Document:

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                                                                    EXHIBIT 10.2

                                [FRONT OF NOTE]

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY ("DTC"), 55 WATER STREET, NEW YORK, NEW YORK TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
DTC TO A NOMINEE THEREOF OR BY AS NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF
DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH
SUCCESSOR.

THIS NOTE (AS DEFINED ON THE REVERSE HEREOF) HAS NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A "QUALIFIED
INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B)
IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) IT AGREES THAT IT
WILL NOT, WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES
ACT AFTER THE ORIGINAL ISSUANCE OF THE NOTES, RESELL OR OTHERWISE TRANSFER THIS
NOTE EXCEPT (A) TO SHURGARD STORAGE CENTERS, INC., OR ANY SUBSIDIARY THEREOF,
(B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
(E) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR
TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS
NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH
TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES OF LESS THAN
$100,000, AN OPINION OF COUNSEL ACCEPTABLE TO SHURGARD STORAGE CENTERS, INC.,
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (F) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT
IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF
THIS NOTE WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES
ACT AFTER THE ORIGINAL ISSUANCE OF THIS NOTE, THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH HEREON RELATING TO THE MANNER OF SUCH TRANSFER AND
SUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN
VIOLATION OF THE FOREGOING RESTRICTIONS.

REGISTERED NO.:                                             PRINCIPAL AMOUNT
CUSIP NO.:     82567D AD 6                                   $200,000,000.00
ISIN NO.:      US82567DA66
COMMON CODE.:  12512058

                         SHURGARD STORAGE CENTERS, INC.

                              7 3/4% NOTE DUE 2011

        Shurgard Storage Centers, Inc., a Delaware corporation (the "Company,"
which term shall include any successor under the Indenture hereinafter referred
to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, upon presentation, the principal sum of Two Hundred Million Dollars
($200,000,000.00) on February 22, 2011, and to pay interest thereon from
February 20, 2001, or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, semiannually in
arrears on February 22 and August 22 of each year (each, an "Interest Payment
Date"), commencing

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August 22, 2001, at the rate of 7 3/4% per annum, until the entire principal
amount hereof is paid or made available for payment. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture (as defined herein), be paid to the Holder in whose
name this Note (or one or more predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest, which shall be the 15th
calendar day preceding the applicable Interest Payment Date (whether or not a
Business Day, as defined below). Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date, and may either be paid to the Holder in whose name this
Note (or one or more predecessor Notes) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Notes of this series
not less than 10 days prior to such Special Record Date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months. Payment of the principal of, and interest on, this Note will be made at
the office or agency of the Trustee (as defined herein) maintained for that
purpose at LaSalle Bank National Association, Attn: Corporate Trust Operations,
135 South LaSalle Street, Suite 1811, Chicago, Illinois 60603, or elsewhere as
provided in the Indenture, in United States Dollars; provided, however, that at
the option of the Company payment of interest may be made by (i) check mailed to
the address of the Person entitled thereto as such address shall appear in the
Security Register kept for the Notes pursuant to Section 305 of the Indenture or
(ii) wire transfer to an account of the Person entitled thereto located inside
the United States. Payments of principal, premium, if any, and interest in
respect of this Note will be made by the Company in immediately available funds.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal this 20th day of February, 2001.

                              SHURGARD STORAGE CENTERS, INC.

                              By:
                                  ---------------------------------------------
                                  Name:  Harrell L. Beck
                                  Title: Senior Vice President, Chief Financial
                                         Officer and Treasurer

                              By: ---------------------------------------------
                                  Name:
                                  Title:
Attest:

By: -------------------------------------
    Name:  Christine M. McKay
    Title: Senior Vice President, General
           Counsel and Secretary

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TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the securities of the series designated therein referred
to in the within-mentioned Indenture.

                                            LaSalle National Bank, as Trustee

                                            By:
                                                --------------------------------
                                                Authorized Signatory

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                                [REVERSE OF NOTE]

        1. GENERAL. This Note is one of a duly authorized issue of securities of
the Company issued as a series of securities under an indenture dated as of
April 25, 1997, as supplemented as of July 11, 1997 (the "Indenture"), between
the Company and LaSalle National Bank, as trustee (the "Trustee," which term
includes any successor trustee under the Indenture with respect to the Notes, to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
and of the terms upon which the Notes are, and are to be, authenticated and
delivered. This Note is one of the duly authorized series designated as the "7
3/4% Notes due 2011" (the "Notes"), initially limited in aggregate principal
amount to $200,000,000.00. Capitalized terms used herein are used as defined in
the Indenture unless otherwise indicated. Unless the context otherwise requires,
as used herein, all references to the Notes include this Note and the Exchange
Notes.

        2. REDEMPTION. The Notes may be redeemed at any time at the option of
the Company, in whole or from time to time in part, at a Redemption Price equal
to the sum of (i) the principal amount (or any portion thereof) of the Notes
being redeemed plus accrued interest thereon to the Redemption Date and (ii) the
Make-Whole Amount (as defined below) if any, with respect to such Notes (or any
portion thereof).

        If notice has been given as provided in the Indenture and funds for the
redemption of any Notes (or any portion thereof) called for redemption shall
have been made available on the Redemption Date referred to in such notice, such
Notes (or any portion thereof) will cease to bear interest on the date fixed for
such redemption specified in such notice and the only right of the Holders of
such Notes will be to receive payment of the Redemption Price.

        Notice of any redemption of any Notes (or any portion thereof) will be
given to Holders at their addresses, as shown in the Security Register for the
Notes, not more than 60 nor less than 30 days prior to the date fixed for
redemption. The notice of redemption will specify, among other items, the
Redemption Price and the principal amount of the Notes held by such Holder to be
redeemed.

        If less than all the Notes are to be redeemed, the Company will notify
the Trustee at least 45 days prior to giving notice of redemption (or such
shorter period as is satisfactory to the Trustee) of the aggregate principal
amount of Notes to be redeemed and their Redemption Date. The Trustee shall
select, in such manner as it shall deem fair and appropriate, Notes to be
redeemed in whole or in part.

        As used herein, the following terms will have the meanings set forth
below:

                "Make-Whole Amount" means, in connection with any
        optional redemption or accelerated payment of any Notes, the
        excess, if any, of (i) the aggregate present value as of the
        date of such redemption or accelerated payment of each dollar
        of principal being redeemed or paid and the amount of

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        interest (exclusive of interest accrued to the date of
        redemption or accelerated payment) that would have been
        payable in respect of each such dollar if such redemption or
        accelerated payment had not been made, determined by
        discounting, on a semiannual basis, such principal and
        interest at the Reinvestment Rate (as defined below)
        (determined on the third Business Day preceding the date such
        notice of redemption is given or declaration of acceleration
        is made) from the respective dates on which such principal and
        interest would have been payable if such redemption or
        accelerated payment had not been made to the date of
        redemption or accelerated payment over (ii) the aggregate
        principal amount of the Notes being redeemed or paid.

                "Reinvestment Rate" means 0.25% plus the arithmetic
        mean of the yields under the heading "Week Ending" published
        in the most recent Statistical Release (as defined below)
        under the caption "Treasury Constant Maturities" for the
        maturity (rounded to the nearest month) corresponding to the
        remaining life to maturity, as of the payment date of the
        principal being redeemed or paid. If no maturity exactly
        corresponds to such maturity, yields for the two published
        maturities most closely corresponding to such maturity shall
        be calculated pursuant to the immediately preceding sentence
        and the Reinvestment Rate shall be interpolated or
        extrapolated from such yields on a straight-line basis,
        rounding in each of such relevant periods to the nearest
        month. For the purposes of calculating the Reinvestment Rate,
        the most recent Statistical Release published prior to the
        date of determination of the Make-Whole Amount shall be used.

                "Statistical Release" means the statistical release
        designed "H.15(519)" or any successor publication which is
        published weekly by the Federal Reserve System and which
        reports yields on actively traded U.S. government securities
        adjusted to constant maturities, or, if such statistical
        release is not published at the time of any determination
        under the Indenture, then such other reasonable comparable
        index which shall be designated by the Company.

        3. DEFEASANCE. The Indenture contains provisions for defeasance at any
time of (a) the entire indebtedness of the Company on this Note and (b) certain
restrictive covenants and the related defaults and Events of Default applicable
to the Company, in each case, upon compliance by the Company with certain
conditions set forth in the Indenture, which provisions apply to this Note.

        4. RESTRICTIVE COVENANTS. In addition to the covenants of the Company
contained in the Indenture, the Company makes the following covenants with
respect to, and for the benefit of the Holders of, the Notes:

        Limitations on Incurrence of Total Debt. The Company will not, and will
not permit any Subsidiary to, incur any Debt (as defined below), other than
Intercompany Debt (as defined below), if, immediately after giving effect to the
incurrence of such additional Debt and the

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application of the proceeds therefrom, the aggregate principal amount of all
outstanding Debt of the Company and its Subsidiaries on a consolidated basis
determined in accordance with GAAP is greater than 60% of the sum of (i) the
Company's Total Assets (as defined below) as of the end of the fiscal quarter
covered in the Company's Annual Report on Form 10-K or Quarterly Report on Form
10-Q, as the case may be, most recently filed with the Commission (or, if such
filing is not required under the Securities Exchange Act of 1934, as amended
from time to time, and the rules and regulations thereunder (the "Exchange
Act"), with the Trustee) prior to the incurrence of such additional Debt and
(ii) the increase in Total Assets from the end of such quarter, including,
without limitation, any increase in Total Assets caused by the incurrence of
such additional Debt (such increase together with the Company's Total Assets is
referred to as the "Adjusted Total Assets").

        Limitation on Incurrence of Secured Debt. The Company will not, and will
not permit any Subsidiary to, incur any Secured Debt (as defined below) if,
immediately after giving effect to the incurrence of such additional Secured
Debt, the aggregate principal amount of all outstanding Secured Debt of the
Company and its Subsidiaries on a consolidated basis determined in accordance
with GAAP is greater than 40% of the Company's Adjusted Total Assets.

        Debt Service Coverage. The Company will not, and will not permit any
Subsidiary to, incur any Debt, other than Intercompany Debt, if the ratio of
Consolidated Income Available for Debt Service (as defined below) to Annual Debt
Service Charge (as defined below) for the four consecutive fiscal quarters most
recently ended prior to the date on which such additional Debt is to be incurred
is less than 1.5 to 1.0 on a pro forma basis after giving effect to the
incurrence of such Debt and the application of the proceeds therefrom, and
calculated on the assumption that (i) such Debt and any other Debt incurred by
the Company or any Subsidiary since the first day of such four-quarter period,
which was outstanding at the end of the period, had been incurred at the
beginning of the period and continued to be outstanding throughout the period,
and the application of the proceeds therefrom, including to refinance other
Debt, had occurred at the beginning of such four-quarter period, (ii) the
repayment or retirement of any other Debt by the Company or any Subsidiary since
the first day of the four-quarter period had been repaid or retired at the
beginning of such period (except that, in determining the amount of Debt so
repaid or retired, the amount of Debt under any revolving credit facility shall
be computed based upon the average daily balance of such Debt during such
period) and (iii) in the case of any increase or decrease in Total Assets, or
any other acquisition or disposition by the Company or any Subsidiary of any
asset or group of assets, since the first day of such four-quarter period,
including, without limitation, by merger, stock purchase or sale, or asset
purchase or sale, such increase, decrease or other acquisition or disposition or
any related repayment of Debt had occurred as of the first day of such period
with the appropriate adjustments to revenues, expenses and Debt levels with
respect to such increase, decrease or other acquisition or disposition being
included in such pro forma calculation. For purposes of the adjustments referred
to in clause (iii) of the preceding sentence, any income earned (or loss
incurred) as a result of any such increase, decrease or other acquisition or
disposition referred to in clause (iii) for a period less than such four-quarter
period shall be annualized for such four-quarter period.

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        Maintenance of Total Unencumbered Assets. The Company will maintain at
all times Total Unencumbered Assets (as defined below) of not less than 150% of
the aggregate outstanding principal amount of the Unsecured Debt (as defined
below) of the Company and its Subsidiaries.

        As used herein, the following terms will have the meanings set forth
below:

        "Annual Debt Service Charge" as of any date means the amount which is
expensed in any 12-month period for interest on Debt of the Company and its
Subsidiaries.

        "Consolidated Income Available for Debt Service" for any period means
Consolidated Net Income (as defined below) plus amounts which have been deducted
in determining Consolidated Net Income during such period for (i) Consolidated
Interest Expense (as defined below), (ii) provision for taxes of the Company and
its Subsidiaries based on income, (iii) amortization (other than amortization of
debt discount) and depreciation, (iv) provisions for losses from sales or joint
ventures, (v) increases in deferred taxes and other noncash charges, (vi)
charges resulting from a change in accounting principles and (vii) charges for
early extinguishment of debt, and less amounts which have been added in
determining Consolidated Net Income during such period for (a) provisions for
gains from sales or joint ventures and (b) decreases in deferred taxes and other
noncash items.

        "Consolidated Interest Expense" for any period, and without duplication,
means all interest (including the interest component of rentals on capitalized
leases, letter of credit fees, commitment fees and other like financial charges)
and all amortization of debt discount on all Debt (including, without
limitation, payment-in-kind, zero coupon and other like securities) but
excluding legal fees, title insurance charges, other out-of-pocket fees and
expenses incurred in connection with the issuance of Debt and the amortization
of any such debt issuance costs that are capitalized, all determined in
accordance with GAAP.

