EXHIBIT 10.3
STORAGE USA, INC.
EXECUTIVE OFFICER INDEMNIFICATION AGREEMENT
This Agreement made and entered effective August 1, 2001 (the
"Agreement"), by and between Storage USA, Inc., a Tennessee corporation (the
"Company," which term shall include, where appropriate, any Entity (as
hereinafter defined) controlled directly or indirectly by the Company) and
__________________ ("Indemnitee"):
WHEREAS, it is essential to the Company that it be able to retain and
attract as officers the most capable persons available;
WHEREAS, increased corporate litigation has subjected officers to
litigation risks and expenses, and the limitations on the availability and
effectiveness of directors and officers liability insurance have made it more
important for the Company to provide effective indemnification in order to
attract and retain such persons and, in particular, to insure that they are not
distracted by such matters in performing their duties in connection with
significant transactions involving the Company;
WHEREAS, the Company's Amended and Restated Charter, as amended (the
"Charter") requires it to indemnify its directors to the fullest extent
permitted by law, thereby permitting it to enter into indemnification
agreements;
WHEREAS, the Company desires to provide Indemnitee with specific
contractual assurance of Indemnitee's rights to full indemnification against
litigation risks and expenses relating to significant transactions to the
fullest extent permitted by law (regardless, among other things, of any
amendment to or revocation of the Charter or any change in the ownership of the
Company or the composition of its Board of Directors); and
WHEREAS, Indemnitee is relying upon the rights afforded under this
Agreement in continuing as an officer of the Company.
NOW, THEREFORE, in consideration of the promises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:
1. Definitions.
(a) "Corporate Status" describes the status of a person
who is serving or has served (i) as an officer of the Company,
(ii) in any capacity with respect to any employee benefit plan
of the Company, or (iii) as a director, partner, trustee,
officer, employee, or agent of any other Entity at the request
of the Company. For purposes of subsection (iii) of this
Section 1(a), if Indemnitee is serving or has served as a
director, partner, trustee, officer, employee or agent of a
Subsidiary, Indemnitee shall be deemed to be serving or to
have served at the request of the Company.
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(b) "Entity" shall mean any corporation, partnership,
limited liability company, joint venture, trust, foundation,
association, organization or other legal entity.
(c) "Expenses" shall mean all reasonable fees, costs and
expenses incurred by Indemnitee in connection with any
Proceeding (as defined below), including, without limitation,
attorneys' fees, disbursements and retainers (including,
without limitation, any such fees, disbursements and retainers
incurred by Indemnitee pursuant to Sections 9 and 10(c) of
this Agreement), fees and disbursements of expert witnesses,
private investigators and professional advisors (including,
without limitation, accountants and investment bankers), court
costs, transcript costs, fees of experts, travel expenses,
duplicating, printing and binding costs, telephone and fax
transmission charges, postage, delivery services, secretarial
services, and other disbursements and expenses.
(d) "Indemnifiable Expenses," "Indemnifiable Liabilities"
and "Indemnifiable Amounts" shall have the meanings ascribed
to those terms in Section 2(a) below.
(e) "Liabilities" shall mean judgments, damages,
liabilities, losses, penalties, excise taxes, fines and
amounts paid in settlement.
(f) "Proceeding" shall mean any threatened, pending or
completed claim, action, suit, arbitration, alternate dispute
resolution process, investigation, informal inquiry by a
government agency, administrative hearing, appeal, or any
other proceeding, whether civil, criminal, administrative,
arbitrative or investigative, whether formal or informal,
including a proceeding initiated by Indemnitee pursuant to
Section 9 of this Agreement to enforce Indemnitee's rights
hereunder, which arises out of or is in any way related to any
actual or potential Significant Transaction.
