Document:

<PAGE>

                                                                   EXHIBIT 10.27

                                (PROLOGIS LOGO)

                                 CODE OF ETHICS
                                       AND
                                BUSINESS CONDUCT

                    A Commitment to Excellence and Integrity

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                                      INDEX

<Table>
<S>                                                                       <C>
Statement from the Chairman..................................................3

Acknowledgement..............................................................4

Statement of Beliefs.........................................................5

ProLogis Values..............................................................6

ProLogis Principles of Ethical Conduct.......................................7

Responsibilities.............................................................8

The ProLogis Ethics Program.................................................10

Where to go for Help........................................................12

Conflict of Interest........................................................13

Acceptance of Business Courtesies...........................................15

Offering Business Courtesies................................................17

Buying and Selling Securities-Insider Trading...............................21

Proper Marketing Practices..................................................24

Proper Relationships with Suppliers.........................................26

Proper Use of Company Resources.............................................27

Financial Reporting and Disclosure..........................................30

Conclusion..................................................................33

Appendix 1: Frequently Asked Questions......................................34
</Table>

                                  Page 2 of 41
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A COMMITMENT TO EXCELLENCE AND INTEGRITY
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STATEMENT FROM THE CHAIRMAN

ProLogis operates its worldwide business in accordance with the highest ethical
standards and applicable laws of both the United States and host countries. The
foundation of our success is in the trust and confidence that we establish with
our customers, employees, shareholders, suppliers, and communities. This trust
and confidence is earned by providing quality products and services through
efficient, ethical and responsible business practices.

The title of our Code of Ethics and Business Conduct Program, A Commitment to
Excellence and Integrity, describes our deeply held company values. Our values
are expressed in terms of principles which prescribe the behavior expectations
of all employees and forms the basis of the many operating processes that those
external to the company should receive when in a business relationship with us.

Members of the ProLogis team must always exhibit a commitment to integrity and
high ethical standards. Each and every one of us must avoid both the fact and
the appearance of questionable ethical behavior as we go about our daily work.
Our success is dependent on each individual's commitment to these enduring
values and no success is worth the expense of compromising ethical principles
and behaviors.

This handbook is our guide to the ProLogis value system of ethical conduct. It
helps us make good decisions by applying values and principles to specific
issues that arise in the workplace. Used in conjunction with the company's
published policies and practices, the Ethics and Business Conduct handbook will
help each of us apply our institutional and personal values of honesty,
fairness, and integrity to everything we do at ProLogis.

We must accept personal responsibility for understanding the laws, policies and
practices that affect our work. We have designated Corporate General Counsel to
investigate all ethics related issues and we have established an employee call
line which should be used to report violations of ethics and business conduct. I
encourage you to spend time reviewing this information, make inquiries of the
Ethics Administrator, and internalize our commitment. Working together we can
maintain and enhance the trust and confidence that has been placed in us.

I am honored to be part of an organization that places such high emphasis on
ethical business conduct.

K. Dane Brooksher
Chairman of the Board and Chief Executive Officer
ProLogis

                                  Page 3 of 41
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                            EMPLOYEE ACKNOWLEDGEMENT

This page is to be signed and returned to the Ethics Administrator upon
completion of annual training. Alternatively, you may acknowledge your training
electronically in which case this form need not be submitted.

I have completed annual training, read and affirm my commitment to the values
and principles described in A Commitment to Excellence and Integrity. I
understand that this booklet is issued for informational purposes and that it is
not intended to create, nor does it represent, a contract of employment.

---------------------------------------------
Employee's Name (printed)

---------------------------------------------
Employee's Signature

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Social Security Number or Employee ID number

---------------------------------------------
Department/Company

---------------------------------------------
Date

Failure to read and/or sign this document in no way relieves employees of the
responsibility to comply with these standards.

                                  Page 4 of 41
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                              STATEMENT OF BELIEFS

ProLogis strives to be a company known for its integrity and high ethical
standards. ProLogis will conduct its business fairly, impartially, in an ethical
and proper manner, and in full compliance with all laws and regulations. In
conducting our business, integrity is the foundation for all company
relationships, including those with customers, suppliers, communities, and among
employees. Unquestionable standards of ethical business conduct are required of
ProLogis employees conducting company business. Employees will not engage in
conduct or activity that may raise questions as to the company's honesty,
impartiality or reputation or otherwise cause embarrassment to the Company.

                                  Page 5 of 41
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                                 PROLOGIS VALUES

CUSTOMERS

We are driven by the needs of our customers. We strive to understand our
customers' needs and deliver solutions to meet those needs.

EMPLOYEES

We treat others as we would want to be treated - attentive to personal dignity
and receptive and encouraging to diversity of ideas. We recognize the value that
comes from respecting individuality, personal experience, and varied heritages.

INTEGRITY

We are honest and forthright in our dealings with employees, customers,
suppliers, teammates, competitors, shareholders, and the community. We conduct
our business with respect for all laws and regulations, and we promote
individual responsibility to ensure that all actions are based on the highest
ethical standards.

COMMITMENT

We will go to great lengths to keep our commitments. We will not make promises
that can't be kept and we will not make promises on behalf of the Company unless
we have the authority to do so. We will exercise the highest ethical standards
in meeting our commitments and ensuring that we do what we say.

CITIZENSHIP

Everywhere we do business, we will strive to make our communities better places
to live, work, and grow.

EXCELLENCE

We strive for excellence in everything that we do, including excellent products
and services for our customers, a great place to work for our employees, and
outstanding performance for our shareholders.

                                  Page 6 of 41
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                     PROLOGIS PRINCIPLES OF ETHICAL CONDUCT

The following is a general statement of our principles of conduct. These
principles, and the policies presented herein, apply to all ProLogis Trustees,
Officers, and employees.

1.   Employees shall not hold financial interests that conflict with or leave
     the appearance of conflicting with the performance of their assigned
     duties.

2.   Employees shall not engage in financial or other transactions using
     nonpublic information or allow the improper use of such information to
     further any private interest.

3.   Employees shall not solicit or accept any gift or other item of monetary
     value from any person or entity seeking business from, or conducting
     activities with ProLogis, or whose interests may be substantially affected
     by the performance or nonperformance of the employee's duties.

4.   Employees shall put forth honest effort in the performance of their duties.

5.   Employees shall make no unauthorized commitments or promises of any kind
     that are binding to ProLogis.

6.   Employees shall act impartially and not give undue preferential treatment
     to any private organization or individual.

7.   Employees shall protect and conserve ProLogis property and shall not use it
     for other than authorized activities. Employees must maintain the
     confidentiality of information entrusted to them by the company or its
     customers.

8.   Employees shall not engage in outside employment or any other form of
     remunerated or non-remunerated activity that conflicts with or gives the
     appearance of conflicting with ProLogis duties and responsibilities.

9.   Employees shall disclose any situation of real, perceived or suspected
     waste, fraud, abuse, or corruption to appropriate management.

10.  Employees shall adhere to all laws and regulations that provide equal
     opportunity regardless of race, color, religion, sex, national origin, age,
     disability, or any other condition that may lead to discrimination of any
     kind.

11.  Employees shall endeavor to avoid any actions creating the appearance that
     they are violating the law or the ethical standards established by good
     business practice and ProLogis policy.

12.  Employees shall not take any action to fraudulently influence, coerce,
     manipulate, or mislead any independent public or certified accountant
     engaged in the audit of financial statements.

13.  Employees shall not knowingly alter, destroy, cover up, or falsify any
     records and documents with the intent of concealing information from an
     ongoing investigation.

                                  Page 7 of 41
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                                RESPONSIBILITIES

OVERVIEW

     1.   Every employee has the responsibility to ask questions, seek guidance,
          report suspected violations, and express concerns regarding compliance
          with this policy and related procedures. ProLogis will maintain, and
          constantly review and update, a program to demonstrate its commitment
          to ethics, integrity and uncompromising values.

     2.   Employees are encouraged and expected to address questions or concerns
          with management. Employees may also direct questions or concerns
          regarding company standards of conduct to the Ethics Administrator or
          to the Ethics call line.

     3.   Retaliation will not be tolerated against employees who: (1) raise
          concerns to any company source, (2) provide information when the
          employee reasonably believes a fraud against shareholders has occurred
          or (3) participates in a proceeding relating to an alleged violation.
          Retaliation against any employee for proper use of reporting
          mechanisms is cause for appropriate corrective action, up to and
          including dismissal.

PROLOGIS IS RESPONSIBLE FOR:

     o    Creating and supporting a strong and active Ethics Program.

     o    Developing procedures that implement ProLogis' ethics values and
          principles.

     o    Providing education to all employees on ProLogis' ethics values,
          principles and procedures.

     o    Answering questions and providing advice for all employees on ethics
          issues that arise.

     o    Investigating alleged violations of ProLogis' ethics principles and
          procedures.

     o    Maintaining confidentiality.

     o    Maintaining working conditions supportive of employee
          responsibilities.

     o    Protecting employees who, in good faith, report actual or reasonably
          suspected ethics violations.

ALL EMPLOYEES ARE RESPONSIBLE FOR:

     o    Knowing, understanding, and complying with ProLogis' ethics values,
          principles and procedures.

     o    Contributing to a workplace environment that is conducive to upholding
          ProLogis ethics values, principles and procedures.

     o    Seeking help when the proper course of action is unclear or unknown to
          them.

     o    Being sensitive to behavior, by other employees, that is illegal or
          unethical.

     o    Counseling fellow employees when they are in danger of violating
          ProLogis' ethics values, principles or procedures.

     o    Reporting material violations of ethics principles and procedures to
          their supervisor and/or the Ethics Administrator.

     o    Not misusing the Ethics Program by filing false accusations for
          retaliatory or personal reasons.

     o    Not interfering with the conduct of an ethics investigation.

     o    Ensuring confidentially by not discussing with others any aspect of an
          ethics investigation.

                                  Page 8 of 41
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                          RESPONSIBILITIES (CONTINUED)

MANAGERS/SUPERVISORS HAVE A SPECIAL RESPONSIBILITY FOR:

     o    Leading by example.

     o    Implementing ethics principles and procedures within their
          organizations.

     o    Ensuring that all employees they supervise understand ProLogis' ethics
          values and principles.

     o    Require all employees they supervise to attend ethics briefings at
          least annually.

     o    Maintaining a workplace environment that encourages discussion of
          ethics issues without fear of reprisal.

     o    Supporting any ethics investigations when called upon.

     o    Ensuring that any newly hired individuals receive a full briefing of
          the ProLogis Code of Ethics and Business Conduct prior to beginning
          his/her assignment.

