Document:

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                                                                   EXHIBIT 10.29

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                                CREDIT AGREEMENT

                          Dated as of February 26, 2001

                                      among

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
             as Owner Trustee under the Storage Centers Trust 2001,
                                as the Borrower,

                               The Several Lenders
                        from Time to Time Parties Hereto,

                                       and

                             BANK OF AMERICA, N.A.,
                                  as the Agent

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                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                          Page
<S>     <C>                                                                               <C>
SECTION 1.  DEFINITIONS......................................................................1
        1.1    Definitions...................................................................1
        1.2    Interpretation................................................................1

SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS..................................................1
        2.1    Commitments...................................................................1
        2.2    Notes.........................................................................2
        2.3    Procedure for Borrowing.......................................................2
        2.4    Lender Unused Fees............................................................3
        2.5    Termination or Reduction of Commitments.......................................3
        2.6    Prepayments and Payments......................................................4
        2.7    Conversion and Continuation Options...........................................4
        2.8    Interest Rates and Payment Dates..............................................5
        2.9    Computation of Interest.......................................................6
        2.10   Pro Rata Treatment and Payments...............................................6
        2.11   Notice of Amounts Payable; Mandatory Assignment...............................7

SECTION 3.  REPRESENTATIONS AND WARRANTIES...................................................8

SECTION 4.  CONDITIONS PRECEDENT.............................................................8
        4.1    Conditions to Effectiveness...................................................8
        4.2    Conditions to Each Loan.......................................................8

SECTION 5.  COVENANTS........................................................................8
        5.1    Other Activities..............................................................8
        5.2    Ownership of Properties, Indebtedness.........................................9
        5.3    Disposition of Assets.........................................................9
        5.4    Compliance with Operative Agreements..........................................9
        5.5    Further Assurances............................................................9
        5.6    Notices.......................................................................9
        5.7    Discharge of Liens...........................................................10
        5.8    Trust Agreement..............................................................10

SECTION 6.  EVENTS OF DEFAULT...............................................................10

SECTION 7.  THE AGENT.......................................................................13
        7.1    Appointment..................................................................13
        7.2    Delegation of Duties.........................................................13
        7.3    Exculpatory Provisions.......................................................13
        7.4    Reliance by the Agent........................................................14
        7.5    Notice of Default............................................................14
        7.6    Non-Reliance on the Agent and Other Lenders..................................14
        7.7    Indemnification..............................................................15
</TABLE>

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<TABLE>
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<S>     <C>                                                                                <C>
        7.8    The Agent in Its Individual Capacity.........................................15
        7.9    Successor Agent..............................................................16
        7.10   Actions of the Agent on Behalf of Holders....................................16
        7.11   The Agent's Duty of Care.....................................................16

SECTION 8.  MATTERS RELATING TO PAYMENT AND COLLATERAL......................................17

        8.1    Collection and Allocation of Payments and Other Amounts......................17
        8.2    Certain Remedial Matters.....................................................17
        8.3    Excepted Payments............................................................17

SECTION 9.  MISCELLANEOUS...................................................................17
        9.1    Amendments and Waivers.......................................................17
        9.2    Notices......................................................................18
        9.3    No Waiver; Cumulative Remedies...............................................18
        9.4    Survival of Representations and Warranties...................................18
        9.5    Payment of Expenses and Taxes................................................18
        9.6    Successors and Assigns.......................................................18
        9.7    Participations...............................................................19
        9.8    Assignments..................................................................19
        9.9    The Register; Disclosure; Pledges to Federal Reserve Banks...................19
        9.10   Adjustments; Set-off.........................................................19
        9.11   Counterparts.................................................................19
        9.12   Severability.................................................................19
        9.13   Integration..................................................................19
        9.14   GOVERNING LAW................................................................19
        9.15   SUBMISSION TO JURISDICTION; VENUE............................................19
        9.16   Acknowledgements.............................................................19
        9.17   WAIVERS OF JURY TRIAL........................................................19
        9.18   Nonrecourse..................................................................19
        9.19   USURY SAVINGS PROVISION......................................................19
        9.20   Certain Rights of Lessee.....................................................19
</TABLE>

SCHEDULES

Schedule 2.1   Commitments and Addresses of Lenders

EXHIBITS

Exhibit A-1    Form of Tranche A Note
Exhibit A-2    Form of Tranche B Note
Exhibit B      Form of Assignment and Acceptance

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                                CREDIT AGREEMENT

        THIS CREDIT AGREEMENT, dated as of February 26, 2001 (as amended,
modified, extended, supplemented, restated and/or replaced from time to time,
the "Agreement") is among FIRST SECURITY BANK, NATIONAL ASSOCIATION, as Owner
Trustee under the Storage Centers Trust 2001 (the "Owner Trustee" or the
"Borrower"), the several banks and other financial institutions from time to
time parties to this Agreement (the "Lenders") and BANK OF AMERICA, N.A., a
national banking association, as a Lender and as the agent for the Lenders (the
"Agent").

        The parties hereto hereby agree as follows:

                             SECTION 1. DEFINITIONS

        1.1    DEFINITIONS.

        For purposes of this Agreement, capitalized terms used in this Agreement
and not otherwise defined herein shall have the meanings assigned to them in
Appendix A to that certain Participation Agreement dated as of February 26, 2001
(as amended, modified, extended, supplemented, restated and/or replaced from
time to time in accordance with the applicable provisions thereof, the
"Participation Agreement") among Shurgard Storage Centers, Inc., the various
parties thereto from time to time, as the Guarantors, the Borrower, the various
banks and other lending institutions which are parties thereto from time to
time, as the Holders, the various banks and other lending institutions which are
parties thereto from time to time, as the Lenders, and Bank of America, N.A., as
agent for the Lenders and respecting the Security Documents, as the agent for
the Secured Parties. Unless otherwise indicated, references in this Agreement to
articles, sections, paragraphs, clauses, appendices, schedules and exhibits are
to the same contained in this Agreement.

        1.2    INTERPRETATION.

        The rules of usage set forth in Appendix A to the Participation
Agreement shall apply to this Agreement.

                   SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

        2.1    COMMITMENTS.

        (a) Subject to the terms and conditions hereof, each of the Lenders
severally agrees to make the portion of the Tranche A Loans and the Tranche B
Loans to the Borrower from time to time during the Commitment Period in an
amount up to such Lender's Commitment as is set forth adjacent to such Lender's
name in Schedule 2.1 hereto for the purpose of enabling the Borrower to purchase
the Properties and to pay Property Acquisition Costs, Property Costs and

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Transaction Expenses, provided, that the aggregate principal amount at any one
time outstanding with respect to each of the Tranche A Loans and the Tranche B
Loans shall not exceed the amount of the Tranche A Commitments and the Tranche B
Commitments respectively. Subject to the terms hereof and of the other Operative
Agreements, the Borrower may borrow, repay and reborrow the Loans.

        (b) The Loans may from time to time be (i) Eurodollar Loans, (ii) ABR
Loans, or (iii) a combination thereof, as determined by the Borrower and
notified to the Agent in accordance with Sections 2.3 and 2.7. In the event the
Borrower fails to provide notice pursuant to Section 2.3, the Loan shall be an
ABR Loan. Further, any Loans by the Lenders on a given date in an aggregate
amount less than $100,000 shall be ABR Loans, unless the remaining aggregate
Available Commitments are less than $100,000, in which case, the Borrower may
elect a Eurodollar Loan for such remaining amount.

        (c) The Commitment of each Lender to make Tranche A Loans and Tranche B
Loans shall be pro rata.

        2.2    NOTES.

        The Loans made by each Lender shall be evidenced by promissory notes of
the Borrower, substantially in the form of Exhibit A-1 in the case of the
Tranche A Loans (each, a "Tranche A Note") or Exhibit A-2 in the case of the
Tranche B Loans (each, a "Tranche B Note," and with the Tranche A Notes, the
"Notes"), with appropriate insertions as to payee and date, payable to the order
of such Lender and in a principal amount up to the Tranche A Commitment or
Tranche B Commitment, as the case may be, of such Lender. Each Lender is hereby
authorized to record the date, Type and amount of each Loan made by such Lender,
each continuation thereof, each conversion of all or a portion thereof to
another Type, and the date and amount of each payment or prepayment of principal
thereof on the schedule annexed to and constituting a part of its Note, and any
such recordation shall constitute prima facie evidence of the accuracy of the
information so recorded, provided, that the failure to make any such recordation
or any error in such recordation shall not affect the Borrower's obligations
hereunder or under such Note. Each Note shall (i) be dated the Initial Closing
Date, (ii) be stated to mature on the Maturity Date and (iii) provide for the
payment of principal in accordance with Section 2.6(d) and the payment of
interest in accordance with Section 2.8.

        2.3    PROCEDURE FOR BORROWING.

        (a) The Borrower may borrow under the Commitments during the Commitment
Period on any Business Day that an Advance may be requested pursuant to the
terms of Section 5.2 of the Participation Agreement, provided, that the Borrower
shall give the Agent irrevocable notice (which must be received by the Agent
prior to 11:00 a.m., Pacific time, at least three (3) Business Days prior to the
requested Borrowing Date specifying (i) the amount to be borrowed (which on any
date shall not be in excess of the then Available Commitments), (ii) the
requested Borrowing Date, (iii) whether the borrowing is to be of Eurodollar
Loans, ABR Loans or a combination thereof, (iv) if the borrowing is to be a
combination of Eurodollar Loans and ABR Loans, the respective amounts of each
Type of Loan and (v) the Interest Period applicable to

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each Eurodollar Loan. Pursuant to the terms of the Participation Agreement, the
Borrower shall be deemed to have delivered such notice upon the delivery of a
notice by the Construction Agent or the Lessee containing such required
information. Upon receipt of any such notice from the Borrower, the Agent shall
promptly notify each Lender thereof. Each Lender will make the amount of its pro
rata share of each borrowing available to the Agent for the account of the
Borrower at the office of the Agent specified in Section 9.2 prior to 1:00 p.m.,
Pacific time, on the Borrowing Date requested by the Borrower in funds
immediately available to the Agent. Such borrowing will then be made available
to the Borrower by the Agent crediting an account designated, subject to Section
9.1 of the Participation Agreement, by the Borrower on the books of such office
with the aggregate of the amounts made available to the Agent by the Lenders and
in like funds as received by the Agent. No amount of any Loan which is repaid or
prepaid by the Borrower may be reborrowed hereunder, except as set forth in
Section 5.2(d) of the Participation Agreement.

        (b) Interest accruing on each Loan during the Construction Period with
respect to any Property and that portion of interest accruing on each Loan after
such Construction Period that is not covered by Basic Rent due with respect to
such Property shall, subject to the limitations set forth in Section 5.1(b) of
the Participation Agreement, be added to the principal amount of such Loan on
the relevant Scheduled Interest Payment Date. On each such Scheduled Interest
Payment Date, the Loan Property Cost shall be increased by the amount of
interest added to the Loans.

        2.4    LENDER UNUSED FEES.

        Promptly after receipt from the Lessee of the payment of the Lender
Unused Fee payable pursuant to Section 7.4 of the Participation Agreement, the
Agent shall distribute such payments to the Lenders pro rata in accordance with
their respective Commitments.

        2.5    TERMINATION OR REDUCTION OF COMMITMENTS.

        (a) The Borrower shall have the right, upon not less than three (3)
Business Days' written notice to the Agent, to terminate the Commitments or,
from time to time, to reduce the amount of the Commitments, provided, that (i)
after giving effect to such reduction, the aggregate outstanding principal
amount of the Loans shall not exceed the aggregate Commitments and (ii) such
notice shall be accompanied by a certificate of the Construction Agent stating
that the amount not less than ninety-seven percent (97%) of aggregate Budgeted
Total Property Costs as of the date of such reduction does not exceed the
aggregate amount of Available Commitments as of such date after giving effect to
such reduction. Any such reduction (A) shall be in an amount equal to the lesser
of (1) $1,000,000 (or an even multiple thereof) or (2) the remaining Available
Commitments, (B) shall reduce permanently the Commitments then in effect and (C)
shall be pro rata for the Commitments of all Lenders and pro rata between the
Tranche A Loans and the Tranche B Loans.

        (b) On any date on which the Commitments shall automatically be reduced
to zero (0) pursuant to Section 6, the Borrower shall prepay all outstanding
Loans, together with accrued unpaid interest thereon and all other amounts owing
under the Operative Agreements.

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        2.6    PREPAYMENTS AND PAYMENTS.

        (a) Subject to Sections 11.2(e), 11.3 and 11.4 of the Participation
Agreement, the Borrower may at any time and from time to time prepay the Loans,
in whole or in part, without premium or penalty and without setoff, deduction or
counterclaim, upon at least three (3) Business Days' irrevocable notice to the
Agent, specifying the date and amount of prepayment and whether the prepayment
is of Eurodollar Loans, ABR Loans or a combination thereof, and, if a
combination thereof, the amount allocable to each. Upon receipt of any such
notice the Agent shall promptly notify each Lender thereof. If any such notice
is given, the amount specified in such notice shall be due and payable on the
date specified therein.

        (b) If on any date the Agent or the Lessor shall receive any payment in
respect of (i) any Casualty, Condemnation or Environmental Violation pursuant to
Sections 15.1(a) or 15.1(g) or Article XVI of the Lease (excluding any payments
in respect thereof which are payable to the Lessee in accordance with the
Lease), or (ii) the Termination Value of any Property in connection with the
delivery of a Termination Notice pursuant to Article XVI of the Lease, or (iii)
the Termination Value of any Property in connection with the exercise of the
Purchase Option under Article XX of the Lease or the exercise of the option of
the Lessor to transfer the Properties to the Lessee pursuant to Section 20.3 of
the Lease, or (iv) any payment required to be made or elected to be made by the
Construction Agent to the Lessor pursuant to the terms of the Agency Agreement,
then in each case, the Borrower shall pay such amounts to the Agent and the
Agent shall be required to apply and pay such amounts in accordance with the
provisions of Section 8.7(b)(ii) of the Participation Agreement.