(g) "Significant Transaction" shall mean any transaction
or series of related transactions:
(i) pursuant to which any "person", as
that term is used in Section 13(d) and Section
14(d)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), becomes a beneficial
owner (as defined in Rule 13d-3 under the Exchange
Act or any successor rule or regulation), directly or
indirectly, of securities of the Company representing
10% or more of the combined voting power of the
Company's then outstanding securities entitled to
vote generally in the election of directors,
regardless of whether or not the Board shall have
approved the acquisition of such securities by the
acquiring person;
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(ii) pursuant to which the Company is
merged, consolidated or reorganized into or with
another corporation or other legal person, or
securities of the Company are exchanged for
securities of another corporation or other legal
person, and immediately after such merger,
consolidation, reorganization or exchange less than
90% of the combined voting power of the
then-outstanding securities of such corporation or
person immediately after such transaction are held,
directly or indirectly, in the aggregate by the
holders of securities entitled to vote generally in
the election of directors of the Company immediately
prior to such transaction;
(iii) pursuant to which the Company sells
all or substantially all of its assets to any other
corporation or other legal person and less than 90%
of the combined voting power of the then-outstanding
securities of such corporation or person immediately
after such sale or sales are held, directly or
indirectly, in the aggregate by the holders of
securities entitled to vote generally in the election
of directors of the Company immediately prior to such
sale;
(iv) pursuant to which the Company and
its affiliates, other than in the ordinary course of
business, shall sell or transfer to a non-affiliate
business operations or assets that generated a
substantial portion of the consolidated revenues of
the Company and its subsidiaries immediately prior
thereto;
(v) pursuant to which the Company would
be liquidated or dissolved;
(vi) pursuant to which the Company
ceases to be the general partner of SUSA Partnership,
L.P. (the "Partnership") or in any transaction or a
series of transactions sells or transfers limited
partnership interests in the Partnership owned by the
Company to a third party constituting 10% or more of
the limited partnership interests in the Partnership
(calculated based on the fair market value of such
interests);
(vii) involving an "affiliate" of the
Company, as that term is defined in Rule 12b-2
promulgated under the Exchange Act; or
(viii) that would have substantially the
effect of the transactions specified in any of the
preceding clauses in this sentence.
(h) "Subsidiary" shall mean any corporation,
partnership, limited liability company, joint venture, trust
or other Entity of which the Company owns (either directly or
through or together with another Subsidiary of the Company)
either (i) a general partner, managing member or other similar
interest or (ii) (A)
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50% or more of the voting power of the voting capital equity
interests of such corporation, partnership, limited liability
company, joint venture or other Entity, or (B) 50% or more of
the outstanding voting capital stock or other voting equity
interests of such corporation, partnership, limited liability
company, joint venture or other Entity.
2. Agreement to Indemnify. The Company agrees to indemnify
Indemnitee as follows:
(a) Proceedings Other Than By or In the Right of the
Company. Subject to the exceptions contained in Section 3(a)
below, if Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than a Proceeding by or
in the right of the Company) by reason of Indemnitee's
Corporate Status, Indemnitee shall be indemnified by the
Company against all Expenses and Liabilities incurred or paid
by Indemnitee in connection with such Proceeding (referred to
herein as "Indemnifiable Expenses" and "Indemnifiable
Liabilities," respectively, and collectively as "Indemnifiable
Amounts").
(b) Proceedings By or In the Right of the Company.
Subject to the exceptions contained in Section 3(b) below, if
Indemnitee was or is a party or is threatened to be made a
party to any Proceeding by or in the right of the Company by
reason of Indemnitee's Corporate Status, Indemnitee shall be
indemnified by the Company against all Indemnifiable Amounts.
(c) Presumption Regarding Standard of Care. In making any
determination required to be made under Tennessee law with
respect to entitlement to indemnification hereunder, there
shall be a rebuttable presumption that Indemnitee is entitled
to indemnification under this Agreement if Indemnitee
submitted a request therefor in accordance with Section 5 of
this Agreement, and the Company shall have the burden of proof
to overcome that presumption in connection with the making by
any person, persons or Entity of any determination contrary to
that presumption.
3. Exceptions to Indemnification. Indemnitee shall be entitled to
indemnification under Sections 2(a) and 2(b) above in all circumstances and with
respect to all claims, issues and matters referred to therein other than with
respect to any specific claim, issue or matter involved in the Proceeding out of
which Indemnitee's claim for indemnification has arisen, as follows:
(a) Proceedings Other Than By or In the Right of the
Company. If indemnification is requested under Section 2(a) in
a Proceeding other than by or in the right of the Company and
it has been finally adjudicated by a court of competent
jurisdiction that, in connection with such specific claim,
issue or matter, Indemnitee (i) engaged in actions or
omissions not in good faith or which involve intentional
misconduct or a knowing violation of law; (ii) failed to act
in a manner Indemnitee reasonably believed to be in the best
interests of the Company
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in the case of conduct in Indemnitee's official capacity with
the Company or at least reasonably believed to be not opposed
to the best interests of the Company in all other cases; (iii)
with respect to any criminal Proceeding, had reasonable cause
to believe that Indemnitee's conduct was unlawful; (iv)
improperly received a personal benefit; or (v) breached his or
her duty of loyalty to the Company or its shareholders;
Indemnitee shall not be entitled to payment of Indemnifiable
Amounts hereunder.
