Document:

EX-10.5

Exhibit 10.5

EMPLOYMENT AGREEMENT

As Amended and Restated Effective January 1, 2009

          THIS EMPLOYMENT AGREEMENT (“Employment Agreement”) is entered into as of the 14th day of May,
1999, among Sovran Self Storage, Inc., a Maryland corporation and Sovran Acquisition Limited
Partnership, a Delaware limited partnership (the “Corporation” or the “Partnership”, respectively
and collectively the “Company”), and David L. Rogers (the “Executive”). The Agreement is amended
and restated effective January 1, 2009.

WITNESSETH:

          WHEREAS, the Executive is a valuable employee of the Company, an integral part of its
management team and a key participant in the decision making process relative to short-term and
long-term planning and policy for the Company;

          WHEREAS, the Company wishes to attract and retain well-qualified executive and key personnel
and to assure continuity of management, which will be essential to its ability to evaluate and
respond to any actual or threatened Change in Control (as defined below) in the best interests of
shareholders;

          WHEREAS, the Company understands that any actual or threatened Change in Control will present
significant concerns for the Executive with respect to his financial and job security;

          WHEREAS, the Company wishes to encourage the Executive to continue his career and services
with the Company for the period during and after an actual or threatened Change in Control and to
assure to the Company the Executive’s services during the period in which such a Change in Control
is threatened, and to provide the Executive certain financial assurances to enable the Executive to
perform the responsibilities of his position without undue distraction and to exercise his judgment
without bias due to his personal circumstances; and

          WHEREAS, the Board of Directors of the Corporation (the “Board”) and the Partnership have
determined that it would be in the best interests of the Company and its shareholders and partners
to assure continuity in the management of the Company in the event of a Change in Control by
entering into an employment continuation and noncompete agreement with Executive;

          WHEREAS, this Agreement has been amended and restated effective January 1, 2009 to include
provisions intended to comply with final regulations promulgated under Internal Revenue Code
(“Code”) Section 409A and shall be construed to the extent practicable so as to avoid causing any
amounts payable to the

 

 

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Restated Employment Agreement with David L. Rogers

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Executive hereunder to be includable in his gross income under Code Section
409A(a)(1).

          NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties agree as
follows:

          1. Employment.

               (a) The Company hereby employs the Executive as Chief Financial Officer and Secretary of the
Company and the Executive hereby accepts such employment, on the terms and subject to the
conditions hereinafter set forth.

               (b) During the term of this Employment Agreement and any renewal hereof (all references herein
to the term of this Employment Agreement shall include references to the period of renewal hereof,
if any), the Executive shall be and have the title of Chief Financial Officer and Secretary of the
Company and shall devote his entire business time and all reasonable efforts to his employment in
that capacity with such other duties as may be reasonably requested from time to time by the Board,
which duties shall be consistent with his position and with those previously performed by Executive
during the one year period prior to the date hereof. Except as hereafter expressly agreed in
writing by the Executive, the Executive shall only be required to report to senior executive
officers of the Company. For service as an officer and employee of the Company, the Company agrees
that the executive shall be entitled to the full protection of the applicable indemnification
provisions of the Articles of Incorporation and By-laws of the Company (including the provisions
for advances), as the same may be amended from time to time.

          2. Compensation.

               The Company will pay Executive the salary and bonus and provide the benefits set forth in
Exhibit A to this Employment Agreement.

          3. Term.

               This Employment Agreement shall have a continuous term until terminated as provided in
Paragraph 4.

          4. Termination.

               (a) Death or Retirement. This Employment Agreement will terminate upon Executive’s
death or retirement.

 

 

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               (b) Disability. The Company may terminate this Employment Agreement upon at
least thirty (30) days’ written notice in the event of Executive’s “disability.” For purposes of
this Employment Agreement, the Executive’s “disability” shall be deemed to have occurred only after
one hundred fifty (150) days in the aggregate during any consecutive twelve (12) month period, or
after one hundred twenty (120) consecutive days, during which one hundred fifty (150) or one
hundred twenty (120) days, as the case may be, the Executive, by reason of his physical or mental
disability or illness, shall have been unable to substantially discharge his duties under this
Employment Agreement. The date of disability shall be such one hundred fiftieth (150th)
or one hundred twentieth (120th) day, as the case may be. In the event either the
Company or the Executive, after receipt of notice of the Executive’s disability from the other,
disputes whether the Executive’s disability shall have occurred, the Executive shall promptly
submit to a physical examination by the chief of medicine of any major accredited hospital in the
Buffalo, New York area and, unless such physician shall issue his written statement to the effect
that in his opinion, based on his diagnosis, the Executive is capable of resuming his employment
and devoting his full time and energy to discharging his duties within thirty (30) days after the
date of such statement, such permanent disability shall be deemed to have occurred.

               (c) Cause. The Company may terminate this Employment Agreement for “cause.” For
purposes of this Employment Agreement, “cause” shall mean

	 	(i)	 	The Executive’s fraud, commission
of a felony, commission of an act or series of acts of
dishonesty which are materially inimical to the best interests
of the Company, or the Executive’s willful and substantial
failure to perform his duties under this Employment Agreement,
which failure has not been cured within a reasonable time (which
shall not be less than thirty (30) days) after the Company gives
notice thereof to the Executive; or
	 
	 	(ii)	 	The Executive’s material breach
of any material provision of this Employment Agreement, which
breach, if capable of being cured, has not been cured in all
substantial respects within thirty (30) days) after the Company
gives notice thereof to the Executive.
	 
	 	(iii)	 	The Executive’s commission of an
act of moral turpitude, dishonesty or fraud which, in the good
faith determination of the Board, would render his

 

 

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	 	 	 	continued
employment materially damaging or detrimental to the Company.

               (d) Termination Without Cause. The Company may terminate this Employment Agreement
without cause by notifying Executive in writing of its election to terminate at least thirty (30)
days before the effective date of termination. Executive may, on written notice to the Company,
accelerate the effective date of termination to any other date of his choosing up to the date of
notice of acceleration.

               (e) Termination for Good Reason. Executive may terminate this Employment Agreement
for “Good Reason” which shall mean the occurrence of one or more of the following events provided
that, in the case of events described in (i), (ii), (iii) or (iv), the Executive shall give the
Company a written notice, within 90 days following the initial occurrence of the event, describing
the event that the Executive claims to be Good Reason and stating the Executive’s intention to
terminate employment unless the Company takes appropriate corrective action:

               “Good Reason” shall exist if:

	 	(i)	 	the Company materially changes the Executive’s duties and
responsibilities as set forth in this Employment Agreement or
changes his title or position without his consent;
	 
	 	(ii)	 	there arises a requirement that,
in the Executive’s reasonable judgment, the services required to
be performed by the Executive would necessitate the Executive
moving his residence at least 50 miles from the Buffalo, New
York area;
	 
	 	(iii)	 	the Company materially
diminishes the salary, fringe benefits or other compensation
being paid to the Executive;
	 
	 	(iv)	 	there occurs a material breach by
the Company of any of its obligations under this Employment
Agreement;
	 
	 	(v)	 	the failure of any successor of
the Company to furnish the assurances provided for in
Section 7(c).

 

 

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In the case of events described in (i), (ii), (iii) or (iv), the Company shall have 30 days from
the date of receipt of the written notice from the Executive stating his claim of Good Reason in
which to take appropriate corrective action. If the Company does not cure the Good Reason, the
Good Reason will be deemed to have occurred at the end of the 30-day period.

               (f) Termination By Mutual Agreement. This Employment Agreement may be terminated by
mutual agreement of the Company and the Executive.

               (g) Resignation. Executive may terminate this Employment Agreement at any time with
sixty (60) days’ written notice to the Company, and the Company may accelerate the effective date
of termination to any other date up to the date of notice of acceleration.

               (h) Payment of Compensation Due. The Company will pay Executive on the effective date
of termination all unpaid compensation accrued at the rate set forth on Exhibit A through the
effective date of termination.

          5. Severance Payments

               (a) Termination Without Cause or for Good Reason. The Company will make the severance
payments specified in Section 5(b) or (c) below if this Employment Agreement is terminated pursuant
to Sections 4(d) (Without Cause) or (e) (for Good Reason) hereof. In the event of such termination
any outstanding stock options held by Executive shall be deemed to have vested immediately prior to
such termination and shall be exercisable at any time during the balance of their original terms.
In addition, the employee welfare benefits referred to in Exhibit A, Section 1(c) shall be
continued for a period of thirty-six (36) months after termination of employment provided, however,
the Executive and not the Company shall pay the premiums for any such benefits, where the payment
of the premiums by the Company would constitute gross income to the Executive, during the 6-month
period following the Executive’s Separation from Service.

               (b) Severance Payments Without Change in Control. As severance payments under
this Section 5(b), the Company will pay Executive thirty-six (36) monthly payments each in an
amount equal to 1/12th of the sum of the highest (i) salary payments made by the Company to
Executive in any calendar year, (ii) bonus and other incentive compensation earned by Executive
(whether or not deferred) with respect to services rendered to the Company during any calendar year
and (iii) the value of any restricted stock awards during any calendar year. The 36 monthly
payments described in the preceding sentence shall be deemed a series of separate payments within
the meaning of Treas. Reg. §1.409A-2(b)(2)(iii). The first six monthly

 

 

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payments shall be paid to
the Executive in a lump sum within 30 days following his Separation from Service. The remaining
thirty monthly payments shall be paid to the Executive in 30 separate payments on the first day of
30 successive calendar months with the first payment occurring on the first day of the seventh
calendar month beginning after the date of the Executive’s Separation from Service. The parties
affirm that it is their intent that the first six monthly payments be excluded from the
application of Code Section 409A by reason of the “short-term deferral” rule set forth at
Regulation §1.409A-1(b)(4).

               (c) Severance Payments With Change in Control.

