreement
shall refer to such salary as so increased.

 

3.2                                Bonus. During the Term, in addition to
the Annual Salary, for each fiscal year of the Company ending during the Term,
the Executive shall have the opportunity to earn an annual bonus in an amount
to be determined by the Company under the Company’s bonus plan or plans
applicable to senior executives (“Annual Bonus”). At least annually, the
Company shall review the Executive’s Annual Bonus and may provide for changes
therein as it may in its discretion deem appropriate; provided, however, that
the Executive’s total cash compensation opportunity, being the sum of the
Annual Bonus (based on target bonus opportunity and not actual performance
results) and Annual Salary shall not be reduced from the prior year.

 

2

 

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, equity compensation plans, retirement plans,
fringe benefit programs and similar benefits that may be available to other
senior executives of the Company generally, on the same terms as such other
executives, in each case to the extent that the Executive is eligible under the
terms of such plans or programs.

 

3.4                                Expenses. The Company shall pay or reimburse
the Executive for all ordinary and reasonable out-of-pocket 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 in
accordance with the policies, practices and procedures of the Company. All such
reimbursements shall be made no later than December 31 of the year
following the year in which the expense was incurred. The amount of
reimbursements provided in one year shall not affect the amounts provided in
any subsequent year. Such reimbursements shall not be subject to liquidation or
exchange for another benefit.

 

4.                                      Termination upon Death or Disability. If the Executive dies during the
Term, the Term shall terminate as of the date of death, and the obligations of
the Company to or with respect to the Executive shall terminate in their
entirety upon such date except as otherwise provided under this Section 4.
If the Executive by virtue of ill health or other disability is unable to perform
substantially and continuously the duties assigned to him for more than 180
consecutive or non-consecutive days out of any consecutive 12-month period, 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. Upon
termination of employment due to death or disability, (i) the Executive
(or the Executive’s estate or beneficiaries in the case of the death of the
Executive) shall be entitled to receive any Annual Salary and other benefits
earned and accrued under this Agreement prior to the date of termination (including
any earned but unpaid bonus and reimbursement under this Agreement for expenses
incurred prior to the date of termination) (the “Accrued Obligations”), and (ii) except
as otherwise required under applicable law or the Company’s benefit plans Executive
(or, in the event of his death, his estate and beneficiaries) shall have no
further rights to any other compensation or benefits hereunder on or after the
termination of employment, or any other rights hereunder.

 

3

 

5.                                      Certain Terminations of Employment.

 

5.1                                Termination by the Company for
Cause; Termination by the Executive without Good Reason.

 

(a)                                 For purposes of this Agreement, “Cause”
shall mean the Executive’s:

 

(i)                                    commission of and indictment for, or
formal admission to, a felony, a crime of moral turpitude, dishonesty, breach
of trust or unethical business conduct, or any crime involving the Company;

 

(ii)                                 engagement in the performance of his
duties hereunder, or otherwise to the material and demonstrable detriment of
the Company, in willful misconduct, willful or gross neglect, fraud,
misappropriation or embezzlement;

 

(iii)                              repeated failure to adhere to the
directions of the Board, to adhere to the Company’s policies and practices or
to devote substantially all of his business time and efforts to the Company;

 

(iv)                             willful and continued failure to
substantially perform his duties properly assigned to him (other than any such
failure resulting from his disability) after demand for substantial performance
is delivered by the Company specifically identifying the manner in which the
Company believes the Executive has not substantially performed such duties;

 

(v)                                breach of any of the provisions of Section 7;
or

 

(vi)                             breach in any material respect of
the terms and provisions of this Agreement and failure to cure such breach
within 21 days following written notice from the Company specifying such breach;

 

provided that the Company shall not be
permitted to terminate the Executive for Cause except on written notice given
to the Executive at any time following the occurrence of any of the events
described in clauses (i), (ii) or (v) above and on written notice
given to the Executive at any time not more than 30 days following the
occurrence of any of the events described in clause (iii), (iv) or (vi) above
(or, if later, the Company’s knowledge thereof). No termination for Cause shall
be effective unless the Board makes a Cause determination after notice to the
Executive and the Executive has been provided with the 

 

4

 

opportunity (with counsel of his choice) to
contest the determination at a meeting of the Board.