        "Consolidated Net Income" for any period means the amount of
consolidated net income (or loss) of the Company and its Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP.

        "Debt" means any indebtedness of the Company or any Subsidiary, whether
or not contingent, in respect of (i) money borrowed or evidenced by bonds,
notes, debentures or similar instruments, (ii) indebtedness secured by any
mortgage, pledge, lien, charge, encumbrance or any security interest existing on
property owned by the Company or any Subsidiary, (iii) letters of credit or
amounts representing the balance deferred and unpaid of the purchase price of
any property except any such balance that constitutes an accrued expense or
trade payable or (iv) any lease of property by the Company or any Subsidiary as
lessee that is reflected on the Company's consolidated balance sheet as a
capitalized lease in accordance with GAAP, in the case of items of indebtedness
under (i) through (iii) above to the extent that any such items (other than
letters of credit) would appear as liabilities on the Company's consolidated
balance sheet in accordance with GAAP, and also includes, to the extent not
otherwise included, any obligation by the Company or any Subsidiary to be liable
for, or to pay, as obligor, guarantor or otherwise (other than for purposes of
collection in the ordinary course of business), indebtedness of another

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person (other than the Company or any Subsidiary) (it being understood that Debt
shall be deemed to be incurred by the Company or any Subsidiary whenever the
Company or such Subsidiary shall create, assume, guarantee or otherwise become
liable in respect thereof.

        "Intercompany Debt" means indebtedness owed by the Company or any
Subsidiary solely to the Company or any Subsidiary.

        "Secured Debt" means Debt secured by any mortgage, lien, charge,
encumbrance, trust deed, deed of trust, deed to secure debt, security agreement,
pledge, conditional sale or other title retention agreement, capitalized lease
or other security interest or agreement granting or conveying security title to
or a security interest in real property or other tangible assets.

        "Senior Executive Group" means, collectively, those individuals holding
the offices of Chairman, President, Chief Executive Officer, Chief Operating
Officer or any Senior Vice President or Executive Vice President of the Company.

        "Subsidiary" means (i) any corporation, partnership, joint venture,
limited liability company or other entity the majority of the shares of the
non-voting capital stock or other equivalent ownership interests of which
(except directors' qualifying shares) are at the time directly or indirectly
owned by the Company and/or any other Subsidiary or Subsidiaries, and the
majority of the shares of the voting capital stock or other equivalent ownership
of which (except for disqualifying shares) are at the time directly or
indirectly owned by the Company, any Subsidiary and/or one or more individuals
of the Senior Executive Group (or, in the event of death or disability of any of
such individuals, his/her respective legal representative(s)), or such
individuals' successors in office as officers of the Company, and (ii) any other
entity the accounts of which are consolidated with the accounts of the Company.

        "Total Assets" as of any date means the sum of (i) Undepreciated Real
Estate Assets (as defined below) and (ii) all other assets of the Company and
its Subsidiaries determined in accordance with GAAP (but excluding accounts
receivable and intangibles).

        "Total Unencumbered Assets" means Total Assets minus the value of any
properties of the Company and its Subsidiaries that are encumbered by any
mortgage, charge, pledge, lien, security interest or other encumbrance of any
kind, including the value of any stock of any Subsidiary that is so encumbered.
For purposes of this definition, the value of each property shall be equal to
the purchase price or cost of each such property and the value of any stock
subject to any encumbrance shall be determined by reference to the value of the
properties owned by the issuer of such stock as aforesaid.

        "Undepreciated Real Estate Assets" as of any date means the amount of
real estate assets of the Company and its Subsidiaries (original cost plus
capital improvements) on such date, before depreciation and amortization
determined on a consolidated basis in accordance with GAAP.

        "Unsecured Debt" means Debt of the Company or any Subsidiary that is not
Secured Debt.

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        5. REMEDIES FOR EVENTS OF DEFAULT. If an Event of Default with respect
to the Notes shall occur and be continuing, the principal of the Notes may be
declared due and payable in the manner and with the effect provided in the
Indenture.

        As provided in and subject to the provisions of the Indenture, the
Holder of this Note shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity and the Trustee shall not have received from the
Holders of a majority in principal amount of the Notes at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any
such proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Note for the enforcement of any payment of principal hereof or any interest
on or after the respective due dates expressed herein.

        6. AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders of the
Notes under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in aggregate principal amount
of the Outstanding Notes. The Indenture also contains provisions permitting the
Holders of not less than a majority in principal amount of the Notes at the time
Outstanding, on behalf of the Holders of all Notes, to waive compliance by the
Company with certain provisions of the Indenture and, in certain circumstances,
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Note.

        No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, and interest on, this Note
at the times, places and rate, and in the coin or currency, herein prescribed.

        7. DENOMINATION; TRANSFER; EXCHANGE. As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Note is
registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of
Payment where the principal of, and interest on, this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar for the Notes duly
executed by, the Holder hereof or his or her attorney duly authorized in
writing, and thereupon one or more new Notes of authorized denominations and for
the same aggregate principal amount, will be issued to the designated transferee
or transferees.

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        As provided in the Indenture and subject to certain limitations therein
set forth, Notes of this series are exchangeable for a like aggregate principal
amount of Notes of this series of different authorized denominations, as
requested by the Holder surrendering the same.

        The Notes of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

        Prior to due presentment of the Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

        8. NO RECOURSE. No recourse shall be had for the payment of the
principal of or premium, if any, or the interest on this Note, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any past, present or
future stockholder, employee, officer or director, as such, of the Company or of
any successor, either directly or through the Company or any successor, whether
by virtue of any constitution, statute or rule of law or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

        9.  SECURITY FORMS.

        (a) FORM OF RULE 144A GLOBAL, REGULATION S GLOBAL AND CERTIFICATED
NOTES.

        Notes offered and sold in reliance on Rule 144A under the Securities Act
("Rule 144A") shall be issued initially in the form of one or more permanent
Global Securities without interest coupons (the "Restricted Global Security")
deposited with, or on behalf of, the Depositary or with the Trustee, as
custodian for the Depositary. The aggregate principal amount of the Restricted
Global Security may from time to time be increased or decreased by adjustments
made on the records of the Trustee, as custodian for the Depositary or its
nominee, as hereinafter provided.

        Notes offered and sold in reliance on Regulation S under the Securities
Act ("Regulation S") shall be issued initially in the form of one or more
permanent Global Securities in fully registered form without interest coupons
substantially in the form set forth in this Note ("Regulation S Global
Security") deposited with, or on behalf of the Depository or with the Trustee,
as custodian for the Depositary, for the accounts of Euroclear Clearance System,
or any successor securities clearing agency ("Euroclear"), and Clearstream
Banking, or any successor securities clearing agency ("Clearstream"). The
aggregate principal amount of the Regulation S Global Security may from time to
time be increased or decreased by adjustments made on the records of the
Depositary or its nominee, or of the Trustee, as custodian for the Depositary or
its nominee, as hereinafter provided. Until and including the 40th day after the
date of this Note, beneficial interests in a Regulation S Global Security may be
held only through Euroclear or

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Clearstream, unless delivery is made through the Restricted Global Security in
accordance with the certification requirements provided in this Note and the
Indenture.

        If DTC is at any time unwilling or unable to continue as a depositary
for any relevant Global Security or ceases to be registered as clearing agency
under the Exchange Act and a successor depositary is not appointed within 60
days of such notice or cessation, or if, in the case of the Regulation S Global
Security held for an account of Euroclear or Clearstream, as the case may be, is
closed for business for 14 continuous days or announces an intention to cease or
permanently ceases business; the Company will issue certificates for this Note
or the Exchange Notes in definitive, fully registered, non-global form without
interest coupons in exchange for the Regulation S Global Security or Restricted
Global Security, as the case may be. In all cases, certificates for this Note or
the Exchange Notes delivered in exchange for any Global Security or beneficial
interests therein will be registered in the names, and issued in any approved
denominations, requested by DTC.

        In the case of certificates for this Note or the Exchange Notes in
non-global form issued in exchange for the Regulation S Global Security or
Restricted Global Security, such certificates will bear the legend appearing
under Section 9(b) (unless the Company determines otherwise in accordance with
applicable law). The holder of a Note in non-global form may transfer such Note,
subject to compliance with the provisions of such legend, by surrendering it at
the office or agency maintained by the Company for such purpose in the Borough
of Manhattan, The City of New York, which initially will be the office of the
Trustee.

        (b) RESTRICTIVE LEGENDS.

        Unless and until either this Note is sold under, or exchanged for an
Exchange Note in connection with, an effective Registration Statement (as
defined below) pursuant to the Registration Rights Agreement, each certificate
representing a Note shall contain, in addition to any legends required under the
Indenture, a legend substantially to the following effect (the "Private
Placement Legend") on the face thereof:

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE
HOLDER (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON
AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT, (2) IT AGREES THAT IT WILL NOT, WITHIN
THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT AFTER THE
ORIGINAL ISSUANCE OF THE NOTES, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT
(A) TO SHURGARD STORAGE CENTERS, INC., OR ANY SUBSIDIARY THEREOF, (B) TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E)
INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO
SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS
NOTE (THE FORM OF WHICH LETTER CAN BE

<PAGE>   13
OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE
PRINCIPAL AMOUNT OF NOTES OF LESS THAN $100,000, AN OPINION OF COUNSEL
ACCEPTABLE TO SHURGARD STORAGE CENTERS, INC., THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN THE TIME PERIOD
REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE
OF THIS NOTE, THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH HEREON
RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO THE
TRUSTEE. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND
"U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO
REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING
RESTRICTIONS.

        10. THE EXCHANGE NOTES.

        (a) REGISTRATION RIGHTS AGREEMENT; DEFINITION OF EXCHANGE NOTES; SINGLE
CLASS.

        The Holder of this Note is entitled to the benefits of a registration
rights agreement ("Registration Rights Agreement") dated February 20, 2001,
among Banc of America Securities LLC; Merrill Lynch, Pierce, Fenner & Smith
Incorporated; Banc One Capital Markets, Inc.; Morgan Stanley & Co. Incorporated;
Salomon Smith Barney Inc.; and U.S. Bancorp Piper Jaffray Inc. (the "Initial
Purchasers") and the Company. Pursuant to the Registration Rights Agreement, an
eligible Holder of this Note may exchange its Note for an Exchange Note (as
defined below).

        For the purposes of this Note, "Exchange Notes" means the 7 3/4% Notes
due 2011 that will be offered by the Company pursuant to the Registration Rights
Agreement and the Indenture in exchange for this Note and that will be subject
to terms and conditions substantially identical to the securities represented by
this Note, except that the Exchange Notes will be registered under the
Securities Act and shall not be subject to the same restrictions on transfer.
The Exchange Notes shall not be subject to the interest rate step-up provisions
referenced in Section 10(f) of this Note and the transfer restrictions in
Section 10.05 of this Note.

        Any Note that remains outstanding after the consummation of the exchange
offer that may be effected pursuant to the Registration Rights Agreement (the
"Exchange Offer"), regardless of whether an Exchange Note or otherwise, will be
treated as a single class of securities under the Indenture.

        (b) EXECUTION, AUTHENTICATION, DELIVERY AND DATING OF EXCHANGE NOTES.

        On Company Order, the Trustee shall authenticate for original issue
Exchange Notes in an aggregate principal amount not to exceed US $200,000,000;
provided that such Exchange Notes shall be issuable only upon the valid
surrender for cancellation of this Note, or a portion thereof, of a like
aggregate principal amount in accordance with an Exchange Offer pursuant to the
Registration Rights Agreement and a Company Order for the authentication of such
securities certifying that all conditions precedent to the issuance have been
complied with (including the effectiveness of a registration statement under the
Securities Act related thereto).

<PAGE>   14
In such case, the Trustee shall be entitled to receive an Officers' Certificate
and an a written opinion of counsel (who may be counsel for the Company,
including an employee of the Company, and who shall be acceptable to the
Trustee) that it may reasonably request in connection with such authentication
of this Note or the Exchange Notes. Such order shall specify the amount of this
Note or the Exchange Notes, as the case may be, to be authenticated and the date
on which the original issue of such securities is to be authenticated.

        (c) REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

        Notwithstanding any provision of the Indenture or the Notes, no exchange
of any Note for an Exchange Note shall occur until an Exchange Offer
Registration Statement (as defined in the Registration Rights Agreement) shall
have been declared effective by the Commission and this Note is cancelled by the
Trustee.

        Whenever any Note is so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the securities which
the Holder making the election is entitled to receive.

        The Trustee shall, and the Company shall prescribe that any other
Security Registrar appointed by the Company, refuse to register any transfer of
this Note in violation of the transfer restrictions contained in the Private
Placement Legend.

        Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 9(a) or Section 301 of the Indenture, any permanent
global security shall be exchangeable only as provided in Section 305 of the
Indenture.

        (d) BOOK-ENTRY PROVISIONS FOR RESTRICTED GLOBAL SECURITY.