	 	(i)	 	Section 409A Change in
Control. If this Employment Agreement is terminated
pursuant to Section 4(d) (Without Cause) or Section 4(e) (for
Good Reason) within two years after a Section 409A Change in
Control of the Company has occurred, or if a Section 409A Change
in Control of the Company occurs while the Company is making
severance payments to the Executive pursuant to Section 5(b),
Executive shall receive the severance payments specified in
Section 5(b) (or the remaining balance thereof) in a lump sum.
The lump sum shall be paid within 30 days after the effective
date of the Executive’s Separation from Service or, if the
Section 409A Change in Control occurs after the Executive’s
Separation from Service, within 30 days after such Section 409A
Change in Control.

     Notwithstanding the foregoing, the severance payments specified in Section 5(b) shall not be
paid to the Executive (except for the lump sum equal to six monthly payments provided in the third
sentence of Section 5(b)) before the day following the 6-month anniversary of the Executive’s
Separation from Service unless Executive shall have received an opinion of counsel satisfactory to
the Executive that payment before that date will not be a violation of Code Section
409A(a)(2)(B)(i) (concerning the 6-month delay rule). In the event that the Executive shall fail
to obtain such an opinion of counsel, the Company or its successor shall, within 30 days after the
later of the Executive’s Separation from Service or the Section 409A Change in Control, transfer
the remaining balance of the monthly payments due the Executive to a rabbi trust (similar to the
trust described in Revenue Procedure 92-64) under a trust agreement that requires payment of such
remaining balance to the Executive in a lump sum on the day following the 6-month anniversary of
the Executive’s Separation from Service.

 

 

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	 	(ii)	 	Non-Section 409A Change in
Control. If this Employment Agreement is terminated
pursuant to Section 4(d) (Without Cause) or Section 4(e) (for
Good Reason) within two years after a Non-Section 409A Change in
Control of the Company has occurred, or if a Non-Section 409A
Change in Control of the Company occurs while the Company is
making severance payments to the Executive pursuant to Section
5(b), the Company or its successor shall, within 30 days after
the Non-Section 409A Change in Control, transfer the remaining
balance of the monthly payments due the Executive to a rabbi
trust (similar to the trust described in Revenue Procedure
92-64) under a trust agreement that requires payment of such
remaining balance to the Executive from the trust in accordance
with the original payment schedule under Section 5(b).

               (d) Reimbursement of Legal Fees and Expenses. The Company shall also reimburse the
Executive (promptly upon documented request), the amount of all legal fees and expenses reasonably
incurred by the Executive in connection with any good faith claim for severance compensation
hereunder, including all such fees and expenses incurred in contesting or disputing, by arbitration
or otherwise, any such termination or in seeking to obtain or enforce any right or benefit provided
by this Employment Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of Section 4999 of the Internal Revenue Code of 1986, as amended
(the “Code”) to any payment or benefit provided hereunder.

               (e) Gross-up Payments. In the event that the payments or benefits (the
“Severance Payments”) provided under this Section 5 are determined to be subject to the tax (the
“Excise Tax”) imposed by Section 4999 of the Code, the Company shall pay to the Executive
additional amounts (the “Gross-Up Payments”) such that the net amount retained by the Executive,
after deduction of any Excise Tax on the Severance Payments and on the Gross-Up Payments and any
federal, state and local income and FICA tax imposed on the Gross-Up Payments, shall be equal to
the Severance Payments.

     For purposes of determining whether any of the Severance Payments will be subject to the
Excise Tax, (i) any other payments or benefits received or to be received by the Executive in
connection with a Transfer of the Company or the termination of the Executive’s employment (whether
pursuant to the terms of this Employment Agreement

 

 

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or any other plan, arrangement or agreement with
the Company, any person whose actions result in a Transfer of the Company or any person affiliated
with the Company or such person) shall be treated as “parachute payments” within the meaning of
Section 280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of Section
280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of tax counsel
selected by the Company and acceptable to the Executive such other payments or benefits (in whole
or in part) do not constitute parachute payments, or such excess parachute payments (in whole or in
part) represent reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code in excess of the base amount within the meaning of Section
280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax, (ii) the amount of the
Severance Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser
of (a) the total amount of the Severance Payments or (b) the amount of excess parachute payments
within the meaning of Section 280G(b)(1) (after applying clause (i) above), and (iii) the value of
any non-cash benefits or any deferred payment or benefit shall be determined by the Company’s
independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

     In the event that the Excise Tax is subsequently determined to be less than the amount taken
into account hereunder at the time of termination of the Executive’s employment, the Executive
shall repay to the Company at the time that the amount of such reduction in Excise Tax is finally
determined the portion of the Gross-Up Payment attributable to such reduction (plus the portion of
the Gross-Up Payment attributable to the Excise Tax and federal, state and local income and FICA
taxes imposed on the Gross-Up Payment being repaid by the Executive if such repayment results in a
reduction in Excise Tax and/or a federal, state and local income and FICA tax deduction) plus
interest on the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code.

     In the event that the Excise Tax is determined to exceed the amount taken into account
hereunder at the time of the termination of the Executive’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment),
the Company shall make an additional gross-up payment in respect of such excess (plus any interest
payable with respect to such excess) at the time that the amount of such excess is finally
determined.

     Gross-Up Payments shall be made on the day following the 6-month anniversary of the
Executive’s Separation from Service or, if later, on the day following the transfer of the Company.

     For the purposes of this Section 5(e), the term “Transfer of the Company” means a change in
the ownership or effective control of the Company or a change in the

 

 

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ownership of a substantial
portion of the assets of the Company within the meaning of Code Section 280G(b)(2)(A)(i).

               (f) No Obligation To Mitigate Damages. Executive shall be under no obligation to
mitigate damages with respect to termination and in the event Executive is employed or receives
income from any other source there shall be no offset therefor against the amounts due from the
Company hereunder.

          6. Covenants and Confidential Information.

               (a) The Executive acknowledges the Company’s reliance and expectation of the Executive’s
continued commitment to performance of his duties and responsibilities during the term of this
Employment Agreement. In light of such reliance and expectation on the part of the Company:

	 	(i)	 	During the term of this Employment Agreement and, during
the one-year period following the termination of this Employment
Agreement, the Executive shall not: (A) own, manage, control or
participate in the ownership, management, or control of, or be
employed or engaged by or otherwise affiliated or associated as
a consultant, independent contractor or otherwise with, any
other corporation, partnership, proprietorship, firm,
association or other business entity engaged in the business of,
or otherwise engage in the business of, acquiring, owning,
developing or managing self-storage facilities; provided,
however, that the ownership of not more than one percent (1%) of
any class of publicly traded securities of any entity is
permitted ; or (B) directly or indirectly or by acting in
concert with others, employ or attempt to employ or solicit for
any employment competitive with the Company, any Company
employees.
	 
	 	(ii)	 	During and after the term of this
Employment Agreement, the Executive shall not, directly or
indirectly, disclose, divulge, discuss, copy or otherwise use or
suffer to be used in any manner, in competition with, or
contrary to the interests of, the Company, any confidential
information relating to the Company’s operations, properties or
otherwise to its

 

 

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	 	 	 	particular business or other trade secrets of
the Company, it being acknowledged by the Executive that all
such information regarding the business of the Company compiled
or obtained by, or furnished to, the Executive while the
Executive shall have been employed by or associated with the
Company is confidential information and the Company’s exclusive
property; provided, however, that the foregoing restrictions
shall not apply to the extent that such information (A) is
clearly obtainable in the public domain, (B) becomes obtainable
in the public domain, except by reason of the breach by the
Executive of the terms hereof, (C) was not acquired by the
Executive in connection with his employment or affiliation with
the Company, (D) was not acquired by the Executive from the
Company or its representatives, or (E) is required to be
disclosed by rule or law or by order of a court or governmental
body or agency.

               (b) The Executive agrees and understands that the remedy at law for any breach by him of this
Paragraph 6 will be inadequate and that the damages flowing from such breach are not readily
susceptible to being measured in monetary terms. Accordingly, it is acknowledged that, upon
adequate proof of the Executive’s violation of any legally enforceable provision of this
Paragraph 6, the Company shall be entitled to immediate injunctive relief and may obtain a
temporary order restraining any threatened or further breach.

               (c) The Executive has carefully considered the nature and extent of the restrictions
upon him and the rights and remedies conferred upon the Company under this Paragraph 6, and hereby
acknowledges and agrees that the same are reasonable in time and territory, are designed to
eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent
skill and experience of the Executive, would not operate as a bar to the Executive’s sole means of
support, are fully required to protect the legitimate interests of the Company and do not confer a
benefit upon the Company disproportionate to the detriment to the Executive.

          7. Miscellaneous.

               (a) The Executive represents and warrants that he is not a party to any agreement, contract or
understanding, whether of employment or otherwise,

 

 

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which would restrict or prohibit him from
undertaking or performing employment in accordance with the terms and conditions of this Employment
Agreement.

               (b) The provisions of this Employment Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions and any partially unenforceable provision to the extent enforceable in any
jurisdiction nevertheless shall be binding and enforceable.

               (c) Any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of the Company must, within ten
(10) days after Executive’s request, furnish its written assurance that it is bound to perform this
Employment Agreement in the same manner and to the same extent that the Company would have been
required to perform it if no such succession had taken place.

               (d) Any controversy or claim arising out of or relating to this Employment Agreement, or the
breach thereof, shall be settled by arbitration in accordance with the Rules of the American
Arbitration Association then pertaining in the City of Buffalo, New York, and judgment upon the
award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction
thereof. The arbitrator or arbitrators shall be deemed to possess the powers to issue mandatory
orders and restraining orders in connection with such arbitration; provided, however, that nothing
in this Section 7(d) shall be construed so as to deny the Company the right and power to seek and
obtain injunctive relief in a court of equity for any breach or threatened breach by the Executive
of any of his covenants contained in Section 6 hereof.