 

(b)                                The Company may terminate the
Executive’s employment hereunder for Cause, and the Executive may terminate his
employment on at least 30 days’ and not more than 60 days’ written notice given
to the Company. If the Company terminates the Executive for Cause, or the
Executive terminates his employment and the termination by the Executive is not
for Good Reason in accordance with Section 5.2, (i) the Executive
shall receive the Accrued Obligations; and (ii) except as otherwise
required under applicable law or the Company’s benefit plans, the Executive
shall have no further rights to any other compensation or benefits hereunder on
or after the termination of employment, or any other rights hereunder.

 

5.2                                Termination by the Company without
Cause; Termination by the Executive for Good Reason.

 

(a)                                 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 inconsistent with the Executive’s position or
positions with the Company;

 

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

 

(iii)                              the relocation of the Executive’s
office to more than 100 miles from Salt
Lake City, Utah; or

 

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

 

Notwithstanding the foregoing, (A) Good
Reason shall not be deemed to exist unless notice of termination on account
thereof (specifying a termination date no later than 30 days from the date of
such notice) is given no later than 30 days after the time at which the event
or condition purportedly giving rise to Good Reason first occurs or arises and (B) if
there exists (without regard to this clause (B)) an event or condition that
constitutes Good Reason, the Company shall have 30 days from the date notice of
such a termination is given to cure such 

 

5

 

event or condition and, if the Company does
so, such event or condition shall not constitute Good Reason hereunder.

 

(b)                                During the Term, the Company may
terminate the Executive’s employment at any time without Cause and not pursuant
to Section 4, or the Executive terminates his employment with the Company
for Good Reason, then subject to Section 5.3 below, and in addition to the
Accrued Obligations, the Executive shall receive:

 

(i)                                    a lump sum cash payment equal to two
times the sum of (A) the Executive’s Annual Salary (as in effect on the
effective date of such termination); and (B) an amount equal to the
greater of  the Annual Bonus received by
the Executive in the preceding year or the average Annual Bonus received by the
Executive in the three years prior to the termination;

 

(ii)                                 a lump sum cash payment equal to the
sum of (A) the cost of continuing health benefits (including any medical,
vision or dental benefits), under the Company’s group health plans pursuant to Section 4980B
of the Internal Revenue Code of 1986, as amended (the “Code”) or similar state
law (“COBRA”) for a period of twenty-four months, based on the COBRA cost at
the time of termination, plus (B) an amount equal to the taxes payable by
the Executive on the amount determined under (A), so that on an after tax
basis, Executive shall receive the amount equal to the COBRA premiums for a
period of twenty-four months after Executive’s termination of employment based
on the COBRA rate in effect at the time of termination;

 

(iii)                              the Executive shall vest in all
outstanding unvested equity-based awards (including stock options and
restricted stock) and such unvested equity-based awards shall become
immediately exercisable and unrestricted and shall otherwise remain outstanding
in accordance with their terms;

 

(iv)                             the Executive shall become vested in
any pension or other deferred compensation other than pension or deferred
compensation under a plan intended to be qualified under Section 401(a) of
the Code;

 

(v)                                the Company shall provide Executive
with outplacement services for a period of six months following termination of
employment; and

 

(vi)                             except as otherwise required under
applicable law or the Company’s benefit plans, the Executive shall have no
further rights 

 

6

 

to any other
compensation or benefits hereunder on or after the termination of employment,
or any other rights hereunder.