        (c) Each prepayment of the Loans pursuant to Section 2.6(a) shall be
allocated to reduce the respective Loan Property Costs of all Properties pro
rata according to the Loan Property Costs of such Properties immediately before
giving effect to such prepayment. Each prepayment of the Loans pursuant to
Section 2.6(b) shall be allocated to reduce the Loan Property Cost of the
Property or Properties subject to the respective Casualty, Condemnation,
Environmental Violation, termination, purchase, transfer or other circumstance
giving rise to such prepayment.

        (d) The outstanding principal balance of the Loans and all other amounts
then due and owing under this Agreement or otherwise with respect to the Loans
shall be due and payable in full on the Maturity Date.

        2.7    CONVERSION AND CONTINUATION OPTIONS.

        (a) The Borrower may elect from time to time to convert Eurodollar Loans
to ABR Loans by giving the Agent at least three (3) Business Days' prior
irrevocable notice of such election, provided, that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto, and provided, further, to the extent an Event of Default has
occurred and is continuing on the last day of any such Interest Period, the
applicable Eurodollar Loan shall automatically be converted to an ABR Loan. The
Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans by
giving the Agent at least three

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(3) Business Days' prior irrevocable notice of such election. Upon receipt of
any such notice, the Agent shall promptly notify each Lender thereof. All or any
part of outstanding Eurodollar Loans or ABR Loans may be converted as provided
herein, provided, that (i) no ABR Loan may be converted into a Eurodollar Loan
after the date that is one (1) month prior to the Maturity Date and (ii) the
Interest Period for such Eurodollar Loan to be created by such conversion shall
be in accordance with the terms of the definition of the term "Interest Period"
including without limitation subparagraphs (A) through (C) thereof.

        (b) Subject to the restrictions set forth in Section 2.3 hereof, any
Eurodollar Loan may be continued as such upon the expiration of the current
Interest Period with respect thereto by the Borrower giving irrevocable notice
to the Agent, in accordance with the applicable notice provision for the
conversion of ABR Loans to Eurodollar Loans set forth herein, of the length of
the next Interest Period to be applicable to such Loans, provided, that no
Eurodollar Loan may be continued as such after the date that is one (1) month
prior to the Maturity Date, provided, further, no Eurodollar Loans may be
continued as such if an Event of Default has occurred and is continuing as of
the last day of the Interest Period for such Eurodollar Loan, and provided,
further, that if the Borrower shall fail to give any required notice as
described above or otherwise herein, or if such continuation is not permitted
pursuant to the proceeding proviso, such Loan shall automatically be converted
to an ABR Loan on the last day of such then expiring Interest Period.

        (c) Each such conversion and continuation of a Loan shall be made
pursuant to submission of an interest rate/holder yield selection notice in the
form of Exhibit N to the Participation Agreement.

        2.8    INTEREST RATES AND PAYMENT DATES.

        (a) The Loans outstanding hereunder from time to time shall bear
interest at a rate per annum equal to either (i) with respect to a Eurodollar
Loan, the Eurodollar Rate determined for the applicable Interest Period plus the
Applicable Percentage or (ii) with respect to an ABR Loan, the ABR, as selected
by the Borrower in accordance with the provisions hereof; provided, however, (A)
upon delivery by the Agent of the notice described in Section 2.9(c), the Loans
of each of the Lenders shall bear interest at the ABR from and after the dates
and during the periods specified in Section 2.9(c), (B) upon the delivery by a
Lender of the notice described in Section 11.3 of the Participation Agreement,
the Loans of such Lender shall bear interest at the ABR from and after the dates
and during the periods specified in Section 11.3 of the Participation Agreement
and (C) in such other circumstances as expressly provided herein, the Loans
shall bear interest at the ABR.

        (b) Interest on any past due amount of any Loan (whether at maturity,
upon acceleration, mandatory prepayment or otherwise) shall accrue at a per
annum rate equal to three percent (3%) above the Prime Lending Rate.

        (c) Interest shall be payable in arrears on the applicable Scheduled
Interest Payment Date, provided, that (i) interest accruing pursuant to
paragraph (b) of this Section 2.8 shall be

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payable from time to time on demand and (ii) each prepayment of the Loans shall
be accompanied by accrued interest to the date of such prepayment on the amount
prepaid.

        2.9    COMPUTATION OF INTEREST.

        (a) Whenever it is calculated on the basis of the Prime Lending Rate,
interest shall be calculated on the basis of a year of three hundred sixty-five
(365) days (or three hundred sixty-six (366) days, as the case may be) for the
actual days elapsed; and, otherwise, interest shall be calculated on the basis
of a year of three hundred sixty (360) days for the actual days elapsed. The
Agent shall as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR or the Eurodollar Reserve Percentage shall
become effective as of the day on which such change becomes effective. The Agent
shall as soon as practicable notify the Borrower and the Lenders of the
effective date and the amount of each such change in interest rate.

        (b) Each determination of an interest rate by the Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error.

        (c) If the Eurodollar Rate cannot be determined by the Agent in the
manner specified in the definition of the term "Eurodollar Rate", the Agent
shall give telecopy or telephonic notice thereof to the Borrower and the Lenders
as soon as practicable thereafter. Until such time as the Eurodollar Rate can be
determined by the Agent in the manner specified in the definition of such term,
no further Eurodollar Loans shall be made or shall be continued as such at the
end of the then current Interest Period nor shall the Borrower have the right to
convert ABR Loans to Eurodollar Loans.

        2.10   PRO RATA TREATMENT AND PAYMENTS.

        (a) Each borrowing by the Borrower from the Lenders hereunder and any
reduction of the Commitments of the Lenders shall be made pro rata according to
their respective Commitments. Subject to the provisions of Section 8.7 of the
Participation Agreement and Section 2.11(b) hereof, each payment (including
without limitation each prepayment) by the Borrower on account of principal of
and interest on the Loans shall be made pro rata according to the respective
outstanding principal amounts on the Loans then held by the Lenders. All
payments (including without limitation prepayments) to be made by the Borrower
hereunder and under the Notes, whether on account of principal, interest or
otherwise, shall be made without setoff or counterclaim and shall be made prior
to 1:00 p.m., Pacific time, on the due date thereof to the Agent, for the
account of the Lenders, at the Agent's office specified in Section 9.2, in
Dollars and in immediately available funds. Receipt of payment by the Agent
shall, as between the Borrower and the Lenders, constitute payment to the
Lenders. The Agent shall distribute such payments to the Lenders promptly upon
receipt in like funds as received. If any payment hereunder becomes due and
payable on a day other than a Business Day, such payment shall be extended to
the next succeeding Business Day; provided, however, if such payment includes an
amount of interest calculated with reference to the Eurodollar Rate and the
result of such

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extension would be to extend such payment into another calendar month, then such
payment shall be made on the immediately preceding Business Day. In the case of
any extension of any payment of principal pursuant to the preceding two (2)
sentences, interest thereon shall be payable at the then applicable rate during
such extension.

        (b) Unless the Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make its share of such borrowing
available to the Agent, the Agent may assume that such Lender is making such
amount available to the Agent, and the Agent may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. If such
amount is not made available to the Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Agent, on demand, such amount with
interest thereon at a rate equal to the daily average Federal Funds Effective
Rate for the period until such Lender makes such amount immediately available to
the Agent. A certificate of the Agent submitted to any Lender with respect to
any amounts owing under this Section 2.10(b) shall be conclusive in the absence
of manifest error. If such Lender's share of such borrowing is not made
available to the Agent by such Lender within three (3) Business Days of such
Borrowing Date, the Agent shall also be entitled to recover such amount with
interest thereon at the rate as set forth above on demand from the Borrower.

        2.11   NOTICE OF AMOUNTS PAYABLE; MANDATORY ASSIGNMENT.

        (a) In the event that any Lender becomes aware that any amounts are or
will be owed to it pursuant to Sections 11.2(e), 11.3 or 11.4 of the
Participation Agreement or that it is unable to make Eurodollar Loans, then it
shall promptly notify the Borrower, the Lessee and the Agent thereof and, as
soon as possible thereafter, such Lender shall submit to the Borrower (with a
copy to the Agent) a certificate indicating the amount owing to it and the
calculation thereof. The amounts set forth in such certificate shall be prima
facie evidence of the obligations of the Borrower hereunder.

        (b) In the event that any Lender delivers to the Borrower a certificate
in accordance with Section 2.11(a) in connection with amounts payable pursuant
to Sections 11.2(e) or 11.3 of the Participation Agreement or such Lender is
required to make Loans as ABR Loans in accordance with Section 11.3 of the
Participation Agreement then, subject to Section 9.1 of the Participation
Agreement, the Borrower may, at its own expense (provided, such amounts shall be
reimbursed or paid entirely (as elected by the Borrower) by the Lessee, as
Supplemental Rent) and in the discretion of the Borrower, (i) require such
Lender to transfer or assign, in whole or (with such Lender's consent) in part,
without recourse (in accordance with Section 9.8), all or (with such Lender's
consent) part of its interests, rights (except for rights to be indemnified for
actions taken while a party hereunder) and obligations under this Agreement to a
replacement bank or institution if the Borrower (subject to Section 9.1 of the
Participation Agreement), with the full cooperation of such Lender, can identify
a Person who is ready, willing and able to be such replacement bank or
institution with respect thereto and such replacement bank or institution (which
may be another Lender) shall assume such assigned obligations, or (ii) during
such time as no Default or Event of Default has occurred and is continuing,
terminate the Commitment of such Lender and prepay all outstanding Loans of such
Lender; provided, however, that (x) subject to Section 9.1 of the Participation
Agreement, the Borrower or such

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replacement bank or institution, as the case may be, shall have paid to such
Lender in immediately available funds the principal of and interest accrued to
the date of such payment on the Loans made by it hereunder and all other amounts
owed to it hereunder (and, if such Lender is also a Holder, all Holder Advances
and Holder Yield accrued and unpaid thereon), (y) any termination of Commitments
shall be subject to the terms of Section 2.5(a) and (z) such assignment or
termination of the Commitment of such Lender and prepayment of Loans does not
conflict with any law, rule or regulation or order of any court or Governmental
Authority.

                    SECTION 3. REPRESENTATIONS AND WARRANTIES

        To induce the Agent and the Lenders to enter into this Agreement and to
make the Loans, each of the Trust Company and the Owner Trustee hereby makes and
affirms the representations and warranties set forth in Section 6.1 of the
Participation Agreement to the same extent as if such representations and
warranties were set forth in this Agreement in their entirety.

                         SECTION 4. CONDITIONS PRECEDENT

        4.1    CONDITIONS TO EFFECTIVENESS.

        The effectiveness of this Agreement is subject to the satisfaction of
all conditions precedent set forth in Section 5.3 of the Participation Agreement
required by said Section to be satisfied on or prior to the Initial Closing
Date.

        4.2    CONDITIONS TO EACH LOAN.

        The agreement of each Lender to make any Loan requested to be made by it
on any date is subject to the satisfaction of all conditions precedent set forth
in Section 5.3 and 5.4 of the Participation Agreement required by said Sections
to be satisfied on or prior to the date of the applicable Loan.

Each borrowing by the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date of such Loan that the conditions
contained in this Section 4.2 have been satisfied.

                              SECTION 5. COVENANTS

        So long as any Loan or Note remains outstanding and unpaid or any other
amount is owing to any Lender or the Agent hereunder:

        5.1    OTHER ACTIVITIES.

        Except as otherwise expressly contemplated by the Trust Agreement, the
Borrower shall not conduct, transact or otherwise engage in, or commit to
transact, conduct or otherwise engage

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in, any business or operations other than the entry into, and exercise of rights
and performance of obligations in respect of, the Operative Agreements and other
activities incidental or related to the foregoing.

        5.2    OWNERSHIP OF PROPERTIES, INDEBTEDNESS.

        Except as otherwise expressly contemplated by the Trust Agreement, the
Borrower shall not own, lease, manage or otherwise operate any properties or
assets other than in connection with the activities described in Section 5.1, or
incur, create, assume or suffer to exist any Indebtedness or other consensual
liabilities or financial obligations other than as may be incurred, created or
assumed or as may exist in connection with the activities described in Section
5.1 (including without limitation the Loans and other obligations incurred by
the Borrower hereunder).

        5.3    DISPOSITION OF ASSETS.

        The Borrower shall not convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets, whether now owned
or hereafter acquired, except to the extent expressly contemplated by the
Operative Agreements.

        5.4    COMPLIANCE WITH OPERATIVE AGREEMENTS.

        The Borrower shall at all times (a) observe and perform all of the
covenants, conditions and obligations required to be performed by it (whether in
its capacity as the Lessor, the Owner Trustee or otherwise) under each Operative
Agreement to which it is a party and (b) observe and perform, or cause to be
observed and performed, all of the covenants, conditions and obligations of the
Lessor under the Lease, even in the event that the Lease is terminated at stated
expiration following a Lease Event of Default or otherwise.

        5.5    FURTHER ASSURANCES.

        At any time and from time to time, upon the written request of the
Agent, and at the expense of the Borrower (provided, such amounts shall be
reimbursed or paid entirely (as elected by the Borrower) by the Lessee, as
Supplemental Rent), the Borrower will promptly and duly execute and deliver such
further instruments and documents and take such further action as the Agent or
the Majority Lenders may reasonably request for the purpose of obtaining or
preserving the full benefits of this Agreement and the other Operative
Agreements and of the rights and powers herein or therein granted.

        5.6    NOTICES.

        If on any date, a Responsible Officer of the Borrower shall obtain
actual knowledge of the occurrence of a Default or Event of Default, the
Borrower will give written notice thereof to the Agent within five (5) Business
Days after such date.

                                       9
<PAGE>   13

        5.7    DISCHARGE OF LIENS.

        Neither the Borrower nor the Trust Company will create or permit to
exist at any time, and will, at its own expense, promptly take such action as
may be necessary duly to discharge, or cause to be discharged, all Lessor Liens
attributable to it, provided, that the Borrower and the Trust Company shall not
be required to discharge any Lessor Lien while the same is being contested in
good faith by appropriate proceedings diligently prosecuted so long as such
proceedings shall not involve any material danger of impairment of any of the
Liens contemplated by the Security Documents or of the sale, forfeiture or loss
of, and shall not materially interfere with the disposition of, any Property or
title thereto or any interest therein or the payment of Rent.

