Public Storage 2015 Annual Report Download - page 134

Download and view the complete annual report

Please find page 134 of the 2015 Public Storage annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144


2SWLRQHHDQGDWWKHWLPHVXFKVKDUHVRI&RPPRQ6WRFNDUHGHOLYHUHGWKHEURNHUWHQGHUVWRWKH7UXVWFDVKRUFDVK
HTXLYDOHQWVDFFHSWDEOHWRWKH7UXVWHTXDOWRWKH2SWLRQ3ULFHSOXVWKHDPRXQWLIDQ\RIIHGHUDODQGRURWKHUWD[HV
ZKLFKWKH7UXVWPD\LQLWVMXGJPHQWEHUHTXLUHGWRZLWKKROGZLWKUHVSHFWWRWKHH[HUFLVHRIWKH2SWLRQ$QDWWHPSWWR
H[HUFLVHWKH2SWLRQJUDQWHGRWKHUWKDQDVVHWIRUWKDERYHVKDOOEHLQYDOLGDQGRIQRIRUFHRUHIIHFW3URPSWO\DIWHUWKH
H[HUFLVHRIWKH2SWLRQDQGWKHSD\PHQWLQIXOORIWKH2SWLRQ3ULFHRIWKHVKDUHVRI&RPPRQ6WRFNFRYHUHGWKHUHE\WKH
2SWLRQHHVKDOOEHHQWLWOHGWRWKHLVVXDQFHRID&RPPRQ6WRFNFHUWLILFDWHRUFHUWLILFDWHVHYLGHQFLQJWKH2SWLRQHH¶V
RZQHUVKLSRIVXFKVKDUHV
5. PARACHUTE LIMITATIONS.
1RWZLWKVWDQGLQJDQ\RWKHUSURYLVLRQRIWKLV2SWLRQ$JUHHPHQWRURIDQ\RWKHUDJUHHPHQWFRQWUDFWRU
XQGHUVWDQGLQJKHUHWRIRUHRUKHUHDIWHUHQWHUHGLQWRE\D2SWLRQHHZLWKWKH7UXVWRUDQ\6XEVLGLDU\H[FHSWDQDJUHHPHQW
FRQWUDFWRUXQGHUVWDQGLQJKHUHDIWHUHQWHUHGLQWRWKDWH[SUHVVO\DGGUHVVHV6HFWLRQ*RU6HFWLRQRIWKH&RGHDQG
PRGLILHVRUH[FOXGHVDSSOLFDWLRQRIWKLVSDUDJUDSKDQ³2WKHU$JUHHPHQW´DQGQRWZLWKVWDQGLQJDQ\IRUPDORULQIRUPDO
SODQRURWKHUDUUDQJHPHQWIRUWKHGLUHFWRULQGLUHFWSURYLVLRQRIFRPSHQVDWLRQWRWKH2SWLRQHHLQFOXGLQJJURXSVRU
FODVVHVRISDUWLFLSDQWVRUEHQHILFLDULHVRIZKLFKWKH2SWLRQHHLVDPHPEHUZKHWKHURUQRWVXFKFRPSHQVDWLRQLV
GHIHUUHGLVLQFDVKRULVLQWKHIRUPRIDEHQHILWWRRUIRUWKH2SWLRQHHD³%HQHILW$UUDQJHPHQW´LIWKH2SWLRQHHLVD
³GLVTXDOLILHGLQGLYLGXDO´DVGHILQHGLQ6HFWLRQ*FRIWKH&RGHDQ\2SWLRQKHOGE\WKDW2SWLRQHHDQGDQ\ULJKWWR
UHFHLYHDQ\SD\PHQWRURWKHUEHQHILWXQGHUWKLV2SWLRQ$JUHHPHQWVKDOOEHUHGXFHGLWRWKHH[WHQWWKDWVXFKULJKWWR
H[HUFLVHYHVWLQJSD\PHQWRUEHQHILWWDNLQJLQWRDFFRXQWDOORWKHUULJKWVSD\PHQWVRUEHQHILWVWRRUIRUWKH2SWLRQHH
XQGHUWKLV2SWLRQ$JUHHPHQWDOO2WKHU$JUHHPHQWVDQGDOO%HQHILW$UUDQJHPHQWVZRXOGFDXVHDQ\SD\PHQWRUEHQHILW
WRWKH2SWLRQHHXQGHUWKLV2SWLRQ$JUHHPHQWWREHFRQVLGHUHGD³SDUDFKXWHSD\PHQW´ZLWKLQWKHPHDQLQJRI6HFWLRQ
*ERIWKH&RGHDVWKHQLQHIIHFWD³3DUDFKXWH3D\PHQEXWRQO\LLLIDVDUHVXOWRIUHFHLYLQJD3DUDFKXWH
3D\PHQWWKHDJJUHJDWHDIWHUWD[DPRXQWVUHFHLYHGE\WKH2SWLRQHHIURPWKH7UXVWXQGHUWKLV2SWLRQ$JUHHPHQWDOO
2WKHU$JUHHPHQWVDQGDOO%HQHILW$UUDQJHPHQWVZRXOGEHOHVVWKDQWKHPD[LPXPDIWHUWD[DPRXQWWKDWFRXOGEH
UHFHLYHGE\WKH2SWLRQHHZLWKRXWFDXVLQJDQ\VXFKSD\PHQWRUEHQHILWWREHFRQVLGHUHGD3DUDFKXWH3D\PHQW,QWKH