 

5.3                                Release and
Timing of Payment. Executive’s rights to receive the
payments and benefits under Section 5.2(b)(i), (ii), (iii), (iv) and (v) shall
be subject to Executive’s execution, delivery and not revoking a release of
claims and covenant not to sue, in such form as the Company may reasonably
request (the “Release”), within sixty days following the Executive’s
termination of employment. Payment of the amount required under Section 5.2(b)(i) shall
be made in a lump-sum within fifteen days following the effective date of the
Release, but in no event later than seventy-five days following the Executive’s
termination of employment. Notwithstanding any provision herein to the contrary,
the post-termination payments and benefits provided to Executive under Section 5.2
shall be paid only upon Employee’s “separation from service” as defined in
Treasury Regulation Section 1.409A-1(h). Notwithstanding the foregoing,
the timing of the severance payments under Section 5.2 are subject to the
provisions of Section 8.17, to the extent applicable.

 

5.4                                No
Restrictions on Change. Nothing herein shall restrict the
ability of the Company to amend or terminate the plans and programs referred to
in Section 5.2(b)(ii) from time to time in its sole discretion, and
the Company shall in no event be required to provide any benefits otherwise
required by Section 5.2(b)(ii) after such time as the Executive
becomes entitled to receive benefits of the same type from another employer or
recipient of the Executive’s services (such entitlement being determined
without regard to any individual waivers or other similar arrangements).

 

6.                                      Change in Control. In the event that during the Term,
a “Change in Control” (as defined in the 2004 Long Term Incentive Compensation
Plan as in effect on the date hereof) occurs then:

 

(a)                                 The Company shall pay Executive a bonus
equal the Annual Bonus Executive would have received during the year of the
Change in Control based on performance results through the date of the Change
in Control annualized, and multiplied by a fraction the denominator of which is
the 365 and the numerator is the number of days in the year elapsed through the
date of the Change in Control. Such bonus shall be 

 

7

 

payable in a lump sum on the first business
day of the month following the Change in Control; and

 

(b)                                Executive may terminate his employment with the Company for any
reason within the six-month period following a Change in Control and such
termination will be treated as a “Good Reason” termination entitling Executive
to the severance and other benefits under Section 5.2(b).

 

7.                                      Covenants of the Executive.

 

7.1                                Covenant Against Competition; Other
Covenants. The
Executive acknowledges that (i) the principal business of the Company
(which expressly includes for purposes of this Section 7 (and any related
enforcement provisions hereof), its successors and assigns) is the development,
acquisition, operation, management or investment in self-storage facilities
(such businesses, and any and all other businesses that after the date hereof,
and from time to time during the Term, become material with respect to the
Company’s then-overall business, herein being collectively referred to as the “Business”);
(ii) the Company is one of the limited number of entities which have
developed such a business; (iii) the Company’s Business is, in part,
national in scope; (iv) the Executive’s work for the Company has given and
will continue to give him access to the confidential affairs and proprietary
information of the Company; (v) the covenants and agreements of the
Executive contained in this Section 7 are essential to the business and
goodwill of the Company; and (vi) the Company would not have entered into
this Agreement but for the covenants and agreements set forth in this Section 7.
Accordingly, the Executive covenants and agrees that:

 

(a)                                 By and in consideration of the
salary and benefits to be provided by the Company hereunder, including the
severance and bonus arrangements set forth herein, and further in consideration
of the Executive’s exposure to the proprietary information of the Company, the
Executive covenants and agrees that during the Term and such other time as the
Executive remains employed in the service of the Company, he shall not engage
in the Restricted Activities (as defined below) (i) engage in any element
of the Business (other than for the Company or its affiliates) or otherwise
compete with the Company or its affiliates, (ii) render any services to
any person, corporation, partnership 

 

8

 

or other entity (other than the Company or
its affiliates) engaged in any element of the Business, or (iii) become interested
in any such person, corporation, partnership or other entity (other than the
Company or its affiliates) as a partner, shareholder, principal, agent,
employee, consultant or in any other relationship or capacity (such activities
set forth in clauses (i) through (iii) above collectively referred to
as the “Restricted Activities”); provided, however, that, notwithstanding the
foregoing, (A) the restrictions set forth in this Section 7 shall not
limit the Executive’s involvement or activities with respect to Extra Space
Pico Riviera, and (B) the Executive may  invest in securities of any entity, solely for
investment purposes and without participating in the business thereof, if (1) such
securities are traded on any national securities exchange or the National Association
of Securities Dealers Inc. Automated Quotation System, (2) the Executive
is not a controlling person of, or a member of a group which controls, such
entity and (3) the Executive does not, directly or indirectly, own 5% or
more of any class of securities of such entity.