               (e) Any notice to be given under this Employment Agreement shall be personally
delivered in writing or shall have been deemed duly given when received after it is posted in the
United States mail, postage prepaid, registered or certified, return receipt requested, and if
mailed to the Company, shall be addressed to the principal place of business of the Corporation and
the Partnership, attention: President, and if mailed to the Executive, shall be addressed to him
at his home address last known on the records of the Company, or at such other address or addresses
as either the Company or the Executive may hereafter designate in writing to the other.

               (f) The failure of either party to enforce any provision or provisions of this Employment
Agreement shall not in any way be construed as a waiver of any such provision or provisions as to
any future violations thereof, nor prevent that party thereafter from enforcing each and every
other provision of this Employment Agreement. The rights granted the parties herein are cumulative
and the

 

 

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waiver of any single remedy shall not constitute a waiver of such party’s right to assert
all other legal remedies available to it under the circumstances.

               (g) This Employment Agreement supersedes all prior employment agreements and understandings
between the parties and may not be modified or terminated orally. No modification, termination or
attempted waiver shall be valid unless in writing and signed by the party against whom the same is
sought to be enforced.

               (h) This Employment Agreement shall be governed by and construed according to the laws of the
State of New York.

               (i) Captions and paragraph headings used herein are for convenience and are not a part of this
Employment Agreement and shall not be used in construing it.

8. Code Section 409A Matters.

     (a) Definitions. The following terms shall have the following meanings when used in
this Agreement:

     (i) “Separation from Service” shall have the meaning provided at Treas. Reg. §1.409A-1(h).

     (ii) “Section 409A Change in Control” shall mean a change in ownership or effective control of
the Company or a change in ownership of a substantial portion of the assets of the Company within
the meaning of Treas. Reg. §1.409A-3(i)(5).

     (iii) “Non-Section 409A Change in Control” .” For the purposes of this Employment Agreement,
a “Non-Section 409A Change in Control” shall be deemed to have occurred if any of the following
have occurred:

          (1) either (A) the Corporation shall receive a report on Schedule 13D, or an amendment to such
a report, filed with the Securities and Exchange Commission pursuant to Section 13(d) of the
Securities Exchange Act of 1934 (the “1934 Act”) disclosing that any person (as such term is used
in Section 13(d) of the 1934 Act) (“Person”), is the beneficial owner, directly or indirectly, of
twenty (20) percent or more of the outstanding stock of the Corporation or (B) the Company has
actual knowledge of facts which would require any Person to file such a report on Schedule 13D, or
to make an amendment to such a report, with the SEC (or would be required to file such a report or
amendment upon the lapse of the applicable period of time specified in Section 13(d)

 

 

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of the 1934
Act) disclosing that such Person is the beneficial owner, directly or indirectly, of twenty (20)
percent or more of the outstanding stock of the Corporation;

          (2) purchase by any Person, other than the Company or a wholly-owned subsidiary of the Company
or an employee benefit plan sponsored or maintained by the Company or a wholly-owned subsidiary of
the Company, of shares pursuant to a tender or exchange offer to acquire any stock of the
Corporation (or securities, including units of limited partnership interests, convertible into
stock) for cash, securities or any other consideration provided that, after consummation of the
offer, such Person is the beneficial owner (as defined in Rule 13d 3 under the 1934 Act), directly
or indirectly, of twenty (20) percent or more of the outstanding stock of the Corporation
(calculated as provided in paragraph (d) of Rule 13d 3 under the 1934 Act in the case of rights to
acquire stock);

          (3) approval by the shareholders of the Corporation of (A) any consolidation or merger of, or
other business combination involving, the Corporation in which the Corporation is not to be the
continuing or surviving entity or pursuant to which shares of stock of the Corporation would be
converted into cash, securities or other property, other than a consolidation or merger or business
combination of the Corporation in which holders of its stock immediately prior to the consolidation
or merger or business combination have substantially the same proportionate ownership of common
stock of the surviving corporation immediately after the consolidation or merger or business
combination as immediately before, or (B) any consolidation or merger or business combination in
which the Corporation is the continuing or surviving corporation but in which the common
shareholders of the Corporation immediately prior to the consolidation or merger or business
combination do not hold at least a majority of the outstanding common stock of the continuing or
surviving corporation (except where such holders of common stock hold at least a majority of the
common stock of the corporation which owns all of the common stock of the Corporation), or (C) any
sale, lease, exchange or other transfer by operation of law or otherwise (in one transaction or a
series of related transactions) of all or substantially all the assets of the Corporation or the
Partnership; or

          (4) a change in the majority of the members of the Board within a 24-month period unless the
election or nomination for election by the Corporation shareholders of each new director was
approved by the vote of at least two-thirds of the directors then still in office who were in
office at the beginning of the 24-month period.

          (5) more than fifty percent (50%) of the assets of the Corporation or the Partnership are
sold, transferred or otherwise disposed of, whether by operation of law or otherwise, other than in
the usual and ordinary course of its business.

 

 

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     (b) Rule Governing Payment Dates. In any case where this Agreement requires the payment of an
amount during a period of two or more days that overlaps two calendar years, the payee shall have
no right to determine the calendar year in which payment actually occurs

     (c) Compliance with Section 409A. This Agreement is intended not to trigger additional taxes
and penalties under Section 409A of the Internal Revenue Code and the final Treasury Regulations
promulgated thereunder, whether by reason of the form or the operation of the Agreement. The
Agreement shall at all times be interpreted, construed, and administered so as to avoid insofar as
possible the imposition of excise taxes and other penalties under Section 409A of the Code. If any
provision of this Agreement would trigger additional taxes and penalties under Section 409A of the
Code and the final Regulations promulgated thereunder, such provision shall to the extent legally
permissible be applied in a manner that most nearly accomplishes its objective without triggering
such additional taxes and penalties.

          IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the 31st Day of
December, 2008.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	SOVRAN SELF STORAGE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert J. Attea
 

	 	 
	/s/ David L. Rogers
 

David L. Rogers

	 	 
	 	

Title:
	 	

CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SOVRAN ACQUISITION LIMITED

PARTNERSHIP
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By
	 	SOVRAN HOLDINGS INC.	 	 

 

 

Sovran Self Storage, Inc.

Restated Employment Agreement with David L. Rogers

Page 15

	 	 	 	 	 	 	 
	 	 	 	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Attea
 

	 	 
	 
	 

	 	Title
	 	CEO	 	 

 

 

Sovran Self Storage, Inc.

Restated Employment Agreement with David L. Rogers

Page 16

EXHIBIT A

               1. Compensation.

                    During the term of the Employment Agreement the Company shall pay or provide, as the case may
be, to the Executive the compensation and other benefits and rights set forth in this Paragraph 1
of this Exhibit A.

                    (a) The Company shall pay to the Executive a base salary payable in accordance with the
Company’s usual pay practices (and in the event no less frequently than monthly) of Two Hundred
Thousand Dollars ($200,000) per annum, subject to such increase (but not decrease) as may be
determined by the Board from time to time, based upon the performance of the Company (on a
consolidated basis) and the Executive.

                    (b) The Executive shall be entitled to participate in the Company’s incentive compensation
plans for senior executives. The Company shall pay to the Executive incentive compensation, if
any, which such Executive is entitled to receive pursuant to such plan for each calendar year not
later than March 15 following the end of such calendar year (or at such time as may be provided in
such plan), prorated on a per diem basis for partial calendar years of service.

                    (c) The Company shall provide to the Executive such life, medical, hospitalization and dental
insurance for himself, his spouse and eligible family members as may be available to other senior
executive officers of the Company (the “Insurance Plans”). The coverage under the Insurance Plans
shall be at least as favorable as those under the insurances provided to the Executive by the
Company (or it predecessor) on the date on which the Employment Agreement was first entered into,
subject to the Executive’s continued insurability under the Insurance Plans.

                    (d) The Executive shall participate in all retirement and other benefit plans of the Company
generally available from time to time to employees of the Company and for which Executive qualifies
under the terms thereof (and nothing in the Employment Agreement or this Exhibit A shall or shall
be deemed to in any way effect the Executive’s right and benefits thereunder except as expressly
provided herein.

                    (e) The Executive shall be entitled to such periods of vacation and sick leave allowance each
year as are determined by the Compensation Committee of the Board.

 

 

Sovran Self Storage, Inc.

Restated Employment Agreement with David L. Rogers

Page 17

                    (f) The Executive shall be entitled to participate in any equity or other employee
benefit plan that is generally available to senior executive officers of the Company. The
Executive’s participation in and benefits under any such plan shall be on the terms and subject to
the conditions specified in the governing document of the particular plan.

                    (g) The Company shall reimburse the Executive or provide him with an expense allowance during
the term of the Employment Agreement for travel, entertainment and other expenses reasonably and
necessarily incurred by the Executive in connection with the Company’s business. The Executive
shall furnish such documentation with respect to reimbursement to be paid hereunder as the Company
shall reasonably request.

                    (h) The Company shall provide the Executive with an automobile allowance as exists from time
to time under the Company’s policy.

               2. Payment in the Event of Death or Permanent Disability.

                    (a) In the event of the Executive’s death or “disability” (as defined in the Employment
Agreement) during the term of the Employment Agreement, the Company shall pay to the Executive (or
his successors and assigns in the event of his death) an amount equal to two (2) times the
Executive’s then effective per annum rate of salary, as determined under Section 1(a) of this
Exhibit A, plus a pro rata portion of the incentive compensation for the calendar year in which
such death or permanent disability occurs, less, in the case of permanent disability, any amounts
paid by the Company or under the Company’s disability insurance contracts.