                                  Page 9 of 41
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                       PROLOGIS ETHICS PROGRAM COMPONENTS

The ProLogis Ethics and Business Conduct program consists of:

          a.   Documented policies

          b.   Communication and awareness

          c.   Employee education

          d.   Ethics Administrator and employee ethics call line

DOCUMENTED POLICIES

ProLogis will maintain Ethics and Business Conduct policies. These policies will
address employee responsibilities during business conduct. Periodically, the
company will review, revise, and add to the published policies and communicate
changes to employees. The Ethics and Business Conduct policies are designed to
comply with all regulatory and exchange requirements for establishing a code of
ethics.

COMMUNICATION AND AWARENESS

ProLogis will affirmatively communicate its Ethics and Business Conduct policy
to employees through means such as the ProLogis intranet, the company newsletter
ProLogis Today, management bulletins, periodic meetings with employees, and
posters in company offices.

AMENDMENT, MODIFICATION AND WAIVER

This Code of Ethics may be amended, modified or waived by the Board of Trustees
and waivers may also be granted by the Governance and Nomination Committee,
subject to the disclosure and other provisions of the Securities Exchange Act of
1934, and the rules of the New York Stock Exchange.

EMPLOYEE TRAINING

     1.   The Ethics Administrator will establish a company wide Ethics and
          Business Conduct education program for all employees, designed to
          ensure all employees have an awareness of ProLogis values and the
          standards of conduct. Newly hired employees will gain this education
          during new employee orientation. All employees will participate in a
          formal session at least once a year and acknowledge their
          understanding of company policies. Functional organizations and
          Business Units will document attendance and participation in these
          training sessions. Compliance with this training program will be
          assessed during periodic audits.

     2.   Contract labor, consultants, and others acting for the company must
          also be made aware of and are expected to adhere to ProLogis standards
          of conduct.

ETHICS ADMINISTRATOR AND EMPLOYEE ETHICS LINE

     1.   The Office of Legal Counsel is appointed as the company focal point
          and Ethics Administrator for all ethics and business conduct matters.
          The Ethics Administrator's responsibilities will include establishing
          company policy, education and communication; acting as an independent
          advocate for employee concerns; and maintaining the employee ethics
          call line. Local ethics administrators may be identified to provide
          consultation and collect and communicate reported ethics issues.

                                 Page 10 of 41
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                 PROLOGIS ETHICS PROGRAM COMPONENTS (CONTINUED)

          The Ethics Administrator will prepare an annual report to the Board of
          Trustees summarizing the Company's Ethics and Business Conduct
          environment, significant ethics and business conduct issues, and
          recommendations to enhance the company's Ethics and Business Conduct
          practices.

     2.   The employee ethics call line provides all ProLogis employees and
          others with an independent, confidential channel for communicating
          questions or concerns regarding matters that may be in violation of
          company policy, procedures, laws, or regulations, such as improper,
          illegal, or unethical business practices. All reported incidents will
          be investigated. Periodically, the Ethics Administrator will provide
          management with reports discussing the state of company ethics and
          business conduct based on reported incidents.

                                 Page 11 of 41
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                              WHERE TO GO FOR HELP

When you have an ethics-related question or concern, you are encouraged to
discuss it with your supervisor. If you are uncomfortable with this option, feel
free to contact the Ethics Administrator. The contact can be anonymous,
confidential or open, as you desire. The Ethics Administrator maintains a
confidential hotline with 24-hour answering machine service. You may also
discuss the issue in person with the Ethics Administrator, send a written
inquiry or report it via anonymous e-mail from the ProLogis Ethics web page. The
Ethics Administrator will make every effort to help you resolve your concerns.

Reporting access is as follows:

1) ProLogis call line

         North American Operations  (866) 776-5644

         Europe Operations          (866) 800-2410

         Asia Operations            (866) 271-9704

2) Ethics web page internet e-mail

         ethics@prologis.com

All allegations of wrongdoing will be maintained confidentially and are reviewed
and investigated by the Ethics Administrator. The investigation process has been
designed to be thorough and, at the same time, fair to all involved parties.

If necessary, appropriate disciplinary action will be determined by management
with guidance from Human Resources

                                 Page 12 of 41
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                              CONFLICT OF INTEREST

REQUIREMENTS

In performing job related responsibilities, all ProLogis employees should avoid
actual conflicts or the appearance of conflicts of interest.

FINANCIAL INTEREST

ProLogis employees shall not have an undisclosed and unapproved financial
interest in any entity which is providing goods or services to ProLogis.

Financial interest in another entity includes:

     o    Stock or other ownership of greater than 1% of outstanding stock
          (refer questions on what constitutes stock ownership to ProLogis
          legal) by:

               o    The employee

               o    Members of his or her immediate family

               o    Any related trusts or estates

     o    A brokerage fee, royalty, ProLogis ownership interest or carried
          interest in any asset, property, or entity being purchased by or
          contract entered into by ProLogis.

CORPORATE OPPORTUNITIES

Employees, officers and trustees are prohibited from (a) taking for themselves
opportunities that are discovered through the use or corporate property,
information or position; (b) using corporate property, information, or position
for personal gain; and (c) competing with the company.

REPORTING FINANCIAL INTEREST

Employees must disclose to their supervisor the following conditions:

     o    Financial interest in an entity with which ProLogis does business or
          competes

     o    Contracts, loans, or financial obligations that you may have with an
          entity which ProLogis is pursuing for a business transaction

     o    Close personal relationships with anyone in an entity ProLogis does
          business with or is pursuing for a business transaction which could
          impair personal impartiality

     o    Any other relationship that could impair impartiality

Supervisors are to report any actual or apparent conflicts of interest to a
Senior Vice President or higher of ProLogis.

WORK CONFLICT/OUTSIDE INTEREST

ProLogis encourages employees to take an active role in the community as long as
their involvement does not adversely affect company or individual job
performance.

EXEMPT EMPLOYEES AND OFFICERS

Each exempt employee and officer of ProLogis is expected to work only for
ProLogis. Work for another entity or an active personal business is only
permitted with the written approval of a Managing Director of the company.
ProLogis is to be considered an employee's primary employer.

                                 Page 13 of 41
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NON-EXEMPT EMPLOYEES

If a full-time, non-exempt employee obtains a second job, the following
guidelines apply:

     o    Nature and scope of the proposed outside employment including work
          schedule, job duties, and any anticipated impact the second job may
          have on the position with ProLogis should be disclosed to the ProLogis
          supervisor

     o    Work requirements at ProLogis, including overtime, must take
          precedence over any outside employment

     o    Outside employment must not adversely affect job performance with
          ProLogis or present a conflict of interest

     o    Outside employment may not be held with a ProLogis competitor

     o    Employees must not engage in activities, which are adverse to the
          company's moral and ethical standards.

                                 Page 14 of 41
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                        ACCEPTANCE OF BUSINESS COURTESIES

GENERAL GUIDELINES AND RESPONSIBILITIES

          Business courtesies offered while conducting ProLogis business and
          accepted by ProLogis employees are courtesies that belong to ProLogis.
          Employees do not have a right to keep a business courtesy for personal
          use. When offered a business courtesy, employees are expected to use
          good business judgment in determining whether it is appropriate to
          accept the courtesy and use it personally by applying the Guidelines
          for Determining Whether to Accept a Business Courtesy. If it is not
          appropriate to accept or retain a courtesy, the employee should either
          politely refuse the business courtesy at the time it is offered and
          explain why or follow the Guidelines for Disposition of Unacceptable
          Business Courtesies. When local customs or practices make it
          inappropriate to decline the business courtesy at the time it is
          offered, employees should accept the courtesy and follow the
          guidelines for disposition.

DEFINITIONS

          A business courtesy is a present, gift, gratuity, hospitality, or
          favor from persons or firms with whom ProLogis maintains or may
          establish a business relationship and for which fair market value is
          not paid by the recipient. A business courtesy may be a tangible or
          intangible benefit, including, but not limited to, such items as
          gifts, meals, drinks, entertainment (including tickets and passes),
          recreation (including golf course and tennis court fees), door prizes,
          honoraria, transportation, discounts, promotional items, or use of a
          donor's time, materials, facilities, or equipment.

GUIDELINES FOR DETERMINING WHETHER TO ACCEPT A BUSINESS COURTESY

          1.   An employee may keep a business courtesy when accepting the
               courtesy meets one of the following four criteria:

               a.   Promotes successful working relationships and goodwill with
                    persons or firms with whom ProLogis maintains or may
                    establish a business relationship. Such courtesies include
                    infrequent business meals and entertainment that are shared
                    with the person who has offered to pay for the meal or
                    entertainment. However, employees should use good judgment
                    and decline invitations for meals and entertainment that are
                    inappropriately lavish or excessive;

               b.   Conforms to the reasonable and ethical practices of the
                    marketplace, such as flowers, fruit baskets, and other
                    modest presents, that commemorate a special occasion;

               c.   Does not create actual conflict of interest or divided
                    loyalty, such as placing the interests of the person or firm
                    that offered the courtesy above the interests of ProLogis
                    for conducting business fairly and impartially, and;

               d.   Does not create the appearance of an improper attempt to
                    influence business decisions, such as accepting courtesies
                    or entertainment from a supplier whose contract is expiring
                    in the near future.

         2.   Novelty, advertising, or promotional items of nominal value of $50
              or less, such as calendars, pens, and mugs may generally be
              retained.

         3.   Items for service recognition, such as plaques, certificates, and
              scale models of a nominal value of $50 or less may be retained.
              Items such as artwork or crystal, with a value greater that $50,
              must be submitted to the company for public display.

                                 Page 15 of 41
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                  ACCEPTANCE OF BUSINESS COURTESIES (CONTINUED)

          4.   Employees, who award contracts, influence the allocation of
               business, create specifications for business placement, or
               participate in negotiating contracts must be particularly careful
               to avoid actions that create the appearance of favoritism or that
               may adversely affect the company's reputation for impartiality
               and fair dealing. The prudent course is to refuse a courtesy from
               a supplier when ProLogis is involved in choosing or reconfirming
               a supplier or under circumstances that would create an impression
               that offering courtesies is the way to obtain ProLogis business.
               In this context, consultants should be treated as suppliers.