        Investors in the Regulation S Global Security may hold their interests
in Regulation S Global Security through Euroclear or Clearstream, if they are
participants in such systems, or indirectly through organizations which are
participants in such systems. After the expiration of the Distribution
Compliance Period (as defined below), but not earlier, investors in the
Regulation S Global Security may also hold such interests through organizations
other than Euroclear or Clearstream that are participants in the Depositary's
system. Euroclear and Clearstream will hold interests in the Regulation S Global
Security on behalf of their participants through customers' securities accounts
in their respective names on the books of their respective depositaries, which,
in turn, will hold such interests in the Regulation S Global Security in
customers' securities accounts in the depositaries' names on the books of the
Depositary. All interests in a Global Security, including those held through
Euroclear or Clearstream, may be subject to the procedures and requirements of
the Depositary. Those interests held through Euroclear and Clearstream will be
subject to the procedures and requirements of such system. As used herein, the
term "Distribution Compliance Period" means the period of 40 consecutive days
beginning on and including the first day after the later of (i) the day that the
Initial Purchasers advise the Company and the Trustee of the day on which this
Note is first offered to persons other than distributors (as defined in
Regulation S) and (ii) the original issue date of this Note.

<PAGE>   15
        (e) SPECIAL TRANSFER PROVISIONS.

        Unless and until this Note is sold under, or is exchanged for an
Exchange Note in connection with, an effective Registration Statement (as
defined in the Registration Rights Agreement), the following provisions shall
apply:

                (i) Restricted Global Security to Regulation S Global Security.
        If, at any time, an owner of a beneficial interest in a Restricted
        Global Security deposited with the Depositary (or the Trustee as
        custodian for the Depositary) wishes to transfer its interest in such
        Restricted Global Security to a Person who is required or permitted to
        take delivery thereof in the form of an interest in a Regulation S
        Global Security, such owner shall, subject to the applicable procedures
        (the "Applicable Procedures") of the Depositary, Euroclear or
        Clearstream, as the case may be, exchange or cause the exchange of such
        interest for an equivalent beneficial interest in a Regulation S Global
        Security as provided in this Section 10(e)(i). Upon receipt by the
        Trustee of (1) instructions given in accordance with the Applicable
        Procedures from any member of, or participant in, the Depositary (an
        "Agent Member") directing the Trustee to credit or cause to be credited
        a beneficial interest in the Regulation S Global Security in an amount
        equal to the beneficial interest in the applicable Restricted Global
        Security to be exchanged, (2) a written order given in accordance with
        the Applicable Procedures containing information regarding the
        participant account of the Depositary and the Euroclear or Clearstream
        account (if applicable) to be credited with such increase, and (3) a
        certificate substantially in the form of Exhibit A hereto given by the
        owner of such beneficial interest, the Trustee, as Security Registrar,
        shall instruct the Depositary to reduce or cause to be reduced the
        aggregate principal amount of the applicable Restricted Global Security
        and to increase or cause to be increased the aggregate principal amount
        of the applicable Regulation S Global Security by the principal amount
        of the beneficial interest in the Restricted Global Security to be
        exchanged, to credit or cause to be credited to the account of the
        Person specified in such instructions a beneficial interest in the
        Regulation S Global Security equal to the reduction in the aggregate
        principal amount of the applicable Restricted Global Security, and to
        debit, or cause to be debited, from the account of the Person making
        such exchange or transfer the beneficial interest in the Restricted
        Global Security that is being exchanged or transferred.

                (ii) Regulation S Global Security to Restricted Global Security.
        If, at any time, an owner of a beneficial interest in a Regulation S
        Global Security deposited with the Depositary or with the Trustee as
        custodian for the Depositary wishes to transfer its interest in such
        Regulation S Global Security to a Person who is required or permitted to
        take delivery thereof in the form of an interest in a Restricted Global
        Security, such owner shall, subject to the Applicable Procedures,
        exchange or cause the exchange of such interest for an equivalent
        beneficial interest in a Restricted Global Security, as provided in this
        Section 10(e)(ii). Upon receipt by the Trustee of (1) instructions given
        in accordance with the Applicable Procedures from an Agent Member,
        directing the Trustee, as Security Registrar, to credit or cause to be
        credited a beneficial interest in the Restricted Global Security equal
        to the beneficial interest in the Regulation S Global Security to be
        exchanged, (2) a written order given in accordance with the Applicable
        Procedures containing information regarding the participant account of
        the Depositary to

<PAGE>   16
        be credited with such increase and (3) if such transfer is requested
        prior to the expiration of the Distribution Compliance Period, a
        certificate in the form of Exhibit B attached hereto given by the owner
        of such beneficial interest, the Trustee, as Security Registrar, that
        shall instruct the Depositary to reduce or cause to be reduced the
        aggregate principal amount of such Regulation S Global Security and to
        increase or cause to be increased the aggregate principal amount of the
        applicable Restricted Global Security by the principal amount of the
        beneficial interest in the Regulation S Global Security to be exchanged,
        and the Trustee, as Security Registrar, shall instruct the Depositary,
        concurrently with such reduction, to credit or cause to be credited to
        the account of the Person specified in such instructions a beneficial
        interest in the applicable Restricted Global Security equal to the
        reduction in the aggregate principal amount of such Regulation S Global
        Security and to debit or cause to be debited from the account of the
        Person making such transfer the beneficial interest in the Regulation S
        Global Security that is being transferred. After the expiration of the
        Distribution Compliance Period, the certificate described in clause (3)
        above shall no longer be required to effect transfers pursuant to this
        Section 10(e)(ii).

                (iii) Restricted Global Security to Regulation S Global Security
        After Two Years. If the holder of a beneficial interest in a Restricted
        Global Security wishes at any time after the second anniversary of the
        date of original issuance of this Note to (A) transfer such interest to
        a Person who wishes to take delivery thereof in the form of a beneficial
        interest in the Regulation S Global Security or (B) to exchange such
        interest for a beneficial interest in a Regulation S Global Security,
        such transfer or exchange may be effected, subject to the Applicable
        Procedures, only in accordance with this Section 10(e)(iii). Upon
        receipt by the Trustee of (1) in the case of a transfer or exchange of
        an interest in the Restricted Global Security, instructions given in
        accordance with the Applicable Procedures from an Agent Member directing
        the Trustee to credit or cause to be credited to a beneficial interest
        in the Regulation S Global Security in an amount equal to that the
        beneficial interest in the Restricted Global Security to be so
        transferred or exchanged, (2) a written order given in accordance with
        the Applicable Procedures containing information regarding the
        participant account of the Depositary (and, if applicable, the Euroclear
        or Clearstream account, as the case may be) to be credited with such
        beneficial interest and (3) a certificate substantially in the form of
        Exhibit C hereto given by the holder of such beneficial interest, the
        Trustee, as Security Registrar, shall instruct the Depositary to reduce
        the principal amount of the Restricted Global Security, and to increase
        the principal amount of the Regulation S Global Security, by the
        principal amount of the beneficial interest in the Restricted Global
        Security to be so transferred or exchanged, and to credit or cause to be
        credited to the account of the Person specified in such instructions a
        beneficial interest in the Regulation S Global Security having a
        principal amount equal to the amount by which the principal amount of
        the Restricted Global Security was reduced upon such transfer or
        exchange.

                (iv) Private Placement Legend. If upon the transfer, exchange or
        replacement of this Note, this Note does not bear the Private Placement
        Legend, then the Security Registrar shall deliver a Note or Exchange
        Note, as the case may be, that does not bear the Private Placement
        Legend. If upon the transfer, exchange or replacement of this Note, this
        Note bears the Private Placement Legend, the Security Registrar shall
        deliver a Note that bears the Private Placement Legend. However,
        notwithstanding the previous

<PAGE>   17
        sentence, (i) if the Company determines (upon the advice of counsel and
        such other certifications and evidence as the Company may reasonably
        require) that this Note is eligible for resale pursuant to Rule 144(k)
        under the Securities Act (or a successor provision) and that the Private
        Placement Legend is no longer necessary or appropriate in order to
        ensure that subsequent transfers of such security (or a beneficial
        interest therein) are effected in compliance with the Securities Act, or
        (ii) after this Note is (x) sold pursuant to an effective registration
        statement under the Securities Act, pursuant to the Registration Rights
        Agreement or otherwise, or (y) exchanged for an Exchange Note, the
        Company may instruct the Trustee to deliver to the Holder thereof (or to
        its transferee) a new security of like tenor and amount, registered in
        the name of the Holder thereof (or its transferee), that does not bear
        the Private Placement Legend, and the Trustee will comply with such
        instruction.

                (v) General. By its acceptance of any Note or Exchange Note
        bearing the Private Placement Legend and other legends thereon, each
        Holder of such Note or Exchange Note acknowledges the restrictions on
        transfer of such security set forth in such security, including the
        legends thereon, and the Indenture and agrees that it will transfer such
        Note or Exchange Note only as provided.

        (f) ADDITIONAL INTEREST.

        In the event that (i) the Exchange Offer Registration Statement is not
filed with the SEC on or prior to the 120th calendar day following the date of
original issuance of the Notes, (ii) the Exchange Offer Registration Statement
is not declared effective on or prior to the 180th calendar day following the
date of original issuance of the Notes, (iii) the Exchange Offer is not
consummated or a Shelf Registration Statement (as defined in the Registration
Rights Agreement) is not declared effective, in either case, on or prior to the
210th calendar day following the date of original issuance of the Notes or (iv)
the Exchange Offer Registration Statement or the Shelf Registration Statement is
filed and declared effective but shall thereafter either be withdrawn by the
Company, except as specifically permitted by Section 2.2(B) of the Registration
Right Agreement, or becomes subject to an effective stop order suspending the
effectiveness of such registration statement, in each case, without being
succeeded within 30 calendar days by an amendment thereto or an additional
registration statement filed and declared effective (each such event referred to
in clauses (i) through (iv) above, a "Registration Default"), the interest rate
borne by securities represented by this Note which are Registrable Securities
(as defined in the Registration Rights Agreement) shall be increased
("Additional Interest") by one-fourth of one percent (0.25%) per annum upon the
occurrence of each Registration Default, which rate will increase by an
additional one-fourth of one percent (0.25%) per annum if such Registration
Default has not been cured within 90 calendar days after occurrence thereof and
continuing until all Registration Defaults have been cured, PROVIDED that the
aggregate amount of any such increase in the interest rate on such Registrable
Securities shall in no event exceed one percent (1.0%) per annum; and PROVIDED,
FURTHER, that if the Registration Statement (as defined in the Registration
Rights Agreement) is not declared effective on or prior to the 180th calendar
day following the original issuance of the Notes and the Company shall request
Holders of such Registrable Securities to provide information for inclusion in
the Shelf Registration Statement, then such Registrable Securities owned by
Holders who do not deliver such information to the Company or who do not provide
comments on the Shelf Registration

<PAGE>   18
Statement when requested by the Company will not be entitled to any such
increase in the interest rate for any calendar day after the 210th calendar day
following the date of original issuance of such Registrable Securities. All
accrued Additional Interest shall be paid to Holders of such Registrable
Securities in the same manner and at the same time as regular payments of
interest on the such Registrable Securities. Following the cure of all
Registration Defaults, the accrual of Additional Interest will cease and the
interest rate on the Registrable Securities will revert to the original rate.

        Interest on the Exchange Notes shall be payable from the last date on
which interest was paid on the Exchange Notes or, if no such interest has been
paid on the Exchange Notes, from the last date on which interest was paid on
this Note or, if no such interest has been paid on this Note, from the date of
issuance of this Note. Such interest shall include all Additional Interest that
may have accrued on this Note for which the Exchange Notes were exchanged
pursuant to the Exchange Offer; such Additional Interest to be calculated in
accordance with the terms of the Registration Rights Agreement, the Indenture
and this Note and payable at the same time and in the same manner as periodic
interest on this Note.

        11. PROVISION OF INFORMATION. In addition to any other information
required to be provided by the Company pursuant to the Indenture, the Company
shall furnish to the Holders of this Note upon their request the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

        12. CUSIP AND ISIN NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes as a convenience to the Holders
of the Notes. No representation is made as to the correctness or accuracy of
such CUSIP numbers or ISIN numbers as printed on the Notes, and reliance may be
placed only on the other identification numbers printed hereon.

        13. GOVERNING LAW. THE INDENTURE AND THE NOTES, INCLUDING THIS NOTE,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>   19
                            [FORM OF TRANSFER NOTICE]

        FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

Insert Taxpayer Identification No.

(Please print or typewrite name and address including zip code of assignee)

the within security and all rights thereunder, hereby irrevocably constituting
and appointing

attorney to transfer such security on the books of the Company with full power
of substitution in the premises.