        5.8    TRUST AGREEMENT.

        Without prejudice to any right under the Trust Agreement of the Owner
Trustee to resign, the Owner Trustee (a) agrees not to terminate or revoke the
trust created by the Trust Agreement except as permitted by Article VIII of the
Trust Agreement, (b) agrees not to amend, supplement, terminate, revoke or
otherwise modify any provision of the Trust Agreement in any manner which could
reasonably be expected to have an adverse effect on the rights or interests of
the Agent or the Lenders hereunder or under the other Operative Agreements and
(c) agrees to comply with all of the terms of the Trust Agreement.

                          SECTION 6. EVENTS OF DEFAULT

        Upon the occurrence of any of the following specified events (each an
"Event of Default"):

        (a) Except as provided in Section 6(c), the Borrower shall default in
the payment when due of any principal on the Loans or default in the payment
when due of any interest on the Loans, and in either such case, such default
shall continue for three (3) or more days; or

        (b) Except as provided in Sections 6(a) and 6(c), the Borrower shall
default, and such default shall continue for three (3) or more days, in the
payment of any amount owing under any Credit Document; or

        (c) (i) The Borrower shall default in the payment of any amount due on
the Maturity Date owing under any Credit Document or (ii) the Borrower shall
default in the payment when due of any principal or interest on the Loans
payable with regard to any obligation of Lessee to pay Termination Value or
Maximum Amount when due or to pay Basic Rent or Supplemental Rent at such time
as any Termination Value or Maximum Amount is due; or

        (d) The Borrower shall default in the due performance or observance by
it of any term, covenant or agreement contained in any Credit Document to which
it is a party (other than those referred to in paragraphs (a), (b) and (c)
above), provided, that in the case of any such default under Sections 5.4, 5.5
or 5.8(c), such default shall have continued unremedied for a

                                       10
<PAGE>   14

period of at least fifteen (15) days after notice to the Borrower by the Agent
or the Majority Lenders, provided, further, if any such default under Sections
5.4, 5.5 or 5.8(c) is not capable of remedy within such fifteen (15) day period
but may be remedied with further diligence and if the Borrower has and continues
to pursue diligently such remedy, then the Borrower shall be granted additional
time to pursue such remedy but in no event more than an additional thirty (30)
days.

        (e) Any representation, warranty or statement made or deemed made by the
Borrower herein or in any other Credit Document or by the Borrower or the Lessee
in the Participation Agreement, or in any statement or certificate delivered or
required to be delivered pursuant hereto or thereto, shall prove to be untrue in
any material respect on the date as of which made or deemed made; or

        (f) (i) Any Lease Event of Default shall have occurred and be
continuing, or (ii) the Owner Trustee shall default in the due performance or
observance by it of any term, covenant or agreement contained in the
Participation Agreement or in the Trust Agreement to or for the benefit of the
Agent or a Lender, provided, that in the case of this clause (ii) such default
shall have continued unremedied for a period of at least fifteen (15) days after
notice to the Owner Trustee and Lessee by the Agent or the Majority Lenders,
provided, further, that in the case of this clause (ii), if such default is not
capable of remedy within such fifteen (15) day period but may be remedied with
further diligence and if the Borrower has and continues to pursue diligently
such remedy, then the Borrower shall be granted additional time to pursue such
remedy but in no event more than an additional thirty (30) days; or

        (g) The Borrower shall commence a voluntary case concerning itself under
the Bankruptcy Code or an involuntary case is commenced against the Borrower and
the petition is not controverted within ten (10) days after commencement of the
case or an involuntary case is commenced against the Borrower and the petition
is not dismissed within sixty (60) days after commencement of the case; or a
custodian (as defined in the Bankruptcy Code) is appointed for, or takes charge
of, all or substantially all of the property of the Borrower; or the Borrower
commences any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to the
Borrower, or there is commenced against the Borrower any such proceeding which
remains undismissed for a period of sixty (60) days; or the Borrower is
adjudicated insolvent or bankrupt, or any order of relief or other order
approving any such case or proceeding is entered; or the Borrower suffers any
appointment of any custodian or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of sixty (60) days;
or the Borrower makes a general assignment for the benefit of creditors; or any
corporate action is taken by the Borrower for the purpose of effecting any of
the foregoing; or

        (h) Any Security Document shall cease to be in full force and effect, or
shall cease to give the Agent the Liens, rights, powers and privileges purported
to be created thereby (including without limitation a first priority perfected
security interest in, and Lien on, all of the Properties), in favor of the Agent
on behalf of the Lenders and the Holders, superior to and prior to the rights of
all third Persons and subject to no other Liens (except in each case to the
extent expressly permitted herein or in any Operative Agreement) other than any
Ground Lease; or

                                       11
<PAGE>   15

        (i) The Lease shall cease to be enforceable against the Lessee; or

        (j) One or more judgments or decrees shall be entered against the
Borrower involving a liability of $100,000 or more in the aggregate for all such
judgments and decrees for the Borrower and any such judgments or decrees shall
not have been vacated, discharged or stayed or bonded pending appeal within
sixty (60) days from the entry thereof,

then, and in any such event, (A) if such event is an Event of Default specified
in paragraph (g) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the Notes
shall immediately become due and payable, and (B) if such event is any other
Event of Default, either or both of the following actions may be taken: (i) with
the consent of the Majority Lenders, the Agent may, or upon the request of the
Majority Lenders, the Agent shall, by notice to the Borrower declare the
Commitments to be terminated forthwith, whereupon the Commitments shall
immediately terminate; and (ii) with the consent of the Majority Lenders, the
Agent may, or upon the request of the Majority Lenders, the Agent shall, by
notice to the Borrower, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be
due and payable forthwith, whereupon the same shall immediately become due and
payable (any of the foregoing occurrences or actions referred to in clause (A)
or (B) above, an "Acceleration"). Except as expressly provided above in this
Section 6, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

        Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Agent shall, upon the
written instructions of the Majority Secured Parties, exercise any or all of the
rights and powers and pursue any and all of the remedies available to it
hereunder and (subject to the terms thereof) under the other Credit Documents,
the Lease and the other Operative Agreements and shall have any and all rights
and remedies available under the Uniform Commercial Code or any provision of
law.

        Upon the occurrence of any Event of Default and at any time thereafter
so long as any Event of Default shall be continuing, the Agent may, and upon
request of the Majority Secured Parties shall, proceed to protect and enforce
this Agreement, the Notes, the other Credit Documents and the Lease by suit or
suits or proceedings in equity, at law or in bankruptcy, and whether for the
specific performance of any covenant or agreement herein contained or in
execution or aid of any power herein granted, or for foreclosure hereunder, or
for the appointment of a receiver or receivers for the Property or for the
recovery of judgment for the indebtedness secured thereby or for the enforcement
of any other proper, legal or equitable remedy available under applicable laws.

        The Borrower shall be liable for any and all accrued and unpaid amounts
due hereunder before, after or during the exercise of any of the foregoing
remedies, including without limitation all reasonable legal fees and other
reasonable costs and expenses incurred by the Agent or any Lender by reason of
the occurrence of any Event of Default or the exercise of remedies with respect
thereto.

                                       12
<PAGE>   16

                              SECTION 7. THE AGENT

        7.1    APPOINTMENT.

        Each Lender hereby irrevocably designates and appoints the Agent as the
agent of such Lender under this Agreement and the other Operative Agreements,
and each such Lender irrevocably authorizes the Agent, in such capacity, to
execute the Operative Agreements as agent for and on behalf of such Lender, to
take such action on behalf of such Lender under the provisions of this Agreement
and the other Operative Agreements and to exercise such powers and perform such
duties as are expressly delegated to the Agent by the terms of this Agreement
and other Operative Agreements, together with such other powers as are
reasonably incidental thereto. Without limiting the generality of the foregoing,
each of the Lenders hereby specifically acknowledges the terms and provisions of
the Participation Agreement and directs the Agent to exercise such powers, make
such decisions and otherwise perform such duties as are delegated to the Agent
thereunder without being required to obtain any specific consent with respect
thereto from any Lender, unless the matter under consideration is a Unanimous
Vote Matter or otherwise requires the consent of the Majority Lenders and/or the
Majority Secured Parties. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Operative Agreement or otherwise exist against the Agent.

        7.2    DELEGATION OF DUTIES.

        The Agent may execute any of its duties under this Agreement and the
other Operative Agreements by or through agents or attorneys-in-fact and shall
be entitled to advice of counsel concerning all matters pertaining to such
duties. The Agent shall not be responsible for the negligence or misconduct of
any agents or attorneys-in-fact selected by it with reasonable care.

        7.3    EXCULPATORY PROVISIONS.

        Neither the Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (a) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with
this Agreement or any other Operative Agreement (except for its or such Person's
own gross negligence or willful misconduct) or (b) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties
made by the Borrower or the Lessee or any officer thereof contained in this
Agreement or any other Operative Agreement or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Agent under or in connection with, this Agreement or any other Operative
Agreement or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Operative Agreement or for any
failure of the Borrower or the Lessee to perform its obligations hereunder or
thereunder. The Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other

                                       13
<PAGE>   17

Operative Agreement, or to inspect the properties, books or records of the
Borrower or the Lessee.

        7.4    RELIANCE BY THE AGENT.

        The Agent shall be entitled to rely, and shall be fully protected in
relying, upon any Note, writing, resolution, notice, consent, certificate,
affidavit, letter, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including without limitation counsel to the
Borrower or the Lessee), independent accountants and other experts selected by
the Agent. The Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Agent. The Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Operative Agreement unless it shall first receive such advice or
concurrence of the Majority Lenders, the Majority Secured Parties or all Secured
Parties, as the case may be, as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. The Agent shall in all cases be fully protected in acting, or
in refraining from acting, under this Agreement and the other Operative
Agreements in accordance with a request of the Majority Lenders, the Majority
Secured Parties or all Secured Parties, as the case may be, and such and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and all future holders of the Notes (or all Secured Parties, as the case
may be).

        7.5    NOTICE OF DEFAULT.

        The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless the Agent has
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a "notice of default". In the event that the Agent receives such a
notice, the Agent shall give notice thereof to the Lenders. The Agent shall take
such action with respect to such Default or Event of Default as shall be
reasonably directed by the Majority Secured Parties; provided, that unless and
until the Agent shall have received such directions, the Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the
best interests of the Secured Parties; provided, further, the foregoing shall
not limit (a) the rights of the Majority Secured Parties to elect remedies as
set forth in Section 6 and/or (b) the rights of the Majority Secured Parties or
all Secured Parties, as the case may be, as described in the Participation
Agreement (including without limitation Sections 8.2(h) and 8.6 of the
Participation Agreement).

        7.6    NON-RELIANCE ON THE AGENT AND OTHER LENDERS.

        Each Lender expressly acknowledges that neither the Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made
any representations or warranties to it and that no act by the Agent hereinafter
taken, including without limitation any review of the affairs of the Borrower or
the Lessee, shall be deemed to constitute any

                                       14
<PAGE>   18

representation or warranty by the Agent to any Lender. Each Lender represents to
the Agent that it has, independently and without reliance upon the Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Borrower and the Lessee and made its own decision to make its Loans hereunder
and enter into this Agreement. Each Lender also represents that it will,
independently and without reliance upon the Agent or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Operative Agreements, and
to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrower and the Lessee. Except for notices, reports and
other documents expressly required to be furnished to the Lenders by the Agent
hereunder, the Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness of
the Borrower or the Lessee which may come into the possession of the Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

        7.7    INDEMNIFICATION.

        The Lenders agree to indemnify the Agent, in its capacity as such (to
the extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so as provided in the Operative Agreements), ratably
according to their respective Commitment Percentages in effect on the date on
which indemnification is sought under this Section 7.7 (or, if indemnification
is sought after the date upon which the Commitments shall have terminated and
the Loans shall have been paid in full, ratably in accordance with their
Commitment Percentages immediately prior to such date), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at any
time (including without limitation at any time following the payment of the
Notes) be imposed on, incurred by or asserted against any of them in any way
relating to or arising out of, the Commitments, this Agreement, any of the other
Operative Agreements or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by any of them under or in connection with any of the foregoing;
provided, that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from the gross negligence or willful
misconduct of the Agent. The agreements in this Section 7.7 shall survive the
payment of the Notes and all other amounts payable hereunder.

        7.8    THE AGENT IN ITS INDIVIDUAL CAPACITY.

        The Agent and its Affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Borrower or the Lessee as
though the Agent were not the Agent hereunder and under the other Operative
Agreements. With respect to its Loans made or renewed by it and any Note issued
to it, the Agent shall have the same rights and powers under this Agreement and
the other Operative Agreements as any Lender and may exercise the same as

                                       15
<PAGE>   19

though it were not the Agent, and the terms "Lender" and "Lenders" shall include
the Agent in its individual capacity.

        7.9    SUCCESSOR AGENT.

        The Agent may resign at any time as the Agent upon thirty (30) days'
notice to the Lenders, the Borrower and, so long as no Lease Event of Default
shall have occurred and be continuing, the Lessee. If the Agent shall resign as
the Agent under this Agreement, the Majority Lenders shall appoint from among
the Lenders a successor Agent which successor Agent shall be subject to the
approval of the Borrower and, so long as no Lease Event of Default shall have
occurred and be continuing, the Lessee, such approval not to be unreasonably
withheld or delayed. If no successor Agent is appointed prior to the effective
date of the resignation of the resigning Agent, the Agent may appoint, after
consulting with the Lenders and subject to the approval of the Borrower and, so
long as no Lease Event of Default shall have occurred and be continuing, the
Lessee, such approval not to be unreasonably withheld or delayed, a successor
Agent from among the Lenders (or such other Person as shall be acceptable to the
Majority Lenders). If no successor Agent has accepted appointment as the Agent
by the date which is thirty (30) days following a retiring Agent's notice of
resignation, the retiring Agent's notice of resignation shall nevertheless
thereupon become effective and the Lenders shall perform all of the duties of
the Agent until such time, if any, as the Majority Lenders appoint a successor
Agent, as provided for above. Upon the effective date of such resignation, only
such successor Agent shall succeed to all the rights, powers and duties of the
retiring Agent and the term "Agent" shall mean such successor agent and the
retiring Agent's rights, powers and duties in such capacity shall be terminated.
After any retiring Agent resigns hereunder as the Agent, the provisions of this
Article VII and Section 9.5 shall inure to their respective benefit as to any
actions taken or omitted to be taken by it while it was the Agent under this
Agreement.