(b) Proceedings By or In the Right of the Company. If
indemnification is requested under Section 2(b) in a
Proceeding by or in the right of the Company and
(i) it has been finally adjudicated by a
court of competent jurisdiction that, in
connection with such specific claim, issue
or matter, Indemnitee (A) engaged in actions
or omissions not in good faith or which
involve intentional misconduct or a knowing
violation of law; (B) failed to act in a
manner Indemnitee reasonably believed to be
in the best interests of the Company in the
case of conduct in Indemnitee's official
capacity with the Company or at least
reasonably believed to be not opposed to the
best interests of the Company in all other
cases; (C) with respect to any criminal
Proceeding, had reasonable cause to believe
that Indemnitee's conduct was unlawful; (D)
improperly received a personal benefit; or
(E) breached his or her duty of loyalty to
the Company or its shareholders; Indemnitee
shall not be entitled to payment of
Indemnifiable Expenses (or any other
Indemnifiable Amounts) hereunder with
respect to such specific claim, issue or
matter; or
(ii) it has been finally adjudicated by a
court of competent jurisdiction that
Indemnitee is liable to the Company with
respect to such specific claim, Indemnitee
shall not be entitled to payment of
Indemnifiable Expenses (or any other
Indemnifiable Amounts) hereunder with
respect to such specific claim, issue or
matter; or
(iii) it has been finally adjudicated by a
court of competent jurisdiction that
Indemnitee is liable to the Company for an
accounting of profits made from the purchase
or sale by Indemnitee of securities of the
Company pursuant to the provisions of
Section 16(b) of the Securities Exchange Act
of 1934, the rules and regulations
promulgated thereunder and amendments
thereto or similar provisions of any
federal, state or local statutory law, or if
Indemnitee agrees by way of settlement or
otherwise to pay any or all of such profits
to the Company, Indemnitee shall not be
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entitled to payment of Indemnifiable
Expenses (or any other Indemnifiable
Amounts) hereunder with respect to such
profits.
(c) Insurance Proceeds. To the extent payment is actually
made to Indemnitee under a valid and collectible insurance
policy in respect of Indemnifiable Amounts in connection with
such specific claim, issue or matter, Indemnitee shall not be
entitled to payment of Indemnifiable Amounts hereunder except
in respect of any excess beyond the amount of payment under
such insurance.
4. Procedure for Payment of Indemnifiable Amounts. Following the
final resolution, without any right of appeal, of a Proceeding, including the
settlement thereof, Indemnitee shall submit to the Company a written request
specifying the Indemnifiable Amounts, if any, for which Indemnitee seeks payment
under Section 2 of this Agreement and the basis for the claim, and affirming
Indemnitee's good faith belief that he has met the standard of conduct required
under Tennessee law to be eligible to receive indemnification. The Company shall
pay such Indemnifiable Amounts to which Indemnitee is entitled to Indemnitee
within sixty (60) calendar days of receipt of the request. At the request of the
Company, Indemnitee shall promptly furnish such documentation and information as
are reasonably available to Indemnitee and necessary to establish that
Indemnitee is entitled to indemnification hereunder.
5. Indemnification for Expenses of a Party Who is Wholly or
Partly Successful. Notwithstanding any other provision of this Agreement, and
without limiting any such provision, to the extent that Indemnitee is, by reason
of Indemnitee's Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, Indemnitee shall be indemnified against all
Expenses reasonably incurred by Indemnitee or on Indemnitee's behalf in
connection therewith. If Indemnitee is not wholly successful in such Proceeding
but is successful, on the merits or otherwise, as to one or more but less than
all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses reasonably incurred by Indemnitee or on
Indemnitee's behalf in connection with each successfully resolved claim, issue
or matter. For purposes of this Agreement, the final termination without any
right of appeal of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, by reason of settlement (except a settlement as
provided in Section 3(b)(iii) hereof), judgment, order or otherwise, shall be
deemed to be a successful result as to such claim, issue or matter. Nothing in
this Section 6 shall be construed to limit any indemnification or Indemnifiable
Amounts to which Indemnitee is otherwise entitled pursuant to this Agreement or
otherwise.
6. Effect of Certain Resolutions. Neither the settlement or
termination of any Proceeding nor the failure of the Company to award
indemnification or to determine that indemnification is payable shall create a
presumption that Indemnitee is not entitled to indemnification hereunder. In
addition, the termination of any Proceeding by judgment, order, or conviction,
except as pursuant to Section 3 hereof, or by settlement or upon a plea of nolo
contendere or its equivalent shall not create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, had reasonable cause to believe that Indemnitee's action
was unlawful.