                     [THE FOLLOWING PROVISION TO BE INCLUDED
                           ON ALL CERTIFICATES EXCEPT
                    PERMANENT OFFSHORE PHYSICAL CERTIFICATES]

        In connection with any transfer of this security occurring prior to the
date which is the earlier date of an effective registration statement, the
undersigned confirms that without utilizing any general solicitation or general
advertising that this security is being transferred:

                                   [Check One]

         (1)       / /      to the Company or a subsidiary thereof; or

         (2)      / /       pursuant to an effective registration statement
                            under the Securities Act of 1933, as amended; or

         (3)      / /       in the United States to a "qualified institutional
                            buyer" (as defined in Rule 144A under the Securities
                            Act of 1933, as amended) that purchases for its own
                            account or for the account of a qualified
                            institutional buyer to whom notice is given that
                            such transfer is being made in reliance on Rule
                            144A, in each case pursuant to and in compliance
                            with Rule 144A under the Securities Act of 1933, as
                            amended; or

         (4)      / /       outside the United States in an offshore transaction
                            within the meaning of Regulation S under the
                            Securities Act in compliance with Rule 904 under the
                            Securities Act of 1933, as amended; or

         (5)      / /       pursuant to the exemption from registration provided
                            by Rule 144 under the Securities Act of 1933, as
                            amended; or

<PAGE>   20
         (6)      / /       in the United States to an institutional accredited
                            investor that prior to the transfer, furnishes to
                            the Trustee a signed letter containing certain
                            representations and agreements relating to the
                            restrictions on transfer of this Note (the form of
                            which letter can be obtained from the trustee) and,
                            if such transfer is in respect of an aggregate
                            principal amount of notes of less than $100,000, an
                            opinion of counsel acceptable to the Company that
                            such transfer is in compliance with the Securities
                            Act of 1933, as amended; or

Unless one of the boxes is checked, the Trustee will refuse to register any of
the securities evidenced by this certificate in the name of any Person other
than the registered holder thereof, PROVIDED, HOWEVER, that if box (4), (5) or
(6) is checked, the Trustee may require, prior to registering any such transfer
of the securities, such legal opinions, certifications and other information as
the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended.

                                                --------------------------------
                                                Signature

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

         The undersigned represents and warrants that it is purchasing this
security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon the undersigned's foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

                             Dated:
                                    ---------   --------------------------------

                                  NOTICE: To be executed by an executive officer

<PAGE>   21
                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

<TABLE>
<CAPTION>
                                                            Principal Amount

                          Amount of          Amount of       of this Global        Signature of
                         decrease in        increase in         Security            authorized
                      Principal Amount   Principal Amount    following such         officer of
                       of this Global     of the Global       decrease or           Trustee or
  Date of Exchange        Security           Security           increase       Securities Custodian
  ----------------    ----------------   ----------------   ----------------   --------------------
<S>                   <C>                <C>                <C>                <C>

</TABLE>

<PAGE>   22
                                                                       EXHIBIT A

               FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF
                   TRANSFER FROM RESTRICTED GLOBAL SECURITY TO
                          REGULATION S GLOBAL SECURITY

LaSalle Bank National Association.
135 South LaSalle Street
Attn: Corporate Trust Operations
Suite 1811
Chicago, Illinois  60603

           Re: 7 3/4% Notes due 2011 of Shurgard Storage Centers, Inc.

        Reference is hereby made to the Indenture, dated as of April 25, 1997
(the "Indenture"), between Shurgard Storage Centers, Inc., as issuer (the
"Company") and LaSalle National Bank, N.A. , as trustee, and the other terms and
conditions of the 7 3/4% Notes due 2011 (the "Securities") issued pursuant to
the Indenture. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture and the Securities.

        This letter relates to US$_________ principal amount of Securities which
are evidenced by the Restricted Global Security (CUSIP No. 82567D AD 6, ISIN No.
US82567DA66 and Common Code No. 12512058) and held with the Depositary in the
name of [ ________ ] (the "Transferor") and held for the benefit of
[_________________] (the "Beneficial Owner"). The Beneficial Owner has requested
a transfer of such beneficial interest in the Securities to a Person who will
take delivery thereof in the form of an equal principal amount of Securities
evidenced by the Regulation S Global Security (CUSIP No. US82173 AA 0, ISIN No.
US82173AA00 and Common Code No. 12512074).

        In connection with such request and in respect of such Securities, the
Transferor hereby certifies that such transfer has been effected in compliance
with the transfer restrictions applicable to the Global Securities and pursuant
to and in accordance with Rule 903, Rule 904 or Rule 144 under the United States
Securities Act of 1933, as amended (the "Securities Act"), and accordingly the
Transferor hereby further certifies that:

        (A)     if the transfer has been effected pursuant to Rule 903 or Rule
                904:

                (1)     the offer of the Securities was not made to a person in
                        the United States;

                (2)     either:

                        (a)     at the time the buy order was originated, the
                transferee was outside the United States or the Transferor and
                any person acting on its behalf reasonably believed and believes
                that the transferee was outside the United States; or

                        (b)     the transaction was executed in, on or through
                the facilities of a designated offshore securities market and
                neither the Transferor nor any person

<PAGE>   23
                acting on its behalf knows that the transaction was prearranged
                with a buyer in the United States;

                (3)     no directed selling efforts have been made in
        contravention of the requirements of Rule 903(b) or Rule 904(b) of
        Regulation S, as applicable;

                (4)     the transaction is not part of a plan or scheme to evade
        the registration requirements of the Securities Act;

                (5)     if the transfer is being requested prior to March 2,
        2001, upon completion of the transaction, the beneficial interest being
        transferred as described above is to be held with the Depositary through
        Euroclear or Clearstream Banking or both (CUSIP No. US82173 AA 0, ISIN
        No. US82173AA00 and Common Code No. 12512074); and

        (B) If the transfer has been effected pursuant to Rule 144, the
Securities have been transferred in a transaction permitted by Rule 144 under
the Securities Act.

        Upon giving effect to this request to exchange a beneficial interest in
such Restricted Global Security for a beneficial interest in a Regulation S
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to Regulation S Global Security pursuant to
the Indenture, the Securities and the Securites Act.

        This certificate and the statements contained herein are made for your
benefit and the benefit of the Company. Terms used in this certificate and not
otherwise defined in the Indenture have the meanings set forth in Regulation S
under the Securities Act.

                                      [Insert Name of Transferor]

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                             Dated:              ,
                                                   --------------  ----

<PAGE>   24
                                                                       EXHIBIT B

               FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF
                  TRANSFER FROM REGULATION S GLOBAL SECURITY TO
                           RESTRICTED GLOBAL SECURITY

LaSalle Bank National Association.
135 South LaSalle Street
Attn: Corporate Trust Operations
Suite 1811
Chicago, Illinois  60603

           Re: 7 3/4% Notes due 2011 of Shurgard Storage Centers, Inc.

        Reference is hereby made to the Indenture, dated as of April 25, 1997
(the "Indenture"), between Shurgard Storage Centers, Inc., as issuer (the
"Company") and LaSalle National Bank, N.A., as trustee, and the other terms and
conditions of the 7 3/4% Notes due 2011 (the "Securities") issued pursuant to
the Indenture. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture and the Securities.

        This letter relates to US$____________ principal amount of the
Securities which are evidenced by the Regulation S Global Security (CUSIP No.
US82173 AA 0, ISIN No. US82173AA00 and Common Code No. 12512074) and held with
the Depositary in the name of [ ________ ] (the "Transferor") and held for the
benefit of [_________________] (the "Beneficial Owner"). The Beneficial Owner
has requested a transfer of such beneficial interest in the Securities to a
Person who will take delivery thereof in the form of an equal principal amount
of Securities evidenced by the Restricted Global Security (CUSIP No. 82567D AD
6, ISIN No. US82567DA66 and Common Code No. 12512058), to be held with the
Depositary.

        In connection with such request and in respect of such Securities, the
Transferor hereby certifies that such transfer is being effected pursuant to and
in accordance with Rule 144A under the United States Securities Act of 1933, as
amended (the "Securities Act"), and, accordingly, the Transferor hereby further
certifies that the Securities are being transferred to a Person that the
Transferor reasonably believes is purchasing the Securities for its own account,
or for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a "qualified
institutional buyer" within the meaning of Rule 144A in a transaction meeting
the requirements of Rule 144A and such Securities are being transferred in
compliance with any applicable blue sky securities laws of any state of the
United States.

        Upon giving effect to this request to exchange a beneficial interest in
Regulation S Global Securities for a beneficial interest in the Restricted
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to the Securities pursuant to the Indenture,
the Securities and the Securites Act.

<PAGE>   25
        This certificate and the statements contained herein are made for your
benefit and the benefit of the Company. Terms used in this certificate and not
otherwise defined in the Indenture have the meanings set forth in Regulation S
under the Securities Act.

                                                   [Insert Name of Transferor]

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                             Dated:              ,
                                                   --------------  ----

<PAGE>   26
                                                                       EXHIBIT C

          FORM OF CERTIFICATE FOR TRANSFER OR EXCHANGE AFTER TWO YEARS

LaSalle Bank National Association.
135 South LaSalle Street
Attn: Corporate Trust Operations
Suite 1811
Chicago, Illinois  60603

           Re: 7 3/4% Notes due 2011 of Shurgard Storage Centers, Inc.

        Reference is hereby made to the Indenture, dated as of April 25, 1997
(the "Indenture"), between Shurgard Storage Centers, Inc., as issuer (the
"Company") and LaSalle National Bank, N.A. , as trustee, and the other terms and
conditions of the 7 3/4% Notes due 2011 (the "Securities") issued pursuant to
the Indenture. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture and the Securities.

        [For transfers: This letter relates to US$__________ principal amount of
Securities which are evidenced by a Restricted Global Security (CUSIP No. 82567D
AD 6, ISIN No. US82567DA66 and Common Code No. 12512058) and held with the
Depositary in the name of [ ________ ] and held for the benefit of
[_________________] (the "Beneficial Owner"). The Beneficial Owner has requested
that its beneficial interest in such Securities be transferred to a Person that
will take delivery thereof in the form of an equal principal amount of
Securities evidenced by the Regulation S Global Security (CUSIP No. US82173 AA
0, ISIN No. US82173AA00 and Common Code No. 12512074).

        In connection with such request and in respect of such Securities, the
Beneficial Owner does hereby certify that upon such transfer, (a) a period of at
least two years will have elapsed since February 20, 2001, (b) the Beneficial
Owner during the three months preceding the date of such transfer was not an
"affiliate" of the Company (as defined in Rule 144 under the Securities Act),
and it was not acting on behalf of such an affiliate and (c) such Person to whom
such transfer is being made is not an "affiliate" of the Company.]

        [For exchanges: This letter relates to US$__________ principal amount of
Securities that are evidenced by a Restricted Global Security (CUSIP No. 82567D
AD 6, ISIN No. US82567DA66 and Common Code No. 12512058) and held with the
Depositary in the name of [ ________ ] and held for the benefit of [
______________ ] (the "Beneficial Owner"). The Beneficial Owner has requested
that its beneficial interest in such Securities be exchanged for a beneficial
interest in an equal principal amount of Securities evidenced by the Regulation
S Global Security (CUSIP No. US82173 AA 0, ISIN No. US82173AA00 and Common Code
No. 12512074).

        In connection with such request and in respect of such Securities, the
Beneficial Owner does hereby certify that [it is located and acquired such
securities outside the United States (if the

<PAGE>   27
Distribution Compliance Period has ended) and that such transfer is being made
in accordance with Rule 903 or 904 of Regulation S promulgated under the U.S.
Securities Act of 1933, as amended][, upon such exchange, (a) it will be the
beneficial owner of such Securities, (b) a period of at least two years will
have elapsed since February 20, 2001 and (c) the Beneficial Owner will not be,
and during the three months preceding the date of such exchange will not have
been, an "affiliate" of the Company (as defined in Rule 144 under the Securities
Act), and it is not acting on behalf of such an affiliate].

        This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                    [Insert Name of Beneficial Owner]

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                             Dated:              ,
                                                   --------------  ----<PAGE>   1
                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

        This Registration Rights Agreement (this "Agreement") is made and
entered into this 20th day of February, 2001, among Shurgard Storage Centers,
Inc., a Washington corporation (the "Company"), and Banc of America Securities
LLC ("BofA"); Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill
Lynch"); Banc One Capital Markets, Inc.; Morgan Stanley & Co. Incorporated;
Salomon Smith Barney Inc. and U.S. Bancorp Piper Jaffray Inc. (collectively,
with BofA and Merrill Lynch, the "Initial Purchasers").

        This Agreement is made pursuant to the Purchase Agreement dated February
14, 2001 among the Company and the Initial Purchasers (the "Purchase
Agreement"), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of $200,000,000 principal amount of the Company's 7
3/4% Notes due 2011 (the "Securities"). In order to induce the Initial
Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution of this Agreement
is a condition to the closing under the Purchase Agreement.

        In consideration of the foregoing, the parties hereto agree as follows:

        1. DEFINITIONS. As used in this Agreement, the following capitalized
defined terms shall have the following meanings:

        "1933 Act" shall mean the Securities Act of 1933, as amended from time
to time.

        "1934 Act" shall mean the Securities Exchange Act of 1934, as amended
from time to time.

        "Additional Interest" shall have the meaning set forth in Section 2.5
hereof.

        "BofA" shall have the meaning set forth in the preamble.

        "Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in The City of New York
are authorized or obligated by law or executive order to close.

        "Closing Date" shall mean the Closing Date as defined in the Purchase
Agreement.

        "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

        "Depositary" shall mean The Depository Trust Company, or any other
depositary for the Securities appointed by the Company; PROVIDED, HOWEVER, that
such depositary must have an address in the Borough of Manhattan, in the City of
New York.

<PAGE>   2
        "Exchange Offer" shall mean the exchange offer by the Company of
Exchange Securities for Registrable Securities pursuant to Section 2.1 hereof.

        "Exchange Offer Registration" shall mean a registration under the 1933
Act effected pursuant to Section 2.1 hereof.

        "Exchange Offer Registration Statement" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement,
including the Prospectus contained therein, all exhibits thereto and all
documents incorporated by reference therein.

        "Exchange Period" shall have the meaning set forth in Section 2.1
hereof.