        7.10   ACTIONS OF THE AGENT ON BEHALF OF HOLDERS.

        The parties hereto specifically acknowledge and consent to the Agent's
acting on behalf of the Holders as provided in the Participation Agreement, and,
in any such case, the Lenders acknowledge that the Holders shall be entitled to
vote as "Secured Parties" hereunder to the extent required or permitted by the
Operative Agreements (including without limitation Sections 8.2(h) and 8.6 of
the Participation Agreement).

        7.11   THE AGENT'S DUTY OF CARE.

        Other than the exercise of reasonable care to assure the safe custody of
the Collateral while being held by the Agent hereunder or under any other
Operative Agreement, the Agent shall have no duty or liability to preserve
rights pertaining thereto, it being understood and agreed that the Lessee shall
be responsible for preservation of all rights in the Collateral, and the Agent
shall be relieved of all responsibility for the Collateral upon surrendering it
or tendering the surrender of it to the Lessee. The Agent shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral
in its possession if the Collateral is accorded treatment substantially equal to
that which the Agent accords its own property, which shall be no less than the
treatment employed by a reasonable and prudent agent in the industry, it being

                                       16
<PAGE>   20

understood that the Agent shall not have responsibility for taking any necessary
steps to preserve rights against any parties with respect to any of the
Collateral.

              SECTION 8. MATTERS RELATING TO PAYMENT AND COLLATERAL

        8.1    COLLECTION AND ALLOCATION OF PAYMENTS AND OTHER AMOUNTS.

        The Lessee, the Construction Agent, the Agent, the Lenders, the Holders
and the Borrower have agreed pursuant to the terms of Section 8.7 of the
Participation Agreement to a procedure for the allocation and distribution of
certain payments and distributions, including without limitation the proceeds of
Collateral.

        8.2    CERTAIN REMEDIAL MATTERS.

        Notwithstanding any other provision of this Agreement or any other
Credit Document:

        (a) the Borrower shall at all times retain to the exclusion of all other
parties, all rights to Excepted Payments payable to it and to demand, collect or
commence an action at law to obtain such payments and to enforce any judgment
with respect thereto; and

        (b) the Borrower and each Holder shall at all times retain the right,
but not to the exclusion of the Agent, (i) to retain all rights with respect to
insurance that Article XIV of the Lease specifically confers upon the "Lessor",
(ii) to provide such insurance as the Lessee shall have failed to maintain or as
the Borrower or any Holder may desire, and (iii) to bring an action to enforce
compliance by the Lessee with the provisions of Articles VIII, IX, X, XI, XIV
and XVII of the Lease.

        8.3    EXCEPTED PAYMENTS.

        Notwithstanding any other provision of this Agreement or the Security
Documents, any Excepted Payment received at any time by the Agent shall be
distributed promptly to the Person entitled to receive such Excepted Payment.

                            SECTION 9. MISCELLANEOUS

        9.1    AMENDMENTS AND WAIVERS.

        None of the terms or provisions of this Agreement may be terminated,
amended, supplemented, waived or modified except in accordance with the terms of
Section 12.4 of the Participation Agreement.

                                       17
<PAGE>   21

        9.2    NOTICES.

        All notices required or permitted to be given under this Agreement shall
be given in accordance with Section 12.2 of the Participation Agreement.

        9.3    NO WAIVER; CUMULATIVE REMEDIES.

        No failure to exercise and no delay in exercising, on the part of the
Agent or any Lender, any right, remedy, power or privilege hereunder or under
the other Credit Documents shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or future exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.

        9.4    SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

        All representations and warranties made by the Borrower under the
Operative Agreements shall survive the execution and delivery of this Agreement
and the Notes and the making of the Loans hereunder.

        9.5    PAYMENT OF EXPENSES AND TAXES.

        Subject to the terms of the Participation Agreement, the Borrower agrees
to (with funds provided by the Lessee as Supplemental Rent): (a) pay all
reasonable out-of-pocket costs and expenses of (i) the Agent whether or not the
transactions herein contemplated are consummated, in connection with the
negotiation, preparation, execution and delivery of the Operative Agreements and
the documents and instruments referred to therein (including without limitation
the reasonable fees and disbursements of Moore & Van Allen, PLLC) and any
amendment, waiver or consent relating thereto (including without limitation the
reasonable fees and disbursements of counsel to the Agent) and (ii) the Agent
and each of the Lenders in connection with the enforcement of the Operative
Agreements and the documents and instruments referred to therein (including
without limitation the reasonable fees and disbursements of counsel for the
Agent and for each of the Lenders) and (b) pay and hold each of the Lenders
harmless from and against any and all present and future stamp and other similar
taxes with respect to the foregoing matters and save each of the Lenders
harmless from and against any and all liabilities with respect to or resulting
from any delay or omission (other than to the extent attributable to such
Lender) to pay such taxes.

        9.6    SUCCESSORS AND ASSIGNS.

        This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Agent, all future holders of the Notes and their
respective successors and assigns, except that the Borrower may not assign or
transfer any of its rights or obligations under this Agreement except in
accordance with Section 10.1 of the Participation Agreement and the other
applicable provisions of the Operative Agreements.

                                       18
<PAGE>   22

        9.7    PARTICIPATIONS.

        Subject to and in accordance with Section 10.1 of the Participation
Agreement, each Lender may sell participations to one or more Persons (each, a
"Participant") in all or a portion of its rights, obligations or rights and
obligations under the Operative Agreements (including all or a portion of its
Commitment or its Loans); provided, however, that (a) such Lender's obligations
under the Operative Agreements shall remain unchanged, (b) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations, (c) the Participant shall be entitled to the benefit of the
yield protection provisions contained in Sections 11.2(e), 11.3 and 11.4 of the
Participation Agreement and the right of set-off contained in Section 12.15 of
the Participation Agreement, and (d) the Borrower shall continue to deal solely
and directly with such Lender in connection with such Lender's rights and
obligations under the Operative Agreements, and such Lender shall retain the
sole right to enforce the obligations of the Borrower relating to its Loans and
its Notes and to approve any amendment, modification, or waiver of any provision
of the Operative Agreements (other than amendments, modifications, or waivers
decreasing the amount of principal of or the rate at which interest is payable
on such Loans or Notes, extending any scheduled principal payment date or date
fixed for the payment of interest on such Loans or Notes, or extending its
Commitment).

        Any Lender may furnish any information concerning the Borrower, the
Lessee or any Subsidiaries of the Lessee in the possession of such Lender from
time to time to participants (including prospective participants), subject,
however, to the provisions of Section 12.13 of the Participation Agreement.

        9.8    ASSIGNMENTS.

        Assignments. (a) Subject to and in accordance with Section 10.1 of the
Participation Agreement, each Lender may assign to one or more Eligible
Assignees all or a portion of its rights and obligations under the Operative
Agreements (including, without limitation, all or a portion of its Loans, its
Notes, and its Commitment); provided, however, that

               (i) each such assignment shall be to an Eligible Assignee;

               (ii) except in the case of an assignment to another Lender or an
        assignment of all of a Lender's rights and obligations under the
        Operative Agreements, any such partial assignment shall be in an amount
        at least equal to $5,000,000 or an integral multiple of $1,000,000 in
        excess thereof;

               (iii) each such assignment by a Lender shall be of a constant,
        and not varying, percentage of all of its rights and obligations under
        the Operative Agreements and the Notes in accordance with Section 10.1
        of the Participation Agreement; and

               (iv) the parties to such assignment shall execute and
        deliver to the Agent for its acceptance an Assignment and Acceptance
        substantially in the form of Exhibit B hereto, together with any Note
        subject to such assignment and a processing fee of $3,500. In no event
        shall any Credit Party have any responsibility for the payment or
        reimbursement of

                                       19
<PAGE>   23

        any fees, costs or expenses that arise in connection with any sale of
        participations, assignment or transfer of any interest of a Lender
        under Section 9.7 or 9.8.

Upon execution, delivery, and acceptance of such Assignment and Acceptance, the
assignee thereunder shall be a party hereto and, to the extent of such
assignment, have the obligations, rights and benefits of a Lender under the
Operative Agreements and the assigning Lender shall, to the extent of such
assignment, relinquish its rights and be released from its obligations under the
Operative Agreements. Upon the consummation of any assignment pursuant to this
Section, the assignor, the Agent and the Borrower shall make appropriate
arrangements so that, if required, new Notes are issued to the assignor and the
assignee. If the assignee is not incorporated under the laws of the United
States of America or a state thereof, it shall deliver to the Borrower and the
Agent certification as to exemption from deduction or withholding of Taxes in
accordance with Section 11.2(e) of the Participation Agreement.

        (b) Upon its receipt of an Assignment and Acceptance executed by the
parties thereto, together with any Note subject to such assignment and payment
of the processing fee, the Agent shall, if such Assignment and Acceptance has
been completed and is in substantially the form of Exhibit B hereto, (i) accept
such Assignment and Acceptance, (ii) record the information contained therein in
the Register and (iii) give prompt notice thereof to the parties thereto.

        (c) Notwithstanding any other provision set forth in any Operative
Agreement, any Lender may at any time assign and pledge all or any portion of
its Loans and its Notes to any Federal Reserve Bank as collateral security
pursuant to Regulation A and any Operating Circular issued by such Federal
Reserve Bank. No such assignment shall release the assigning Lender from its
obligations hereunder.

        (d) Any Lender may furnish any information concerning the Borrower, the
Lessee or any Subsidiaries of the Lessee in the possession of such Lender from
time to time to assignees (including prospective assignees), subject, however,
to the provisions of Section 12.13 of the Participation Agreement.

        9.9    THE REGISTER; DISCLOSURE; PLEDGES TO FEDERAL RESERVE BANKS.

        The Agent shall maintain at its address referred to in Section 12.2 of
the Participation Agreement a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lenders and the Commitment of, and principal amount of the
Loans owing to, each Lender from time to time (the "Register"). The entries in
the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower, the Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior
notice.

                                       20
<PAGE>   24

        9.10   ADJUSTMENTS; SET-OFF.

        (a) Except as otherwise expressly provided in Section 8.1 hereof and
Section 8.7 of the Participation Agreement where, and to the extent, one Lender
is entitled to payments prior to other Lenders, if any Lender (a "Benefitted
Lender") shall at any time receive any payment of all or part of its Loans, or
interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 6(g), or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in
respect of such other Lender's Loans, or interest thereon, such Benefitted
Lender shall purchase for cash from the other Lenders a participating interest
in such portion of each such other Lender's Loan, or shall provide such other
Lenders with the benefits of any such collateral, or the proceeds thereof, as
shall be necessary to cause such Benefitted Lender to share the excess payment
or benefits of such collateral or proceeds ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such Benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the event of such
recovery, but without interest.

        (b) In addition to any rights now or hereafter granted under applicable
law or otherwise, and not by way of limitation of any such rights, upon the
occurrence of an Event of Default, the Agent and each Lender are hereby
authorized at any time or from time to time, without presentment, demand,
protest or other notice of any kind to the Borrower or to any other Person, any
such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other Indebtedness at
any time held or owing by the Agent or such Lender (including without limitation
by branches and agencies of the Agent or such Lender wherever located) to or for
the credit or the account of the Borrower against and on account of the
obligations and liabilities of the Borrower to the Agent or such Lender under
this Agreement or under any of the other Operative Agreements, including without
limitation all interests in obligations of the Borrower purchased by any such
Lender pursuant to Section 9.10(a), and all other claims of any nature or
description arising out of or connected with this Agreement or any other
Operative Agreement, irrespective or whether or not the Agent or such Lender
shall have made any demand and although said obligations, liabilities or claims,
or any of them, shall be contingent or unmatured.

        9.11   COUNTERPARTS.

        This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts (including without limitation
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. A set of the copies of this Agreement
signed by all the parties shall be lodged with the Borrower and the Agent.

        9.12   SEVERABILITY.

        Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or

                                       21
<PAGE>   25

unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

        9.13   INTEGRATION.

        This Agreement and the other Credit Documents represent the agreement of
the Borrower, the Agent, and the Lenders with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by the Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

        9.14   GOVERNING LAW.

        THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED,
INTERPRETED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
WASHINGTON (WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO
CONFLICTS OF LAW).

        9.15   SUBMISSION TO JURISDICTION; VENUE.

        THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO SUBMISSION TO
JURISDICTION AND VENUE ARE HEREBY INCORPORATED BY REFERENCE HEREIN, MUTATIS
MUTANDIS.

        9.16   ACKNOWLEDGEMENTS.

        The Borrower hereby acknowledges that:

        (a) neither the Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower arising out of or in connection with this Agreement or
any of the other Credit Documents, and the relationship between the Agent (and
the Lenders) and the Borrower, in connection herewith or therewith is solely
that of debtor and creditor; and

        (b) no joint venture is created hereby or by the other Credit Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Borrower and the Lenders.