          5.   Employees should avoid a pattern of accepting frequent courtesies
               from the same persons or companies.

          6.   Employees should refrain from accepting courtesies that they
               would not feel comfortable discussing with their manager,
               coworkers or a member of the media.

UNACCEPTABLE ACTIONS

          1.   Asking for a business courtesy.

          2.   Accepting a business courtesy when:

               a.   An attempt is being made by the donor to offer the courtesy
                    in exchange for, or to influence, favorable action by
                    ProLogis

               b.   An attempt is being made to motivate an employee to do
                    anything that is prohibited by law, regulation, or ProLogis
                    or donor policy

               c.   An attempt is being made to gain an unfair competitive
                    advantage by improperly influencing an employee's
                    discretionary decisions.

          3.   Using a company position as a means of obtaining business
               courtesies, such as personal discounts or credits on products,
               services, or other items.

GUIDELINES FOR DISPOSITION OF UNACCEPTABLE BUSINESS COURTESIES

          Whenever an employee has accepted a courtesy that does not meet the
          criteria for acceptance in this policy, he or she should use one of
          the following alternatives:

          1.   Return it to the donor with a polite explanation that ProLogis
               policy prohibits retention of the business courtesy.

          2.   Promptly forward the courtesy to your office administrator for
               donation to charity or to be distributed as part of a holiday
               raffle.

          3.   Retain the courtesy for display with the approval of senior
               ProLogis management.

                                 Page 16 of 41
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                         OFFERING OF BUSINESS COURTESIES

 PURPOSE/SUMMARY

     Offering business courtesies is appropriate in some situations. This
     procedure provides guidelines on offering business courtesies to commercial
     business clients and to federal, state, local or foreign government
     employees.

DEFINITIONS

     1.   A commercial customer is any business client (company or individual)
          other than a federal, state, local, or foreign government customer.

     2.   A government employee is any individual employed by a government
          entity, including consultants acting on behalf of the entity.

     3.   A business courtesy is a present, gift, gratuity, hospitality, or
          favor for which fair market value is not paid by the recipient. A
          business courtesy may be a tangible or intangible benefit, including,
          but not limited to, such items as gifts, meals, drinks, entertainment
          (including tickets and passes), recreation (including golf course and
          tennis court fees), door prizes, honoraria, transportation, discounts,
          promotional items, or use of a donor's time, materials, facilities, or
          equipment.

REQUIREMENTS

     It is the policy of ProLogis to deal with its suppliers and customers in a
     fair and impartial manner; business should be won or lost on the merits of
     ProLogis products and services. A business courtesy may never be offered
     under circumstances that might create the appearance of impropriety or
     cause embarrassment to ProLogis or the recipient. An employee may never use
     personal funds or resources to do something that cannot be done with
     ProLogis resources. Accounting for business courtesies must be in
     accordance with approved company procedures and practices.

     This procedure describes the circumstances under which business courtesies
     may or may not be offered. It does not cover every possible situation
     involving the offering of a business courtesy. Each situation must be
     evaluated carefully on the basis of its own facts and circumstances.

RESPONSIBILITIES

     1.   Management has the ultimate responsibility for determining whether a
          business courtesy should be offered. This determination must ensure
          that a proposed business courtesy is permitted by law and regulation,
          is consistent with the reasonable customs of the marketplace, and
          conforms with ProLogis policy and practice as determined by an
          appropriate level of management. In addition, consideration must be
          given to the circumstances surrounding the offer, the nature of the
          business courtesy, the appearance such an offer may project, and the
          value of the business courtesy. If any doubt exists as to the impact
          an offer of a business courtesy could have on the reputation of the
          company or of those involved, the business courtesy should not be
          offered.

     2.   Any employee who offers or approves the offer of a business courtesy
          must ensure that it is ethical and proper in all respects to offer the
          business courtesy, that the business courtesy cannot reasonably be
          interpreted as an attempt to gain an unfair business advantage or
          otherwise reflect negatively on the reputation of ProLogis or the
          recipient, and that the business courtesy does not violate the
          company's anti-kickback policy. (See ProLogis Policy Proper
          Relationships With Suppliers)

                                 Page 17 of 41
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                   OFFERING OF BUSINESS COURTESIES (CONTINUED)

     3.   Company funds associated with the offer of a business courtesy must be
          properly recorded on the company books and records in accordance with
          ProLogis accounting procedures.

          a.   An approved Travel and Expense report must be used to request
               funds or to request reimbursement for business courtesy expenses.
               The report must include the recipient's name, title, and
               organization. Check requests, petty cash or the like may not be
               used to seek reimbursement for business courtesy expenses.

          b.   Any employee who approves business courtesy expenses must be
               familiar with the circumstances under which the business courtesy
               is offered, have knowledge of and agree with the justification
               for the expenditure, and be aware of the purposes of the
               expenditures and business relationships of those who receive the
               benefit of the business courtesy.

     4.   Entertainment or an exchange of gifts purchased at employee expense
          under circumstances which make it clear that the entertainment or gift
          is based solely on a family relationship or personal friendship is not
          considered a business courtesy and is, therefore, not governed by this
          procedure. However, when both a business and personal relationship
          exist, management and the Ethics Administrator should review the
          circumstances. In such cases, all those involved must be sensitive to
          and avoid any activity or situation that could create an actual or
          apparent conflict of interest. (See ProLogis Procedure Conflict of
          Interest)

OFFERING OF BUSINESS COURTESIES TO COMMERCIAL CUSTOMERS

Employees may offer business courtesies to commercial customers, provided the
following four conditions are met:

     1.   The business courtesy does not violate any law or regulation or known
          policy of the customer.

     2.   The business courtesy is customary and consistent with the reasonable
          and ethical business practices of the marketplace in which it is
          offered.

     3.   Management approval at an appropriate level is obtained.

     4.   The business courtesy is properly reflected on the books and records
          of ProLogis and is reimbursable under applicable ProLogis
          reimbursement policies.

OFFERING OF BUSINESS COURTESIES TO GOVERNMENT EMPLOYEES

     1.   Requirements Applicable to All Government Employees

          a.   It is against ProLogis policy to offer or give a business
               courtesy to a government employee unless the regulations
               applicable to that government employee permit acceptance of the
               business courtesy.

                                 Page 18 of 41
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                   OFFERING OF BUSINESS COURTESIES (CONTINUED)

          b.   Unless expressly authorized in this policy, a business courtesy
               may be offered or given to a government employee only if all of
               the following six conditions are met:

               i.   The business courtesy does not violate any law, regulation,
                    standard of conduct, or policy of the government applicable
                    to its employees.

               ii.  The government employee is permitted under applicable
                    regulation, standard of conduct, or policy to accept the
                    business courtesy.

               iii. The business courtesy could not reasonably be interpreted or
                    perceived as an attempt to gain an unfair business
                    advantage.

               iv.  The business courtesy does not cause embarrassment to or
                    reflect negatively on the reputation of the company, the
                    recipient, or the government.

               v.   The business courtesy is authorized by a Senior Vice
                    President and the ProLogis Legal Department in advance.

               vi.  The business courtesy is properly reflected on the books and
                    records of ProLogis and is reimbursable under applicable
                    ProLogis reimbursement policies.

     2.   Additional Requirements Applicable to Government Employees

          a.   The laws and regulations concerning the offer of business
               courtesies to government employees and elected and appointed
               officials vary greatly from state to state and locality to
               locality and country to country. It is, therefore, imperative for
               employees to know and understand the rules applicable to the
               individuals with whom they intend to interface.

     3.   Additional Requirements Applicable to Foreign Government Employees,
          Officials, and Representatives

          a.   The U.S. Foreign Corrupt Practices Act (FCPA) makes it illegal
               for a U.S. citizen or company to corruptly offer or give directly
               or indirectly to a foreign government official anything of value
               in return for that official's action or non-action resulting in
               the U.S. citizen's or company's obtaining or retaining business.
               The fact that a foreign official requested an item of value does
               not justify such practice under the act. All employees must
               strictly adhere to the requirements of the act.

          b.   Before offering a business courtesy to a foreign government
               employee, official, or representative, guidance should be
               obtained from the ProLogis Legal Department on the topic of
               offering entertainment, travel, gifts, or other business
               courtesies to foreign government officials or foreign customer.

     4.   Additional FCPA implications:

          a.   ProLogis employees and any Individuals or Agents acting on
               Prologis' behalf are forbidden from:

               i.   Paying

               ii.  Offering to pay; or

               iii. Authorizing the payment of anything of value whether
                    directly or through intermediaries to:

                    1.   foreign officials

                    2.   a foreign political party or party official; or

                    3.   any candidate for foreign office;

                    4.   in each case for the purpose of obtaining or retaining
                         business or other improper advantages in the conduct of
                         international business.

                                 Page 19 of 41
<PAGE>

                   OFFERING OF BUSINESS COURTESIES (CONTINUED)

          b.   In certain locations, where permitted by local law and known to
               be common practice, modest payments may be required to expedite
               the performance of routine governmental actions. An exception
               outlined within the FCPA is permitted for these so called
               "facilitating payments". Following authorization from either the
               Chief Operating Officer for that country, or the ProLogis Legal
               Department, facilitating payments, regardless of amount must be
               separately identified and categorized in the company's financial
               records.

          c.   Further guidance on FCPA requirements is contained in the
               ProLogis Company Handbook.

                                 Page 20 of 41
<PAGE>

                 BUYING AND SELLING SECURITIES - INSIDER TRADING

DEFINITIONS

1.   "Material" information is information that a reasonable investor would
     consider important in deciding to purchase or sell a security that could
     affect the price of the security. Examples of information that could be
     material about ProLogis includes:

          a.   The launch of a new market development effort.

          b.   A change in the regular dividend.

          c.   Actual change in earnings expectations.

          d.   Upcoming announcement of earnings or losses.

          e.   A stock split.

          f.   A pending or prospective merger, acquisition, or tender offer.

          g.   The sale of significant assets or a significant subsidiary.

          h.   The gain or loss of a substantial customer or supplier.

              Both positive and negative information can be material. The
              probability that an event will occur or not affects whether it is
              material. Any questions concerning the materiality of particular
              information should be resolved in favor of materiality, and
              trading should be avoided.