     (b) The pro rata portion of the incentive compensation described in Section 2(a) shall be paid
when and as provided in Section 1(b). The remainder of the benefit to be paid pursuant to Section
2(a) shall be paid as follows:

          (i) In the event of the Executive’s death, the remainder of the benefit shall be paid
in eight (8) quarterly installments. The first installment shall be paid on the first day
of the calendar quarter beginning after the Executive’s death and the remaining seven
installments shall be paid on the first day of the next seven calendar quarters. The eight
(8) equal quarterly installments shall be deemed a series of separate payments within the
meaning of Treas. Reg. §1.409A-2(b)(2)(iii).

          (ii) In the event of the Executive’s disability, the remainder of the benefit shall be
paid in twenty-four (24) monthly installments. The 24 monthly

 

 

Sovran Self Storage, Inc.

Restated Employment Agreement with David L. Rogers

Page 18

payments described in the
preceding sentence shall be deemed a series of separate payments within the meaning of
Treas. Reg. §1.409A-2(b)(2)(iii). The first six monthly payments shall be paid to the
Executive in a lump sum within 30 days following his Separation from Service. The remaining
eighteen monthly payments shall be paid to the Executive in 18 separate payments on the
first day of 18 successive calendar months with the first payment occurring on the first day
of the seventh calendar month beginning after the date of the Executive’s Separation from
Service. The parties affirm that it is their intent that the first six monthly payments
be excluded from the application of Code Section 409A by reason of the “short-term deferral”
rule set forth at Regulation §1.409A-1(b)(4).

                    (c) Except as otherwise provided in Paragraphs 1(d) and 2(a), in the event of the Executive’s
death or disability the Executive’s employment hereunder shall terminate and the Executive shall be
entitled to no further compensation or other benefits under the Employment Agreement, except as to
that portion of any unpaid salary and other benefits accrued and earned by him hereunder up to and
including the date of such death or permanent disability, as the case may be.EX-10.13

 - 1 -

Exhibit 10.13

AMENDMENT TO

AGREEMENT OF LIMITED PARTNERSHIP OF

SOVRAN ACQUISITION LIMITED PARTNERSHIP

          THIS AMENDMENT OF THE LIMITED PARTNERSHIP AGREEMENT OF SOVRAN ACQUISITION LIMITED PARTNERSHIP
(the “Partnership”), dated as of July 30, 1999, is authorized by SOVRAN HOLDINGS, INC. (the
“General Partner”), a Delaware corporation, as the General Partner (the “Amendment”).

          WHEREAS, pursuant to Sections 4.2 and 14.1.B.(3) of the Agreement of Limited Partnership of
the Partnership (the “Partnership Agreement”), the General Partner desires to amend the Partnership
Agreement to authorize Series B Units as set forth below and to issue such Series B Units to Sovran
Self Storage, Inc. (“Sovran”) in connection with the issuance of 1,200,000 shares 9.85% Series B
Cumulative Redeemable Preferred Stock (the “Preferred Stock”) by Sovran.

          The Partnership Agreement is hereby amended as follows effective July 30, 1999:

          1. Article I of the Partnership Agreement is hereby amended to add the following additional
defined term thereto:

“Series B Units” shall mean the Units of Partnership
Interests issued pursuant to Section 4.2.C. hereof.

          2. Article 4 of the Partnership Agreement is hereby amended to add a new Section 4.2.C. as
follows:

The Partnership is authorized to issue Series B Units in connection
with the issuance of the Preferred Stock by Sovran. The Partnership
shall issue to Sovran Series B Units with the terms as set forth
below corresponding to the number of shares of Preferred Stock
issued by Sovran and Sovran shall make a Capital Contribution to the
Partnership equal to the net amount of proceeds raised in connection
with such issuance of the Preferred Stock. The terms of the Series
B Units are as follows:

     (1) Designation and Amount. A series of Series B Units
is hereby established. The number of authorized units of Series B
Units shall be 1,700,000.

 

 

  - 2 -

     (2) Ranking. In respect of rights to the payment of
distributions of Available Cash and the distribution of assets in
the event of any liquidation, dissolution or winding up of the
Partnership, the Series B Units shall rank senior to the Partnership
Units.

     (3) Distribution of Available
Cash

          (a) The holders of the outstanding units of Series B Units
shall be entitled to receive, when, as and if declared by the
General Partner, out of funds legally available for the payment of
distributions of Available Cash, cumulative cash distributions of
Available Cash at the rate of 9.85% per annum of the $25.00 per unit
liquidation preference of the Series B Units (equivalent to an
annual rate of $2.4625 per unit). Such distributions of Available
Cash shall accrue daily, shall accrue and be cumulative from (but
excluding) July 30, 1999 (the “Original Issue Date”) and shall be
payable quarterly in arrears in cash on March 31, June 30,
September 30 and December 31 (each, a “Distribution Payment Date”)
of each year, commencing September 30, 1999; provided that if any
Distribution Payment Date is not a Business Day (as hereinafter
defined), then the distributions which would otherwise have been
payable on such Distribution Payment Date may be paid on the next
succeeding Business Day with the same force and effect as if paid on
such Distribution Payment Date and no interest or additional
distribution of Available Cash or other sum shall accrue on the
amount so payable for the period from and after such Distribution
Payment Date to such next succeeding Business Day. The period from
and including the Original Issue Date to but excluding the first
Distribution Payment Date, and each subsequent period from and
including a Distribution Payment Date to but excluding the next
succeeding Distribution Payment Date, is hereinafter called a
“Distribution Period”. Distributions of Available Cash shall be
payable to holders of record as they appear in the Partnership
Agreement at the close of business on the applicable record date
(each, a “Record Date”), which shall be the 15th day of
the calendar month in which the applicable Distribution Payment Date
falls or such other date designated by the General Partner for the
payment of distributions of Available Cash that is not more than 30
nor less than ten days prior to such Distribution Payment Date. The
amount of any distribution of Available Cash payable for any
Distribution Period, or portion thereof, shall be computed on the
basis of a 360-day year consisting of twelve 30-day months. The

 

 

  - 3 -

distributions of Available Cash payable on any Distribution Payment
Date or any other date shall include distributions of Available Cash
accrued to but excluding such Distribution Payment Date or other
date, as the case may be.

     “Business Day” shall mean any day, other than a Saturday or
Sunday, that is not a day on which banking institutions in Buffalo,
New York are authorized or required by law, regulation or executive
order to close. All references herein to “accrued and unpaid”
distributions of Available Cash on the Series B Units (and all
references of like import) shall include, unless otherwise expressly
stated or the context otherwise requires, accumulated distributions
of Available Cash, if any, on the Series B Units.

     (b) If any unit of Series B Units is outstanding, no full
distributions of Available Cash will be declared or paid or set
apart for payment on any Partnership Units unless full cumulative
distributions of Available Cash have been or contemporaneously are
declared and paid or declared and a sum sufficient for the payment
thereof set apart for such payment on the Series B Units for all
past Distribution Periods and the then current Distribution Period.

     Except as provided in the immediately preceding paragraph,
unless full cumulative distributions of Available Cash on the Series
B Units have been or contemporaneously are declared and paid or
declared and a sum sufficient for the payment thereof set apart for
such payment on the Series B Units for all past Distribution Periods
and the then current Distribution Period, no distributions of
Available Cash shall be declared or paid or set apart for payment
nor shall any other distribution be declared or made upon the
Partnership Units nor shall any Partnership Units be redeemed,
purchased or otherwise acquired for any consideration by the
Partnership except for a redemption pursuant to Section 8.6 if the
Partnership pays the REIT Shares Amount for such redemption.

     (c) No distributions of Available Cash on the Series B Units
shall be declared by the General Partner or paid or set apart for
payment by the Partnership at such time as any agreement of the
Partnership, including any agreement relating to its indebtedness,
prohibits such declaration, payment or setting apart for payment or
provides that such declaration, payment or setting apart for payment
would constitute a breach thereof or a default

 

 

  - 4 -

thereunder, or if
such declaration, payment or setting apart for payment shall be
restricted or prohibited by applicable law.

     Anything in this Section 4.2.C to the contrary
notwithstanding, distributions of Available Cash on the Series B
Units will accrue and be cumulative from (but excluding) the
Original Issue Date whether or not the Partnership has earnings,
whether or not there are funds legally available for the payment of
such distributions of Available Cash and whether or not such
distributions of Available Cash is authorized.

     (d) No interest, or sum of money in lieu of interest, shall be
payable in respect of any distributions of Available Cash payment or
payments on the Series B Units which may be in arrears, and holders
of the Series B Units will not be entitled to any distributions of
Available Cash, whether payable in cash, securities or other
property, in excess of the full cumulative distributions of
Available Cash described herein.

     (e) Any distributions of Available Cash payment made on the
Series B Units shall first be credited against the earliest accrued
but unpaid distributions of Available Cash due with respect to such
units.

     (f) No distribution of Available Cash may be paid on the
Series B Units if after giving effect to such distribution of
Available Cash the Partnership’s total assets would be less than the
sum of the Partnership’s total liabilities.

     (4) Liquidation Preference.

     (a) Upon any voluntary or involuntary liquidation, dissolution
or winding up of the Partnership, then, before any distribution or
payment shall be made to the holders of any Partnership Units, the
holders of the Series B Units then outstanding shall be entitled to
receive and to be paid out of the assets of the Partnership legally
available for distribution to its Partners liquidating distributions
in cash or property at its fair market value as determined by the
General Partner in the amount of $25.00 per unit, plus an amount
equal to all accrued and unpaid distributions of Available Cash
thereon through and including the date of payment.

 

 

- 5 -

     (b) After payment to the holders of the Series B Units of the
full amount of the liquidating distributions (including accrued and
unpaid distributions of Available Cash) to which they are entitled,
the holders of Series B Units, as such, shall have no right or claim
to any of the remaining assets of the Partnership.