        9.17   WAIVERS OF JURY TRIAL.

        THE BORROWER, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW, TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

                                       22
<PAGE>   26

        9.18   NONRECOURSE.

        In addition to and not in limitation of Section 12.9 of the
Participation Agreement, anything to the contrary contained in this Agreement or
in any other Operative Agreement notwithstanding, no Exculpated Person shall be
personally liable in any respect for any liability or obligation hereunder or
under any other Operative Agreement including without limitation the payment of
the principal of, or interest on, the Notes, or for monetary damages for the
breach of performance of any of the covenants contained in this Agreement, the
Notes or any of the other Operative Agreements. The Agent and the Lenders agree
that, in the event any of them pursues any remedies available to them under this
Agreement, the Notes or any other Operative Agreement, neither the Agent nor the
Lenders shall have any recourse against the Borrower, nor any other Exculpated
Person, for any deficiency, loss or claim for monetary damages or otherwise
resulting therefrom and recourse shall be had solely and exclusively against the
Trust Estate and the Lessee; but nothing contained herein shall be taken to
prevent recourse against or the enforcement of remedies against the Trust Estate
in respect of any and all liabilities, obligations and undertakings contained in
this Agreement, the Notes or any other Operative Agreement. The Agent and the
Lenders further agree that the Borrower shall not be responsible for the payment
of any amounts owing hereunder (excluding principal and interest (other than
Overdue Interest) in respect of the Loans) (such non-excluded amounts,
"Supplemental Amounts") except to the extent that payments of Supplemental Rent
designated by the Lessee for application to such Supplemental Amounts shall have
been paid by the Lessee pursuant to the Lease (it being understood that the
failure by the Lessee for any reason to pay any Supplemental Rent in respect of
such Supplemental Amounts shall nevertheless be deemed to constitute a default
by the Borrower for the purposes of Section 6). Notwithstanding the foregoing
provisions of this Section 9.18, nothing in this Agreement or any other
Operative Agreement shall (a) constitute a waiver, release or discharge of any
obligation evidenced or secured by this Agreement or any other Credit Document,
(b) limit the right of the Agent or any Lender to name the Borrower as a party
defendant in any action or suit for judicial foreclosure and sale under any
Security Document, or (c) affect in any way the validity or enforceability of
any guaranty (whether of payment and/or performance) given to the Lessor, the
Agent or the Lenders, or of any indemnity agreement given by the Borrower, in
connection with the Loans made hereunder.

        9.19   USURY SAVINGS PROVISION.

        IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND CONTRACT IN
STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN EFFECT. ANY
SUCH PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE REFERRED TO HEREIN AS
"INTEREST." ALL AGREEMENTS AMONG THE PARTIES HERETO ARE HEREBY LIMITED BY THE
PROVISIONS OF THIS PARAGRAPH WHICH SHALL OVERRIDE AND CONTROL ALL SUCH
AGREEMENTS, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER WRITTEN OR
ORAL. IN NO WAY, NOR IN ANY EVENT OR CONTINGENCY (INCLUDING WITHOUT LIMITATION
PREPAYMENT OR ACCELERATION OF THE MATURITY OF ANY OBLIGATION), SHALL ANY
INTEREST TAKEN, RESERVED, CONTRACTED FOR, CHARGED, OR RECEIVED UNDER THIS
AGREEMENT OR OTHERWISE, EXCEED THE

                                       23
<PAGE>   27

MAXIMUM NONUSURIOUS AMOUNT PERMISSIBLE UNDER APPLICABLE LAW. IF, FROM ANY
POSSIBLE CONSTRUCTION OF ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT
OR AGREEMENT, INTEREST WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM
NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION SHALL BE SUBJECT TO THE PROVISIONS OF
THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH DOCUMENTS OR AGREEMENTS SHALL BE
AUTOMATICALLY REDUCED TO THE MAXIMUM NONUSURIOUS AMOUNT PERMITTED UNDER
APPLICABLE LAW, WITHOUT THE NECESSITY OF EXECUTION OF ANY AMENDMENT OR NEW
DOCUMENT OR AGREEMENT. IF THE AGENT OR ANY LENDER SHALL EVER RECEIVE ANYTHING OF
VALUE WHICH IS CHARACTERIZED AS INTEREST WITH RESPECT TO THE OBLIGATIONS OWED
HEREUNDER OR UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM THIS PROVISION, BE
IN EXCESS OF THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO THE AMOUNT WHICH
WOULD HAVE BEEN EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE APPLIED TO THE
REDUCTION OF THE COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND NOT TO THE
PAYMENT OF INTEREST, OR REFUNDED TO THE BORROWER OR ANY OTHER PAYOR THEREOF, IF
AND TO THE EXTENT SUCH AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE EXCEEDS THE
COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL. THE RIGHT TO DEMAND PAYMENT OF ANY
AMOUNTS EVIDENCED BY ANY OF THE OPERATIVE AGREEMENTS DOES NOT INCLUDE THE RIGHT
TO RECEIVE ANY INTEREST WHICH HAS NOT OTHERWISE ACCRUED ON THE DATE OF SUCH
DEMAND, AND NEITHER THE AGENT NOR ANY LENDER INTENDS TO CHARGE OR RECEIVE ANY
UNEARNED INTEREST IN THE EVENT OF SUCH DEMAND. ALL INTEREST PAID OR AGREED TO BE
PAID TO THE AGENT OR ANY LENDER SHALL, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, BE AMORTIZED, PRORATED, ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED
TERM (INCLUDING WITHOUT LIMITATION ANY RENEWAL OR EXTENSION) OF THIS AGREEMENT
SO THAT THE AMOUNT OF INTEREST ON ACCOUNT OF SUCH PAYMENTS DOES NOT EXCEED THE
MAXIMUM NONUSURIOUS AMOUNT PERMITTED BY APPLICABLE LAW.

        9.20   CERTAIN RIGHTS OF LESSEE.

        It is acknowledged and agreed by the parties hereto that, pursuant to
Section 9.1 of the Participation Agreement, the Lessee has the right, and, in
specified cases and at specified times, the exclusive right, to receive certain
notices and take certain actions, in its own capacity and/or on behalf of the
Borrower, under this Agreement.

                                       24
<PAGE>   28

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

                                            FIRST SECURITY BANK, NATIONAL
                                            ASSOCIATION, as Owner Trustee under
                                            the Storage Centers Trust 2001

                                            By:           /s/ Val T. Orton
                                               ---------------------------------
                                            Name:         Val T. Orton
                                                 -------------------------------
                                            Title:        Vice President
                                                  ------------------------------

<PAGE>   29

                                            BANK OF AMERICA, N.A., as the Agent

                                            By:           /s/ Dora A. Brown
                                               ---------------------------------
                                            Name:         Dora A. Brown
                                                 -------------------------------
                                            Title:        Vice President
                                                  ------------------------------

<PAGE>   30

LENDERS:                                    BANK HAPOALIM B.M., as a Lender

                                            By:           /s/ Marc Bosc
                                               ---------------------------------
                                            Name:         Marc Bosc
                                                 -------------------------------
                                            Title:        Vice President
                                                  ------------------------------

                                            By:           /s/ Conrad Wagner
                                               ---------------------------------
                                            Name:         Conrad Wagner
                                                --------------------------------
                                            Title:        First Vice President
                                                  ------------------------------

<PAGE>   31

                                            BANK OF AMERICA, N.A., as a Lender

                                            By:           /s/ William P. Stivers
                                               ---------------------------------
                                            Name:         William P. Stivers
                                                 -------------------------------
                                            Title:        Senior Vice President
                                                  ------------------------------

<PAGE>   32

                                            THE BANK OF NOVA SCOTIA, as a Lender

                                            By:           /s/ Patrik G. Norris
                                               ---------------------------------
                                            Name:         Patrik G. Norris
                                               ---------------------------------
                                            Title:        Director
                                               ---------------------------------

<PAGE>   33

                                            BANK ONE, NA, as a Lender

                                            By:           /s/ Timothy J. Carew
                                               ---------------------------------
                                            Name:         Timothy J. Carew
                                               ---------------------------------
                                            Title:        First Vice President
                                               ---------------------------------

<PAGE>   34

                                  COMMERZBANK AG, NEW YORK AND GRAND CAYMAN
                                  BRANCHES, as a Lender

                                  By:      /s/ R. William Knickerbocker
                                     -------------------------------------------
                                  Name:    R. William Knickerbocker
                                       -----------------------------------------
                                  Title:   Assistant Vice President
                                        ----------------------------------------

                                  By:      /s/ Christine H. Finkel
                                     -------------------------------------------
                                  Name:    Christine H. Finkel
                                       -----------------------------------------
                                  Title:   Vice President
                                        ----------------------------------------

<PAGE>   35

                                  KEYBANK NATIONAL ASSOCIATION, as a Lender

                                  By:           /s/ Kevin P. Murray
                                     -------------------------------------------
                                  Name:         Kevin P. Murray
                                       -----------------------------------------
                                  Title:        Assistant Vice President
                                        ----------------------------------------

<PAGE>   36

                                   SUNTRUST BANK, as a Lender

                                   By:           /s/ Blake K. Thompson
                                     -------------------------------------------
                                   Name:         Blake K. Thompson
                                        ----------------------------------------
                                   Title:        Vice President
                                         ---------------------------------------

<PAGE>   37

                                  U.S. BANK, NATIONAL ASSOCIATION, as a Lender

                                  By:           /s/ Miles S. Silverthorn
                                     -------------------------------------------
                                  Name:         Miles S. Silverthorn
                                       -----------------------------------------
                                  Title:        Vice President
                                        ----------------------------------------

<PAGE>   38

                                   WASHINGTON MUTUAL BANK, as a Lender

                                   By:           /s/ David M. Purcell
                                     -------------------------------------------
                                   Name:         David M. Purcell
                                        ----------------------------------------
                                   Title:        Vice President
                                         ---------------------------------------

<PAGE>   39

                                   FLEET NATIONAL BANK, as a Lender

                                   By:           /s/ Kathleen M. Ahern
                                     -------------------------------------------
                                   Name:         Kathleen M. Ahern
                                        ----------------------------------------
                                   Title:        Director
                                         ---------------------------------------

<PAGE>   40

                                 LASALLE BANK, NATIONAL ASSOCIATION, as a Lender

                                 By:       /s/ Klay Schmeisser
                                    -------------------------------------------
                                 Name:         Klay Schmeisser
                                      -----------------------------------------
                                 Title:        Vice President
                                       ----------------------------------------<PAGE>   1
                                                                  EXHIBIT 10.30

--------------------------------------------------------------------------------

                                 LEASE AGREEMENT

                          Dated as of February 26, 2001

                                     between

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,

             as Owner Trustee under the Storage Centers Trust 2001,

                                    as Lessor

                                       and

                         SHURGARD STORAGE CENTERS, INC.,

                                    as Lessee

--------------------------------------------------------------------------------

This Lease Agreement is subject to a security interest in favor of Bank of
America, N.A., as the agent for the Lenders and respecting the Security
Documents, as the agent for the Secured Parties (the "Agent") under a Security
Agreement dated as of February 26, 2001, between First Security Bank, National
Association, as Owner Trustee under the Storage Centers Trust 2001 and the
Agent, as amended, modified, extended, supplemented, restated and/or replaced
from time to time in accordance with the applicable provisions thereof. This
Lease Agreement has been executed in several counterparts. To the extent, if
any, that this Lease Agreement constitutes chattel paper (as such term is
defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction), no security interest in this Lease Agreement may be created
through the transfer or possession of any counterpart other than the original
counterpart containing the receipt therefor executed by the Agent on the
signature page hereof.

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                     <C>
ARTICLE I................................................................................................................1
           1.1       Definitions.........................................................................................1
           1.2       Interpretation......................................................................................2

ARTICLE II...............................................................................................................2
           2.1       Property............................................................................................2
           2.2       Lease Term..........................................................................................2
           2.3       Title...............................................................................................3
           2.4       Lease Supplements...................................................................................3

ARTICLE III..............................................................................................................3
           3.1       Rent................................................................................................3
           3.2       Payment of Basic Rent...............................................................................4
           3.3       Supplemental Rent...................................................................................4
           3.4       Performance on a Non-Business Day...................................................................4
           3.5       Rent Payment Provisions.............................................................................4

ARTICLE IV...............................................................................................................5
           4.1       Taxes; Utility Charges..............................................................................5

ARTICLE V................................................................................................................5
           5.1       Quiet Enjoyment.....................................................................................5

ARTICLE VI...............................................................................................................5
           6.1       Net Lease...........................................................................................5
           6.2       No Termination or Abatement.........................................................................6

ARTICLE VII..............................................................................................................7
           7.1       Ownership of the Properties.........................................................................7

ARTICLE VIII.............................................................................................................8
           8.1       Condition of the Properties.........................................................................8
           8.2       Possession and Use of the Properties................................................................9
           8.3       Integrated Properties..............................................................................10

ARTICLE IX..............................................................................................................10
           9.1       Compliance With Legal Requirements, Insurance Requirements and Manufacturer's
                         Specifications and Standards...................................................................10

ARTICLE X...............................................................................................................10
           10.1      Maintenance and Repair; Return.....................................................................10
           10.2      Environmental Inspection...........................................................................12

ARTICLE XI..............................................................................................................12
           11.1      Modifications......................................................................................12
</TABLE>

                                        i

<PAGE>   3

<TABLE>
<S>                                                                                                                     <C>
ARTICLE XII.............................................................................................................13
           12.1      Warranty of Title..................................................................................13

ARTICLE XIII............................................................................................................14
           13.1      Permitted Contests Other Than in Respect of Indemnities............................................14
           13.2      Impositions, Utility Charges, Other Matters; Compliance with Legal Requirements....................15

ARTICLE XIV.............................................................................................................15
           14.1      Public Liability and Workers' Compensation Insurance...............................................15
           14.2      Permanent Hazard and Other Insurance...............................................................15
           14.3      Coverage...........................................................................................16
           14.4      Additional Insurance Requirements..................................................................17

ARTICLE XV..............................................................................................................17
           15.1      Casualty and Condemnation..........................................................................17
           15.2      Environmental Matters..............................................................................19
           15.3      Notice of Environmental Matters....................................................................20

ARTICLE XVI.............................................................................................................20
           16.1      Termination Upon Certain Events....................................................................20
           16.2      Procedures.........................................................................................21

ARTICLE XVII............................................................................................................21
           17.1      Lease Events of Default............................................................................21
           17.2      Surrender of Possession............................................................................25
           17.3      Reletting..........................................................................................25
           17.4      Damages............................................................................................25
           17.5      Power of Sale......................................................................................26
           17.6      Final Liquidated Damages...........................................................................26
           17.7      Environmental Costs................................................................................27
           17.8      Waiver of Certain Rights...........................................................................27
           17.9      Assignment of Rights Under Contracts...............................................................27
           17.10     Remedies Cumulative................................................................................28

ARTICLE XVIII...........................................................................................................28
           18.1      Lessor's Right to Cure Lessee's Lease Defaults.....................................................28

ARTICLE XIX.............................................................................................................28
           19.1      Provisions Relating to Lessee's Exercise of its Purchase Option....................................28
           19.2      No Purchase or Termination With Respect to Less than All of a Property.............................29