 

(b)                                At all times during the Term and
thereafter, the Executive shall keep secret and retain in strictest confidence,
and shall not use for his benefit or the benefit of others, except in
connection with the business and affairs of the Company and its affiliates, all
confidential matters relating to the Company’s Business and the business of any
of its affiliates and to the Company and any of its affiliates, learned by the
Executive heretofore or hereafter directly or indirectly from the Company or
any of its affiliates (the “Confidential Company Information”),  and shall not disclose such Confidential
Company Information to anyone outside of the Company except with the Company’s
express written consent and except for Confidential Company Information which
is at the time of receipt or thereafter becomes publicly known through no
wrongful act of the Executive or is received from a third party not under an
obligation to keep such information confidential and without breach of this
Agreement

 

(c)                                 During the Term and for the one year
period after termination of the Executive’s employment, the Executive shall
not, without the Company’s prior written consent, directly or indirectly,
solicit or encourage to leave the employment or other 

 

9

 

service of the Company, or any of its
affiliates, any employee or independent contractor thereof.

 

(d)                                During the Term and except as
required by law, the Executive shall not publish any statement or make any
statement under circumstances reasonably likely to become public that is
critical of the Company or any of its affiliates, or in any way adversely
affecting or otherwise maligning the Business or reputation of the Company or
any of its affiliates.

 

(e)                                 All memoranda, notes, lists,
records, property and any other tangible product and documents (and all copies
thereof), whether visually perceptible, machine-readable or otherwise, made,
produced or compiled by the Executive or made available to the Executive
concerning the business of the Company or its affiliates, (i) shall at all
times be the property of the Company (and, as applicable, any affiliates) and
shall be delivered to the Company at any time upon its request, and (ii) upon
the Executive’s termination of employment, shall be immediately returned to the
Company.

 

7.2                                Rights and Remedies upon Breach.

 

(a)                                 The Executive acknowledges and
agrees that any breach by him of any of the provisions of Section 7.1 (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, or threatens to commit a breach of, any of the provisions
of Section 7.1, the Company and its affiliates shall have the following
rights and remedies, each of which rights and remedies shall be independent of
the other and severally enforceable, and all of which rights and remedies 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), 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.

 

10

 

(b)                                The Executive agrees that in any
action seeking specific performance or other equitable relief, he will not
assert or contend that any of the provisions of this Section 7 are
unreasonable or otherwise unenforceable. The existence of any claim or cause of
action by the Executive, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement of the Restrictive Covenants.

 

8.                                      Other Provisions.

 

8.1                                Severability. The Executive acknowledges and
agrees that (i) he has had an opportunity to seek advice of counsel in
connection with this Agreement and (ii) the Restrictive Covenants are
reasonable in geographical and temporal scope and in all other respects. If it
is determined that any of the provisions of this Agreement, including, without
limitation, any of the Restrictive Covenants, 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 effect, without regard to the
invalid portions.

 

8.2                                Duration and Scope of Covenants. If any court or other
decision-maker of competent jurisdiction determines that any of the Executive’s
covenants contained in this Agreement, including, without limitation, any of
the Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such
provision, as the case may be, shall be reduced so that such provision becomes
enforceable and, in its reduced form, such provision shall then be enforceable
and shall be enforced.

 

8.3                                Enforceability; Jurisdiction; Arbitration.

 

(a)                                 The Company and the Executive intend
to and hereby confer jurisdiction to enforce the Restrictive Covenants set
forth in Section 7 upon the courts of any jurisdiction within the
geographical scope of the Restrictive Covenants. If the courts of any one or
more of such jurisdictions hold 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 

 

11

 

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. The parties hereby agree to waive any right to a trial by jury
for any and all disputes hereunder (whether or not relating to the Restricted
Covenants).