        "Exchange Securities" shall mean the 7 3/4% Notes due 2011 issued by the
Company under the Indenture containing terms identical to the Securities in all
material respects (except for references to certain interest rate provisions,
restrictions on transfers and restrictive legends), to be offered to Holders of
Securities in exchange for Registrable Securities pursuant to the Exchange
Offer.

        "Holder" shall mean an Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture and each Participating Broker-Dealer that holds Exchange
Securities for so long as such Participating Broker-Dealer is required to
deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Securities.

        "Indenture" shall mean the Indenture, dated as of April 25, 1997,
between the Company and LaSalle National Bank, as trustee, as supplemented by
Supplemental Indenture thereto dated as of July 11, 1997 and as the same may be
amended, supplemented, waived or otherwise modified from time to time in
accordance with the terms thereof.

        "Initial Purchaser" or "Initial Purchasers" shall have the meaning set
forth in the preamble.

        "Majority Holders" shall mean the Holders of a majority of the aggregate
principal amount of Outstanding (as defined in the Indenture) Registrable
Securities; PROVIDED that whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company and other obligors on the Securities
or any Affiliate (as defined in the Indenture) of the Company shall be
disregarded in determining whether such consent or approval was given by the
Holders of such required percentage amount.

        "Participating Broker-Dealer" shall mean any Initial Purchaser, and any
other broker-dealer which makes a market in the Securities and exchanges
Registrable Securities in the Exchange Offer for Exchange Securities.

                                       2
<PAGE>   3
        "Person" shall mean any individual, corporation, partnership, joint
venture, trust, limited liability company, unincorporated organization or
government or any agency or political subdivision thereof.

        "Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including any such
prospectus supplement with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Shelf Registration Statement, and by
all other amendments and supplements to a prospectus, including post-effective
amendments, and in each case including all material incorporated by reference
therein.

        "Purchase Agreement" shall have the meaning set forth in the preamble.

        "Registrable Securities" shall mean the Securities; PROVIDED, HOWEVER,
that Securities shall cease to be Registrable Securities when (i) a Registration
Statement with respect to such Securities shall have been declared effective
under the 1933 Act and such Securities shall have been disposed of pursuant to
such Registration Statement, (ii) such Securities have been sold to the public
pursuant to Rule 144 under the 1933 Act under circumstances in which any legend
borne by such Securities relating to restrictions on transferability thereof,
under the 1933 Act or otherwise, is removed or may be sold pursuant to Rule
144(k) (or any similar provision then in force, but not Rule 144A) under the
1933 Act, (iii) such Securities shall have ceased to be outstanding or (iv) the
Exchange Offer is consummated (except in the case of Securities purchased from
the Company and continued to be held by the Initial Purchasers).

        "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including,
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. ("NASD") registration and filing fees, including, if
applicable, the reasonable fees and expenses of any "qualified independent
underwriter" (and its counsel) that is required to be retained by any holder of
Registrable Securities in accordance with the rules and regulations of the NASD,
(ii) all fees and expenses incurred in connection with compliance with state
securities or blue sky laws and compliance with the rules of the NASD (including
reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or
Registrable Securities and any filings with the NASD), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements
and other documents relating to the performance of and compliance with this
Agreement, (iv) all fees and expenses incurred in connection with the listing,
if any, of any of the Registrable Securities on any securities exchange or
exchanges, (v) all rating agency fees, (vi) the fees and disbursements of
counsel for the Company and of the independent public accountants of the
Company, including the expenses of any special audits or "cold comfort" letters
required by or incident to such performance and compliance, (vii) the fees and
expenses of the Trustee, and any escrow agent or custodian, (viii) the
reasonable fees and disbursements of one firm of legal counsel selected by the
Majority Holders to represent the Holders of Registrable Securities and (ix) any
reasonable fees and disbursements of the underwriters customarily required to be
paid by issuers or sellers of

                                       3
<PAGE>   4
securities and the fees and expenses of any special experts retained by the
Company in connection with any Registration Statement, but excluding
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of Registrable Securities by a Holder.

        "Registration Statement" shall mean any registration statement of the
Company which covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement, and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

        "SEC" shall mean the United States Securities and Exchange Commission or
any successor agency or governmental body performing the functions currently
performed by the United States Securities and Exchange Commission.

        "Securities" shall have the meaning set forth in the preamble.

        "Shelf Registration" shall mean a registration effected pursuant to
Section 2.2 hereof.

        "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2.2 of this
Agreement which covers all of the Registrable Securities on an appropriate form
under Rule 415 under the 1933 Act, or any similar rule that may be adopted by
the SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

        "TIA" shall mean the Trust Indenture Act of 1939, as amended.

        "Trustee" shall mean the trustee with respect to the Securities under
the Indenture.

        2.      REGISTRATION UNDER THE 1933 ACT.

                2.1     EXCHANGE OFFER. The Company shall, for the benefit of
the Holders, at the Company's cost, use its reasonable best efforts (A) to file
with the SEC the Exchange Offer Registration Statement not later than 120
calendar days following the original issuance of the Securities with respect to
a proposed Exchange Offer and the issuance and delivery to the Holders, in
exchange for the Registrable Securities, of a like principal amount of Exchange
Securities, (B) to cause the Exchange Offer Registration Statement to be
declared effective under the 1933 Act within 180 calendar days of the original
issuance of the Securities, (C) to keep the Exchange Offer Registration
Statement effective until the closing of the Exchange Offer and (D) unless the
Exchange Offer would not be permitted by applicable law or SEC policy, to cause
the Exchange Offer to be consummated within 210 calendar days following the
original issuance of the Securities. The Exchange Securities will be issued
under the Indenture. Upon the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Exchange Offer, it being the
objective of such Exchange Offer to enable each Holder eligible and electing to
exchange Registrable Securities for Exchange Securities

                                       4
<PAGE>   5
(assuming that such Holder (A) is not an affiliate of the Company within the
meaning of Rule 405 under the 1933 Act, (B) is not a broker-dealer tendering
Registrable Securities acquired directly from the Company or one of its
Affiliates for its own account, (C) acquired the Exchange Securities in the
ordinary course of such Holder's business and (D) has no arrangements or
understandings with any Person to participate in the Exchange Offer for the
purpose of distributing the Exchange Securities) to transfer such Exchange
Securities from and after their receipt without any limitations or restrictions
under the 1933 Act and without material restrictions under the securities laws
of a substantial portion of the several states of the United States.

        In connection with the Exchange Offer, the Company will:

        (A)     as promptly as practicable after the Exchange Offer Registration
Statement has been declared effective by the SEC, mail to each Holder a copy of
the Prospectus forming part of the Exchange Offer Registration Statement,
together with an appropriate letter of transmittal and related documents;

        (B)     keep the Exchange Offer open for acceptance for a period of not
less than 20 Business Days after the date notice thereof is mailed to the
Holders (or longer if required by applicable law) (such period referred to
herein as the "Exchange Period");

        (C)     utilize the services of the Depositary for the Exchange Offer;

        (D)     permit Holders to (i) withdraw tendered Registrable Securities
at any time prior to 5:00 p.m. (Eastern Time) on the last Business Day of the
Exchange Period, by sending to the institution specified in the notice a
telegram, telex, facsimile transmission or letter setting forth the name of such
Holder, the principal amount of Registrable Securities delivered for exchange
and a statement that such Holder is withdrawing such Holder's election to have
such Securities exchanged and (ii) tender Registrable Securities according to
customary guaranteed delivery procedures if such Holder cannot deliver such
Registrable Securities or complete the procedures relating thereto on a timely
basis prior to 5:00 p.m. (Eastern Time) on the last Business Day of the Exchange
Period;

        (E)     notify each Holder that any Registrable Security not tendered
will remain outstanding and continue to accrue interest, but will not retain any
rights under this Agreement (except in the case of the Initial Purchasers and
Participating Broker-Dealers as provided herein); and

        (F)     otherwise comply in all material respects with all applicable
laws relating to the Exchange Offer.

        As soon as practicable after the close of the Exchange Offer, the
Company shall:

        (A)     accept for exchange all Registrable Securities duly tendered and
not validly withdrawn pursuant to the Exchange Offer in accordance with the
terms of the Exchange Offer Registration Statement and the letter of transmittal
which shall be an exhibit thereto;

                                       5
<PAGE>   6
        (B)     deliver or cause to be delivered all Registrable Securities
accepted for exchange to the Trustee for cancellation; and

        (C)     cause the Trustee promptly to authenticate and deliver Exchange
Securities to each Holder of Registrable Securities so accepted for exchange in
a principal amount equal to the principal amount of the Registrable Securities
of such Holder so accepted for exchange.

        Interest on each Exchange Security will accrue from the last date on
which interest was paid on the Registrable Securities surrendered in exchange
therefor or, if no interest has been paid on the Registrable Securities, from
the date of original issuance. The Exchange Offer shall not be subject to any
conditions, other than (A) that the Exchange Offer, or the making of any
exchange by a Holder, does not violate applicable law or any applicable
interpretation of the staff of the SEC, (B) the valid tendering of Registrable
Securities in accordance with the Exchange Offer, (C) that each Holder of
Registrable Securities exchanged in the Exchange Offer shall have represented
that (i) it is not an affiliate of the Company within the meaning of Rule 405
under the 1933 Act, (ii) it is not a broker-dealer tendering Registrable
Securities acquired directly from the Company or one of its Affiliates for its
own account, (iii) all of the Exchange Securities to be received by it shall be
acquired in the ordinary course of its business and (iv) at the time of the
consummation of the Exchange Offer it shall have no arrangement or understanding
with any Person to participate in the distribution (within the meaning of the
1933 Act) of the Exchange Securities, and shall have made such other
representations as may be reasonably necessary under applicable SEC rules,
regulations or interpretations to render the use of Form S-4 or other
appropriate form under the 1933 Act available and (D) that no action or
proceeding shall have been instituted or threatened in any court or by or before
any governmental agency with respect to the Exchange Offer which, in the
Company's judgment, would reasonably be expected to impair the ability of the
Company to proceed with the Exchange Offer. The Company shall use its reasonable
best efforts to inform the Initial Purchasers of the names and addresses of the
Holders to whom the Exchange Offer is made, and the Initial Purchasers shall
have the right, subject to applicable securities laws, to contact such Holders
and otherwise facilitate the tender of Registrable Securities in the Exchange
Offer.

        2.2     SHELF REGISTRATION. In the event that (A) the Company reasonably
determines that changes in law, SEC rules or regulations or applicable
interpretations thereof by the staff of the SEC do not permit the Company to
effect the Exchange Offer as contemplated by Section 2.1 hereof, (B) for any
other reason, the Exchange Offer is not consummated within 210 calendar days
after the original issuance of the Securities or (C) an Initial Purchaser
notifies the Company within 20 Business Days following the consummation of the
Exchange Offer that (i) it is not permitted by applicable law, SEC rules or
regulations or applicable interpretations thereof by the staff of the SEC to
participate in the Exchange Offer, (ii) it may not resell Exchange Securities
with the Prospectus included as part of the Exchange Offer Registration
Statement or (iii) it is a broker-dealer and owns Registrable Securities
acquired directly from the Company or one of the Company's Affiliates, then in
case of each of clauses (A) through (B) the Company shall, at its cost, in lieu
of effecting (or, in the case of clause (C), in addition to effecting) the
registration of the Exchange Securities pursuant to the Exchange Offer
Registration Statement:

                                       6
<PAGE>   7
        (A)     as promptly as practicable, file with the SEC, and thereafter
shall use its reasonable best efforts to cause to be declared effective no later
than 210 calendar days after the original issuance of the Securities, a Shelf
Registration Statement relating to the offer and sale of the Registrable
Securities by the Holders from time to time in accordance with the methods of
distribution elected by the Majority Holders participating in the Shelf
Registration and set forth in such Shelf Registration Statement;

        (B)     use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective in order to permit the Prospectus forming a
part thereof to be usable by Holders for a period of two years from the date of
the original issuance of the Securities, or for such shorter period that will
terminate when all Registrable Securities covered by the Shelf Registration
Statement (i) have been sold pursuant thereto or (ii) are distributed to the
public pursuant to Rule 144 of the Securities Act or are saleable pursuant to
Rule 144(k) under the Securities Act without any limitations under clauses (c),
(e), (f) and (h) of Rule 144 (or any successor rule thereof); PROVIDED, HOWEVER,
that the Company shall not be obligated to keep the Shelf Registration Statement
effective or to permit the use of any Prospectus forming a part of the Shelf
Registration Statement if (i) the Company determines, in its reasonable
judgment, upon advice of counsel that the continued effectiveness and use of the
Shelf Registration Statement would (x) require the disclosure of material
information which the Company has a BONA FIDE business reason for preserving as
confidential or (y) interfere with any financing, acquisition, corporate
reorganization or other material transaction involving the Company or any of its
subsidiaries; and PROVIDED, FURTHER, that the failure to keep the Shelf
Registration Statement effective and usable for offers and sales of Registrable
Securities for such reasons shall last no longer than 45 consecutive calendar
days or no more than an aggregate of 90 calendar days during any consecutive
twelve-month period (whereafter a Registration Default, as hereinafter defined,
shall occur) and (ii) the Company promptly thereafter complies with the
requirements of Section 3(K) hereof, if applicable; any such period during which
the Company is excused from keeping the Shelf Registration Statement effective
and usable for offers and sales of Registrable Securities is referred to herein
as a "Suspension Period"; a Suspension Period shall commence on and include the
date that the Company gives notice to the Holders that the Shelf Registration
Statement is no longer effective or the Prospectus included therein is no longer
usable for offers and sales of Registrable Securities as a result of the
application of the proviso of the foregoing sentence and shall end on the
earlier to occur of the date on which each seller of Registrable Securities
covered by the Shelf Registration Statement either receives the copies of the
supplemented or amended Prospectus contemplated by Section 3(K) hereof or is
advised in writing by the Company that use of the Prospectus may be resumed; and

        (C)     use its reasonable best efforts to ensure that (i) any Shelf
Registration Statement and any amendment thereto and any Prospectus forming a
part thereof and any supplement thereto complies in all material respects with
the 1933 Act and the rules and regulations thereunder, (ii) any Shelf
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) subject to Section 2.2(B) above, any Prospectus
forming a part of any Shelf Registration

                                       7
<PAGE>   8
Statement, and any supplement to such Prospectus (as amended or supplemented
from time to time), does not include an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements, in
light of the circumstances under which they were made, not misleading.