     (c) If liquidating distributions shall have been made in full
to all holders of Series B Units, the remaining assets of the
Partnership shall be distributed among the holders of Partnership
Units according to their respective rights and preferences.

     (d) For purposes of this Section 4.2.C.(4), neither the
consolidation or merger of the Partnership with or into any other
Partnership, trust or other entity, the sale, lease or conveyance of
all or substantially all of the property or business of the
Partnership, nor the engagement in a statutory unit exchange by the
Partnership, shall be deemed to constitute a liquidation,
dissolution or winding up of the Partnership.

     (e) Written notice of any such liquidation, dissolution or
winding up of the Partnership stating the payment date or dates
when, and the place or places where, the amounts distributable in
such circumstances shall be payable, shall be given by first class
mail, postage pre-paid, not less than 30 nor more than 60 days prior
to the payment date stated therein, to each record holder of
Series B Units at the respective address of such holder as the same
shall appear on the unit transfer records of the Partnership.

     (5) Redemption.

     (a) The Series B Units are not redeemable prior to July 30,
2004, except as otherwise provided in paragraph (c) of this
Section 4.2.C.(5).

     (b) On and after July 30, 2004, the Partnership may, at its
option, upon not less than 30 nor more than 60 days’ prior written
notice to the holders of record of the Series B Units to be
redeemed, redeem the Series B Units, in whole or from time to time
in part, for a cash redemption price equal to $25.00 per unit
together with (except as provided in Section 4.2.C.(6)(f) below) all
accrued and unpaid distributions of Available Cash to the date fixed
for redemption (the “Redemption Price”).

 

 

- 6 -

     (c) The Series B Units may also be purchased by the
Partnership, in whole or from time to time in part, on the terms and
subject to the conditions set forth herein, provided, however, that
if the General Partner shall call for purchase of any units of
Series B Units pursuant to this Section 4.2.C.(5)(c), the purchase
price for such units shall be an amount in cash equal to $25.00 per
unit together with (except as provided in Section 4.2.C.(6)(f)
below) all accrued and unpaid distributions of Available Cash to the
date fixed for redemption.

     (d) Any redemption of units of Series B Units pursuant to
Section 4.2.C.(5)(b), shall be made in accordance with the
applicable provisions set forth in Section 4.2.C.(6) below. Any
date fixed for the redemption of units of Series B Units pursuant to
Section 4.2.C.(5)(b) is hereinafter called a “Redemption Date”.

     (6) Procedures for Redemption, Limitations on
Redemption.

     (a) If fewer than all of the outstanding units of Series B
Units are to be redeemed at the option of the General Partner
pursuant to Section 4.2.C.(5)(b) above, the number of units to be
redeemed will be determined by the General Partner and the units to
be so redeemed shall be selected pro rata from the holders of record
of such units in proportion to the number of such units held by such
holders (as nearly as may be practicable without creating fractional
units) or by lot or by any other equitable manner determined by the
General Partner.

     (b) Notice of any redemption pursuant to Section 4.2.C.(5)(b)
will be mailed by or on behalf of the Partnership, first class
postage prepaid, not less than 30 nor more than 60 days prior to the
applicable Redemption Date, addressed to each holder of record of
units of Series B Units to be redeemed at the address set forth in
the unit transfer records of the Partnership. Any notice which has
been mailed in the manner provided for in the preceding sentence
shall be conclusively presumed to have been duly given on the date
mailed whether or not the applicable holder receives such notice.
In addition to any information required by law, such notice shall
state: (1) the Redemption Date; (2) the Redemption Price; (3) the
aggregate number of units of Series B Units to be redeemed; (4) the
place or places where certificates for such units are to be
surrendered for payment of the Redemption Price; and (5) that
distributions of Available Cash on

 

 

  - 7 -

the units of Series B Units to be
redeemed will cease to accrue on such Redemption Date. If fewer
than all of the outstanding units of Series B Units are to be
redeemed, the notice mailed to each holder of units to be redeemed
shall also specify the number of units of Series B Units to be
redeemed from such holder. No failure to mail or defect in such
mailed notice or in the mailing thereof shall affect the validity of
the proceedings for the redemption of any units of Series B Units
except as to the holder to whom notice was defective or not given.

     (c) If notice has been mailed in accordance with
Section 4.2.C.(6)(b) above and provided that on or before the
Redemption Date specified in such notice all funds necessary for
such redemption have been irrevocably set aside by the Partnership,
separate and apart from its other funds, in trust for the benefit of
the holders of the Series B Units so called for redemption, so as to
be, and to continue to be, available therefor, then, from and after
the Redemption Date, distributions of Available Cash on the units of
Series B Units so called for redemption shall cease to accrue, such
units shall no longer be deemed to be outstanding, and all rights of
the holders thereof as holders of such units (except the right to
receive the Redemption Price together with, if applicable, accrued
and unpaid distributions of Available Cash thereon to the Redemption
Date) shall terminate. In the event any Redemption Date shall not
be a Business Day, then payment of the Redemption Price need not be
made on such Redemption Date but may be made on the next succeeding
Business Day with the same force and effect as if made on such
Redemption Date and no interest, additional distributions of
Available Cash and other sum shall accrue on the amount payable for
the period from and after such Redemption Date to such next
succeeding Business Day.

     (d) Upon surrender, in accordance with such notice, of the
certificates for any units of Series B Units to be so redeemed
(properly endorsed or assigned for transfer, if the Partnership
shall so require and the notice shall so state), such units of
Series B Units shall be redeemed by the Partnership at the
Redemption Price. In case fewer than all the units of Series B
Units represented by any such certificate are redeemed, a new
certificate or certificates shall be issued representing the
unredeemed units of Series B Units without cost to the holder
thereof.

 

 

- 8 -

     (e) Any deposit of monies with a bank or trust company for the
purpose of redeeming Series B Units shall be irrevocable and such
monies shall be held in trust for the benefit of the holders of
Series B Units entitled thereto, except that (1) the Partnership
shall be entitled to receive from such bank or trust company the
interest or other earnings, if any, earned on the monies so
deposited in trust; and (2) any balance of the monies so deposited
by the Partnership and unclaimed by the holders of the Series B
Units entitled thereto at the expiration of two years from the
applicable Redemption Date shall be repaid, together with any
interest or other earnings earned thereon, to the Partnership and,
after any such repayment, the holders of the units entitled to the
funds so repaid to the Partnership shall look only to the
Partnership for payment without interest or other earnings thereon.

     (f) Anything in this Section 4.2.C to the contrary
notwithstanding, the holders of record of units of Series B Units at
the close of business on a Record Date will be entitled to receive
the distributions of Available Cash payable with respect to such
units on the corresponding Distribution Payment Date notwithstanding
the redemption of such units after such Record Date and on or prior
to such Distribution Payment Date or the Partnership’s default in
the payment of the distributions of Available Cash due on such
Distribution Payment Date, in which case the amount payable upon
redemption of such units of Series B Units will not include such
distributions of Available Cash (and the full amount of the
distributions of Available Cash payable for the applicable
Distribution Period shall instead be paid on such Distribution
Payment Date to the holders of record on such Record Date as
aforesaid). Except as provided in this Section 4.2.C.(6)(b) and
except to the extent that accrued and unpaid distribution of
Available Cash are payable as part of the Redemption Price pursuant
to Section 4.2.C.(6), the Partnership will make no payment or
allowance for unpaid distributions of Available Cash, regardless of
whether or not in arrears, on units of Series B Units called for
redemption.

     (g) Unless full cumulative distributions of Available Cash on
all outstanding units of Series B Units shall have been or
contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all
past Distribution Periods and the then current Distribution Period,
no units of Series B Units shall be redeemed unless all outstanding
Series B Units are simultaneously redeemed; provided, however,

 

 

- 9 -

that
the foregoing shall not prevent the Partnership’s purchase of Series
B Units pursuant to a purchase or exchange offer made on the same
terms to the holders of all outstanding Series B Units. In
addition, unless full cumulative distributions of Available Cash on
all outstanding units of Series B Units have been or
contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all
past Distribution Periods and the then current Distribution Period,
the Partnership shall not purchase or otherwise acquire, directly or
indirectly, any Series B Units; provided, however, that the
foregoing shall not prevent the Partnership’s purchase of Series B
Units pursuant to a purchase or exchange offer made on the terms to
holders of all outstanding Series B Units.

     (7) Voting Rights. Except as required by law, the
holders of the Series B Units shall not have any voting rights.

     (8) Conversion. The Series B Units are not convertible
into or exchangeable for any other property or securities of the
Partnership.

     (9) Preemptive Rights. Series B Units shall have no
preemptive rights.

     (10) Status of Redeemed and Reacquired Series B Units.
In the event any units of Series B Units shall be redeemed pursuant
to Section 4.2.C.(5) and (6) hereof or otherwise reacquired by the
Partnership, the units so redeemed or reacquired shall become
authorized but unissued units of Series B Units, available for
future issuance and reclassification by the Partnership.

     11. Severability. If any preference, right, voting
power, restriction, limitation as to distributions of Available
Cash, qualification, term or condition of redemption or other term
of the Series B Units is invalid, unlawful or incapable of being
enforced by reason of any rule of law or public policy, then, to the
extent permitted by law, all other preferences, rights, voting
powers, restrictions, limitations as to distributions of Available
Cash, qualifications, terms or conditions of redemption and other
terms of the Series B Units which can be given effect without the
invalid, unlawful or unenforceable preference, right, voting power,
restriction, limitation as to distributions of Available Cash,
qualification, term or condition of redemption or other term of the

 

 

  - 10 -

Series B Units shall remain in full force and effect and shall not
be deemed dependent upon any other such preference, right, voting
power, restriction, limitation as to distributions of Available Cash
qualification, term or condition of redemption or other term of the
Series B Units unless so expressed herein.