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7. Agreement to Advance Expenses; Undertaking. The Company shall
advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding, including a Proceeding by or in the right of the Company, in
which Indemnitee is involved by reason of such Indemnitee's Corporate Status
within thirty (30) calendar days after the receipt by the Company of a written
statement from Indemnitee in accordance with Section 8 hereof requesting such
advance or advances from time to time, whether prior to or after final
disposition of such Proceeding. To the extent required by Tennessee law,
Indemnitee hereby undertakes to repay any and all of the amount of Expenses
advanced to Indemnitee if it is finally determined by a court of competent
jurisdiction that Indemnitee is not entitled under this Agreement and applicable
law to indemnification with respect to such Expenses. This undertaking is an
unlimited general obligation of Indemnitee.
8. Procedure for Advance Payment of Expenses. Indemnitee shall
submit to the Company a written request specifying the Indemnifiable Expenses
for which Indemnitee seeks an advancement under Section 7 of this Agreement,
together with documentation evidencing that Indemnitee has incurred such
Indemnifiable Expenses, and affirming Indemnitee's good faith belief that he has
met the standard of conduct required under Tennessee law to be eligible to
receive indemnification.
9. Remedies of Indemnitee.
(a) Right to Petition Court. In the event that Indemnitee
makes a request for payment of Indemnifiable Amounts under
Sections 2 and 4 above or a request for an advancement of
Indemnifiable Expenses under Sections 7 and 8 above and the
Company fails to make such payment or advancement in a timely
manner pursuant to the terms of this Agreement, Indemnitee may
petition the Tennessee Courts (as defined in Section 21
herein) to enforce the Company's obligations under this
Agreement.
(b) Burden of Proof. In any judicial Proceeding brought
under Section 9(a) above, the Company shall have the burden of
proving that Indemnitee is not entitled to payment of
Indemnifiable Amounts hereunder.
(c) Expenses. The Company agrees to reimburse Indemnitee
in full for any Expenses incurred by Indemnitee in connection
with investigating, preparing for, litigating, defending or
settling any Proceeding brought by Indemnitee under Section
9(a) above, or in connection with any claim or counterclaim
brought by the Company in connection therewith, whether or not
Indemnitee is successful in whole or in part in connection
with any such Proceeding.
(d) Failure to Act Not a Defense. The failure of the
Company (including its Board of Directors or any committee
thereof, independent legal counsel, or
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stockholders) to make a determination concerning the
permissibility of the payment of Indemnifiable Amounts or the
advancement of Indemnifiable Expenses under this Agreement
shall not be a defense in any Proceeding brought under Section
9(a) above, and shall not create a presumption that such
payment or advancement is not permissible.
10. Defense of the Underlying Proceeding.
(a) Notice by Indemnitee. Indemnitee agrees to notify the
Company promptly upon being served with any summons, citation,
subpoena, complaint, indictment, information, notice, request
or other document relating to any Proceeding which may result
in the payment of Indemnifiable Amounts or the advancement of
Indemnifiable Expenses hereunder; provided, however, that the
failure to give any such notice shall not disqualify
Indemnitee from the right, or otherwise affect in any manner
any right of Indemnitee, to receive payments of Indemnifiable
Amounts or advancements of Indemnifiable Expenses under this
Agreement unless the Company's ability to defend in such
Proceeding or to obtain proceeds under any insurance policy is
materially and adversely prejudiced thereby, and then only to
the extent the Company is thereby actually prejudiced.