ARTICLE XX..............................................................................................................29
           20.1      Purchase Option or Sale Option-General Provisions..................................................29
           20.2      Lessee Purchase Option.............................................................................30
           20.3      Third Party Sale Option............................................................................31
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>                                                                                                                    <C>
ARTICLE XXI.............................................................................................................31
           21.1      [Intentionally Omitted]............................................................................31

ARTICLE XXII............................................................................................................32
           22.1      Sale Procedure.....................................................................................32
           22.2      Application of Proceeds of Sale....................................................................34
           22.3      Indemnity for Excessive Wear.......................................................................35
           22.4      Appraisal Procedure................................................................................35
           22.5      Certain Obligations Continue.......................................................................36

ARTICLE XXIII...........................................................................................................36
           23.1      Holding Over.......................................................................................36

ARTICLE XXIV............................................................................................................36
           24.1      Risk of Loss.......................................................................................36

ARTICLE XXV.............................................................................................................37
           25.1      Assignment.........................................................................................37
           25.2      Subleases..........................................................................................37

ARTICLE XXVI............................................................................................................38
           26.1      No Waiver..........................................................................................38

ARTICLE XXVII...........................................................................................................38
           27.1      Acceptance of Surrender............................................................................38
           27.2      No Merger of Title.................................................................................38

ARTICLE XXVIII..........................................................................................................38
           28.1      Incorporation of Covenants.........................................................................38

ARTICLE XXIX............................................................................................................39
           29.1      Notices............................................................................................39

ARTICLE XXX.............................................................................................................40
           30.1      Miscellaneous......................................................................................40
           30.2      Amendments and Modifications.......................................................................40
           30.3      Successors and Assigns.............................................................................40
           30.4      Headings and Table of Contents.....................................................................40
           30.5      Counterparts.......................................................................................40
           30.6      GOVERNING LAW......................................................................................40
           30.7      Calculation of Rent................................................................................40
           30.8      Memoranda of Lease and Lease Supplements...........................................................41
           30.9      Allocations between the Lenders and the Holders....................................................41
           30.10     Limitations on Recourse............................................................................41
           30.11     WAIVERS OF JURY TRIAL..............................................................................42
           30.12     Exercise of Lessor Rights..........................................................................42
           30.13     SUBMISSION TO JURISDICTION; VENUE..................................................................42
           30.14     USURY SAVINGS PROVISION............................................................................42
</TABLE>

                                      iii

<PAGE>   5

EXHIBITS

EXHIBIT A      -       Lease Supplement No. ____
EXHIBIT B      -       Memorandum of Lease and Lease Supplement No. ____

                                       iv

<PAGE>   6

                                 LEASE AGREEMENT

        THIS LEASE AGREEMENT dated as of February 26, 2001 (as amended,
modified, extended, supplemented, restated and/or replaced from time to time,
this "Lease") is between FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association, having its principal office at 79 South Main Street, Salt
Lake City, Utah 84111, as Owner Trustee under the Storage Centers Trust 2001, as
lessor (the "Lessor"), and SHURGARD STORAGE CENTERS, INC., a Washington
corporation, having its principal place of business at 1155 Valley Street, Suite
400, Seattle, Washington, 98109, as lessee (the "Lessee").

                              W I T N E S S E T H:

        A. WHEREAS, subject to the terms and conditions of the Participation
Agreement and the Agency Agreement, Lessor will (i) purchase or ground lease
various parcels of real property, some of which will (or may) have existing
Improvements thereon, from one or more third parties designated by Lessee and
(ii) fund the acquisition, installation, testing, use, development,
construction, operation, maintenance, repair, refurbishment and restoration of
the Properties by the Construction Agent; and

        B. WHEREAS, the Basic Term shall commence with respect to each Property
upon the Property Closing Date with respect thereto; provided, Basic Rent with
respect thereto shall not be payable until the applicable Rent Commencement
Date; and

        C. WHEREAS, Lessor desires to lease to Lessee, and Lessee desires to
lease from Lessor, each Property;

        NOW, THEREFORE, in consideration of the foregoing, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

        1.1 Definitions.

            For purposes of this Lease, capitalized terms used in this Lease and
not otherwise defined herein shall have the meanings assigned to them in
Appendix A to that certain Participation Agreement dated as of February 26, 2001
(as amended, modified, extended, supplemented, restated and/or replaced from
time to time in accordance with the applicable provisions thereof, the
"Participation Agreement") among Lessee, the various parties thereto from time
to time, as the Guarantors, Lessor, the various banks and other lending
institutions which are parties thereto from time to time, as the Holders, the
various banks and other lending institutions which are parties thereto from time
to time, as the Lenders, and Bank of America, N.A., as agent for the

<PAGE>   7

Lenders and respecting the Security Documents, as the agent for the Secured
Parties. Unless otherwise indicated, references in this Lease to articles,
sections, paragraphs, clauses, appendices, schedules and exhibits are to the
same contained in this Lease.

        1.2 Interpretation.

            The rules of usage set forth in Appendix A to the Participation
Agreement shall apply to this Lease.

                                   ARTICLE II

        2.1 Property.

            Subject to the terms and conditions hereinafter set forth and
contained in the respective Lease Supplement relating to each Property, Lessor
hereby leases to Lessee and Lessee hereby leases from Lessor, each Property.

        2.2 Lease Term.

                (a) Basic Term. The basic term of this Lease with respect to
        each Property (the "Basic Term") shall begin upon the Property Closing
        Date for such Property (in each case the "Basic Term Commencement Date")
        and shall end on the fourth anniversary of the Initial Closing Date (the
        "Basic Term Expiration Date"), unless the Basic Term is earlier
        terminated or the term of this Lease is renewed (as described below) in
        accordance with the provisions of this Lease. Notwithstanding the
        foregoing, Lessee shall not be obligated to pay Basic Rent until the
        Rent Commencement Date with respect to such Property.

                (b) Renewal Term. To the extent no Default or Event of Default
        has occurred and is continuing, at any time during the period from
        ninety (90) days prior to the first anniversary of the Initial Closing
        Date to and including such anniversary date, but at no other time,
        Lessee shall have the option to request in writing that the Financing
        Parties extend the term of this Lease for each Property for one (1)
        additional term of one (1) year's duration from the Basic Term
        Expiration Date (the "Renewal Term"); provided, that the expiration date
        for the Renewal Term for each Property shall in no event be later than
        the fifth anniversary of the Initial Closing Date, unless such later
        expiration date has been expressly agreed to, at the request of Lessee,
        in writing by each of Lessor, the Agent, the Lenders and the Holders in
        their sole discretion.

                Each of the Financing Parties shall provide the Agent, not less
        than 30 days following such request, with written notice regarding
        whether it has approved the extension of the term of this Lease for the
        Renewal Term. Each such decision by a Financing Party shall be in its
        sole discretion and each Financing Party that fails to give timely
        written notice hereunder shall be deemed not have agreed to such
        extension. If all of the Financing Parties timely agree in writing to
        such extension, then the Renewal Term shall become effective upon the
        expiration of the Basic Term described above. If any

                                       2
<PAGE>   8

        Financing Party fails to agree in writing to such extension, then the
        Basic Term shall not be extended for the Renewal Term.

        2.3 Title.

            Each Property is leased to Lessee without any representation or
warranty, express or implied, by Lessor and subject to the rights of parties in
possession (if any), the existing state of title (including without limitation
the Permitted Liens) and all applicable Legal Requirements. Lessee shall in no
event have any recourse against Lessor for any defect in Lessor's title to any
Property or any interest of Lessee therein other than for Lessor Liens.

        2.4 Lease Supplements.

            On or prior to each Basic Term Commencement Date, Lessee and Lessor
shall each execute and deliver a Lease Supplement for the Property to be leased
effective as of such Basic Term Commencement Date in substantially the form of
Exhibit A hereto.

                                   ARTICLE III

        3.1 Rent.

                (a) Lessee shall pay Basic Rent in arrears on each Payment Date,
        and on any date on which this Lease shall terminate with respect to any
        or all Properties during the Term; provided, however, with respect to
        each individual Property Lessee shall have no obligation to pay Basic
        Rent with respect to such Property until the Rent Commencement Date with
        respect to such Property (notwithstanding that Basic Rent for such
        Property shall accrue from and including the Scheduled Interest Payment
        Date immediately preceding such Rent Commencement Date).

                (b) Basic Rent shall be due and payable in lawful money of the
        United States and shall be paid by wire transfer of immediately
        available funds on the due date therefor (or within the applicable grace
        period) to such account or accounts at such bank or banks as Agent shall
        from time to time direct.

                (c) Lessee's inability or failure to take possession of all or
        any portion of any Property when delivered by Lessor, whether or not
        attributable to any act or omission of Lessor, the Construction Agent,
        Lessee or any other Person or for any other reason whatsoever, shall not
        delay or otherwise affect Lessee's obligation to pay Rent for such
        Property in accordance with the terms of this Lease.

                (d) Lessee shall make all payments of Rent prior to 12:00 Noon,
        Pacific time, on the applicable date for payment of such amount.

                                       3
<PAGE>   9

        3.2 Payment of Basic Rent.

            Basic Rent shall be paid absolutely net to Lessor or its designee,
so that this Lease shall yield to Lessor the full amount thereof, without
setoff, deduction or reduction.

        3.3 Supplemental Rent.

            Lessee shall pay to the Agent (on behalf of the Person entitled
thereto) any and all Supplemental Rent when and as the same shall become due and
payable, and if Lessee fails to pay any Supplemental Rent within three (3) days
after the same is due, Lessor shall have all rights, powers and remedies
provided for herein or by law or equity or otherwise in the case of nonpayment
of Basic Rent. All such payments of Supplemental Rent shall be in the full
amount thereof, without setoff, deduction or reduction. Lessee shall pay to the
appropriate Person as specified in the Operative Agreements, as Supplemental
Rent due and owing to such Person, among other things, on demand, (a) any and
all payment obligations (except for amounts payable as Basic Rent) owing from
time to time under the Operative Agreements by any Person to the Agent, any
Lender, any Holder or any other Person, (b) interest at the applicable Overdue
Rate on any installment of Basic Rent not paid when due (subject to the
applicable grace period) for the period for which the same shall be overdue and
on any payment of Supplemental Rent not paid when due or demanded by the
appropriate Person (subject to any applicable grace period) for the period from
the due date or the date of any such demand, as the case may be, until the same
shall be paid and (c) amounts referenced as Supplemental Rent obligations
pursuant to Section 8.3 of the Participation Agreement. It shall be an
additional Supplemental Rent obligation of Lessee to pay to the appropriate
Person all rent and other amounts when such become due and owing from time to
time under each Ground Lease and without the necessity of any notice from Lessor
with regard thereto. The expiration or other termination of Lessee's obligations
to pay Basic Rent hereunder shall not limit or modify the obligations of Lessee
with respect to Supplemental Rent. Unless expressly provided otherwise in this
Lease, in the event of any failure on the part of Lessee to pay and discharge
any Supplemental Rent as and when due, Lessee shall also promptly pay and
discharge any fine, penalty, interest or cost which may be assessed or added for
nonpayment or late payment of such Supplemental Rent, all of which shall also
constitute Supplemental Rent.

        3.4 Performance on a Non-Business Day.

            If any Basic Rent is required hereunder on a day that is not a
Business Day, then such Basic Rent shall be due on the corresponding Scheduled
Interest Payment Date or, to the extent such Basic Rent is not due on a
Scheduled Interest Payment Date, then on the next succeeding Business Day. If
any Supplemental Rent is required hereunder on a day that is not a Business Day,
then such Supplemental Rent shall be due on the next succeeding Business Day.

        3.5 Rent Payment Provisions.

            Lessee shall make payment of all Basic Rent and Supplemental Rent
when due (subject to the applicable grace periods) regardless of whether any of
the Operative Agreements pursuant to which same is calculated and is owing shall
have been rejected, avoided or

                                       4
<PAGE>   10

disavowed in any bankruptcy or insolvency proceeding involving any of the
parties to any of the Operative Agreements. Such provisions of such Operative
Agreements and their related definitions are incorporated herein by reference
and shall survive any termination, amendment or rejection of any such Operative
Agreements.

                                   ARTICLE IV

        4.1 Taxes; Utility Charges.

            Except for Excluded Taxes, Lessee shall pay or cause to be paid all
Impositions with respect to the Properties and/or the use, occupancy, operation,
repair, access, maintenance or operation thereof and all charges for
electricity, power, gas, oil, water, telephone, sanitary sewer service and all
other rents, utilities and operating expenses of any kind or type used in or on
any Property and related real property during the Term. Upon Lessor's request,
Lessee shall provide from time to time Lessor with reasonable evidence of all
such payments referenced in the foregoing sentence. Lessee shall be entitled to
receive any credit or refund with respect to any Imposition or utility charge
paid by Lessee. Unless an Event of Default shall have occurred and be
continuing, the amount of any credit or refund received by Lessor on account of
any Imposition or utility charge paid by Lessee, net of the costs and expenses
incurred by Lessor in obtaining such credit or refund, shall be promptly paid
over to Lessee. All charges for Impositions or utilities imposed with respect to
any Property for a period during which this Lease expires or terminates shall be
adjusted and prorated on a daily basis between Lessor and Lessee, and each party
shall pay or reimburse the other for such party's pro rata share thereof.

                                    ARTICLE V

        5.1 Quiet Enjoyment.

            Subject to the rights of Lessor contained in Sections 17.2, 17.3 and
20.3 and the other terms of this Lease and the other Operative Agreements and so
long as no Event of Default shall have occurred and be continuing, Lessee shall
peaceably and quietly have, hold and enjoy each Property for the applicable
Term, free of any claim or other action by Lessor or anyone rightfully claiming
by, through or under Lessor (other than Lessee) with respect to any matters
arising from and after the applicable Basic Term Commencement Date.