HYHQWWKDWWKHUHFHLSWRIDQ\VXFKULJKWWRH[HUFLVHYHVWLQJSD\PHQWRUEHQHILWXQGHUWKLV2SWLRQ$JUHHPHQWLQ
FRQMXQFWLRQZLWKDOORWKHUULJKWVSD\PHQWVRUEHQHILWVWRRUIRUWKH2SWLRQHHXQGHUDQ\2WKHU$JUHHPHQWRUDQ\%HQHILW
$UUDQJHPHQWZRXOGFDXVHWKH2SWLRQHHWREHFRQVLGHUHGWRKDYHUHFHLYHGD3DUDFKXWH3D\PHQWXQGHUWKLV2SWLRQ
$JUHHPHQWWKDWZRXOGKDYHWKHHIIHFWRIGHFUHDVLQJWKHDIWHUWD[DPRXQWUHFHLYHGE\WKH2SWLRQHHDVGHVFULEHGLQ
FODXVHLLRIWKHSUHFHGLQJVHQWHQFHWKHQWKRVHULJKWVSD\PHQWVRUEHQHILWVXQGHUWKLV2SWLRQ$JUHHPHQWDQ\2WKHU
$JUHHPHQWVDQGDQ\%HQHILW$UUDQJHPHQWVWKDWVKRXOGEHUHGXFHGRUHOLPLQDWHGVRDVWRDYRLGKDYLQJWKHSD\PHQWRU
EHQHILWWRWKH2SWLRQHHXQGHUWKLV2SWLRQ$JUHHPHQWEHGHHPHGWREHD3DUDFKXWH3D\PHQWVKDOOEHUHGXFHGLQWKH
IROORZLQJRUGHU[FDVKSD\PHQWVWKDWGRQRWFRQVWLWXWHGHIHUUHGFRPSHQVDWLRQZLWKLQWKHPHDQLQJRI6HFWLRQ$RI
WKH&RGH\ZHOIDUHRULQNLQGEHQHILWVDQG]FDVKSD\PHQWVWKDWFRQVWLWXWHGHIHUUHGFRPSHQVDWLRQLQHDFKFDVH
EHJLQQLQJZLWKSD\PHQWVRUEHQHILWVWKDWDUHWREHSDLGWKHIDUWKHVWLQWLPHIURPWKHGDWHRIVXFKUHGXFWLRQ
6. LIMITATIONS ON TRANSFER.
7KH2SWLRQLVQRWWUDQVIHUDEOHE\WKH2SWLRQHHRWKHUWKDQE\ZLOORUWKHODZVRIGHVFHQWDQGGLVWULEXWLRQLQWKH
HYHQWRIGHDWKRIWKH2SWLRQHHDQGH[FHSWWKDWWKH2SWLRQHHPD\WUDQVIHUWKH2SWLRQLQZKROHRULQSDUWWRLWKH
VSRXVHFKLOGUHQLQFOXGLQJVWHSFKLOGUHQDQGDGRSWHGFKLOGUHQRUJUDQGFKLOGUHQRIWKH2SWLRQHH³)DPLO\0HPEHUV´
LLDWUXVWIRUWKHH[FOXVLYHEHQHILWRIRQHRUPRUH)DPLO\0HPEHUVRULLLDSDUWQHUVKLSRIZKLFKWKH2SWLRQHHDQGRU
RQHRUPRUH)DPLO\0HPEHUVDUHWKHRQO\SDUWQHUVSURYLGHGWKDWWKHWUDQVIHUHHLQFRQQHFWLRQZLWKWKHWUDQVIHUDJUHHV
LQZULWLQJWREHERXQGE\DOORIWKHWHUPVRIWKLV2SWLRQ$JUHHPHQWDQGWKH3ODQDQGIXUWKHUDJUHHVQRWWRWUDQVIHUWKH
2SWLRQRWKHUWKDQE\ZLOORUWKHODZVRIGHVFHQWDQGGLVWULEXWLRQLQWKHHYHQWRIWKHGHDWKRIWKHWUDQVIHUHH)ROORZLQJ
DQ\WUDQVIHUSHUPLWWHGE\WKLV6HFWLRQWKHWUDQVIHUHHVKDOOKDYHDOORIWKHULJKWVRIWKH2SWLRQHHKHUHXQGHUDQGWKH
2SWLRQVKDOOEHH[HUFLVDEOHE\WKHWUDQVIHUHHRQO\WRWKHH[WHQWWKDWWKH2SWLRQZRXOGKDYHEHHQH[HUFLVDEOHE\WKH
2SWLRQHHKDGWKH2SWLRQQRWEHHQWUDQVIHUUHG7KH2SWLRQVKDOOQRWEHSOHGJHGRUK\SRWKHFDWHGE\RSHUDWLRQRIODZRU
RWKHUZLVHRUVXEMHFWWRH[HFXWLRQDWWDFKPHQWRUVLPLODUSURFHVVHV
7. RIGHTS AS SHAREHOLDER.
1HLWKHUWKH2SWLRQHHQRUDQ\H[HFXWRUDGPLQLVWUDWRUGLVWULEXWHHRUOHJDWHHRIWKH2SWLRQHH¶VHVWDWHQRUDQ\
WUDQVIHUHHKHUHRIVKDOOEHRUKDYHDQ\RIWKHULJKWVRUSULYLOHJHVRIDVKDUHKROGHURIWKH7UXVWLQUHVSHFWRIDQ\VKDUHVRI
&RPPRQ6WRFNLVVXDEOHKHUHXQGHUXQOHVVDQGXQWLOVXFKVKDUHVKDYHEHHQIXOO\SDLGDQGFHUWLILFDWHVUHSUHVHQWLQJVXFK
VKDUHVKDYHEHHQHQGRUVHGWUDQVIHUUHGDQGGHOLYHUHGDQGWKHQDPHRIWKH2SWLRQHHRURIVXFKSHUVRQDOUHSUHVHQWDWLYH