        The Company shall not permit any securities other than Registrable
Securities to be included in the Shelf Registration Statement. The Company
further agrees, if necessary, to supplement or amend the Shelf Registration
Statement, as required by Section 3(B) below, and to furnish to the Holders of
Registrable Securities copies of any such supplement or amendment promptly after
its being used or filed with the SEC.

        2.3     EXPENSES. The Company shall pay all Registration Expenses in
connection with the registration pursuant to Section 2.1 or 2.2 hereof. Each
Holder shall pay all underwriting discounts and commissions and transfer taxes,
if any, relating to the sale or disposition of such Holder's Registrable
Securities pursuant to the Shelf Registration Statement.

        2.4     EFFECTIVENESS.

        (A)     The Company will be deemed not to have used its reasonable best
efforts to cause the Exchange Offer Registration Statement or the Shelf
Registration Statement, as the case may be, to become, or to remain, effective
during the requisite period if the Company voluntarily takes any action (other
than any action specifically permitted by Section 2.2(B) hereof) that would, or
omits to take any action which omission would, result in any such Registration
Statement not being declared effective or in the Holders of Registrable
Securities covered thereby not being able to exchange or offer and sell such
Registrable Securities during that period as and to the extent contemplated
hereby, unless such action is required by applicable law.

        (B)     An Exchange Offer Registration Statement pursuant to Section 2.1
hereof or a Shelf Registration Statement pursuant to Section 2.2 hereof will not
be deemed to have become effective unless it has been declared effective by the
SEC; PROVIDED, HOWEVER, that if, after it has been declared effective, the
offering of Registrable Securities pursuant to an Exchange Offer Registration
Statement or a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other
governmental agency or court, such Registration Statement will be deemed not to
have become effective during the period of such interference, until the offering
of Registrable Securities pursuant to such Registration Statement may legally
resume.

        2.5     INTEREST. In the event that (A) the Exchange Offer Registration
Statement is not filed with the SEC on or prior to the 120th calendar day
following the date of original issuance of the Securities, (B) the Exchange
Offer Registration Statement is not declared effective on or prior to the 180th
calendar day following the date of original issuance of the Securities, (C) the
Exchange Offer is not consummated or a Shelf Registration Statement is not
declared effective, in either case, on or prior to the 210th calendar day
following the date of original issuance of the Securities or (D) the Exchange
Offer Registration Statement or the Shelf Registration Statement is filed and
declared effective but shall thereafter either be withdrawn by the Company,
except as specifically permitted by Section 2.2(B) hereof, or becomes subject to

                                       8
<PAGE>   9
an effective stop order suspending the effectiveness of such registration
statement, in each case, without being succeeded within 30 calendar days by an
amendment thereto or an additional registration statement filed and declared
effective (each such event referred to in clauses (A) through (D) above, a
"Registration Default"), the interest rate borne by the Registrable Securities
shall be increased ("Additional Interest") by one-fourth of one percent (0.25%)
per annum upon the occurrence of each Registration Default, which rate will
increase by an additional one-fourth of one percent (0.25%) per annum if such
Registration Default has not been cured within 90 calendar days after occurrence
thereof and continuing until all Registration Defaults have been cured, PROVIDED
that the aggregate amount of any such increase in the interest rate on the
Registrable Securities shall in no event exceed one percent (1.0%) per annum;
and PROVIDED, FURTHER, that if the Exchange Offer Registration Statement is not
declared effective on or prior to the 180th calendar day following the original
issuance of the Securities and the Company shall request Holders of Securities
to provide information for inclusion in the Shelf Registration Statement, then
Registrable Securities owned by Holders who do not deliver such information to
the Company or who do not provide comments on the Shelf Registration Statement
when requested by the Company will not be entitled to any such increase in the
interest rate for any calendar day after the 210th calendar day following the
date of original issuance of the Securities. All accrued Additional Interest
shall be paid to Holders of Registrable Securities in the same manner and at the
same time as regular payments of interest on the Registrable Securities.
Following the cure of all Registration Defaults, the accrual of Additional
Interest will cease and the interest rate on the Registrable Securities will
revert to the original rate.

        3.      REGISTRATION PROCEDURES. In connection with the obligations of
the Company with respect to Registration Statements pursuant to Sections 2.1 and
2.2 hereof, the Company shall:

        (A)     prepare and file with the SEC a Registration Statement, within
the relevant time period specified in Section 2, on the appropriate form under
the 1933 Act, which form shall (i) be selected by the Company, (ii) in the case
of a Shelf Registration, be available for the sale of the Registrable Securities
by the selling Holders thereof and (iii) comply as to form in all material
respects with the requirements of the applicable form and include or incorporate
by reference all financial statements required by the SEC to be filed therewith
or incorporated by reference therein, and use its reasonable best efforts to
cause such Registration Statement to become effective and remain effective in
accordance with Section 2 hereof;

        (B)     prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary under applicable
law to keep such Registration Statement effective for the applicable period; and
cause each Prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 (or any similar
provision then in force) under the 1933 Act and comply with the provisions of
the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable
to them with respect to the disposition of all securities covered by each
Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the selling Holders thereof
(including sales by any Participating Broker-Dealer);

        (C)     in the case of a Shelf Registration, (i) notify each Holder of
Registrable Securities, at least five Business Days prior to filing, that a
Shelf Registration Statement with

                                       9
<PAGE>   10
respect to the Registrable Securities is being filed and advising such Holders
that the distribution of Registrable Securities will be made in accordance with
the method selected by the Majority Holders participating in the Shelf
Registration, (ii) furnish to each Holder of Registrable Securities and to each
underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto, and such other documents as
such Holder or underwriter may reasonably request, including financial
statements and schedules and, if the Holder so requests, all exhibits in order
to facilitate the public sale or other disposition of the Registrable Securities
and (iii) hereby consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Registrable Securities in
connection with the offering and sale of the Registrable Securities covered by
the Prospectus or any amendment or supplement thereto, save and except during
any Suspension Period;

        (D)     use its reasonable best efforts to register or qualify the
Registrable Securities under such state securities or blue sky laws of such
jurisdictions as any Holder of Registrable Securities covered by a Registration
Statement and each underwriter of an underwritten offering of Registrable
Securities shall reasonably request by the time the applicable Registration
Statement is declared effective by the SEC, and do any and all other acts and
things which may be reasonably necessary or advisable to enable each such Holder
and underwriter to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Holder; PROVIDED, HOWEVER, that the Company
shall not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to
qualify but for this Section 3(D) or (ii) take any action which would subject it
to general service of process or taxation in any such jurisdiction where it is
not then so subject;

        (E)     notify promptly each Holder of Registrable Securities under a
Shelf Registration or any Participating Broker-Dealer who has notified the
Company that it is utilizing the Prospectus contained in the Exchange Offer
Registration Statement as provided in Section 3(F) hereof and, if requested by
such Holder or Participating Broker-Dealer, confirm such advice in writing
promptly (i) when a Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective, (ii) of any
request by the SEC or any state securities authority for post-effective
amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the initiation
of any proceedings for that purpose, (iv) in the case of a Shelf Registration,
if, between the effective date of the Shelf Registration Statement and the
closing of any sale of Registrable Securities covered thereby, the
representations and warranties of the Company contained in any underwriting
agreement, securities sales agreement or other similar agreement, if any,
relating to the offering cease to be true and correct in all material respects,
(v) of the happening of any event or the discovery of any facts during the
period the Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein not
misleading, (vi) of the receipt by the Company of any notification with respect
to the suspension of the qualification of the Registrable Securities or the
Exchange Securities, as the case may be, for sale in any

                                       10
<PAGE>   11
jurisdiction or The initiation or threatening of any proceeding for such purpose
and (vii) of any determination by the Company that a post-effective amendment to
a Registration Statement would be appropriate;

        (F)     (1) in the case of the Exchange Offer Registration Statement (a)
include in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution," which section shall be reasonably acceptable to BofA on behalf of
the Participating Broker-Dealers, and which shall contain a summary statement of
the positions taken or policies made by the staff of the SEC with respect to the
potential "underwriter" status of any broker-dealer that holds Registrable
Securities acquired for its own account as a result of market-making activities
or other trading activities and that will be the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of Exchange Securities to be received by such
broker-dealer in the Exchange Offer, including a statement that any such
broker-dealer who receives Exchange Securities for Registrable Securities
pursuant to the Exchange Offer may be deemed a statutory underwriter and must
deliver a prospectus meeting the requirements of the 1933 Act in connection with
any resale of such Exchange Securities, (b) furnish to each Participating
Broker-Dealer who has delivered to the Company the notice referred to in Section
3(E), without charge, as many copies of each Prospectus included in the Exchange
Offer Registration Statement, including any preliminary prospectus, and any
amendment or supplement thereto, as such Participating Broker-Dealer may
reasonably request, (c) hereby consent to the use of the Prospectus forming part
of the Exchange Offer Registration Statement or any amendment or supplement
thereto, by any Person subject to the prospectus delivery requirements of the
SEC, including all Participating Broker-Dealers, in connection with the sale or
transfer of the Exchange Securities covered by the Prospectus or any amendment
or supplement thereto for up to 180 calendar days following the Exchange Offer,
save and except during any Suspension Period invoked with respect to such
Prospectus and (d) include in the transmittal letter or similar documentation to
be executed by an exchange offeree in order to participate in the Exchange Offer
(i) the following provision: "If the exchange offeree is a broker-dealer holding
Registrable Securities acquired for its own account as a result of market-making
activities or other trading activities, it will deliver a prospectus meeting the
requirements of the 1933 Act in connection with any resale of Exchange
Securities received in respect of such Registrable Securities pursuant to the
Exchange Offer," and (ii) a statement to the effect that by a broker-dealer
making the acknowledgment described in clause (i) and by delivering a Prospectus
in connection with the exchange of Registrable Securities, the broker-dealer
will not be deemed to admit that it is an underwriter within the meaning of the
1933 Act; and

                (2) in the case of any Exchange Offer Registration Statement,
the Company agrees to deliver to any Participating Broker-Dealers upon the
effectiveness of the Exchange Offer Registration Statement (a) an opinion of
counsel or opinions of counsel substantially in the form attached hereto as
Exhibit A, (b) officers' certificates substantially in the form customarily
delivered by the Company in its public offerings of debt securities and (c) a
comfort letter or comfort letters in customary form to the extent permitted by
Statement on Auditing Standards No. 72 of the American Institute of Certified
Public Accountants (or if such a comfort letter is not permitted, an agreed upon
procedures letter in customary form) from the Company's independent certified
public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the

                                       11
<PAGE>   12
Company for which financial statements are, or are required to be, included in
the Registration Statement) at least as broad in scope and coverage as the
comfort letter or comfort letters delivered to the Initial Purchasers in
connection with the initial sale of the Securities to the Initial Purchasers;

        (G)     (i) in the case of an Exchange Offer, furnish counsel for the
Initial Purchasers and (ii) in the case of a Shelf Registration, furnish counsel
for the Holders of Registrable Securities, copies of any comment letters
received from the SEC or any other request by the SEC or any state securities
authority for amendments or supplements to a Registration Statement and
Prospectus or for additional information;

        (H)     make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement as soon as
practicable and provide prompt notice to legal counsel for the Holders of the
withdrawal of any such order;

        (I)     in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, and each underwriter, if any, without charge, at least
one conformed copy of each Registration Statement and any post-effective
amendment thereto, including financial statements and schedules (without
documents incorporated therein by reference and all exhibits thereto, unless
requested);

        (J)     in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Securities to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold to the
extent not held with the Depositary through Cede & Co., to remove any
restrictive legends, and enable such Registrable Securities to be in such
denominations (consistent with the provisions of the Indenture) and registered
in such names as the selling Holders or the underwriters, if any, may reasonably
request at least three Business Days prior to the closing of any sale of
Registrable Securities;

        (K)     in the case of a Shelf Registration, upon the occurrence of any
event or the discovery of any facts, each as contemplated by Sections 3(E)(ii),
(iii), (v), (vi) and (vii) hereof and subject to the provisions of the paragraph
immediately following Section 3(T) hereof, as promptly as practicable after the
occurrence of such an event, use its reasonable best efforts to prepare a
supplement or post-effective amendment to the Registration Statement or the
related Prospectus or any document incorporated therein by reference or file any
other required document so that, as thereafter delivered to the purchasers of
the Registrable Securities or Participating Broker-Dealers, such Prospectus will
not contain at the time of such delivery any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading or will
remain so qualified. At such time as such public disclosure is otherwise made or
the Company determines that such disclosure is not necessary, in each case to
correct any misstatement of a material fact or to include any omitted material
fact, the Company agrees promptly to notify each Holder of such determination
and to furnish each Holder such number of copies of the Prospectus as amended or
supplemented, as such Holder may reasonably request;