2.   "Nonpublic" information is information that is not available to the general
     public.

3.   "Trading" is the purchase or sale of stocks, bonds, debentures, options, or
     other marketable securities. Questions as to what transactions are covered
     by these terms can be addressed to the corporate secretary.

REQUIREMENTS

1.   No employee or trustee may trade in the stock or other securities of a firm
     at any time when the employee or trustee, as a result of his or her
     position with ProLogis, has "material nonpublic" information about that
     firm. This restriction on "insider trading" is not limited to trading in
     ProLogis stock or bonds. It includes trading in the securities of other
     firms, particularly those that are current or prospective customers or
     suppliers of ProLogis and those with which ProLogis may currently be
     negotiating.

2.   In addition, employees and trustees may not communicate material nonpublic
     information learned or developed through his or her position with ProLogis
     to other persons ("tipping") who may misuse the information, and may not
     recommend that anyone purchase or sell any securities on the basis of such
     information. So long as material information is nonpublic, members of the
     employee's or trustees' immediate family and others who have received the
     information from the employee or trustee are not permitted to trade in the
     securities.

3.   After material nonpublic information learned or developed through ProLogis
     employment has been publicly disclosed through a press release or other
     official announcement, employees should not trade in the securities until
     24 hours following the announcement to allow the market to absorb the
     information.

                                 Page 21 of 41
<PAGE>

            BUYING AND SELLING SECURITIES-INSIDER TRADING (CONTINUED)

RESPONSIBILITIES

1.   Every employee who had previous knowledge of such information is
     responsible for ensuring that he or she does not violate federal or state
     securities laws or ProLogis policy covering securities trading. Under
     federal securities laws, insider trading and tipping can result in
     substantial civil and criminal penalties, including fines of up to three
     times the profit gained or loss avoided, as well as imprisonment. ProLogis,
     as the employer, could also be liable for fines of $1 million or more as a
     consequence of an employee's insider trading or tipping.

2.   The corporate secretary of ProLogis is responsible for providing guidance
     regarding this procedure.

ADDITIONAL RESTRICTIONS AND REQUIREMENTS

1.   Trading in "puts" and "calls" (publicly traded options to sell or buy
     stock) and engaging in short sales are often perceived as involving insider
     trading and is illegal for trustees and officers. Therefore, ProLogis
     strongly discourages employees from such trading with respect to ProLogis
     securities.

2.   All ProLogis employees and trustees are prohibited from trading in
     securities of ProLogis except during the 40 business day period beginning
     on the third business day following the public release of quarterly
     earnings, annual earnings, and annual dividend announcement. The ProLogis
     legal department will issue a memorandum to all ProLogis personnel
     indicating the commencement and closing of an applicable 40-day trading
     period.

3.   Trading is permitted outside the 40-day period only for personal hardships
     and must be approved by the corporate secretary of ProLogis and be
     disclosed to the SEC in form 8-k.

4.   In addition, to avoid even the appearance of impropriety in transactions in
     ProLogis stock, trustees or employees with titles of Senior Vice President
     and above and their assistants (Restricted Persons) must comply with the
     following restrictions:

     a.   They must refrain entirely from trading in puts and calls in, and
          engaging in short sales of ProLogis stock.

     b.   They must clear all transactions in securities of ProLogis with the
          corporate secretary of ProLogis before initiating the transaction.
          Clearance must be obtained even for transactions within the 40-day
          trading period.

5.   If, upon requesting approval, the Restricted Person is advised that
     ProLogis stock may be traded, the officer may buy or sell the stock within
     2 business days thereafter. If for any reason the trade is not settled
     within the 2 business days, the order may continue in effect, provided that
     the trade instructions are not altered in any way from the instructions
     provided during the authorized 2-day trading period. If the trade
     instructions are altered in any way, clearance must be obtained again
     before the stock may be traded.

6.   If, upon requesting approval or otherwise, the Restricted Person is
     officially advised that ProLogis stock may not be traded, the Restricted
     Person may not buy or sell any ProLogis stock under any circumstance, nor
     may the Restricted Person inform anyone of the restriction. This trading
     restriction will apply until the Restricted Person receives subsequent
     clearance to trade.

7.   The ProLogis insider trading guidelines currently do not regulate the
     trading by ProLogis personnel in the securities of any public company,
     other than ProLogis, except where you are in possession of material,
     non-public information regarding that company.

     If ProLogis becomes a principal shareholder of another public company, that
     company will be added to the list of companies whose securities are subject
     to the ProLogis Insider Trading Guidelines.

            BUYING AND SELLING SECURITIES-INSIDER TRADING (CONTINUED)

                                 Page 22 of 41
<PAGE>
            BUYING AND SELLING SECURITIES-INSIDER TRADING (CONTINUED)

8.   Questions concerning any aspect of this procedure should be directed to the
     ProLogis Legal Department before any trading is initiated.

9.   Trading within this period:

     o    does not apply to (1) the automatic reinvestment of dividends in
          securities pursuant to a dividend reinvestment and stock purchase
          plan, (2) the acquisition of securities upon the exercise of stock
          options (including a "cashless" exercise which is the concurrent sale
          of stock acquired upon the exercise of an option to the extent such
          sale covers the option price, withholding, and the broker's
          commission), (3) the conversion of convertible securities, the
          exercise of warrants or the exercise of rights in a rights offering,
          (4) the election to invest future contributions in the ProLogis stock
          fund under the ProLogis 401(k) Plan, or (5) the election by any
          employee other than employees with titles of Senior Vice President and
          above and their respective assistants to move accumulated
          contributions in their accounts under the ProLogis 401(k) Plan into or
          out of the Plan's ProLogis stock fund.

     o    does apply to (1) any optional securities purchases pursuant to a
          plan, and (2) the sale of stock acquired in any of the following
          events:

               -    the exercise of stock options (other than the stock sold to
                    effect a "cashless" exercise, as described above);

               -    the conversion of convertible securities;

               -    the exercise of warrants; or

               -    the exercise of rights in a rights offering.

                                 Page 23 of 41
<PAGE>

                           PROPER MARKETING PRACTICES

REQUIREMENTS

     1.   Proper marketing practices must emphasize the quality, service, and
          competitive features of ProLogis products and services. Such marketing
          efforts should focus on providing accurate information to our
          customers so they can make informed decisions.

     2.   Marketing activities that could embarrass ProLogis, its employees, or
          its customers are prohibited regardless of the justification for such
          activities. Prohibited activities include:

               a.   Using deceptive or misleading statements.

               b.   Attempting to induce individuals to place their personal
                    interests above those of the companies or organizations they
                    represent.

               c.   Attempting to restrict competition by:

                    i.   Inducing a competitor or customer to breach a contract
                         with a third party.

                    ii.  Obtaining unauthorized access to classified or
                         proprietary information or documents.

                    iii. Securing an unfair competitive advantage.

               d.   Violating any law or regulation.

               e.   Engaging in any activity that could damage the company's
                    reputation

RESPONSIBILITIES

     1.   Employees who deal with customers are required to have knowledge of
          and be familiar with this procedure on proper marketing practices and
          with any laws, regulations, or customer-imposed rules that are
          applicable to the marketing of ProLogis products and services.

          a.   Managers involved in marketing, sales, or customer relations, as
               well as program managers and managers responsible for performance
               of an awarded contract, are responsible for informing their
               employees of these requirements.

          b.   Employees who deal personally with customer personnel should not
               be given company responsibilities that would place them in a
               position to violate customer or agency imposed rules or
               regulations regarding conflicts of interest.

          c.   Employees who have had a previous employee-employer relationship
               with a ProLogis customer are responsible for alerting their
               management to this fact and ensuring that their dealings with
               such customer do not represent a potential conflict of interest.

          d.   Questions should be directed to management, the Ethics
               Administrator, or the Legal Department.

                                 Page 24 of 41
<PAGE>

                     PROPER MARKETING PRACTICES (CONTINUED)

2.   Employees are prohibited from engaging in any activity that would induce or
     appear to induce employees or representatives of a customer to place their
     personal interests above those of the firms or organizations they
     represent. Prohibited activities include:

     a.   Offering or providing money, loans, gifts, or other favors that might
          appear to be designed to influence business decisions or compromise
          the independent judgment of the employees or representatives of a
          customer.

     b.   Entering into various types of business relationships, such as joint
          ownership of property or personal financial relationships that might
          place or appear to place the employees or representatives of a
          customer in a conflict of interest with their employer or client.

     c.   Offering or providing rebates or kickbacks to obtain information or
          business for the company.

3.   Information on company products or services must be accurate and free of
     misleading or deceptive statements or intentional omissions of material
     facts.

     a.   All information or documents must be provided to our customers openly
          without concealing the source.

     b.   The company will only make those commitments that it intends to keep.

4.   Conduct or activities that are prohibited under ProLogis policy may not be
     accomplished through other parties. Employees may not request others to do
     anything that they are not permitted to do themselves under ProLogis
     policy.

ANTI-TRUST REGULATION COMPLIANCE

1.   United States anti-trust (competition) laws apply to all ProLogis'
     operations. Employees must comply with these laws by avoiding:

     a.   Collusion

     b.   Illegal price fixing

     c.   Other unfair competitive practices

2.   Questions regarding anti-trust laws and regulation requirements should be
     referred to the Legal Department.

PROHIBITED PAYMENTS

1.   Trustees, officers and employees of ProLogis may not make any direct or
     indirect payment which benefits ProLogis to any:

     a.   government employee or official

     b.   officer or employee of any other entity

     c.   agent of any other entity

                                 Page 25 of 41
<PAGE>

                       PROPER RELATIONSHIPS WITH SUPPLIERS

REQUIREMENTS

     1.   Procurement decisions must be made on the basis of quality, service,
          price, delivery, best value, or other similar factors.

     2.   Care must be taken to avoid actual conflicts and the appearance of
          partiality regarding all business transactions with suppliers.

     3.   Exports and imports of goods or commodities, data and services,
          including all forms of communications with suppliers, will comply with
          applicable Export and Import laws and regulations.

     4.   A supplier's or potential supplier's proprietary information and
          resources must be protected. Employees are responsible for complying
          with supplier-imposed limitations governing the use of supplier
          information, including such items as documents and computer software.

     5.   ProLogis proprietary or sensitive information must not be disclosed to
          a supplier or potential supplier unless appropriate ProLogis
          management authorizes disclosure.