(b) Defense by Company. Subject to the provisions of the
last sentence of this Section 10(b) and of Section 10(c)
below, the Company shall have the right to defend Indemnitee
in any Proceeding which may give rise to the payment of
Indemnifiable Amounts hereunder; provided, however that the
Company shall notify Indemnitee of any such decision to defend
within fifteen (15) calendar days of receipt of notice of any
such Proceeding under Section 10(a) above. The Company shall
not, without the prior written consent of Indemnitee, which
shall not be unreasonably withheld or delayed, consent to the
entry of any judgment against Indemnitee or enter into any
settlement or compromise which includes an admission of fault
of Indemnitee. In connection with any partial or whole release
of the Company from liability in respect of a Proceeding, the
Indemnitee's right to receive indemnification or Indemnifiable
Amounts pursuant to this Agreement or otherwise shall remain
in full force and effect, and any such partial release shall
not prejudice any potential rights of contribution of
Indemnitee against the Company or any third party. In
connection with any partial release of Indemnitee from
liability in respect of a Proceeding, the Indemnitee's right
to receive indemnification or Indemnifiable Amounts pursuant
to this Agreement or otherwise with respect to such unreleased
liability shall remain in full force and effect, and any such
partial release shall not prejudice any potential rights of
contribution of the Company against Indemnitee or any third
party. Indemnitee shall not intentionally agree to any
settlement in any Proceeding as to which indemnification is
available hereunder or which is being defended by the Company
without the prior written consent of the Company, which shall
not be unreasonably withheld or delayed. Indemnitee shall not
intentionally incur any Expense, other than reasonable
Expenses incurred in connection with the exercise of
Indemnitee's rights under Section 10(c) of this Agreement,
without the prior
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written consent of the Company, which shall not be
unreasonably withheld or delayed. This Section 10(b) shall not
apply to a Proceeding brought by Indemnitee under Section 9(a)
above or pursuant to Section 18 below.
(c) Indemnitee's Right to Counsel. Notwithstanding the
provisions of Section 10(b) above, if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee's Corporate
Status, (i) Indemnitee has significant separate defenses or
counterclaims to assert with respect to any issue which are
not consistent with the position of the Company in such
Proceeding, (ii) an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and
the Company, or (iii) if the Company fails to assume the
defense of such Proceeding in a timely manner, all such
Indemnitees shall be entitled to be represented by one
separate legal counsel of their choice at the expense of the
Company, provided that where representation of Indemnitees by
one separate legal counsel may result in a conflict of
interest, each of the Indemnitees shall be entitled to be
represented by separate legal counsel of their choice at the
expense of the Company, and provided further that any such
separate legal counsel employed by Indemnitee pursuant to this
Section 10(c) shall be reasonably acceptable to the Company.
In addition, if the Company fails to comply with any of its
obligations under this Agreement or in the event that the
Company or any affiliate or successor of the Company takes any
action to declare this Agreement void or unenforceable, or
institutes any Proceeding to deny or to recover from
Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel
of Indemnitee's choice, at the expense of the Company, to
represent Indemnitee in connection with any such matter.
(d) Cooperation of Parties. The parties will cooperate
with each other with respect to any Proceeding to which
indemnification is available hereunder, other than a
Proceeding pursuant to Section 9(a) of this Agreement,
including, without limitation, the investigation, preparation,
prosecution and defense of any such Proceeding.
11. Representations and Warranties of the Company. The Company
hereby represents and warrants to Indemnitee as follows:
(a) Authority. The Company has all necessary power and
authority to enter into, and be bound by the terms of, this
Agreement to the fullest extent permitted by law, and the
execution, delivery and performance of the undertakings
contemplated by this Agreement have been duly authorized by
the Company.
(b) Enforceability. This Agreement, when executed and
delivered by the Company in accordance with the provisions
hereof, shall be a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with
its terms to the fullest extent permitted by law, except as
such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium,
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reorganization or similar laws affecting the enforcement of
creditors' rights generally.
12. Insurance. The Company shall, from time to time, make the good
faith determination whether or not it is practicable for the Company to obtain
and maintain a policy or policies of director and officer liability insurance or
similar insurance with a reputable insurance company providing Indemnitee with
coverage for losses from wrongful acts in connection with such Indemnitee's
service as an officer, and to ensure the Company's performance of its
indemnification obligations under this Agreement. For so long as Indemnitee
shall remain an officer of the Company, and if such Indemnitee is no longer an
officer of the Company with respect to any prior service as a director of the
Company, in all policies of director and officer liability insurance, Indemnitee
shall be named as an insured in such a manner as to provide Indemnitee the same
rights and benefits as are accorded to the most favorably insured of the
Company's officers and directors. Notwithstanding the foregoing, the Company
shall have no obligation to obtain or maintain such insurance if the Company
determines in good faith that such insurance is not reasonably available, if the
premium costs for such insurance are disproportionate to the amount of coverage
provided, or if the coverage provided by such insurance is limited by exclusions
so as to provide an insufficient benefit. The Company shall promptly notify
Indemnitee of any good faith determination not to provide or eliminate or reduce
such coverage.