                                       12
<PAGE>   13
        (L)     obtain a CUSIP number for all Exchange Securities or Registrable
Securities, as the case may be, not later than the effective date of a
Registration Statement, and provide the Trustee with certificates for the
Exchange Securities or the Registrable Securities, as the case may be, in a form
eligible for deposit with the Depositary;

        (M)     unless the Indenture, as its relates to the Exchange Securities
or the Registrable Securities, as the case may be, has already been so
qualified, use its best efforts to (i) cause the Indenture to be qualified under
the TIA in connection with the registration of the Exchange Securities or
Registrable Securities, as the case may be, (ii) cooperate with the Trustee and
the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and (iii)
execute, and use its best efforts to cause the Trustee to execute, all documents
as may be required to effect such changes, and all other forms and documents
required to be filed with the SEC to enable the Indenture to be so qualified in
a timely manner;

        (N)     in the case of a Shelf Registration, enter into agreements
(including underwriting agreements) and take all other customary and appropriate
actions in order to expedite or facilitate the disposition of such Registrable
Securities and in such connection whether or not an underwriting agreement is
entered into and whether or not the registration is an underwritten
registration:

                (i)     make such representations and warranties to the Holders
of such Registrable Securities and the underwriters, if any, in form, substance
and scope as has been customarily made by the Company to underwriters in similar
offerings of debt securities of the Company;

                (ii)    obtain opinions of counsel of the Company and updates
thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the managing underwriters, if any, and the Holders of
a majority in principal amount of the Registrable Securities being sold)
addressed to each selling Holder and the underwriters, if any, covering the
matters customarily covered in opinions requested in sales of securities or
underwritten offerings of the Company;

                (iii)   obtain "cold comfort" letters and updates thereof from
the Company's independent certified public accountants (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements are,
or are required to be, included in the Registration Statement) addressed to the
underwriters, if any, and use reasonable efforts to have such letter addressed
to the selling Holders of Registrable Securities (to the extent consistent with
Statement on Auditing Standards No. 72 of the American Institute of Certified
Public Accounts), such letters to be in customary form and covering matters of
the type customarily covered in "cold comfort" letters to underwriters in
connection with similar underwritten offerings of the Company;

                (iv)    if an underwriting agreement is entered into, cause the
same to set forth indemnification provisions and procedures substantially
equivalent to the indemnification

                                       13
<PAGE>   14
provisions and procedures set forth in Section 4 hereof with respect to the
underwriters and all other parties to be indemnified pursuant to said Section;
and

                (v)     deliver such documents and certificates as may be
reasonably requested and as are customarily delivered in similar offerings to
the Holders of a majority in principal amount of the Registrable Securities
being sold and the managing underwriters, if any; the above shall be done at (i)
the effectiveness of such Registration Statement (and each post-effective
amendment thereto) and (ii) each closing under any underwriting or similar
agreement as and to the extent required thereunder;

        (O)     in the case of a Shelf Registration or if a Prospectus is
required to be delivered by any Participating Broker-Dealer in the case of an
Exchange Offer, make available for inspection by representatives of the Holders
of the Registrable Securities, any underwriters participating in any disposition
pursuant to a Shelf Registration Statement, any Participating Broker-Dealer and
any counsel or accountant retained by any of the foregoing, all financial and
other records, pertinent corporate documents and properties of the Company
reasonably requested by any such persons, and cause the respective officers,
directors, employees and any other agents of the Company to supply all
information reasonably requested by any such representative, underwriter,
special counsel or accountant in connection with a Registration Statement, and
make such representatives of the Company available for discussion of such
documents as shall be reasonably requested by the Initial Purchasers; PROVIDED,
HOWEVER, that such persons shall first agree in writing with the Company that
any information that is reasonably and in good faith designated by the Company
in writing as confidential at the time of delivery of such information shall be
kept confidential by such persons, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to
inquiries of regulatory authorities, (ii) disclosure of such information is
required by law (including any disclosure requirements pursuant to federal
securities laws in connection with the filing of the Shelf Registration
Statement or the use of any Prospectus), (iii) such information becomes
generally available to the public other than as a result of a disclosure or
failure to safeguard such information by such persons or (iv) such information
becomes available to such persons from a source other than the Company and its
subsidiaries and such source is not known by such persons to be bound by a
confidentiality agreement; and PROVIDED, FURTHER, that the foregoing inspection
and information gathering shall be coordinated by (x) the managing underwriter
in connection with any underwritten offering pursuant to a Shelf Registration,
(y) the Holder designated by the Majority Holders in connection with any
nonunderwritten offering pursuant to a Shelf Registration or (z) the
Participating Broker-Dealer holding the largest amount of Registrable Securities
in the case of use of a Prospectus included in the Exchange Offer Registration
Statement, together with one counsel designated by and on behalf of such
persons;

        (P)     (i) in the case of an Exchange Offer Registration Statement, a
reasonable time prior to the filing of any Exchange Offer Registration
Statement, any Prospectus forming a part thereof, any amendment to an Exchange
Offer Registration Statement or amendment or supplement to such Prospectus,
provide copies of such document to the Initial Purchasers and to counsel to the
Holders of Registrable Securities and make such changes in any such document
prior to the filing thereof as the Initial Purchasers or counsel to the Holders
of Registrable Securities may reasonably request and, except as otherwise
required by applicable law, not file

                                       14
<PAGE>   15
any such document in a form to which the Initial Purchasers on behalf of the
Holders of Registrable Securities and counsel to the Holders of Registrable
Securities shall not have previously been advised and furnished a copy of or to
which the Initial Purchasers on behalf of the Holders of Registrable Securities
or counsel to the Holders of Registrable Securities shall reasonably object
(which objection shall be made within a reasonable period of time), and make the
representatives of the Company available for discussion of such documents as
shall be reasonably requested by the Initial Purchasers; and (ii) in the case of
a Shelf Registration, a reasonable time prior to filing any Shelf Registration
Statement, any Prospectus forming a part thereof, any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus, provide
copies of such document to the Holders of Registrable Securities, to the Initial
Purchasers, to counsel for the Holders and to the underwriter or underwriters of
an underwritten offering of Registrable Securities, if any, make such changes in
any such document prior to the filing thereof as the Initial Purchasers, the
counsel to the Holders or the underwriter or underwriters reasonably request and
not file any such document in a form to which the Majority Holders, the Initial
Purchasers on behalf of the Holders of Registrable Securities, counsel for the
Holders of Registrable Securities or any underwriter shall not have previously
been advised and furnished a copy of or to which the Majority Holders, the
Initial Purchasers on behalf of the Holders of Registrable Securities, counsel
to the Holders of Registrable Securities or any underwriter shall reasonably
object (which objection shall be made within a reasonable period of time), and
make the representatives of the Company available for discussion of such
document as shall be reasonably requested by the Holders of Registrable
Securities, the Initial Purchasers on behalf of such Holders, counsel for the
Holders of Registrable Securities or any underwriter;

        (Q)     in the case of a Shelf Registration, use its reasonable best
efforts to cause the Registrable Securities to be rated by the appropriate
rating agencies, if so requested by the Majority Holders, or if requested by the
underwriter or underwriters of an underwritten offering of Registrable
Securities, if any, unless the Exchange Securities or the Registrable
Securities, as the case may be, are already so rated or unless the Company has
obtained such ratings for its long-term debt securities generally;

        (R)     otherwise comply with all applicable rules and regulations of
the SEC and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering at least 12 months which shall
satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158 thereunder;

        (S)     cooperate and assist in any filings required to be made with the
NASD and, in the case of a Shelf Registration, in the performance of any due
diligence investigation by any underwriter and its counsel (including any
"qualified independent underwriter" that is required to be retained in
accordance with the rules and regulations of the NASD); and

        (T)     upon consummation of an Exchange Offer, obtain a customary
opinion of counsel to the Company addressed to the Trustee for the benefit of
all Holders of Registrable Securities participating in the Exchange Offer, and
which includes an opinion substantially to the effect that (i) the Company has
duly authorized, executed and delivered the Exchange Securities and the related
supplemental indenture and (ii) each of the Exchange Securities and related
indenture

                                       15
<PAGE>   16
constitute a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its respective terms (with customary
exceptions).

        In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in the Shelf Registration) require each
Holder of Registrable Securities to furnish to the Company such information
regarding the Holder and the proposed distribution by such Holder of such
Registrable Securities as the Company may from time to time reasonably request
in writing.

        In the case of a Shelf Registration Statement, each Holder agrees, and
in the case of the Exchange Offer Registration Statement, each Participating
Broker-Dealer agrees, that, upon receipt of any notice from the Company of (a)
the happening of any event or the discovery of any facts, each of the kind
described in Sections 3(E)(ii), (iii), (iv) or (v) hereof or (b) the Company's
determination, in its reasonable judgment, upon advice of counsel, that the
continued effectiveness and use of the Shelf Registration Statement or the
Prospectus included in the Shelf Registration Statement or the Exchange Offer
Registration Statement would (x) require the disclosure of material information,
which the Company has a BONA FIDE business reason for preserving as
confidential, or (y) interfere with any financing, acquisition, corporate
reorganization or other material transaction involving the Company or any of its
subsidiaries, such Holder or Participating Broker-Dealer, as the case may be,
will forthwith discontinue disposition of Registrable Securities pursuant to
such Registration Statement or Prospectus until the receipt by such Holder or
Participating Broker-Dealer, as the case may be, of either copies of the
supplemented or amended Prospectus contemplated by Section 3(K) hereof, and, if
so directed by the Company, such Holder or Participating Broker-Dealers will
deliver to the Company (at its expense) all copies in its possession of the
Prospectus covering such Registrable Securities current at the time of receipt
of such notice, or notice in writing from the Company that such Holder or
Participating Broker-Dealers may resume disposition of Registrable Securities
pursuant to such Registration Statement or Prospectus. If the Company shall give
any such notice described in clause (a) above to suspend the disposition of
Registrable Securities pursuant to a Registration Statement as a result of the
happening of any event or the discovery of any facts, each of the kind described
in Sections 3(E)(ii), (iii), (iv) and (v) hereof, the Company shall be deemed to
have used its reasonable best efforts to keep such Registration Statement
effective during such Suspension Period provided that the Company shall use its
reasonable best efforts to file and have declared effective (if an amendment) as
soon as practicable an amendment or supplement to such Registration Statement.
The Company shall extend the period during which such Registration Statement
shall be maintained effective or the Prospectus used pursuant to this Agreement
by the number of calendar days during the period from and including the date of
the giving of the notice described in clauses (a) and (b) above to and including
the date when the Holders or Participating Broker-Dealers shall have received
copies of the supplemented or amended Prospectus necessary to resume such
dispositions or notification that they may resume such disposition under an
existing Prospectus.

        If any of the Registrable Securities covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the underwriter or
underwriters and manager or managers that

                                       16
<PAGE>   17
will manage such offering will be selected by the Majority Holders of such
Registrable Securities included in such offering and shall be acceptable to the
Company. No Holder of Registrable Securities may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder's
Registrable Securities on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (b)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such
underwriting arrangements.

        4.      INDEMNIFICATION; CONTRIBUTION.

        (A)     In the event of a Shelf Registration Statement or in connection
with any prospectus delivery pursuant to an Exchange Offer Registration
Statement by an Initial Purchaser or Participating Broker-Dealer, the Company
agrees to indemnify and hold harmless the Initial Purchasers, each Holder, each
Participating Broker-Dealer, each Person who participates as an underwriter (any
such Person being an "Underwriter") and each Person, if any, who controls any
Initial Purchaser, Holder, Participating Broker-Dealer or Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
(collectively, the "Section 4 Persons"), against any losses, claims, damages,
liabilities or expenses (including the reasonable cost of investigating and
defending against any claims therefore and counsel fees incurred in connection
therewith), joint or several, which may be based upon either the 1933 Act, or
the 1934 Act, or any other statute or at common law, on the ground or alleged
ground that any Registration Statement (or any amendment or supplement thereto)
pursuant to which Exchange Securities or Registrable Securities were registered
under the 1933 Act or any Prospectus included therein (or any amendment or
supplement thereto) included or allegedly included an untrue statement of
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading, unless such
statement or omission was made in reliance upon, and in conformity with, written
information furnished to the Company by any such Section 4 Person specifically
for use in the preparation thereof; PROVIDED that in no case is the Company to
be liable with respect to any claims made against any Section 4 Person unless
such Section 4 Person shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon such Section
4 Person, but failure to notify the Company of any such claim shall not relieve
it from any liability which it may have to such Section 4 Person otherwise than
on account of the indemnity agreement contained in this paragraph; and PROVIDED,
FURTHER, that the foregoing indemnity with respect to any Prospectus, including
any preliminary prospectus or preliminary prospectus supplement, shall not inure
to the benefit of any Section 4 Person if a copy of the Prospectus (as amended
or supplemented) at the time of sale had not been sent or given by or on behalf
of such Section 4 Person to the Person asserting any such losses, claims,
damages or liabilities concurrently with or prior to delivery of the written
confirmation of the sale of Exchange Securities or Registrable Securities, as
the case may be, to such Person and the untrue statement or omission of a
material fact contained in any such Prospectus was corrected in the Prospectus
(as amended or supplemented).