 

(b)                                Any controversy or claim arising out
of or relating to this Agreement or the breach of this Agreement (other than a
controversy or claim arising under Section 7, to the extent necessary for
the Company (or its affiliates, where applicable) to avail itself of the rights
and remedies referred to in Section 7.2) that is not resolved by the
Executive and the Company (or its affiliates, where applicable) shall be
submitted to arbitration in Salt Lake City, Utah in accordance with Utah law
and the procedures of the American Arbitration Association. The determination
of the arbitrator(s) shall be conclusive and binding on the Company (or
its affiliates, where applicable) and the Executive and judgment may be entered
on the arbitrator(s)’ award in any court having jurisdiction.

 

8.4                                Notices. Any notice or other communication
required or permitted hereunder shall be in writing and shall be delivered
personally, sent by electronic mail or facsimile transmission or sent by
certified, registered or express mail, postage prepaid. Any such notice shall
be deemed given when so delivered personally, receipt is confirmed if sent by electronic
mail or facsimile transmission or, if mailed, five days after the date of
deposit in the United States mails as follows:

 

(i)                                     If to the Company, to:

 

Extra Space
Storage Inc.

2795 East
Cottonwood Parkway, Suite 400

Salt Lake
City, Utah 84121

Attention:  Sr. Vice-President, Human Resources

 

(ii)                                  If to the Executive, to at the
address set forth on the signature page hereof.

 

Any such person may by notice given in
accordance with this Section 8.4 to the other parties hereto designate another
address or person for receipt by such person of notices hereunder.

 

12

 

8.5                                Entire Agreement. This Agreement contains the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto,
including the Prior Agreement.

 

8.6                                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.

 

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

 

8.8                                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 sale, transfer or other disposition of all or
substantially all of the Company’s assets or business, whether by merger,
consolidation or otherwise, the Company may assign this Agreement and its
rights hereunder.

 

8.9                                Withholding. The Company shall be entitled to
withhold from any payments or deemed payments any amount of tax withholding it
determines to be required by law.

 

8.10                          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.

 

13

 

8.11                          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.

 

8.12                          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.

 

8.13                          Survival. Anything contained in this
Agreement to the contrary notwithstanding, the provisions of Sections 7, 8.3
and 8.9, and the other provisions of this Section 8 (to the extent
necessary to effectuate the survival of Sections 7, 8.3 and 8.9), shall survive
termination of this Agreement and any termination of the Executive’s employment
hereunder.

 

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

 

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

 

8.16                          Parachutes. 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 (the “Code”), 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 

 

14

 

any and all
applicable federal, state and local excise, income or other taxes assuming tax at
the highest applicable rates on such Parachute Payments and on any payments
under this Section 8.16) as if no excise taxes had been imposed with
respect to Parachute Payments. “Parachute Payment” shall mean a “parachute
payment” as defined in Section 280G of the Code. The amount of any payment
under this Section 8.16 shall be computed by a certified public accounting
firm selected by the Company and reasonably acceptable to the Executive using
reasonable assumptions and good faith interpretations of the Code, subject to
the last sentence of this Section 8.16. Notwithstanding any other
provision of this Section 8.16, if a reduction in Parachute Payments by
10% or less would cause there not to be excise taxes imposed upon the Executive
under Section 4999 of the Code (as determined by the accounting firm
referred to above, but subject to the last sentence of this Section 8.16),
then (i) no payments shall be made to the Executive under the foregoing
provisions of this Section 8.16, and (ii) the payments and benefits
provided under this Agreement shall be reduced to the extent necessary so that
no excise taxes would be imposed upon the Executive. All amounts payable to
Executive under this Section 8.16 shall be paid as soon as practicable
after the event giving rise to payment of the Excise Tax by the Executive, but
no later than the December 31 of the year next following the year in which
the Executive, or the Company on behalf of the Executive, remits the excise
taxes due. In the event that the Internal Revenue Service or a court, as
applicable, finally and in a decision that has become unappealable, decides
that the determinations by the accounting firm under this Section 8.16 are
incorrect, then the parties shall within five business days take such
corrective actions as are necessary to conform to such final decision; provided
that (i) the Executive shall not initiate any proceeding or other contests
regarding these matters, other than at the direction of the Company, and shall
provide notice to the Company of any proceeding or other contest regarding
these matters initiated by the Internal Revenue Service, and (ii) the
Company shall be entitled to direct and control all such proceeding and other
contests, if it commits to and does pay all costs (including without limitation
legal and other professional fees) associated therewith.