          3. Exhibit A of the Partnership Agreement is amended to read as set forth on the attachment
hereto.

          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the 30th
day of July, 1999.

General Partner:

SOVRAN HOLDINGS, INC.

	 	 	 	 	 
	By

	 	     /s/ David L. Rogers
 

David L. Rogers, Chief Financial Officer
	 	 

 

 

EXHIBIT A

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	Percentage Interest	 
	Partners’ Names and Addresses	 	Units	 	 	in the Partnership	 
	Series B Units	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Sovran Self Storage, Inc.
	 	 	1,200,000	 	 	 	 	 
	 	 	5166 Main Street

Williamsville, NY 14221
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	Partnership Units	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	1.	 	General Partner:
	 	 	219,566.71	 	 	 	1.6437	%
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Sovran Holdings, Inc.

5166 Main Street

Williamsville, NY 14221
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	2.	 	Limited Partner(s):
	 	 	12,285,761.29	 	 	 	91.9706	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Sovran Self Storage, Inc.

5166 Main Street 

Williamsville, NY 14221
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	3.	 	Thomas S. Hinkel
	 	 	6327.8	 	 	 	0.0474	 
	 	 	942 Creek Drive

Annapolis, MD 21403
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	4.	 	Hinkel Investment Limited
	 	 	12,459.37	 	 	 	0.0933	 
	 	 	942 Creek Drive

Annapolis, MD 21403
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	5.	 	Harold Samloff
	 	 	60,571.425	 	 	 	0.4534	 
	 	 	400 University Avenue

Rochester, NY 14607
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	6.	 	Laurence C. Glazer
	 	 	60,571.425	 	 	 	0.4534	 
	 	 	400 University Avenue

Rochester, NY 14607
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	7.	 	Montague-Betts Company
	 	 	214,974.5	 	 	 	1.6093	 
	 	 	P.O. Box 11929

Lynchburg, VA 24506
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	8.	 	D.W.B. Associates
	 	 	28,953.02	 	 	 	0.2167	 
	 	 	P.O. Box 11929

Lynchburg, VA 24506
	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	Percentage Interest	 
	Partners’ Names and Addresses	 	Units	 	 	in the Partnership	 
	9.	 	D. Joseph Snyder & Beverly
B. Snyder
	 	 	19,917.01	 	 	 	0.1491	 
	 	 	as tenants in common

5700 Sloop Court

New Bern, NC 28560
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	10.	 	Frank M. Bingman
	 	 	19,917.01	 	 	 	0.1491	 
	 	 	565 Brentwater Road

Camp Hill, PA 17011
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	11.	 	Morgan S. Whiteley
	 	 	9,958.50	 	 	 	0.0745	 
	 	 	11714 Amkin Drive

Clifton, VA 22024
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	12.	 	Marlene Whiteley
	 	 	9,958.50	 	 	 	0.0745	 
	 	 	11714 Amkin Drive

Clifton, VA 22024
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	13.	 	Charles F. Waldner, Jr. and
	 	 	323,454.67	 	 	 	2.4214	 
	 	 	Marjorie W. Waldner

1600 South Dixie Highway #1C

Boca Raton, FL 33482
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	14.	 	R. Scott Morrison, Jr. Trust
	 	 	40,859.03	 	 	 	0.3059	 
	 	 	243 N.E. Fifth Avenue

Delray Beach, FL 33483
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	15.	 	Charles E. Waldner, Jr.
	 	 	36,948.33	 	 	 	0.2765	 
	 	 	P.O. Box 1240

Boca Raton, FL 33429-1240
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	16.	 	Marjorie Waldner
	 	 	4,255.70	 	 	 	0.319	 
	 	 	1869 Sabel Palm Drive

Boca Raton, FL 33423
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	17.	 	Bradley & Janice Middlebrook
	 	 	3,910.70	 	 	 	0.0293	 
	 	 	1801 Royal Palm Way

Boca Raton, FL 33432-7443
	 	 	 	 	 	 	 	 

 

 

AMENDMENT TO AGREEMENT OF

LIMITED PARTNERSHIP OF

SOVRAN ACQUISITION LIMITED PARTNERSHIP

          This AMENDMENT OF THE AGREEMENT OF LIMITED PARTNERSHIP OF SOVRAN ACQUISITION LIMITED
PARTNERSHIP, dated as of July 3, 2002 (this “Amendment”), is being executed by Sovran
Holdings, Inc., a Delaware corporation (the “General Partner”), as the general partner of Sovran
Acquisition Limited Partnership, a Delaware limited partnership (the “Partnership”), pursuant to
the authority conferred on the General Partner by Section 4.2 and 14.1.B.3 of the Agreement of
Limited Partnership of Sovran Acquisition Limited Partnership, dated as of June 1, 1995, as amended
(the “Agreement”). Capitalized terms used, but not otherwise defined herein, shall have the
respective meanings ascribed thereto in the Agreement.

          WHEREAS, on July 3, 2002, Sovran Self Storage, Inc., a Maryland corporation (“Sovran”) filed
Articles Supplementary amending its Charter to designate and classify 2,800,000 shares of
authorized but unissued shares of its preferred stock, par value $.01 per share, as shares of its
Series C Convertible Cumulative Preferred Stock, par value $.01 per share (the “Series C Preferred
Stock”);

          WHEREAS, in accordance with Section 4.2 of the Agreement, upon the issuance of any such shares
of Series C Preferred Stock, Sovran will contribute the net cash proceeds from such issuance to the
Partnership in exchange for a number of Partnership Preferred Units equal to the number of shares
of Series C Preferred Stock so issued, which Partnership Preferred Units shall have designations,
preferences and other rights, terms and provisions that are substantially the same as the
designations, preferences and other rights, terms and provisions of the Series C Preferred Stock,
except as otherwise set forth herein; and

          WHEREAS, pursuant to Section 4.2.A of the Agreement, the General Partner is authorized to
determine the relative rights and powers of such Partnership Preferred Units in its sole
discretion.

          NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged:

               II. The Agreement is hereby amended by the addition of a new exhibit, entitled
“Exhibit F”, in the form attached hereto, which shall be attached to and made a part of the
Agreement.

               III. Except as specifically amended hereby, the terms, covenants, provisions and conditions of
the Agreement shall remain unmodified and continue in full force and effect and, except as amended
hereby, all of the terms, covenants, provisions and conditions of the Agreement are hereby ratified
and confirmed in all respects.

          IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

 

 

	 	 	 	 	 	 	 
	 	 	SOVRAN HOLDINGS, INC.

GENERAL PARTNER	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Kenneth F. Myszka
 

Kenneth F. Myszka
	 	 
	 

	 	Title:
	 	President and Chief Operating Officer	 	 

 

 

     EXHIBIT F

PARTNERSHIP UNIT DESIGNATION OF THE SERIES C

PARTNERSHIP PREFERRED UNITS OF

SOVRAN ACQUISITION LIMITED PARTNERSHIP

     1). Number of Units and Designation.

          A class of Partnership Preferred Units is hereby designated as “Series C Partnership Preferred
Units,” and the number of Partnership Preferred Units constituting such series shall be 2,800,000.

     2). Definitions.

          For purposes of the Series C Partnership Preferred Units, the following terms shall have the
meanings indicated in this Section 2, and capitalized terms used and not otherwise defined herein
shall have the meanings assigned thereto in the Agreement:

“Agreement” shall mean the Agreement of Limited Partnership of the Partnership, dated as of
June 1, 1995, as amended.

“Call Date” shall have the meaning set forth in paragraph (a) of Section 5 of this
Exhibit F.

“Change of Control” shall mean each occurrence of any of the following:

	 	(i)	 	the acquisition, directly or indirectly, by any individual or
entity or group (as such term is used in Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”) of beneficial ownership (as
defined in Rule 13d-3 under the Exchange Act, except that such individual or
entity shall be deemed to have beneficial ownership of all shares that any such
individual or entity has the right to acquire, whether such right is exercisable
immediately or only after passage of time) of more than 25% of the voting power,
under ordinary circumstances, to elect directors of Sovran or more than 25% of
the equity interests in the Partnership;
	 
	 	(ii)	 	(A) Sovran consolidates with or merges into another entity or
Sovran or the Partnership conveys, transfers, or leases outside the ordinary
course of business all or substantially all of its assets in one or a series of
transactions during an 18-month period (including, but not limited to, real
property investments) to any individual or entity, or (B) any entity
consolidates with or merges into Sovran which, in the case of a merger or
consolidation under (A) or (B) is pursuant to a transaction in which (x) the
outstanding Common Stock is reclassified or changed into or exchanged for cash,
securities or other property or (y) the merger or consolidation of Sovran with
or into another entity in a transaction in which Sovran is not the surviving
entity or in which more than 50% of the voting securities of Sovran is
transferred; provided, however, that the events described in this clause (ii)
shall not be deemed to be a Change of Control if the sole purpose and effect of
such event is that Sovran is seeking to

 

 

	 	 	 	change its domicile or to change its
form of organization from a corporation to a statutory business trust; or
	 
	 	(iii)	 	other than with respect to the election, resignation or
replacement of any director of Sovran designated, appointed or elected by the
holders of any outstanding series of preferred stock of Sovran (each a
“Preferred Director”), during any period of two (2) consecutive years,
individuals who at the beginning of such period constituted the Board of
Directors (together with any new director whose election by such Board of
Directors or whose nomination for election by the stockholders of Sovran was
approved by a vote of a majority of the directors of Sovran (excluding Preferred
Directors) then still in office who were either directors of Sovran at the
beginning of such period, or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board of Directors then in office.

“Common Stock” shall mean the Common Stock, $0.01 par value per share, of Sovran or such
            shares of Sovran’s capital stock into which outstanding shares of Common Stock shall be
reclassified.

“Distribution Payment Date” shall mean any date on which cash dividends are paid on all
outstanding shares of the Series C Preferred Stock.