                                   ARTICLE VI

        6.1 Net Lease.

            This Lease shall constitute a net lease, and the obligations of
Lessee hereunder are absolute and unconditional. Lessee shall pay all operating
expenses arising out of the use, operation and/or occupancy of each Property.
Any present or future law to the contrary notwithstanding, this Lease shall not
terminate, nor shall Lessee be entitled to any abatement,

                                       5
<PAGE>   11

suspension, deferment, reduction, setoff, counterclaim, or defense with respect
to the Rent, nor shall the obligations of Lessee hereunder be affected (except
as expressly herein permitted and by performance of the obligations in
connection therewith) for any reason whatsoever, including without limitation by
reason of: (a) any damage to or destruction of any Property or any part thereof;
(b) any taking of any Property or any part thereof or interest therein by
Condemnation or otherwise; (c) any prohibition, limitation, restriction or
prevention of Lessee's use, occupancy or enjoyment of any Property or any part
thereof, or any interference with such use, occupancy or enjoyment by any Person
or for any other reason; (d) any title defect, Lien or any matter affecting
title to any Property; (e) any eviction by paramount title or otherwise; (f) any
default by Lessor hereunder; (g) any action for bankruptcy, insolvency,
reorganization, liquidation, dissolution or other proceeding relating to or
affecting the Agent, any Lender, Lessor, Lessee, any Holder or any Governmental
Authority; (h) the impossibility or illegality of performance by Lessor, Lessee
or both; (i) any action of any Governmental Authority or any other Person; (j)
Lessee's acquisition of ownership of all or part of any Property; (k) breach of
any warranty or representation with respect to any Property or any Operative
Agreement; (l) any defect in the condition, quality or fitness for use of any
Property or any part thereof; or (m) any other cause or circumstance whether
similar or dissimilar to the foregoing and whether or not Lessee shall have
notice or knowledge of any of the foregoing. The parties intend that the
obligations of Lessee hereunder shall be covenants, agreements and obligations
that are separate and independent from any obligations of Lessor hereunder and
shall continue unaffected unless such covenants, agreements and obligations
shall have been modified or terminated in accordance with an express provision
of this Lease. Lessor and Lessee acknowledge and agree that the provisions of
this Section 6.1 have been specifically reviewed and subjected to negotiation.
Nothing in this Section 6.1, however, shall affect any claim, action or right
that Lessee may have against Lessor or any other Person, however arising.

        6.2 No Termination or Abatement.

            Lessee shall remain obligated under this Lease in accordance with
its terms and shall not take any action to terminate, rescind or avoid this
Lease, notwithstanding any action for bankruptcy, insolvency, reorganization,
liquidation, dissolution, or other proceeding affecting any Person or any
Governmental Authority, or any action with respect to this Lease or any
Operative Agreement which may be taken by any trustee, receiver or liquidator of
any Person or any Governmental Authority or by any court with respect to any
Person, or any Governmental Authority. Lessee hereby waives all right (a) to
terminate or surrender this Lease (except as permitted under the terms of the
Operative Agreements) or (b) to avail itself of any abatement, suspension,
deferment, reduction, setoff, counterclaim or defense with respect to any Rent.
Lessee shall remain obligated under this Lease in accordance with its terms and
Lessee hereby waives any and all rights now or hereafter conferred by statute or
otherwise to modify or to avoid strict compliance with its obligations under
this Lease. Notwithstanding any such statute or otherwise, Lessee shall be bound
by all of the terms and conditions contained in this Lease.

                                       6
<PAGE>   12

                                   ARTICLE VII

        7.1 Ownership of the Properties.

                (a) Lessor and Lessee intend that for federal and all state and
        local income tax purposes, bankruptcy purposes, regulatory purposes,
        commercial law and real estate purposes and all other purposes (other
        than for accounting purposes) (A) this Lease will be treated as a
        financing arrangement and (B) Lessee will be treated as the owner of the
        Properties and will be entitled to all tax benefits ordinarily available
        to owners of property similar to the Properties for such tax purposes.
        Notwithstanding the foregoing, neither party hereto has made, or shall
        be deemed to have made, any representation or warranty as to the
        availability of any of the foregoing treatments under applicable
        accounting rules, tax, bankruptcy, regulatory, commercial or real estate
        law or under any other set of rules. Lessee shall claim the cost
        recovery deductions associated with each Property, and Lessor shall not,
        to the extent not prohibited by Law, take on its tax return a position
        inconsistent with Lessee's claim of such deductions.

                (b) For all purposes described in Section 7.1(a), Lessor and
        Lessee intend this Lease to constitute a finance lease and not a true
        lease. In order to secure the obligations of Lessee now existing or
        hereafter arising under any and all Operative Agreements, Lessee hereby
        conveys, grants, assigns, transfers, hypothecates, mortgages and sets
        over to Lessor, for the benefit of the Secured Parties, a first priority
        security interest (but subject to the security interest in the assets
        granted by Lessee in favor of the Agent in accordance with the Security
        Agreement) in and lien on all right, title and interest of Lessee (now
        owned or hereafter acquired) in and to all Properties to the extent such
        is personal property and irrevocably grants and conveys a lien, deed of
        trust and mortgage on all right, title and interest of Lessee (now owned
        or hereafter acquired) in and to all Properties to the extent such is a
        real property. Lessor and Lessee further intend and agree that, for the
        purpose of securing the obligations of Lessee and/or the Construction
        Agent now existing or hereafter arising under the Operative Agreements,
        (i) this Lease shall be a security agreement and financing statement
        within the meaning of Article 9 of the Uniform Commercial Code
        respecting each of the Properties and all proceeds (including without
        limitation insurance proceeds thereof) to the extent such is personal
        property and an irrevocable grant and conveyance of a lien, deed of
        trust and mortgage on each of the Properties and all proceeds (including
        without limitation insurance proceeds thereof) to the extent such is
        real property; (ii) the acquisition of title by Lessor (or to the extent
        applicable, a leasehold interest pursuant to a Ground Lease) in each
        Property referenced in Article II constitutes a grant by Lessee to
        Lessor of a security interest, lien, deed of trust and mortgage in all
        of Lessee's right, title and interest in and to each Property and all
        proceeds (including without limitation insurance proceeds thereof) of
        the conversion, voluntary or involuntary, of the foregoing into cash,
        investments, securities or other property, whether in the form of cash,
        investments, securities or other property, and an assignment of all
        rents, profits and income produced by each Property; and (iii)
        notifications to Persons holding such property, and acknowledgments,
        receipts or confirmations from financial intermediaries, bankers or
        agents (as applicable) of Lessee shall be deemed to have been given for
        the purpose of perfecting such lien, security

                                       7
<PAGE>   13

        interest, mortgage lien and deed of trust under applicable law. Lessee
        shall promptly take such actions as necessary (including without
        limitation the filing of Uniform Commercial Code Financing Statements,
        Uniform Commercial Code Fixture Filings and memoranda (or short forms)
        of this Lease and the various Lease Supplements) to ensure that the
        lien, security interest, mortgage and deed of trust in each Property and
        the other items referenced above will be deemed to be a perfected lien,
        security interest, mortgage lien and deed of trust of first priority
        under applicable law and will be maintained as such throughout the Term.

                                  ARTICLE VIII

        8.1 Condition of the Properties.

            LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING EACH PROPERTY
"AS-IS WHERE-IS" WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR
IMPLIED) BY LESSOR (EXCEPT THAT LESSOR SHALL KEEP EACH PROPERTY FREE AND CLEAR
OF LESSOR LIENS) AND IN EACH CASE SUBJECT TO (A) THE EXISTING STATE OF TITLE,
(B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF (IF ANY), (C) ANY STATE OF
FACTS REGARDING ITS PHYSICAL CONDITION OR WHICH AN ACCURATE SURVEY MIGHT SHOW,
(D) ALL APPLICABLE LEGAL REQUIREMENTS AND (E) VIOLATIONS OF LEGAL REQUIREMENTS
WHICH MAY EXIST ON THE DATE HEREOF AND/OR THE DATE OF THE APPLICABLE LEASE
SUPPLEMENT. NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY HOLDER HAS MADE
OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION, WARRANTY OR COVENANT
(EXPRESS OR IMPLIED) (EXCEPT THAT LESSOR SHALL KEEP EACH PROPERTY FREE AND CLEAR
OF LESSOR LIENS) OR SHALL BE DEEMED TO HAVE ANY LIABILITY WHATSOEVER AS TO THE
TITLE, VALUE, HABITABILITY, USE, CONDITION, DESIGN, OPERATION, MERCHANTABILITY
OR FITNESS FOR USE OF ANY PROPERTY (OR ANY PART THEREOF), OR ANY OTHER
REPRESENTATION, WARRANTY OR COVENANT WHATSOEVER, EXPRESS OR IMPLIED, WITH
RESPECT TO ANY PROPERTY (OR ANY PART THEREOF), AND NEITHER LESSOR NOR THE AGENT
NOR ANY LENDER NOR ANY HOLDER SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT
DEFECT THEREON OR THE FAILURE OF ANY PROPERTY, OR ANY PART THEREOF, TO COMPLY
WITH ANY LEGAL REQUIREMENT. LESSEE HAS OR PRIOR TO THE BASIC TERM COMMENCEMENT
DATE WILL HAVE BEEN AFFORDED FULL OPPORTUNITY TO INSPECT EACH PROPERTY AND THE
IMPROVEMENTS THEREON (IF ANY), IS OR WILL BE (INSOFAR AS LESSOR, THE AGENT, EACH
LENDER AND EACH HOLDER ARE CONCERNED) SATISFIED WITH THE RESULTS OF ITS
INSPECTIONS AND IS ENTERING INTO THIS LEASE SOLELY ON THE BASIS OF THE RESULTS
OF ITS OWN INSPECTIONS, AND ALL RISKS INCIDENT TO THE MATTERS DESCRIBED IN THE
PRECEDING SENTENCE, AS BETWEEN LESSOR, THE AGENT, THE LENDERS AND THE HOLDERS,
ON THE ONE HAND, AND LESSEE, ON THE OTHER HAND, ARE TO BE BORNE BY LESSEE.

                                       8
<PAGE>   14

        8.2 Possession and Use of the Properties.

                (a) At all times during the Term with respect to each Property,
        such Property shall be a Permitted Facility and shall be used by Lessee
        in the ordinary course of its business. Lessee shall pay, or cause to be
        paid, all charges and costs required in connection with the use of the
        Properties as contemplated by this Lease. Lessee shall not commit or
        permit any waste of the Properties or any part thereof.

                (b) The address stated in Section 29.1 of this Lease is the
        principal place of business and chief executive office of Lessee (as
        such terms are used in Section 9-103(3) of the Uniform Commercial Code
        of any applicable jurisdiction), and Lessee will provide Lessor with
        prior written notice of any change of location of its principal place of
        business or chief executive office. Regarding a particular Property,
        each Lease Supplement correctly identifies the initial location of the
        related Equipment (if any) and Improvements (if any) and contains an
        accurate legal description for the related parcel of Land or a copy of
        the Ground Lease (if any). The Equipment and Improvements respecting
        each particular Property will be located only at the location identified
        in the applicable Lease Supplement.

                (c) Lessee will not attach or incorporate any item of Equipment
        to or in any other item of equipment or personal property or to or in
        any real property in a manner that could give rise to the assertion of
        any Lien on such item of Equipment by reason of such attachment or the
        assertion of a claim that such item of Equipment has become a fixture
        and is subject to a Lien in favor of a third party that is prior to the
        Liens thereon created by the Operative Agreements.

                (d) On the Basic Term Commencement Date for each Property,
        Lessor and Lessee shall execute a Lease Supplement in regard to such
        Property which shall contain an Equipment Schedule that has a general
        description of the Equipment which shall comprise the Property, an
        Improvement Schedule that has a general description of the Improvements
        which shall comprise the Property and a legal description of the Land to
        be leased hereunder (or in the case of any Property subject to a Ground
        Lease, to be subleased hereunder) as of such date. Each Property subject
        to a Ground Lease shall be deemed to be ground subleased from Lessor to
        Lessee as of the Basic Term Commencement Date, and such ground sublease
        shall be in effect until this Lease is terminated or expires, in each
        case in accordance with the terms and provisions hereof. Lessee shall
        satisfy and perform all obligations imposed on Lessor under each Ground
        Lease. Simultaneously with the execution and delivery of each Lease
        Supplement, such Equipment, Improvements, Land, ground subleasehold
        interest, all additional Equipment and all additional Improvements which
        are financed under the Operative Agreements after the Basic Term
        Commencement Date and the remainder of such Property shall be deemed to
        have been accepted by Lessee for all purposes of this Lease and to be
        subject to this Lease.

                                       9
<PAGE>   15

                (e) At all times during the Term with respect to each Property,
        Lessee will comply in all material respects with all obligations under
        and (to the extent no Event of Default exists and provided that such
        exercise will not impair the value, utility or remaining useful life of
        such Property) shall be permitted to exercise all rights and remedies
        under, all operation and easement agreements and related or similar
        agreements applicable to such Property.

        8.3 Integrated Properties.

            On the Rent Commencement Date for each Property, Lessee shall, at
its sole cost and expense, cause such Property and the applicable property
subject to a Ground Lease to constitute (and for the duration of the Term to
continue to constitute) all of the equipment, facilities, rights, other personal
property and other real property necessary or appropriate to operate, utilize,
maintain and control a Permitted Facility in a commercially reasonable manner.

                                   ARTICLE IX

        9.1 Compliance With Legal Requirements, Insurance Requirements and
Manufacturer's Specifications and Standards.

            Subject to the terms of Article XIII relating to permitted contests,
Lessee, at its sole cost and expense, shall (a) comply with all applicable Legal
Requirements (including without limitation all Environmental Laws) and all
Insurance Requirements relating to the Properties, (b) procure, maintain and
comply with all licenses, permits, orders, approvals, consents and other
authorizations required for the acquisition, installation, testing, use,
development, construction, operation, maintenance, repair, refurbishment and
restoration of the Properties and (c) comply with all manufacturer's
specifications and standards, including without limitation the acquisition,
installation, testing, use, development, construction, operation, maintenance,
repair, refurbishment and restoration of the Properties, whether or not
compliance therewith shall require structural or extraordinary changes in any
Property or interfere with the use and enjoyment of any Property, unless the
failure to procure, maintain and comply with such items, individually or in the
aggregate, shall not have and could not reasonably be expected to have a
Material Adverse Effect. Lessor agrees to take such actions as may be reasonably
requested by Lessee in connection with the compliance by Lessee of its
obligations under this Section 9.1.