 

8.17                          409A. Notwithstanding anything contained
in this Agreement to the Contrary, to the maximum extent permitted by
applicable law, amounts payable to the Executive pursuant to Section 5.2
or 6.2 shall be made in reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation
Pay Plans) or Treas. Reg. Section 1.409A-1(b)(4) (Short-Term
Deferrals). However, 

 

15

 

to the extent any
such payments are treated as non-qualified deferred compensation subject to Section 409A
of  the Code, then if Executive is deemed
at the time of his separation from service to be a “specified employee” for
purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent
delayed commencement of any portion of the benefits to which Executive is
entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code, such portion
of Executive’s termination benefits shall not be provided to Executive prior to
the earlier of (A) the expiration of the six-month period measured from
the date of the Executive’s “separation from service” or (B) the date of
Executive’s death. Upon the earlier of such dates, all payments deferred
pursuant to this Section 8.17 shall be paid in a lump sum to Executive. The
determination of whether the Executive is a “specified employee” for purposes
of Section 409A(a)(2)(B)(i) of the Code as of the time of his
separation from service shall made by the Company in accordance with the terms
of Section 409A of the Code and applicable guidance thereunder (including
without limitation Treas. Reg. Section 1.409A-1(i) and any successor
provision thereto).

 

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

 

	
   

  	
  EXTRA SPACE STORAGE INC.

  
	
   

  	
  EXTRA SPACE STORAGE LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth M. Woolley

  
	
   

  	
  Name:

  	
  Kenneth M. Woolley

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
				

 

	
   

  	
  Executive:

  
	
   

  	
   

  
	
   

  	
  /s/ Charles L. Allen

  
	
   

  	
   

  
	
   

  	
  Charles L. Allen

  

 

16Exhibit 10.1

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

 

BY THIS AMENDMENT, dated January 8th,
2008, made and entered into by Casella Waste Systems, Inc., a Delaware
Corporation with a principal address of 25 Greens Hill Lane, Rutland, Vermont
05701 (the “Company”), and James W. Bohlig, an individual, a current resident
of Rutland, Vermont 05701 (the “Employee”), and as acknowledged and consented
to by Casella Renewable Systems, LLC, a wholly-owned limited liability company
(“CRS”) of Company.

 

WHEREAS, Company and Employee are parties to
that certain Employment Agreement, dated December 8, 1999 (“EA”), wherein
Employee is employed by Company, with an initial title and position of Senior
Vice President, Chief Operating Officer and Director of Company; and,

 

WHEREAS, Company has engaged in various
reorganizations and restructurings of the Company since the execution of the
EA; and,

 

WHEREAS, such reorganizations and
restructurings have not affected the fundamental employment relationship
between Company and Employee, but Company is now desirous of entering into this
formal Amendment to the EA to reflect the current title, position and responsibilities
of Employee, and to address certain other matters in the EA; and,

 

WHEREAS, Employee is desirous of amending the
EA to reflect his current title, position and responsibilities as President of
CRS, and to address certain other matters in the EA; and,

 

WHEREAS, both the Company and Employee wish
to cause CRS to acknowledge and consent to this Amendment to the EA.

 

NOW THEREFOR, in exchange for the promises
and mutual conditions contained herein, and other good and valuable
consideration, the parties hereto, intending to be legally bound, do hereby
agree as follows:

 

1.     Section 1.1 of the EA,
shall be amended by the deletion of the first sentence thereof, and the
insertion of the following in lieu thereof:

 

“1.1 
During the Agreement Term (as defined below), the Employee shall be the
President and a Director of CRS (or such other and comparable titles and
positions as shall be given Employee by the Board of Directors (the “Board”) of
the Company), and shall faithfully perform for the Company the duties of such
office in CRS at the behest of Company. Employee shall continue as Company’s Senior
Vice President, Chief Development Officer and Director of Company.”