        The Company will be entitled to participate at its own expense in the
defense, or, if it so elects, to assume the defense of any suit brought to
enforce any such liability, but, if the Company elects to assume the defense,
such defense shall be conducted by counsel chosen by it.

                                       17
<PAGE>   18
In the event that the Company elects to assume the defense of any such suit and
retains such counsel, each Section 4 Person may retain additional counsel but
shall bear the fees and expenses of such counsel unless (i) the Company shall
have specifically authorized the retaining of such counsel or (ii) the parties
to such suit have been advised by such counsel that one or more legal defenses
may be available to it or them which may not be available to the Company, in
which case the Company shall not be entitled to assume the defense of such suit
on behalf of such Section 4 Person, notwithstanding their obligation to bear the
reasonable fees and expenses of such counsel, it being understood, however, that
the Company shall not, in connection with any one such suit or proceeding or
separate but substantially similar or related actions or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of more than one separate firm of
attorneys at any time for all such Section 4 Persons, which firm shall be
designated in writing by BofA. The Company shall not be liable to indemnify any
Person for any settlement of any such claim effected without the Company's
consent. This indemnity agreement will be in addition to any liability, which
the Company might otherwise have.

        (B)     Each Section 4 Person agrees to indemnify and hold harmless the
Company, each of the Company's directors, each of the Company's officers who
have signed the Registration Statement and each person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act, against any losses,
claims, damages, liabilities or expenses (including the reasonable cost of
investigating and defending against any claims therefor and counsel fees
incurred in connection therewith), joint or several, which may be based upon the
1933 Act, or any other statute or at common law, on the ground or alleged ground
that any Registration Statement (or any amendment or supplement thereto)
pursuant to which Exchange Securities or Registrable Securities were registered
under the 1933 Act or any Prospectus included therein (or any amendment or
supplement thereto) included or allegedly included an untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading, but only
insofar as any such statement or omission was made in reliance upon, and in
conformity with, written information furnished to the Company by such Section 4
Person specifically for use in the preparation thereof; PROVIDED that in no case
is such Section 4 Person to be liable with respect to any claims made against
the Company or any such director, officer or controlling person unless the
Company or any such director, officer or controlling person shall have notified
such Section 4 Person in writing within a reasonable time after the summons or
other first legal process giving information of the nature of the claim shall
have been served upon the Company or any such director, officer or controlling
person, but failure to notify such Section 4 Person of any such claim shall not
relieve it from any liability which it may have to the Company or any such
director, officer or controlling person otherwise than on account of the
indemnity agreement contained in this paragraph.

        Such Section 4 Person will be entitled to participate at its own expense
in the defense, or, if it so elects, to assume the defense of any suit brought
to enforce any such liability, but, if such Section 4 Person elects to assume
the defense, such defense shall be conducted by counsel chosen by it. In the
event that such Section 4 Person elects to assume the defense of any such suit
and retain such counsel, the Company or such director, officer or controlling
person, defendant or defendants in the suit, may retain additional counsel but
shall bear the fees and expenses of

                                       18
<PAGE>   19
such counsel unless (i) such Section 4 Person shall have specifically authorized
the retaining of such counsel or (ii) the parties to such suit include the
Company or any such director, officer or controlling person and such Section 4
Person and the Company or such director, officer, trustee or controlling person
have been advised by such counsel that one or more legal defenses may be
available to it or them which may not be available to such Section 4 Person, in
which case such Section 4 Person shall not be entitled to assume the defense of
such suit on behalf of the Company or such director, officer or controlling
person, notwithstanding its obligation to bear the reasonable fees and expenses
of such counsel, it being understood, however, that such Section 4 Person shall
not, in connection with any one such suit or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys at any
time for all of the Company and any such director, officer or controlling
person, which firm shall be designated in writing by the Company. Such Section 4
Person shall not be liable to indemnify any person for any settlement of any
such claim effected without such Section 4 Person's consent. This indemnity
agreement will be in addition to any liability which such Section 4 Person might
otherwise have.

        (C)     If recovery is not available under Section 4(A) or 4(B) hereof,
for any reason other than as specified therein, the Persons entitled to
indemnification by the terms thereof shall be entitled to contribution for
liabilities and expenses, except to the extent that contribution is not
permitted under Section 1l(f) of the 1933 Act. In determining the amount of
contribution to which the respective Persons are entitled, there shall be
considered (i) the benefits received by the Company, on the one hand, from the
offering of the Securities and such Section 4 Person, on the other hand, from
the sale of its Securities, Exchange Securities or Registrable Securities, as
the case may be, (ii) the parties' relative knowledge and access to information
concerning the matter with respect to which the claim was asserted, (iii) the
opportunity to correct and prevent any statement or omission and (iv) any other
equitable considerations appropriate under the circumstances. The Company and
the Section 4 Persons agree that it would not be equitable if the amount of such
contribution were determined by pro rata or per capita allocation (even if the
Section 4 Persons were treated as one entity for such purpose). No Section 4
Person shall be obligated to make such contribution hereunder which in the
aggregate exceeds the total public offering price of its Exchange Securities
and/or Registrable Securities registered under the Registration Statement, less
the aggregate amount of any damages which such Section 4 Person has otherwise
been required to pay in respect of the same claim or any substantially similar
claim. Any Section 4 Person's obligations to contribute under this Section 4 are
several in proportion to the aggregate principal amount of such Section 4
Person's Registrable or Exchange Securities, as the case may be, that were
registered pursuant to such Registration Statement, and not joint.

        5.      MISCELLANEOUS.

                5.1     RULE 144 AND RULE 144A. For so long as the Company is
subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the
Company covenants that it will file the reports required to be filed by it under
the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and the rules and
regulations adopted by the SEC thereunder. If the Company ceases to be so
required to file such reports, the Company covenants that it will upon the
request of any

                                       19
<PAGE>   20
Holder of Registrable Securities (A) make publicly available such information as
is necessary to permit sales pursuant to Rule 144 under the 1933 Act, (B)
deliver such information to a prospective purchaser as is necessary to permit
sales pursuant to Rule 144A under the 1933 Act and (C) take such further action
that is reasonable in the circumstances, in each case, to the extent required
from time to time to enable such Holder to sell its Registrable Securities
without registration under the 1933 Act within the limitation of the exemptions
provided by (i) Rule 144 under the 1933 Act, as such Rule may be amended from
time to time, (ii) Rule 144A under the 1933 Act, as such Rule may be amended
from time to time or (iii) any similar rules or regulations hereafter adopted by
the SEC. Upon the request of any Holder of Registrable Securities, the Company
will deliver to such Holder a written statement as to whether it has complied
with such requirements.

                5.2     NO INCONSISTENT AGREEMENTS. The Company has not entered
into and the Company will not after the date of this Agreement enter into any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof. The rights granted to the Holders hereunder do not and will
not for the term of this Agreement in any way conflict with the rights granted
to the holders of the Company's other issued and outstanding securities under
any such agreements.

                5.3     AMENDMENTS AND WAIVERS. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given unless the Company has obtained the written
consent of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or departure.

                5.4     NOTICES. All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder to
the Company by means of a notice given in accordance with the provisions of this
Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company,
initially at the Company's address set forth in the Purchase Agreement, and
thereafter at such other address of which notice is given in accordance with the
provisions of this Section 5.4.

        All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; two Business Days
after being deposited in the mail, postage prepaid, if mailed; when receipt is
acknowledged, if telecopied; and on the next Business Day if timely delivered to
an air courier guaranteeing overnight delivery.

        Copies of all such notices, demands or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture, at the address specified in such Indenture.

                5.5     SUCCESSOR AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including,

                                       20
<PAGE>   21
without limitation and without the need for an express assignment, subsequent
Holders; PROVIDED that nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Registrable Securities in violation of the
terms of the Purchase Agreement or the Indenture. If any transferee of any
Holder shall acquire Registrable Securities, in any manner, whether by operation
of law or otherwise, such Registrable Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Registrable
Securities such person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement, including
the restrictions on resale set forth in this Agreement and, if applicable, the
Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

                5.6     THIRD PARTY BENEFICIARIES. The Initial Purchasers (even
if the Initial Purchasers are not Holders of Registrable Securities) shall be
third party beneficiaries to the agreements made hereunder between the Company,
on the one hand, and the Holders, on the other hand, and shall have the right to
enforce such agreements directly to the extent they deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party
beneficiary to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

                5.7     SPECIFIC PERFORMANCE. Without limiting the remedies
available to the Initial Purchasers and the Holders, the Company acknowledges
that any failure by the Company to comply with its obligations under Sections
2.1 through 2.4 hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it
would not be possible to measure damages for such injuries precisely and that,
in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Company's
obligations under Sections 2.1 through 2.4 hereof.

                5.8     RESTRICTION ON RESALES. Until the expiration of two
years after the original issuance of the Securities, the Company will not, and
will cause its "affiliates" (as such term is defined in Rule 144(a)(1) under the
1933 Act) not to, resell any Securities which are "restricted securities" (as
such term is defined under Rule 144(a)(3) under the 1933 Act) that have been
reacquired by any of them and shall immediately upon any purchase of any such
Securities submit such Securities to the Trustee for cancellation.

                5.9     COUNTERPARTS. This Agreement may be executed in any
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

                5.10    HEADINGS. The headings in this Agreement are for the
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                                       21
<PAGE>   22
                5.11    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

                5.12    SEVERABILITY. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                 REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

                                       22
<PAGE>   23
        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                            SHURGARD STORAGE CENTERS, INC.

                                            By:
                                                --------------------------------
                                                Name:
                                                      --------------------------
                                                Title:
                                                      --------------------------

                                            By:
                                                --------------------------------
                                                Name:
                                                      --------------------------
                                                Title:
                                                      --------------------------

CONFIRMED AND ACCEPTED
AS OF THE DATE FIRST ABOVE WRITTEN:

BANC OF AMERICA SECURITIES LLC
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
BANC ONE CAPITAL MARKETS, INC.
MORGAN STANLEY & CO. INCORPORATED
SALOMON SMITH BARNEY INC. AND
U.S. BANCORP PIPER JAFFRAY INC.

BY:  BANC OF AMERICA SECURITIES LLC

By:
     --------------------------------
     Name:
           --------------------------
     Title:
           --------------------------

<PAGE>   24
                                    EXHIBIT A

                           FORM OF OPINION OF COUNSEL

        The Indenture has been duly qualified under the Trust Indenture Act of
1939, as amended.

        The Registration Statement has become effective under the 1933 Act, and,
to the best of our knowledge, no stop order suspending the effectiveness of the
Registration Statement or any part thereof has been issued and no proceedings
for that purpose have been instituted and are pending or are threatened by the
SEC under the 1933 Act.

        The Exchange Offer Registration Statement and the Prospectus (except for
(A) the operating statistics, financial statements, pro forma financial
statements and financial statement schedules contained or incorporated by
reference therein (including the auditors' reports on the financial statements
and the notes to the financial statements), (B) the other financial and
statistical information contained or incorporated by reference therein and (C)
the exhibits thereto, as to which we have not been asked to comment) comply as
to form in all material respects with the applicable requirements of the 1933
Act and the applicable rules and regulations promulgated under the 1933 Act.

        We have participated in conferences with certain officers and other
representatives of the Company, representatives of the independent public
accountants of the Company, representatives of the [Initial Purchasers]
[Holders] and counsel for the [Initial Purchasers] [Holders], at which the
contents of the Registration Statement and the Prospectus and related matters
were discussed. Although we have not undertaken to determine independently, and
do not assume any responsibility for, the accuracy, completeness or fairness of
the statements contained in or incorporated by reference in the Registration
Statement or the Prospectus, we advise you that, on the basis of the foregoing
(relying as to materiality to a large extent upon statements and other
representations of officers and other representatives of the Company), no facts
have come to our attention that lead us to believe that the Registration
Statement and any amendment made thereto prior to the date hereof (except for
(A) the operating statistics, financial statements, pro forma financial
statements and financial statement schedules contained or incorporated by
reference therein (including the auditors' reports on the financial statements
and the notes to the financial statements, except to the extent that such notes
describe legal or governmental proceedings to which the Company is a party and
are incorporated by reference into one or more items of a report that is
incorporated by reference in the Registration Statement or the Prospectus, other
than an item that requires that financial statements be provided), (B) the other
financial and statistical information contained or incorporated by reference
therein and (C) the exhibits thereto, as to which we have not been asked to
comment), as of the time the Registration Statement became effective or such
amendment was filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, or that the Prospectus, and any
amendment or supplement

<PAGE>   25
thereto made prior to the date hereof (except for (A) the operating statistics,
financial statements, pro forma financial statements and financial statement
schedules contained or incorporated by reference therein (including the
auditors' reports on the financial statements and the notes to the financial
statements, except to the extent that such notes describe legal or governmental
proceedings to which the Company is a party and are incorporated by reference
into one or more items of a report that is incorporated by reference in the
Registration Statement or the Prospectus, other than an item that requires that
financial statements be provided), (B) the other financial and statistical
information contained or incorporated by reference therein and (C) the exhibits
thereto, as to which we have not been asked to comment), as of the date of the
Prospectus or such amendment or supplement contained any untrue statement of a
material fact or omitted to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

                                      A-2

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