RESPONSIBILITIES

     1.   Employees may not solicit gifts or courtesies from suppliers. However,
          under certain limited circumstances employees may accept gifts or
          gratuities from suppliers (see ProLogis Procedure "Acceptance of
          Business Courtesies").

     2.   Business and personal activities must be kept separate. Having both a
          personal and business involvement with a supplier or potential
          supplier may create a conflict of interest or appearance of
          partiality. See ProLogis Policy "Conflict of Interest," for further
          guidance.

     3.   All company and subsidiary employees, contract labor, consultants, and
          others acting for the company are prohibited from the following
          actions:

               a.   Providing, attempting to provide, or offering to provide any
                    kickback.

               b.   Soliciting, accepting, or attempting to accept any kickback.

     4.   Each Operating Group is responsible for detecting and preventing
          kickbacks in exchange for being awarded a contract. The term
          "kickback" includes any money, fee, commission, credit, gift,
          gratuity, thing of value, or compensation of any kind that is provided
          directly or indirectly to anyone for the purpose of improperly
          obtaining or rewarding favorable treatment in connection with a
          contract.

     5.   If questions arise, employees can seek advice from their supervisor,
          business Ethics Administrator, or the Legal Department.

                                 Page 26 of 41
<PAGE>

                         PROPER USE OF COMPANY RESOURCES

INTRODUCTION

     The continued success of ProLogis requires the commitment of all employees
     to the proper allocation and use of company resources. Such resources,
     including ProLogis physical property, time, and intellectual property, are
     provided for company business use. Nonetheless, occasional personal use of
     company resources by employees may occur without adversely affecting the
     interests of ProLogis. This procedure provides guidelines, and directs
     company managers to use their discretion in making responsible decisions
     concerning appropriate use of the resources they manage. Adoption of this
     procedure and its guidelines is grounded in the fundamental trust that all
     employees will behave responsibly and use good judgment to conserve
     resources entrusted to ProLogis.

REQUIREMENTS

     This procedure provides guidance to employees on the proper use of company
     resources. It is not intended to cover every situation that could arise
     involving the use of company resources. Deviations from the guidelines
     included in the procedure and questions concerning situations not covered
     should be discussed with and determined by a supervisor.

RESPONSIBILITIES

     Employees are expected to use good judgment in the use of company
     resources. Employees are responsible for acquiring and using such resources
     to perform ProLogis business. Any personal use of company resources must
     not result in significant added costs, disruption of business processes, or
     any other disadvantage to the company. Use of company resources for
     non-company purposes is appropriate only when specifically authorized by
     company policy or procedure or when the user receives express authorization
     from a ProLogis Senior Vice President or above. Managers are responsible
     for the resources assigned to their respective organizations and are
     empowered to resolve issues concerning their proper use.

     Employees can unknowingly compromise the security and integrity of ProLogis
     information through the improper use of company equipment. Employees using
     company equipment for personal purposes are accountable for that use and
     must ensure that no such compromise results.

     Employees having custody of materials, equipment, and information belonging
     to ProLogis or customers must comply with ProLogis Company Handbook
     Policies: Use of the Internet; Corrective Action and Discharge; Electronic
     Communication Guidelines; and Internet/Intranet Guidelines.

     1.   Employees must ensure that:

          a.   Such materials and equipment remain on company-controlled
               property unless use in another location has been authorized by
               management.

          b.   Proper measures are taken for the storage and safeguarding of
               company data and information to prevent unauthorized access, use,
               or removal by any means and in any form (electrical, optical,
               magnetic, or hardcopy) of such data or information.

          c.   All company computing assets and computer storage media for which
               a virus scanning capability exists are scanned regularly using
               current versions of company standard anti-virus software. Any
               actual or suspected misuse of company computing assets must be
               immediately reported to organization management and ProLogis
               Information Technology.

                                 Page 27 of 41
<PAGE>

                   PROPER USE OF COMPANY RESOURCES (CONTINUED)

          d.   Company, customer, and supplier resources are not used for
               outside business activities or unauthorized non-company purposes.

          e.   Personal use of computing equipment does not compromise the
               security or integrity of company information or software.

          f.   Resources entrusted to ProLogis by current or prospective
               suppliers or customers are used only as authorized by the
               supplier or customer.

     2.   Use of ProLogis Resources for Non-company Purposes

          a.   ProLogis Communication Systems and Networks

               ProLogis communication systems and networks are provided for the
               conduct of company business. However, personal use by employees
               of ProLogis telephones, facsimile machines, and voice mail,
               E-mail, and Internet systems is permitted within the following
               guidelines:

               1)   The use is of reasonable duration and frequency.

               2)   ProLogis incurs no significant added costs, such as long
                    distance telephone charges except as authorized by the
                    Travel and Expense Reimbursement Guidelines.

               3)   The use is not related to any illegal activity or the
                    conduct of an outside business.

               4)   The use would not cause embarrassment to the company.

               5)   The use is not in support of any religious, political, or
                    outside organization activity, except for company-requested
                    or company authorized support.

               6)   The use does not interfere with the performance of company
                    business, the employee's assigned duties, or the assigned
                    duties of other employees and does not adversely affect the
                    performance of the employee or the employee's organization.

               Use of ProLogis E-mail systems involves additional considerations
               and requires special care. Employees must bear in mind that
               E-mail is not private and its source is clearly identifiable.
               E-mail messages may remain part of ProLogis business records long
               after they have been supposedly deleted. Employees must ensure
               that personal E-mail does not adversely affect the company or its
               public image or that of its customers, partners, associates, or
               suppliers. E-mail may not be used for external broadcast messages
               or to send or post chain letters, messages of a political or
               religious nature, or messages that contain obscene, profane, or
               otherwise offensive language or material that violate company
               policy or procedure.

               Issues concerning appropriate personal use of ProLogis
               communication systems within a particular work group are to be
               resolved by the management of that group and/or the Information
               Technology group.

          b.   Use of ProLogis Personal Computers, Copiers, and Similar Office
               Equipment

               Office equipment, such as personal computers and copiers, is
               provided for the conduct of company business. The company and its
               organizations may incur costs based on the rate of use of such
               equipment. Employees may not use a company data network for any
               non-company purposes except when such use is in accordance with
               this procedure. However, occasional personal use of a personal
               computer, copier, or similar office equipment is permitted within
               the following guidelines:

                                 Page 28 of 41
<PAGE>

                   PROPER USE OF COMPANY RESOURCES (CONTINUED)

               1)   The use should be infrequent and minimal.

               2)   The use must not be related to any illegal activity or the
                    conduct of an outside business.

               3)   The use must not cause embarrassment to the company.

               4)   The use should not be in support of any religious,
                    political, or other outside organization activity, except
                    for company requested or company authorized support.

               5)   The equipment should be used on an off-hour basis, such as
                    during lunchtime or before or after work hours.

               6)   The use should not interfere with the performance of company
                    business, the employee's assigned duties, or the assigned
                    duties of other employees and should not adversely affect
                    the performance of the employee or the employee's
                    organization.

               7)   There should be no incremental cost to the organization or
                    the cost should be insignificant.

               8)   Issues concerning appropriate personal use of ProLogis
                    personal computers, copiers, and similar office equipment
                    within a particular work group are to be resolved by the
                    management of that group.

          c.   Company Travel Resources

               Employees who travel on company business must take care to
               minimize company travel expenses. Company business travel is to
               be conducted in a prudent and cost-effective manner in compliance
               with company policies and procedures. The ProLogis Travel Policy
               and Expense Reimbursement Guidelines provides guidance on company
               travel Issues.

          d.   Company-Requested Service to Nonprofit Organizations

               An employee who has been requested or approved by the company to
               participate in nonprofit industrial, professional, civic, or
               charitable activities may use ProLogis resources to carry out
               such participation if the employee's supervisor approves the use.

                                 Page 29 of 41
<PAGE>

                       FINANCIAL REPORTING AND DISCLOSURE

OVERVIEW

     1.   It is ProLogis policy to maintain a financial management system that
          provides reasonable assurance that:

          a.   Resources are effectively and efficiently managed according to
               our fundamental fiduciary responsibility to shareholders;

          b.   Business decision processes are adequately supported by relevant
               and reliable financial systems and proactive financial
               leadership;

          c.   Adequate financial resources are available to meet its objectives
               and commitments;

          d.   Financial transactions are properly, accurately and efficiently
               processed;

          e.   Financial, tax, and insurance reporting requirements are
               satisfied with a high degree of integrity and reliability; and

          f.   ProLogis complies with the relevant laws, regulations, and
               generally accepted practices and principles.

     2.   Responsibilities and requirements for legal compliance shall be
          clearly communicated, documented, and monitored on a regular basis
          against a criterion of zero tolerance for any material non-compliance.

     3.   Financial information shall be managed as a vital asset, with
          appropriate risk management and asset safeguarding controls to prevent
          loss of data or misuse of proprietary information outside ProLogis.

     4.   The company's strategy for its corporate capital structure and asset
          and risk management programs shall take into account ProLogis'
          particular risks and be managed to ensure financial resources are
          adequate to meet objectives and commitments.

INTRODUCTION

1.   ProLogis acknowledges as part of its responsibility to shareholders and the
     investing public an obligation to provide information about the company and
     its performance on a broad and timely basis. This is accomplished through:

     a.   news releases,

     b.   annual and quarterly reports and other corporate communications,

     c.   SEC filings,

     d.   conference calls,

     e.   simultaneous faxing and e-mailing of news releases,

     f.   webcasts,

     g.   postings on the corporate web site

     h.   in-person meetings with shareholders, security analysts and news
          media.

2.   These disclosure guidelines and procedures reflect the ProLogis view of
     integrity and reliability of financial reporting and full disclosure of all
     material conditions to shareholders and the investment community.

                                 Page 30 of 41
<PAGE>

                 FINANCIAL REPORTING AND DISCLOSURE (CONTINUED)

DISCLOSURE OF MATERIAL INFORMATION

1.   ProLogis will abide by the rules of the New York Stock Exchange (NYSE),
     federal securities laws, and any other local laws and regulations with
     regard to the disclosure of material information. Realizing that complete
     details are often not carried by all news media, full copies of all
     releases are posted on the ProLogis website and sent via simultaneous
     facsimile systems and/or e-mail on the release date to all interested
     parties who have asked to receive this information.