“Junior Partnership Units” shall have the meaning set forth in paragraph (c) of Section 9 of
this Exhibit F.

“Parity Partnership Units” shall have the meaning set forth in paragraph (b) of Section 9 of
this Exhibit F.

“Partnership” shall mean Sovran Acquisition Limited Partnership, a Delaware limited
partnership.

“Partnership Common Units” shall mean a fractional, undivided share of the Partnership
Interests of all Partners issued pursuant to Section 4.1 of the Agreement.

“Repurchase Date “ shall have the meaning set forth in paragraph (a) of Section 6 of this
Exhibit F.

“Senior Partnership Units” shall have the meaning set forth in paragraph (a) of
Section 9 of this Exhibit F.

“Series C Articles Supplementary” means the Articles Supplementary to the Amended and
restated Articles of Incorporation of Sovran, dated July 2, 2002 designating the Series C
Preferred Stock.

“Series C Partnership Preferred Unit” means a Partnership Preferred Unit with the
designations, preferences and relative, participating, optional or other special rights,
powers and duties as are set forth in this Exhibit F. It is the intention of the
General Partner that each Series C Partnership Preferred Unit shall be substantially the
economic equivalent of one share of Series C Preferred Stock.

 

 

“Series C Preferred Stock” means the Series C Convertible Cumulative Preferred Stock, par
value $0.01 per share, of Sovran, with the preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends, qualifications and terms and conditions
of redemption set forth in the Series C Articles Supplementary.

     3). Distributions.

          On every Distribution Payment Date, the holders of Series C Partnership Preferred Units shall
be entitled to receive distributions payable in cash in an amount per Series C Partnership
Preferred Unit equal to the per share dividend payable on the Series C Preferred Stock on such
Distribution Payment Date. Each such distribution shall be payable to the holders of record of the
Series C Partnership Preferred Units, as they appear on the records of the Partnership at the close
of business on the record date for the dividend payable with respect to the Series C Preferred
Stock on such Distribution Payment Date. Holders of Series C Partnership Preferred Units shall not
be entitled to any distributions on the Series C Partnership Preferred Units, whether payable in
cash, property or stock, except as provided herein.

     4). Liquidation Preference.

          (a) In the event of any liquidation, dissolution or winding up of the Partnership, whether
voluntary or involuntary, before any payment or distribution of the Partnership (whether capital,
surplus or otherwise) shall be made to or set apart for the holder of Junior Partnership Units, the
holders of Series C Partnership Preferred Units shall be entitled to receive the greater of: (x)
Twenty-Five Dollars($25.00) per Series C Partnership Unit, plus an amount per Series C Partnership
Preferred Unit equal to all dividends (whether or not declared) accumulated, accrued and unpaid on
one share of Series C Preferred Stock to the date of final distribution to such holders; or (y) the
amount per Series C Partnership Preferred Unit a holder would receive if such holder converted his
or her Series C Partnership Preferred Units into Partnership Common Units immediately prior to such
liquidation, dissolution or winding-up (the “Liquidation Preference”); but such holders shall not
be entitled to any further payment. Until the holders of the Series C Partnership Preferred Units
have been paid the Liquidation Preference in full, no payment shall be made to any holder of Junior
Partnership Units upon the liquidation, dissolution or winding up of the Partnership. If, upon any
liquidation, dissolution or winding up of the Partnership, the assets of the Partnership, or
proceeds thereof, distributable among the holders of Series C Partnership Preferred Units shall be
insufficient to pay in full the preferential amount aforesaid and liquidating payments on any
Parity Partnership Units, then such assets, or the proceeds thereof, shall be distributed among the
holders of Series C Partnership Preferred Units and any such Parity Partnership Units ratably in
the same proportion as the respective amounts that would be payable on such Series C Partnership
Preferred Units and any such other Parity Partnership Units if all amounts payable thereon were
paid in full. For the purposes of this Section 4, the occurrence of an event described in
paragraph (ii) of the definition of Change of Control shall be deemed a liquidation, dissolution or
winding up, voluntary or involuntary, of the Partnership, unless waived in writing by a majority in
interest of the holders of the Series C Partnership Preferred Units.

          (b) Upon any liquidation, dissolution or winding up of the Partnership, after payment shall
have been made in full to the holders of Series C Partnership Preferred Units and any Parity
Partnership Units, as provided in this Section 4, any other series or class or classes of Junior
Partnership

 

 

Units shall, subject to the respective terms thereof, be entitled to receive any and
all assets remaining to be paid or distributed, and the holders of the Series C Partnership
Preferred Units and any Parity Partnership Units shall not be entitled to share therein.

     5). Redemption.

          Series C Partnership Preferred Units shall be redeemable by the Partnership as follows:

          (a) At any time that Sovran exercised its rights to redeem all or any of the shares of Series
C Preferred Stock, the General Partner shall cause the Partnership to redeem an equal number of
Series C Partnership Preferred Units, at a redemption price per Series C Partnership Preferred Unit
equal to the same price paid by Sovran to redeem the Series C Preferred Stock, and such price shall
be paid in the same manner as paid by Sovran for the Series C Preferred Stock redeemed on the same
date as the date of redemption of the Series C Preferred Stock (the “Call Date”), in the manner set
forth herein; provided, however, that in the event of a redemption of Series C Partnership
Preferred Units, if the Call Date occurs after a dividend record date for the Series C Preferred
Stock and on or prior to the related Distribution Payment Date, the distribution payable on such
Distribution Payment Date in respect of such Series C Partnership Preferred Units called for
redemption shall be payable on such Distribution Payment Date to the holders of record of such
Series C Partnership Preferred Units on the applicable dividend record date, and shall not be
payable as part of the redemption price for such Series C Partnership Preferred Units.

          (b) If the Partnership shall redeem Series C Partnership Preferred Units pursuant to paragraph
(a) of this Section 5, from and after the Call Date (unless the Partnership shall fail to make
available the amount of cash or other forms of consideration necessary to effect such redemption),
(i) except for payment of the redemption price, the Partnership shall not make any further
distributions on the Series C Partnership Preferred Units so called for redemption, (ii) said units
shall no longer be deemed to be outstanding, and (iii) all rights of the holders thereof as holders
of Series C Partnership Preferred Units of the Partnership shall cease except the rights to receive
the cash payable upon such redemption, without interest thereon; provided, however, that if a Call
Date occurs after a dividend record date for the Series C Preferred Stock and on or prior to the
related Distribution Payment Date, the full distribution payable on such Distribution Payment Date
in respect of such Series C Partnership Preferred Units called for redemption shall be payable on
such Distribution Payment Date to the holders of record of such Series C Partnership Preferred
Units on the applicable dividend record date notwithstanding the prior redemption of such Series C
Partnership Preferred Units. No interest shall accrue for the benefit of the holders of Series C
Partnership Preferred Units to be redeemed on any cash set aside by the Partnership.

     6). Repurchase

          Series C Partnership Preferred Units shall be repurchased by the Partnership if Sovran is
required to repurchase any of the shares of Series C Preferred Stock pursuant to the terms of the
Series C Articles Supplementary.

          (a) At the time that Sovran repurchases any of the shares of Series C Preferred Stock, the
General Partner shall cause the Partnership to repurchase an equal number of Series C Partnership
Preferred Units, at a price per Series C Partnership Preferred Unit equal to the repurchase price
specified in the Series 

 

 

C
Articles Supplementary for the shares of Series C Preferred Stock, and
such price shall be paid in the same manner as paid by Sovran for the Series C Preferred Stock
repurchased on the same date as the date of repurchase of the Series C Preferred Stock (the
“Repurchase Date”), in the manner set forth herein; provided, however, that in the event of a
repurchase of Series C Partnership Preferred Units, if the Repurchase Date occurs after a dividend
record date for the Series C Preferred Stock and on or prior to the related Distribution Payment
Date, the distribution payable on such Distribution Payment Date in respect of such Series C
Partnership Preferred Units to be repurchased shall be payable on such Distribution Payment Date to
the holders of record of such Series C Partnership Preferred Units on the applicable dividend
record date, and shall not be payable as part of the Repurchase Price for such Series C Partnership
Preferred Units.

          (b) If the Partnership shall repurchase Series C Partnership Preferred Units pursuant to
paragraph (a) of this Section 6, from and after the Repurchase Date (unless the Partnership shall
fail to make available the amount of cash or other forms of consideration necessary to effect such
redemption), (i) except for payment of the repurchase price, the Partnership shall not make any
further distributions on the Series C Partnership Preferred Units repurchased, (ii) said units
shall no longer be deemed to be outstanding, and (iii) all rights of the holders thereof as holders
of Series C Partnership Preferred Units of the Partnership shall cease except the rights to receive
the cash payable upon such repurchase, without interest thereon; provided, however, that if a
Repurchase Date occurs after a dividend record date for the Series C Preferred Stock and on or
prior to the related Distribution Payment Date, the full distribution payable on such Distribution
Payment Date in respect of such Series C Partnership Preferred Units to be repurchased shall be
payable on such Distribution Payment Date to the holders of record of such Series C Partnership
Preferred Units on the applicable dividend record date notwithstanding the prior repurchase of such
Series C Partnership Preferred Units. No interest shall accrue for the benefit of the holders of
Series C Partnership Preferred Units to be repurchased on any cash set aside by the Partnership.

     7). Status of Reacquired Units.

          All Series C Partnership Preferred Units which shall have been issued and reacquired in any
manner by the Partnership shall be deemed cancelled.

     8). Conversion.

          Series C Partnership Preferred Units shall be convertible as follows:

          (a) Upon any conversion of shares of Series C Preferred Stock into shares of Common Stock, the
General Partner shall cause a number of Series C Partnership Preferred Units equal to the number of
such converted shares of Series C Preferred Stock to be converted by the holders thereof into
Partnership Units. The conversion ratio in effect from time to time for the conversion of Series C
Partnership Preferred Units into Partnership Units pursuant to this Section 8 shall at all times be
equal to, and shall be automatically adjusted as necessary to reflect, the conversion ratio in
effect from time to time for the conversion of Series C Preferred Stock into Common Stock.