13. Contract Rights Not Exclusive. The rights to payment of
Indemnifiable Amounts and advancement of Indemnifiable Expenses provided by this
Agreement shall be in addition to, but not exclusive of, any other rights which
Indemnitee may have at any time under applicable law, the Company's Charter or
Amended and Restated By-laws, or any other agreement, vote of stockholders or
directors (or a committee of directors), or otherwise, both as to action in
Indemnitee's official capacity and as to action in any other capacity as a
result of Indemnitee's serving as a director of the Company.
14. Successors. This Agreement shall be (a) binding upon all
successors and assigns of the Company (including any transferee of all or a
substantial portion of the business, stock and/or assets of the Company and any
direct or indirect successor by merger or consolidation or otherwise by
operation of law) and (b) binding on and shall inure to the benefit of the
heirs, personal representatives, executors and administrators of Indemnitee.
This Agreement shall continue for the benefit of Indemnitee and such heirs,
personal representatives, executors and administrators after Indemnitee has
ceased to have Corporate Status.
15. Subrogation. In the event of any payment of Indemnifiable
Amounts under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of contribution or recovery of Indemnitee
against other persons, and Indemnitee shall take, at the request of the Company,
all reasonable action necessary to secure such rights, including the execution
of such documents as are necessary to enable the Company to bring suit to
enforce such rights.
16. Change in Law. To the extent that a change in Tennessee law
(whether by statute or judicial decision) shall permit broader indemnification
or advancement of expenses than is
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provided under the terms of the Charter and this Agreement, Indemnitee shall be
entitled to such broader indemnification and advancements, and this Agreement
shall be deemed to be amended to such extent.
17. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Agreement, or any clause
thereof, shall be determined by a court of competent jurisdiction to be illegal,
invalid or unenforceable, in whole or in part, such provision or clause shall be
limited or modified in its application to the minimum extent necessary to make
such provision or clause valid, legal and enforceable, and the remaining
provisions and clauses of this Agreement shall remain fully enforceable and
binding on the parties.
18. Indemnitee as Plaintiff. Except as provided in Section 9(c) of
this Agreement and in the next sentence, Indemnitee shall not be entitled to
payment of Indemnifiable Amounts or advancement of Indemnifiable Expenses with
respect to any Proceeding brought by Indemnitee against the Company, any Entity
which it controls, any then current or former director, officer or employee
thereof, or any third party, unless the Board of Directors of the Company has
consented to the initiation of such Proceeding. This Section shall not apply to
counterclaims or affirmative defenses asserted by Indemnitee in any Proceeding
brought against Indemnitee.
19. Modifications and Waiver. Except as provided in Section 16
above with respect to changes in Tennessee law which broaden the right of
Indemnitee to be indemnified by the Company, no supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by each
of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions of this
Agreement (whether or not similar), nor shall such waiver constitute a
continuing waiver.
20. General Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given (a) when delivered by hand, (b) when transmitted by facsimile and
receipt is acknowledged, or (c) if mailed by certified or registered mail with
postage prepaid, on the third business day after the date on which it is so
mailed:
(i) If to Indemnitee, to:
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(ii) If to the Company, to:
Storage USA, Inc.
Attn: General Counsel
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or to such other address as may have been furnished in the same manner by any
party to the others.
21. Governing Law; Consent to Jurisdiction; Service of Process.
This Agreement shall be governed by and construed in accordance with the laws of
the State of Tennessee without regard to its rules of conflict of laws. For the
purposes of this Agreement only, each of the Company and Indemnitee hereby
irrevocably and unconditionally consents to submit to the exclusive jurisdiction
of the state courts of the State of Tennessee and the courts of the United
States of America located in the State of Tennessee (collectively, the
"Tennessee Courts") for any litigation arising out of or relating to this
Agreement and the transactions contemplated hereby (and agrees not to commence
any litigation relating thereto except in such courts), waives any objection to
the laying of venue of any such litigation in the Tennessee Courts and agrees
not to plead or claim in any Tennessee Court that such litigation brought
therein has been brought in an inconvenient forum. Each of the parties hereto
agrees, for the purposes of this Agreement only (a) to the extent such party is
not otherwise subject to service of process in the State of Tennessee, to
appoint and maintain an agent in the State of Tennessee as such party's agent
for acceptance of legal process, and (b) that service of process may also be
made on such party by prepaid certified mail with a proof of mailing receipt
validated by the United States Postal Service constituting evidence of valid
service. Service made pursuant to (a) or (b) above shall have the same legal
force and effect as if served upon such party personally within the State of
Tennessee.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first written above.
STORAGE USA, INC.
By
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Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: Chairman of the Board, CEO
and President
INDEMNITEE
By
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Name:
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