2.   Information is "material" if there is a substantial likelihood that a
     reasonable investor would consider it important in making an investment
     decision or if the information would have been viewed by a reasonable
     investor as having significantly altered the total mix of information
     available. The following kinds of information may be considered material:

     a.   Financial results or earnings information

     b.   Changes in management or control

     c.   Significant acquisitions or business combinations, including joint
          ventures

     d.   Events regarding ProLogis securities, such as defaults on senior
          securities, calls of securities for redemption, repurchase plans,
          stock splits or changes in dividend, changes to rights of securities
          holders and public or private sale of debt or equity securities

     e.   Significant accounting changes, including changes in auditors

     f.   Significant capital investment plans

     g.   Major development agreements

     h.   Introduction of new services

     i.   Major legal action filed by or against the company

     j.   Any event requiring the filing of a report under the Securities
          Exchange Act of 1934

     k.   Bankruptcy or receivership

     This list is not meant to be all-inclusive and certain permitted exceptions
     exist.

3.   In general, ProLogis will disclose material information:

     a.   Which fairly presents in all respects financial condition and
          operating results

     b.   That does not contain any untrue statement or omit to state a fact
          necessary to make the statements made not misleading

     c.   Before the company or its insiders trade in its securities (see
          Insider Trading Guidelines)

     d.   If partial disclosure has been made on a topic

     e.   If prior statements need to be updated because they are no longer
          accurate

     f.   If there are material rumors or leaks from within the company

     g.   If disclosure is required by NYSE or federal securities laws

4.   Refer all questions regarding publicly disclosed information to ProLogis
     Investor Relations. Further guidance on ProLogis disclosure practices is
     contained in the company handbook.

                                 Page 31 of 41
<PAGE>

                 FINANCIAL REPORTING AND DISCLOSURE (CONTINUED)

5.   As a public company, it is of critical importance that the Company's
     filings with the Securities and Exchange Commission be accurate and timely.
     Depending on their position with the Company, an employee, officer or
     trustee may be called upon to provide necessary information to assure that
     the Company's public reports are complete, fair and understandable. The
     Company expects employees, officers and trustees to take this
     responsibility very seriously and to provide prompt accurate answers to
     inquiries related to the Company's public disclosure requirements.

FAIR DISCLOSURE

1.   Consistent with US Securities and Exchange Commission (SEC) requirements,
     whenever ProLogis discloses material nonpublic information to individuals,
     particularly securities market professionals and holders of the issuer's
     securities who may well trade on the basis of the information, it must make
     public disclosure of that information. The timing of the required public
     disclosure depends on whether the selective disclosure was intentional or
     non-intentional.

     a.   For an intentional disclosure, the issuer must make public disclosure
          simultaneously.

     b.   For a non-intentional disclosure, the issuer must make public
          disclosure promptly.

2.   The required public disclosure may be made by filing or furnishing a Form
     8-K, or by another method or combination of methods that is reasonably
     designed to effect broad, non-exclusionary distribution of the information
     to the public.

                                 Page 32 of 41
<PAGE>

                                   CONCLUSION

We each have an obligation to encourage, promote and practice good business
ethics - to ourselves, to each other, to our customers, to our shareholders, and
to everyone we do business with. While this document cannot cover all the rules
and regulations that apply to every situation, the values, principles of
conduct, standards, policies, and practices it summarizes can help us make the
right decisions. Remember, each of us is expected to demonstrate the highest
ethical behavior possible, even in the absence of a specific company policy.

To be successful, we must clearly understand our INDIVIDUAL responsibilities in
meeting ProLogis' standards and expectations. The reputation of our company
depends on the service we provide and on the decisions we make every day, on and
off the job, whether we are interacting with our customers, our suppliers, our
competitors, or each other.

Keep in mind that integrity is a PERSONAL responsibility, and we are each
responsible for our individual actions. No illegal or unethical act can be
justified by claiming it was ordered by higher management. Remember that we
always have options - they may not always be easy choices, but they will always
exist, and we have resources to call for assistance.

This commitment to our personal responsibilities will enhance our ability to
reach better business decisions. In making these decisions, it is important to
realize that violations of any of the standards outlined in this booklet may
result in disciplinary action that could include dismissal and/or criminal
prosecution. Violations may also result in severe penalties to ProLogis.

After you've reviewed the material in this booklet, please sign the affirmation
page and return it to the Ethics Administrator. The signed form will be kept as
part of your permanent personnel file.

                                 Page 33 of 41
<PAGE>

APPENDIX 1

                                    PROLOGIS
                       CODE OF ETHICS AND BUSINESS CONDUCT

                    A Commitment to Excellence and Integrity

                           Frequently Asked Questions

CONFLICTS OF INTEREST

Q:   WHAT DOES A FINANCIAL INTEREST MEAN?

A:   Any stake in the fortunes of a business. This could include owning stock,
     debt instruments, or a partnership interest in a business.

Q:   WHAT IS MEANT BY AN IMMEDIATE RELATIVE?

A:   Spouse, parents, step parents, children (natural or legally adopted), or
     siblings, stepchild, grandchild, grandparent or in-laws.

Q:   DOES PERFORMING CASUAL CONSULTING WORK OR RECEIVING COMMISSIONS FROM A
     BUSINESS PARTNER OR COMPETITOR OF PROLOGIS CONSTITUTE A CONFLICT OF
     INTEREST?

A:   Yes. You should discuss the situation with your supervisor and request a
     Conflict of Interest Determination from the Ethics Administrator. Depending
     on the nature of the work and the closeness of the relationship with the
     partner, you may need to decline such work. You should never perform
     consulting or similar work for a direct competitor of ProLogis.

Q:   IS THERE A CONFLICT OF INTEREST IF A FAMILY MEMBER OF A PROLOGIS EMPLOYEE
     WORKS FOR A SUPPLIER OF PROLOGIS?

A:   Merely having a relative who works for a supplier does not necessarily
     constitute a conflict of interest. Consideration needs to be given to the
     position of the family member with the supplier, whether the family member
     works on or close to the ProLogis account, and whether the ProLogis
     employee has any direct dealings with the supplier concerned. You should
     disclose the situation and discuss the matter with your supervisor and
     request a Conflict of Interest Determination from the Ethics Administrator.

Q:   IF I ATTEND A TRADE SHOW AS A REPRESENTATIVE OF THE COMPANY, CAN I
     PARTICIPATE IN A PRIZE DRAWING?

A:   As long as the prize is of moderate value and does not influence or appear
     to influence our selection and purchasing decisions, it may be okay.
     Individual judgment will have to be applied to the situation.

                                 Page 34 of 41
<PAGE>

DISCLOSURE

Q:   WHAT EXACTLY IS "MATERIAL" INSIDE INFORMATION?

A:   Material inside information is information that a reasonable investor would
     consider important in deciding to purchase or sell a security that could
     affect the price of the security. Examples of material inside information
     include: significant contracts, financial forecasts or earnings, major
     management changes, new products, discoveries or inventions, proposed
     mergers or acquisitions, reorganizations, stock splits, or dividend
     changes.

Q:   WHEN IS INFORMATION CONSIDERED "PUBLIC?"

A:   Information becomes public when it is generally available, for example,
     when it has been announced in a major news publication. Even after
     information has been reported by the company, employees must wait at least
     24 hours before considering it "public" and 3 business days if earnings or
     dividend distributions are announced.

Q:   I AM A MARKET OFFICER. DOES THE DISCLOSURE POLICY PREVENT ME FROM GIVING
     INTERVIEWS TO MY LOCAL NEWSPAPER?

A:   No. But if the interview is expected to cover more than just the local
     activities of ProLogis that have already occurred, a member of the investor
     relations department should also attend the interview.

Q:   CAN I RECOMMEND THAT MY FRIENDS AND RELATIVES PURCHASE PROLOGIS STOCK?

A:   In general, yes. But you cannot do so if you are in possession of material,
     non-public information.

SECURITIES TRADING

Q:   DOES THE RESTRICTION ON TRADING PROLOGIS SECURITIES TO THE TRADING WINDOW
     COVER STOCK OBTAINED THROUGH THE STOCK OPTION PROGRAM, THE EMPLOYEE SHARE
     PURCHASE SCHEME AND THE PROLOGIS 401(k) SAVINGS PLAN?

A:   Currently ProLogis stock in a 401(k) savings plan account is exempt from
     the trading window restrictions (although you are still not permitted to
     trade on material, non-public information). ProLogis stock obtained through
     the stock option or employee share purchase programs is subject to the
     restrictions. Consult with the ProLogis corporate secretary for questions
     regarding trading restrictions for company sponsored plans.

                                 Page 35 of 41
<PAGE>

Q:   IS A 40-DAY TRADING WINDOW AUTOMATICALLY OPENED ON THE THIRD BUSINESS DAY
     FOLLOWING THE RELEASE OF PROLOGIS' QUARTERLY OR ANNUAL EARNINGS REPORT?

A:   No. These are the dates on which the window is normally opened but in some
     circumstances the ProLogis legal department will not permit trading even
     within the 40-day period. The legal department will issue a memorandum
     designating the dates of the trading window. If you are uncertain as to
     whether trading is permitted on a particular day, contact the legal
     department.

Q:   DO THE RESTRICTIONS ON INSIDER TRADING APPLY ONLY TO EMPLOYEES?

A:   The law applies to officers, trustees, employees, and agents of ProLogis,
     as well as suppliers and consultants who have special access to material
     non-public information. The law also applies to spouses, children, and
     anyone else in an employee's home. And it applies to any company, entity or
     trust that an employee may control directly or indirectly, or in which he
     or she has a substantial direct or indirect investment or interest.

GIFTS AND BUSINESS COURTESIES

Q:   A VENDOR SENDS ME A GIFT IN THE MAIL. IT DOES NOT MEET THE CRITERIA UNDER
     THE POLICY FOR ME TO KEEP IT. SHOULD I RETURN IT?

A:   If, due to its value or nature, and its timing, you feel that the gift was
     a deliberate attempt to influence a purchasing decision you are about to
     make, you should return it, and possibly even consider excluding the vendor
     from further consideration.

     If you believe the gift was sent in good faith, accept it and, depending on
     the nature of the gift, either request that your office administrator
     donate it to a charity (or include it in a holiday raffle), or arrange for
     it to be displayed in a public part of the office. You may also consider
     calling or writing the vendor to explain the ProLogis policy on gifts.