 

2.     Section 2 of the EA
entitled “Term” shall not be modified, but shall be ratified by virtue of this
Amendment to clarify that Employee is commencing a new Initial 

 

 

Term as of the date of this Amendment, which
Initial Term shall expire on the third anniversary of the date of this
Amendment. All other provisions of Section 2 “Term” shall remain
unchanged.

 

3.     Section 3.1 of the EA
shall be amended by the deletion of the words in line 2, “...at the annual rate
of $250,000 (“Base Salary”)”, and the insertion of the words “...at the annual
rate of $334,700 (“Base Salary”)”, shall be inserted in lieu thereof.

 

4.     Section 4.4.1 (d) shall
be amended by the deletion of the words, “Senior Vice President, Chief
Operating Officer and Director” in line 3, and the insertion of the words “Senior
Vice President, Chief Development Officer, Director of the Company and
President of CRS” in lieu thereof.

 

5.     Section 4.4.2 shall be
amended by the deletion of the last sentence and insertion of the following new
sentence:

 

“If during the Initial Term the Employee’s
employment is terminated by the Employee for Qualified Good Reason, the
Employee shall be entitled to receive the higher of an amount equal to i) his Base
Salary payable through the remainder of the Initial Term, or ii) the sum of Eighteen
(18) Months Base Salary, and any bonus earned and accrued for the period prior
to such termination. Such ongoing payments shall be payable on a bi-weekly
basis. Any bonus due shall be paid in a lump sum within sixty (60) days of the
date of termination. During any subsequent Agreement Term, Termination by
Employee for Qualified Good Reason shall result in a payment of Eighteen (18)
Months Base Salary.

 

6.     A new Section 4.6 shall
be added to the Employment Agreement as follows:

 

“4.6 Existing Life Insurance Policy. During
the Agreement Term, the Company shall continue (annually) funding the existing whole
life Life Insurance Policy held in Employee’s name. During any termination for
any reason other than “Cause” the Employee shall have the right to purchase and
accept assignment from the Company of the existing whole life Life Insurance Policy
in consideration for the payment of $5,000.00 to Company. All the effects to
Employee, if any, of transferring such Life Insurance Policy to Employee, including,
without limitation, any tax effects, shall be the exclusive responsibility of
Employee.”

 

7.     a)  The title of Section 6 of the EA shall
be modified as follows:

 

“6. Non-competition and Assignment of
Patents.”

 

b)  The
terms of current “6. Covenant Not to Compete” shall remain as per the EA, but
shall be retitled as “6.1 Covenant Not to Compete.”

 

 

c)  A
new Section 6.2 shall be inserted as follows:

 

“6.2 Assignment of Inventions and Work. Employee
hereby agrees to disclose in writing to Company any current, past or future
Inventions or copyrightable Works, which have been or are now or in the future
conceived, made, discovered, written or created by Employee, alone and/or in
combination with others, during Employee’s prior or current employment, and
that Employee will assign all rights and title to such Inventions or Works to
Company.”

 

8.     All other terms and
conditions of the EA, which are not specifically addressed in this Amendment,
shall remain unchanged.

 

IN WITNESS WHEREOF, the parties, intending to
be legally bound, have executed this Amendment to Agreement as of the date
first set forth above.

 

 

	
  WITNESS:

  	
   

  	
   

  	
  /s/ James W. Bohlig

  
	
   

  	
  James W. Bohlig

  
	
   

  	
  Employee

  
	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
  /s/ John W. Casella

  
	
   

  	
  John W. Casella

  
	
   

  	
  Chairman and CEO

  
	
   

  	
  Casella Waste Systems, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and Agreed to by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ James W. Bohlig

  	
   

  	
   

  
	
  James W. Bohlig

  	
   

  
	
  President, Casella Renewable Systems, LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]