          (b) In the event of a conversion of any Series C Partnership Preferred Units, the Partnership
shall make a cash payment to the holder thereof equal to the cash payment required to be made by
Sovran to the holder of the shares of Series C Preferred Stock the conversion of which required the

 

 

conversion of such Series C Partnership Preferred Units. Holders of Series C Partnership Preferred
Units at the close of business on a distribution payment record date shall be entitled to receive
the distribution payable on such units on the corresponding Distribution Payment Date
notwithstanding the conversion thereof following such distribution payment record date and prior to
such Distribution Payment Date. Except as provided above, the Partnership shall make no payment or
allowance for unpaid distributions on converted units or for distributions on the Partnership Units
issued upon such conversion. Each conversion of Series C Partnership Preferred Units into
Partnership Units shall be deemed to have been effected at the same time and date that the
corresponding conversion of Series C Preferred Stock into Common Stock is deemed to have been
effected.

          (c) No fractional Partnership Units shall be issued upon conversion of Series C Partnership
Preferred Units. Instead of any fractional Partnership Units that would otherwise be deliverable
upon the conversion of Series C Partnership Preferred Units, the Partnership shall pay to the
holder of such converted units an amount in cash equal to the cash payable to a holder of an
equivalent number of converted shares of Series C Preferred Stock in lieu of fractional shares of
Common Stock.

          (d) The Partnership will pay any and all documentary stamp or similar issue or transfer taxes
payable in respect of (i) the issue or delivery of Partnership Units or other securities or
property on conversion or redemption of Series C Partnership Preferred Units pursuant hereto, and
(ii) the issue or delivery of Common Stock or other securities or property on conversion or
redemption of Series C Preferred Stock pursuant to the terms hereof.

     9). Ranking.

          Any class or series of Partnership Units of the Partnership shall be deemed to rank:

          (a) prior or senior to the Series C Partnership Preferred Units, as to the payment of
distributions and as to distributions of assets upon liquidation, dissolution or winding up, if the
holders of such class or series shall be entitled to the receipt of distributions and of amounts
distributable upon liquidation, dissolution or winding up, as the case may be, in preference or
priority to the holders of Series C Partnership Preferred Units (“Senior Partnership Units”);

          (b) on a parity with the Series C Partnership Preferred Units, as to the payment of
distributions and as to distribution of assets upon liquidation, dissolution or winding up, whether
or not the distribution rates, distribution payment dates or redemption or liquidation prices per
unit or other denomination thereof be different from those of the Series C Partnership Preferred
Units if the holders of such class or series of Partnership Units and the Series C Partnership
Preferred Units shall be entitled to the receipt of distributions and of amounts distributable upon
liquidation, dissolution or winding up in proportion to their respective amounts of accrued and
unpaid distributions per unit or other denomination or liquidation preferences, without preference
or priority one over the other (the Partnership Units referred to in this paragraph being
hereinafter referred to as “Parity Partnership Units”), and

          (c) junior to the Series C Partnership Preferred Units, as to the payment of distributions and
as to the distribution of assets upon liquidation, dissolution or winding up, if the holders of
Series C Partnership Preferred Units shall be entitled to receipt of distributions or of amounts
distributable upon

 

 

\

liquidation, dissolution or winding up, as the case may be, in preference or
priority to the holders of such class or series of Partnership Units (the Partnership Units
referred to in this paragraph being hereinafter referred to, collectively, as “Junior Partnership
Units”).

          The Series B Partnership Preferred Units are Parity Partnership Units and the Series A
Partnership Preferred Units are Junior Partnership Units.

     10). Special Allocations.

          (a) Gross income and, if necessary, gain shall be allocated to the holders of Series C
Partnership Preferred Units for any Fiscal Year (and, if necessary, subsequent Fiscal Years) to the
extent that the holders of Series C Partnership Preferred Units receive a distribution on any
Series C Partnership Preferred Units (other than an amount included in any redemption pursuant to
Section 5 hereof) with respect to such Fiscal Year.

          (b) If any Series C Partnership Preferred Units are redeemed pursuant to Section 5 hereof, for
the Fiscal Year that includes such redemption (and, if necessary, for subsequent Fiscal Years) (a)
gross income and gain (in such relative proportions as the General Partner in its discretion shall
determine) shall be allocated to the holders of Series C Partnership Preferred Units to the extent
that the redemption amounts paid or payable with respect to the Series C Partnership Preferred
Units so redeemed exceeds the aggregate Capital Contributions (net of liabilities assumed or taken
subject to by the Partnership) per Series C Partnership Preferred Unit allocable to the Series C
Partnership Preferred Units so redeemed and (b) deductions and losses (in such relative proportions
as the General Partner in its discretion shall determine) shall be allocated to the holders of
Series C Partnership Preferred Units to the extent that the aggregate Capital Contributions (net of
liabilities assumed or taken subject to by the Partnership) per Series C Partnership Preferred Unit
allocable to the Series C Partnership Preferred Units so redeemed exceeds the redemption amount
paid or payable with respect to the Series C Partnership Preferred Units so redeemed.

     11). Restrictions on Ownership.

          The Series C Partnership Preferred Units shall be owned and held solely by Sovran or the
General Partner.

     12). Vote Required for Amendment, Merger, Consolidation, etc.

          So long as any Series C Partnership Preferred Units are outstanding, in addition to any other
vote or consent required by law or by the Agreement, the affirmative vote of at least 66-2/3% of
the holders of the Series C Partnership Preferred Units, given in person or by proxy, either in
writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for
effecting or validating:

     (a) Any amendment, alteration or repeal of any of the provisions of the Agreement, or
this Exhibit F thereto, that materially and adversely affects the powers, rights or
preferences of the holders of the shares of Series C Partnership Preferred Units;
provided, however, that the amendment of the provisions of the Agreement so
as to authorize or create or to increase the authorized amount of, any Junior Partnership
Units, or other Units that are not senior in any respect

 

 

to the Series C Partnership
Preferred Units or any Parity Partnership Units shall not be deemed to materially adversely
affect the powers, rights or preferences of the holders of Series C Partnership Preferred
Units; or

     (b) An exchange that affects the Series C Partnership Preferred Units, a consolidation
with or merger of the Partnership into another entity, or a consolidation with or merger of
another entity into the Partnership, unless in each such case each Series C Partnership
Preferred Unit (i) shall remain outstanding without a material and adverse change to its
terms and rights or (ii) shall be converted into or exchanged for convertible preferred
securities of the surviving entity having preferences, conversion or other rights, powers,
restrictions, limitations as to distributions, qualifications and terms or conditions of
redemption thereof identical to that of a Series C Partnership Preferred Unit (except for
changes that, do not materially and adversely affect the holders of the Series C Partnership
Preferred Units); or

     (c) The authorization, reclassification or creation of, or the increase in the
authorized amount of, any Units of any series, or any security convertible into Units of any
series, ranking prior to the Series C Partnership Preferred Units in the distribution of
assets on any liquidation, dissolution or winding up of the Partnership or in the payment of
distributions; or

     (d) Any increase in the authorized amount of Series C Partnership Preferred Units or
decrease in the authorized amount of Series C Partnership Preferred Units below the number
of Series C Partnership Preferred Units then issued and outstanding;

provided, however, that no such vote of the holders of Series C Partnership Preferred Units
shall be required if, at or prior to the time when such amendment, alteration or repeal is to take
effect, or when the issuance of any such prior Units or convertible security is to be made, as the
case may be, provision is made for the redemption or repurchase of all Series C Partnership
Preferred Units at the time outstanding to the extent such redemption or repurchase is authorized
by Section 5 or 6 hereof.

          For purposes of the foregoing provisions of this Section 12, each Series C Partnership
Preferred Unit shall have one (1) vote, except that when any other series of Preferred Units shall
have the right to vote with the Series C Partnership Preferred Units as a single class on any
matter, then the Series C Partnership Preferred Units and such other series shall have with respect
to such matters one (1) vote per $25.00 of stated value. Except as otherwise required by
applicable law or as set forth herein, the Series C Partnership Preferred Units shall not have any
relative, participating, optional or voting rights and powers other than as set forth herein, and
the consent of the holders thereof shall not be required for the taking of any Partnership action.

     13). General

          (a) The ownership of Series C Partnership Preferred Units may (but need not, in the sole and
absolute discretion of the General Partner) be evidenced by one or more certificates. The General
Partner shall amend Exhibit A to the Agreement from time to time to the extent necessary to
reflect accurately the issuance of, and subsequent conversion, redemption, or any other event
having an effect on the ownership of, Series C Partnership Preferred Units.

 

 

          (b) The rights of the General Partner or Sovran, in their capacity as holder of the Series C
Partnership Preferred Units, are in addition to and not in limitation of any other rights or
authority of the General Partner or Sovran, respectively, in any other capacity under the Agreement
or applicable law. In addition, nothing contained herein shall be deemed to limit or otherwise
restrict the authority of the General Partner or Sovran under the Agreement, other than in their
capacity as holders of the Series C Partnership Preferred Units.

     14). Economic Equivalency.

          Notwithstanding any other provision of this Exhibit F, the shares of Series C
Preferred Stock and the Series C Partnership Preferred Units are intended to be substantially
equivalent in distributions and other payments. In the event that any provision of this
Exhibit F would result in a different distribution or other payments being made to the
holder of a Series C Partnership Preferred Units than to a holder of a share of Series C Preferred
Stock, this Exhibit F shall be deemed automatically amended to conform to the terms of the
Series C Articles Supplementary with respect to such distribution or other payment.

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