Q:   IN SOME PARTS OF THE WORLD, TO REFUSE A GIFT CAN RESULT IN SERIOUS
     EMBARRASSMENT AND LOSS OF FACE FOR BOTH THE GIVER AND THE RECEIVER. HOW
     SHOULD GIFTS IN THESE SITUATIONS BE HANDLED?

A:   The nature of the gift will often be a clue to the giver's motivation.
     Gifts that are intended to unfairly influence you will often be more
     personal in nature and should be politely and tactfully declined or
     returned, even at the risk of causing offense. Gifts made in good faith
     will, even if of unusually high value, most frequently be Company Related
     and of a type which can be displayed in the office (e.g. an ornament or
     cultural artifact). Generally speaking, these types of gift can be
     accepted, provided they are used in accordance with the policy.

                                 Page 36 of 41
<PAGE>

Q:   ARE THERE ANY LIMITS ON THE VALUE OF MEALS I CAN ACCEPT FROM A VENDOR OR
     OTHER BUSINESS PARTNER?

A:   For practical reasons the policy does not specify any limit on the value of
     meals that a business partner can provide for you. However, the policy does
     specify that you should not accept meals as a gift unless the purpose of
     the meal is to discuss business. Additionally, as with all gifts you should
     apply good judgment: for example, if a prospective vendor frequently
     entertains you to meals that are more extravagant than is usually
     appropriate for that industry and part of the world, it may lead you to
     question his motivation.

     If you frequently meet with a vendor or prospective vendor, you can help
     dispel any implication of inappropriate influence by taking turns in paying
     for meals.

Q:   I AM A MARKET REPRESENTATIVE. CUSTOMERS SOMETIMES SEND ME FLOWERS OR CANDY
     IN APPRECIATION FOR A "JOB WELL DONE." MAY I KEEP THESE GIFTS?

A:   Generally, employees may accept items of nominal value. It is recommended
     that these items be shared with the work group or forwarded to the Company
     for raffle, when appropriate. If customers want to recognize your work,
     suggest they send a letter of appreciation to your supervisor.

Q:   ONE OF PROLOGIS' VENDORS IS HOLDING AN AFTER-HOURS "OPEN HOUSE" FOR
     PROLOGIS EMPLOYEES AND OTHER REPRESENTATIVES FROM THEIR CLIENT
     ORGANIZATIONS. THE EVENT INCLUDES A DRAWING FOR AIRLINE TICKETS. IF A
     PROLOGIS EMPLOYEE WINS, CAN THE EMPLOYEE KEEP THE TICKETS FOR PERSONAL USE?

A:   No. Generally, ProLogis employees can accept unsolicited gifts that are
     moderate in value and considered customary and routine for their jobs as
     long as no purchasing decision is pending. An airline ticket isn't
     considered moderate or customary. Remember, there must always be a business
     benefit or purpose for accepting any gift, and the gift or the event should
     not influence, or appear to influence, selection and purchasing decisions.
     Fair business decisions are best made when there is no conflict of interest
     or even appearance of a conflict of interest.

                                 Page 37 of 41
<PAGE>

     Q:   WHEN IS A BUSINESS COURTESY PERMITTED?

     A:   When you have questions about accepting or offering business
          courtesies, including gifts and special events, here are some
          questions to consider. If you can answer "yes" to each of these
          questions, the offer or acceptance of a business courtesy is generally
          permissible.

          o    Does the event provide a business benefit for ProLogis?

          o    Does it occur infrequently?

          o    Is the gift moderate, not overly expensive?

          o    Is the event attended by both the employee and the external
               associate?

          o    Does the gift or event create the appearance of fair, impartial,
               equal treatment?

     Q:   WHEN IS A BUSINESS COURTESY NOT PERMITTED?

     A:   If you answer yes to any of the following questions, the offer or
          acceptance of the hospitality is not appropriate:

          o    Can it create a real or perceived conflict of interest?

          o    Is there potential to create a feeling of obligation?

          o    Will it appear to improperly influence a business decision?

          o    Could it result in compromised objectivity?

     Q:   ONE OF MY PRIMARY SUPPLIERS HAS OFFERED TO PAY MY WAY TO THE ANNUAL
          INDUSTRY CONFERENCE. SINCE THIS WILL SAVE THE COMPANY MONEY, IS IT
          OKAY?

     A:   If there is a business purpose for you to attend the industry
          conference, then it's a legitimate business expense and ProLogis will
          pay for your expenses. It is not appropriate for a vendor to pay for
          your expenses.

     Q:   I WORK IN MEMPHIS AND WILL BE GOING TO ATLANTA FOR TRAINING. ONE OF MY
          VENDORS HAS INVITED ME TO ATTEND A PROFESSIONAL SPORTS GAME. IS IT
          OKAY IF I GO?

     A:   Yes, it's okay to go WITH THE VENDOR to the professional sporting
          games as long as the vendor does not pay for your inter-city
          transportation to get you to Atlanta and you don't feel compromised in
          any business relationship with the vendor.

     Q:   I HAVE AN EXTRA TICKET TO THE PHANTOM OF THE OPERA. I'D LIKE TO INVITE
          A CUSTOMER TO ATTEND IT WITH OUR NEW SALES MANAGER AND ME. IS THIS
          APPROPRIATE?

     A:   It is appropriate to participate in events that help the company build
          strong relationships with our customers, as long as the event is
          reasonable and you are not violating the customer's practices
          regarding gifts or business courtesies. Use the same guidelines to
          decide whether you should accept a similar invitation.

                                 Page 38 of 41
<PAGE>

FOREIGN CORRUPT PRACTICES ACT AND ANTI-CORRUPTION LAWS

Q:   IN SOME PARTS OF THE WORLD IT IS COMMON PRACTICE TO ENGAGE LOCAL AGENTS TO
     BROKER AND/OR FACILITATE TRANSACTIONS OR RELATIONSHIPS. ARE THESE
     ARRANGEMENTS ACCEPTABLE?

A:   We should be very cautious in entering into these kinds of arrangements.
     They can often be used as a cover for illegal payments, which are
     prohibited by the act. However, there are some occasions on which an
     experienced and knowledgeable local agent will be required for us to
     effectively conduct business in a country. Agents should only be engaged to
     perform specific tasks, which should be documented in a written agency
     agreement. The fees paid for the agent's services should be commensurate
     with his contractual responsibilities. If we have agreed to reimburse the
     agent for out-of-pocket expenses, we need to obtain appropriate and valid
     documentation in support of any expense claim before a reimbursement is
     made.

Q:   IN SOME COUNTRIES IT HAS BECOME ESTABLISHED PRACTICE FOR PAYMENTS TO BE
     MADE TO MINOR OFFICIALS TO EXPEDITE CERTAIN GOVERNMENT INSPECTIONS.
     TECHNICALLY THESE PAYMENTS ARE ILLEGAL BUT THE LAW IS NOT ENFORCED. ARE
     THESE ACCEPTABLE FACILITATING PAYMENTS?

A:   It is a fundamental principle of ProLogis' Code of Ethics that we will
     comply with local law in all jurisdictions in which we operate. Such
     payments are acceptable only if legal and customary for the required
     services. Always err on the side of caution and if in doubt assume that
     such a payment is illegal. Do not automatically assume that the law is any
     less strict than in your home country. If you are new to the jurisdiction,
     discuss the climate with a number of local and expatriate business contacts
     before making such payments.

                                 Page 39 of 41
<PAGE>

USE OF COMPANY ASSETS

Q:   WHAT'S THE COMPANY POLICY ON USING E-MAIL AND INTERNET?

A:   ProLogis recognizes that its employees have personal obligations and needs.
     ProLogis agrees that employees may address personal obligations and needs
     using company Internet and e-mail on an occasional basis as long as such
     use:

     o    Does not affect your job performance or disrupt others,

     o    Is occasional in nature,

     o    Is not in the furtherance of the business activity of any entity other
          than ProLogis without approval,

     o    Does not result in any additional billing or direct cost to ProLogis,

     o    Does not intentionally access, download, upload, or transmit material
          containing derogatory racial or gender comments, sexual content,
          derogatory religious comments, or offensive language. Any material,
          which would negatively reflect upon ProLogis, or be likely to offend
          co-workers, is prohibited by law and regulation,

     o    Is not used to solicit funds, collect signatures, conduct membership
          drives, distribute literature or gifts, sell merchandise or services,
          or carry on any other form of business without approval.

     ProLogis reserves the right, and may at its discretion, subject to
     governing laws, monitor and/or audit the use of its resources for any
     reason at any time. ProLogis at its discretion may take action up to and
     including discharge against any employee who violates this policy
     statement. Employees acknowledge that as a result of the ProLogis
     monitoring and/or audit process, their personal activities carried out
     using ProLogis' resources may become known to others. ProLogis assumes no
     responsibility or liability for the protection of information or disclosure
     related to the personal use of its resources by employees. This policy
     applies to contractors and authorized vendors that have access to the
     Internet and e-mail through ProLogis systems.

Q;   CAN I USE MY COMPANY-PROVIDED PERSONAL COMPUTER AFTER BUSINESS HOURS FOR A
     VOLUNTEER PROJECT PROLOGIS SUPPORTS?

A:   Your Company provided personal computer is to be used for business
     purposes. To the extent a project is related to community service that
     ProLogis supports or to the extent a project is related to your development
     plan, personal computers can be used on your own time. You should be
     responsible to ensure that the company's assets are protected and are not
     over extended. If you have a question, you should check with your
     supervisor to determine what is appropriate and acceptable.

GOVERNMENT EMPLOYEES

Q:   IS IT ACCEPTABLE FOR ME TO ENTERTAIN OR PROVIDE THINGS OF VALUE TO
     GOVERNMENT EMPLOYEES?

A:   As a general rule, it is ProLogis' policy that we do not. However, our
     policy also allows us to provide whatever is usual and customary and
     allowed by local law or agency rules. Before providing any entertainment or
     anything of value, ask your legal department what the rules are for your
     state.

                                 Page 40 of 41
<PAGE>

Q:   WHAT IS THE MEANING OF COMPLIANCE OR COMPLIANCE PROGRAMS? I'VE HEARD THE
     TERMS USED, BUT I'M NOT SURE HOW IT AFFECTS MY DEPARTMENT OR ME.

A:   Compliance is simply a term for obeying the rules. Compliance programs
     include policies, methods and procedures, routine activities, filing of
     reports, and so on. The rules can originate internally within an
     organization or externally, based on laws. As ProLogis employees, we must
     ensure our compliance with all laws, executive orders, agency rules,
     executive directives, executive instructions, the handbook, A Commitment to
     Excellence and Integrity.

HARASSMENT FREE WORKPLACE

Q:   A FELLOW MANAGER IN MY WORK GROUP RECENTLY TOLD ME THAT ANOTHER MANAGER HAD
     MADE UNWELCOMED SEXUAL ADVANCES. I TOLD THE MANAGER TO CONSIDER REPORTING
     THE MATTER TO HR OR THE ETHICS ADMINISTRATOR. I DON'T KNOW IF THIS WAS
     DONE. SINCE THIS PERSON DOES NOT REPORT TO ME, I HAVE DONE ALL THAT I'M
     SUPPOSED TO DO, RIGHT?

A:   As a manager, you are responsible for making sure the incident has been
     reported by you, or by the person being harassed. You should notify Human
     Resources, the Ethics Administrator or the Legal Department unless you are
     certain this person has already reported the matter.

                                 Page 41 of 41<PAGE>

                                                                   EXHIBIT 10.28

                              AMENDED AND RESTATED
                            SPECIAL EQUITY AGREEMENT

         This Amended and Restated Special Equity Agreement (this "Agreement"),
is made this 5th day of March, 2003 (the "Effective Date"), by and between
ProLogis and K. Dane Brooksher (the "CEO");

                                WITNESSETH THAT:

         WHEREAS, ProLogis and the CEO are parties to a Special Equity
Agreement, dated as of December 15, 2000 (the "Original Agreement"), and the
parties desire to amend and restate the Original Agreement as herein provided;
and

         WHEREAS, the CEO is currently employed by ProLogis as its Chief
Executive Officer; and

         WHEREAS, the Management Development and Compensation Committee (the
"Committee") of the Board of Trustees (the "Board") of ProLogis has the
authority to determine compensation of ProLogis' executives; and

         WHEREAS, the Committee has determined that, to ensure that the CEO
receives a competitive compensation package, to maintain continuity in the
management of ProLogis' affairs, and to protect ProLogis' valuable business
interests, it is appropriate to amend and restate the Original Agreement on the
terms herein provided;

         NOW, THEREFORE, in consideration of the mutual promises set forth
herein, ProLogis and the CEO hereby amend and restate the Original Agreement and
agree as follows:

         1. Continued Employment. The parties agree that the CEO will continue
in employment with ProLogis through December 31, 2004; provided, however, that
(a) ProLogis reserves its right to terminate the employment of the CEO to the
same extent that it had such right without regard to this Agreement, and (b) the
CEO reserves his right to terminate employment with ProLogis to the same extent
that he had such right without regard to this Agreement.

         2. Extension of Option Expiration. ProLogis hereby agrees that:

         (a)      each stock option which has been granted to the CEO under the
                  ProLogis 1997 Long-Term Incentive Plan (the "Incentive Plan")
                  and which is outstanding on the Effective Date (each an
                  "Existing Option") shall be amended, effective as of the
                  Effective Date, to provide that the Expiration Date (as
                  defined in the Incentive Plan) thereof shall be no earlier
                  than the fifth anniversary of the first to occur of the

<PAGE>

                  CEO's Retirement (as defined in the Incentive Plan),
                  Disability (as defined in the Incentive Plan) or death, but in
                  no event later than the tenth anniversary of the date the
                  Existing Option was granted; and

         (b)      each stock option which is granted to the CEO under the
                  Incentive Plan on or after the Effective Date shall provide
                  that the Expiration Date thereof shall be no earlier than the
                  fifth anniversary of the first to occur of the CEO's
                  Retirement, Disability or death, but in no event later than
                  the tenth anniversary of the date the option is granted.

Notwithstanding the provisions of paragraphs 2 (a) and (b) above, dividend
equivalent units ("DEUs") with respect to options granted to the CEO (including
Existing Options) will continue to be credited after the CEO's Retirement,
Disability or death until the fifth anniversary of the CEO's Retirement,
Disability or death. The provisions of any option granted to the CEO under the
Incentive Plan (including any Existing Option) relating to terminations other
than on account of Retirement, Disability or death shall not be affected by the
provisions of this Agreement or any amendment to any Existing Option.

         3. Grant of RSUs. Effective as of December 31, 2000, the CEO shall be
granted 167,500 fully vested restricted share units ("RSUs") in accordance with
the Incentive Plan, which RSUs will be settled in Shares (as defined in the
Incentive Plan). The RSUs granted to the CEO pursuant to this Section 3 shall be
payable in four substantially equal annual installments on each of December 31,
2005, December 31, 2006, December 31, 2007 and December 31, 2008. Prior to
settlement of the RSUs, dividends will be paid to CEO in cash on a quarterly
basis with respect to such RSUs.

         4. Noncompetition. In consideration for the additional payments and
benefits awarded to the CEO pursuant to this Agreement, the CEO hereby agrees as
follows:

         (a)      while he is employed by ProLogis, he shall not, directly or
                  indirectly, be employed by, serve as a consultant to, or
                  otherwise assist or provide services to a Competitor (defined
                  below);

         (b)      during the Noncompetition Period (as defined below), he shall
                  not, directly or indirectly, (i) serve on the board of
                  directors or trustees of or serve as an officer or employee of
                  any real estate investment trust with a class of securities
                  registered under Section 12(b) or 12(g) of the Securities
                  Exchange Act of 1934, as amended, or (ii) be employed by,
                  serve as a consultant to, or otherwise assist or provide
                  services to a Competitor if: (A) the services that the CEO is
                  to provide to the Competitor are the same as, or substantially
                  similar to, any of the services that the CEO provided to
                  ProLogis and its affiliates, and such services are to be
                  provided with respect to any location in which ProLogis or any
                  of its affiliates had material operations during the 24-month
                  period prior to the Termination Date, or with respect to any
                  location in which ProLogis or any of its affiliates had
                  devoted material resources to establishing operations during
                  the 24-month period prior to the Termination Date; or (B) the
                  trade secrets, confidential information, or

                                       2
<PAGE>

                  proprietary information (including, without limitation,
                  confidential or proprietary methods) of ProLogis and its
                  affiliates to which the CEO had access could reasonably be
                  expected to benefit the Competitor if the Competitor were to
                  obtain access to such secrets or information;

         (c)      while he is employed by ProLogis and during the Noncompetition
                  Period, he shall not, directly or indirectly own an equity,
                  partnership or profits interest in any Competitor (other than
                  ownership of 5% or less of the outstanding stock of any
                  corporation listed on the New York Stock Exchange or the
                  American Stock Exchange or included in the NASDAQ System);

         (d)      while he is employed by ProLogis and so long as he shall live
                  thereafter, he agrees to keep confidential all, and not to
                  disclose any, data, knowledge or information with respect to
                  the conduct and details of business of ProLogis and its
                  affiliates, including trade secrets, and the formulas,
                  methods, processes, ideas, improvements, machines, tools,
                  inventions and discoveries related in any way to the business
                  of ProLogis and its affiliates, which are shown, communicated
                  or otherwise made known to CEO during his employment with
                  ProLogis or otherwise; provided, however, that the foregoing
                  confidentiality obligations of the CEO shall not be applicable
                  to any such data, knowledge or information which is (i)
                  available to the general public or industry other than as a
                  result of a breach of this Agreement, or (ii) known to the CEO
                  prior to its disclosure to him by ProLogis or its affiliates.

Nothing in this Section 4 shall be construed as limiting the CEO's duty of
loyalty to ProLogis while he is employed by ProLogis, or any other duty he may
otherwise have to ProLogis while he is employed by ProLogis. For purposes of
this Agreement the following capitalized terms shall have the meanings
indicated:

         (A)      The term "Competitor" means any enterprise (including a
                  person, firm or business, whether or not incorporated) during
                  any period in which it is materially competitive in any way
                  with any business in which ProLogis was engaged during the
                  period of the CEO's employment with ProLogis during the
                  24-month period prior to the CEO's Termination Date.

         (B)      The term "Noncompetition Period" means the period commencing
                  on the CEO's Termination Date and ending on the fifth
                  anniversary of his Termination Date.

         (C)      The term "Termination Date" means the date on which the CEO's
                  employment with ProLogis terminates for any reason.

         5. Equitable Remedies. The CEO acknowledges that ProLogis would be
irreparably injured by a violation of Section 4 of this Agreement, and he agrees
that ProLogis, in addition to any other remedies available to it for such breach
or threatened breach, shall be entitled to a

                                       3
<PAGE>

preliminary injunction, temporary restraining order, or other equivalent relief,
restraining the CEO from any actual or threatened breach of Section 4.

         6. Severability. The invalidity or unenforceability of any provision of
this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, and this Agreement will be construed as if such
invalid or unenforceable provision were omitted (but only to the extent that
such provision cannot be appropriately reformed or modified).

         7. Effect of Death Following Retirement. The provisions of this
Agreement shall continue to apply for periods after the CEO's death following
Retirement.

         8. Applicable Law. The provisions of this Agreement shall be construed
in accordance with the laws of the State of Colorado, without regard to the
conflict of law provisions of any state.

         9. Amendment. This Agreement may be amended by the mutual agreement of
the parties; provided, however, that any such amendment which would affect any
outstanding award under the Incentive Plan shall be without effect unless the
Committee consents thereto and any amendment which requires an amendment of the
Incentive Plan shall be without effect unless the Board consents thereto.

         10. Conditioned on Approval of the Committee and Board. This Amended
and Restated Agreement shall be without force and effect until it is approved by
the Committee and the Board.

         IN WITNESS WHEREOF, the CEO has hereunto set his hand and ProLogis has
caused these presents to be executed in its name and on its behalf, all as of
the day and year first above written.

                                                /s/ K. Dane Brooksher
                                                -----------------------------
                                                K. Dane Brooksher, CEO

                                                PROLOGIS

Acknowledged and Agreed:                        By: /s/ Edward S. Nekritz
                                                   -----------------------------
                                                   Edward S. Nekritz
By: /s/ Donald P. Jacobs                           Secretary and General Counsel
   --------------------------------
   Donald P. Jacobs
   Chairman
   Management Development & Compensation
   Committee

                                       4

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