                                    ARTICLE X

        10.1 Maintenance and Repair; Return.

                (a) Lessee, at its sole cost and expense, shall maintain each
        Property in good condition, repair and working order (ordinary wear and
        tear excepted) and in the repair and condition as when originally
        delivered to Lessor and make all necessary repairs thereto and
        replacements thereof, of every kind and nature whatsoever, whether
        interior

                                       10
<PAGE>   16

        or exterior, ordinary or extraordinary, structural or nonstructural or
        foreseen or unforeseen, in each case as required by Section 9.1 and on a
        basis consistent with the operation and maintenance of properties or
        equipment comparable in type and function to the applicable Property,
        such that such Property is capable of being immediately utilized by a
        third party and in compliance with standard industry practice subject,
        however, to the provisions of Article XV with respect to Casualty and
        Condemnation.

                (b) Lessee shall not use or locate any component of any Property
        outside of the Approved State therefor. Lessee shall not move or
        relocate any component of any Property necessary for the continued
        operation of such Property in the manner described in Section 10.1(a)
        above beyond the boundaries of the Land (comprising part of such
        Property) described in the applicable Lease Supplement, except for the
        temporary removal of Equipment and other personal property for repair or
        replacement.

                (c) If any component affixed to any Property necessary for the
        continued operation of such Property in the manner described in Section
        10.1(a) above becomes worn out, lost, destroyed, damaged beyond repair
        or otherwise permanently rendered unfit for use, Lessee, at its own
        expense, will within a reasonable time replace such component with a
        replacement component which is free and clear of all Liens (other than
        Permitted Liens) and has a value, utility and useful life at least equal
        to the component replaced (assuming the component replaced had been
        maintained and repaired in accordance with the requirements of this
        Lease). All components which are affixed to any Property shall
        immediately become the property of (and title thereto shall vest in)
        Lessor and shall be deemed incorporated in such Property and subject to
        the terms of this Lease as if originally leased hereunder.

                (d) Upon reasonable advance notice, Lessor and its agents shall
        have the right at their sole risk to inspect each Property and all
        maintenance records with respect thereto at any reasonable time during
        normal business hours but shall not, in the absence of an Event of
        Default, materially disrupt the business of Lessee.

                (e) [intentionally omitted].

                (f) Lessor shall under no circumstances be required to build any
        improvements or install any equipment on any Property, make any repairs,
        replacements, alterations or renewals of any nature or description to
        any Property, make any expenditure whatsoever in connection with this
        Lease or maintain any Property in any way. Lessor shall not be required
        to maintain, repair or rebuild all or any part of any Property, and
        Lessee waives the right to (i) require Lessor to maintain, repair, or
        rebuild all or any part of any Property, or (ii) make repairs at the
        expense of Lessor pursuant to any Legal Requirement, Insurance
        Requirement, contract, agreement, covenant, condition or restriction at
        any time in effect.

                (g) Lessee shall, upon the expiration or earlier termination of
        this Lease with respect to a Property, if Lessee shall not have
        exercised its Purchase Option with respect to such Property and
        purchased such Property, surrender such Property (i) pursuant to the

                                       11
<PAGE>   17

        exercise of the applicable remedies upon the occurrence of a Lease Event
        of Default, to Lessor or (ii) pursuant to the second paragraph of
        Section 22.1(a) hereof, to Lessor or the third party purchaser, as the
        case may be, subject to Lessee's obligations under this Lease (including
        without limitation the obligations of Lessee at the time of such
        surrender under Sections 9.1, 10.1(a) through (f), 10.2, 11.1, 12.1,
        22.1 and 23.1).

        10.2 Environmental Inspection.

             If Lessee has not given notice of exercise of its Purchase Option
on the Expiration Date pursuant to Section 20.1 or for whatever reason Lessee
does not purchase a Property in accordance with the terms of this Lease, then
not more than one hundred eighty (180) days nor less than sixty (60) days prior
to the Expiration Date, Lessee shall cause to be delivered to Lessor a Phase I
environmental site assessment recently prepared (no more than thirty (30) days
prior to the date of delivery of such report) by an independent recognized
professional reasonably acceptable to Lessor, and in form, scope and content
reasonably satisfactory to Lessor. The cost incurred respecting such Phase I
environmental site assessment shall be paid for in accordance with the
provisions set forth in Section 20.3(b).

                                   ARTICLE XI

        11.1 Modifications.

                (a) Lessee at its sole cost and expense, at any time and from
        time to time without the consent of Lessor may make modifications,
        alterations, renovations, improvements and additions to any Property or
        any part thereof and substitutions and replacements therefor
        (collectively, "Modifications"), and Lessee shall make any and all
        Modifications required to be made pursuant to all Legal Requirements,
        Insurance Requirements and manufacturer's specifications and standards;
        provided, that: (i) no Modification shall materially impair the value,
        utility or useful life of any Property from that which existed
        immediately prior to such Modification, as determined by Lessee in its
        reasonable, good faith opinion; (ii) each Modification shall be done
        expeditiously and in a good and workmanlike manner; (iii) no
        Modification shall adversely affect the structural integrity of any
        Property; (iv) to the extent required by Section 14.2(a), Lessee shall
        maintain builders' risk insurance at all times when a Modification is in
        progress; (v) subject to the terms of Article XIII relating to permitted
        contests, Lessee shall pay all costs and expenses and discharge any
        Liens arising with respect to any Modification; (vi) each Modification
        shall comply with the requirements of this Lease (including without
        limitation Sections 8.2 and 10.1); and (vii) no Improvement shall be
        demolished or otherwise rendered unfit for use unless Lessee shall
        finance the proposed replacement Modification outside of this lease
        facility; provided, further, Lessee shall not make any Modification
        (unless required by any Legal Requirement) (A) to the extent any such
        Modification, individually or in the aggregate, shall have or could
        reasonably be expected to have a Material Adverse Effect or (B) if an
        Event of Default has occurred and is continuing. All Modifications
        required pursuant to Legal Requirements, Insurance Requirements and/or
        manufacturer's specifications and standards and all other

                                       12
<PAGE>   18

        Modifications that are not severable from the applicable Property
        without material damage or other material loss of value shall
        immediately and without further action upon their incorporation into the
        applicable Property (1) become property of Lessor, (2) be subject to
        this Lease and (3) be titled in the name of Lessor. Title to all other
        Modifications shall vest with Lessee; provided, if Lessee fails to
        remove any such Modification prior to the Expiration Date or earlier
        termination of this Lease, title to such Modifications shall revert to
        Lessor. Lessee, at its sole cost and expense, shall repair or pay for
        any repairs of any damage to any Property relating to the removal, or
        attempted removal, of any Modification. Lessee shall not remove or
        attempt to remove any Modification titled to Lessor from any Property.
        Each Ground Lease for a Property shall expressly provide for the
        provisions of this paragraph.

                (b) The construction process provided for in the Agency
        Agreement is acknowledged by Lessor to be consistent with and in
        compliance with the terms and provisions of this Article XI.

                                   ARTICLE XII

        12.1 Warranty of Title.

                (a) Lessee hereby acknowledges and shall cause title in each
        Property (including without limitation all Equipment, all Improvements,
        all replacement components to each Property and all Modifications)
        immediately and without further action to vest in and become the
        property of Lessor and to be subject to the terms of this Lease
        (provided, respecting each Property subject to a Ground Lease, Lessor's
        interest therein is acknowledged to be a leasehold interest pursuant to
        such Ground Lease) from and after the date hereof or such date of
        incorporation into any Property. Lessee agrees that, subject to the
        terms of Article XIII relating to permitted contests, Lessee shall not
        directly or indirectly create or allow to remain, and shall promptly
        discharge at its sole cost and expense, any Lien, defect, attachment,
        levy, title retention agreement or claim upon any Property, any
        component thereof or any Modifications or any Lien, attachment, levy or
        claim with respect to the Rent or with respect to any amounts held by
        Lessor, the Agent, any Lender or any Holder pursuant to any Operative
        Agreement, other than Permitted Liens. Lessee shall promptly notify
        Lessor in the event it receives actual knowledge that a Lien other than
        a Permitted Lien has occurred with respect to a Property, the Rent or
        any other such amounts, and Lessee represents and warrants to, and
        covenants with, Lessor that the Liens in favor of Lessor and/or the
        Agent created by the Operative Agreements are (and until the Financing
        Parties under the Operative Agreements have been paid in full shall
        remain) first priority perfected Liens subject only to Permitted Liens
        and Liens that are expressly set forth as title exceptions on the title
        commitment issued under Section 5.3(g) of the Participation Agreement
        with respect to the applicable Property, to the extent such title
        commitment has been approved by the Agent. At all times subsequent to
        the Basic Term Commencement Date respecting a Property, Lessee shall (i)
        cause a valid, perfected, first priority Lien on each applicable
        Property to be in place in favor of the Agent (for the benefit of the
        Secured Parties) and

                                       13
<PAGE>   19

        (ii) file, or cause to be filed, all necessary documents under the
        applicable real property law and Article 9 of the Uniform Commercial
        Code to perfect such title and Liens.

                (b) Without limiting the rights or obligations of the
        Construction Agent under the Agency Agreement, nothing contained in this
        Lease shall be construed as constituting the consent or request of
        Lessor, expressed or implied, to or for the performance by any
        contractor, mechanic, laborer, materialman, supplier or vendor of any
        labor or services or for the furnishing of any materials for any
        construction, alteration, addition, repair or demolition of or to any
        Property or any part thereof. (The preceding sentence shall not be
        construed to prohibit Liens that would otherwise be Permitted Liens).
        NOTICE IS HEREBY GIVEN THAT LESSOR IS NOT AND SHALL NOT BE LIABLE FOR
        ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE,
        OR TO ANYONE HOLDING A PROPERTY OR ANY PART THEREOF THROUGH OR UNDER
        LESSEE, AND THAT NO MECHANIC'S OR OTHER LIENS FOR ANY SUCH LABOR,
        SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LESSOR
        IN AND TO ANY PROPERTY.

                                  ARTICLE XIII

        13.1 Permitted Contests Other Than in Respect of Indemnities.

             Except to the extent otherwise provided for in Section 11 of the
Participation Agreement, Lessee, on its own or on Lessor's behalf but at
Lessee's sole cost and expense, may contest, by appropriate administrative or
judicial proceedings conducted in good faith and with due diligence, the amount,
validity or application, in whole or in part, of any Legal Requirement,
Imposition or utility charge payable pursuant to Section 4.1 or any Lien,
attachment, levy, encumbrance or encroachment, and Lessor agrees not to pay,
settle or otherwise compromise any such item, provided, that (a) the
commencement and continuation of such proceedings shall suspend the collection
of any such contested amount from, and suspend the enforcement thereof against,
the applicable Properties, Lessor, each Holder, the Agent and each Lender; (b)
other than such Liens being contested, there shall not be imposed a Lien (other
than Permitted Liens) on any Property and no part of any Property nor any Rent
would be in any imminent danger of being sold, forfeited, lost or deferred; (c)
at no time during the permitted contest shall there be a risk of the imposition
of criminal liability or material civil liability on Lessor, any Holder, the
Agent or any Lender for failure to comply therewith; and (d) in the event that,
at any time, there shall be a material risk of extending the application of such
item beyond the end of the Term, then Lessee shall deliver to Lessor an
Officer's Certificate certifying as to the matters set forth in clauses (a), (b)
and (c) of this Section 13.1. Lessor, at Lessee's sole cost and expense, shall
execute and deliver to Lessee such authorizations and other documents as may
reasonably be required in connection with any such contest and, if reasonably
requested by Lessee, shall join as a party therein at Lessee's sole cost and
expense.

                                       14
<PAGE>   20

        13.2 Impositions, Utility Charges, Other Matters; Compliance with Legal
Requirements.

             Except with respect to Impositions, Legal Requirements, utility
charges and such other matters referenced in Section 13.1 which are the subject
of ongoing proceedings contesting the same in a manner consistent with the
requirements of Section 13.1, Lessee shall cause (a) all Impositions (other than
Excluded Taxes), utility charges and such other matters to be timely paid,
settled or compromised, as appropriate, with respect to each Property and (b)
each Property to comply with all applicable Legal Requirements.

                                   ARTICLE XIV

        14.1 Public Liability and Workers' Compensation Insurance.

                (a) During the Term for each Property, Lessee shall procure and
        carry, at Lessee's sole cost and expense, commercial general liability
        and umbrella liability insurance for claims for injuries or death
        sustained by persons or damage to property while on such Property or
        respecting the Equipment and such other public liability coverages as
        are acceptable to the Lessor and the Agent and as are then customarily
        carried by similarly situated companies conducting business similar to
        that conducted by Lessee. Such insurance shall be on terms and in
        amounts that are no less favorable than insurance maintained by Lessee
        with respect to similar properties and equipment that it owns and are
        then carried by similarly situated companies conducting business similar
        to that conducted by Lessee, and in no event shall have a minimum
        combined single limit per occurrence coverage (i) for commercial general
        liability of less than $2,000,000 and (ii) for umbrella liability of
        less than $5,000,000. The policies shall name Lessee as the insured and
        shall be endorsed to name Lessor, the Holders, the Agent and the Lenders
        as additional insureds. The policies shall also specifically provide
        that such policies shall be considered primary insurance which shall
        apply to any loss or claim before any contribution by any insurance
        which Lessor, any Holder, the Agent or any Lender may have in force.

                (b) During the Term, Lessee shall, in the operation and use of
        each Property, maintain workers' compensation insurance consistent with
        that carried by similarly situated companies conducting business similar
        to that conducted by Lessee and containing minimum liability limits of
        no less than the minimum amounts required under applicable state
        statutes. In the operation of each Property, Lessee shall comply with
        all workers' compensation laws applicable to Lessee, and protect Lessor,
        each Holder, the Agent and each Lender against any liability under such
        laws.

        14.2 Permanent Hazard and Other Insurance.

                (a) During the Term for each Property, Lessee shall keep such
        Property insured against all risk of physical loss or damage by fire and
        other risks and shall maintain builders' risk insurance during
        construction of any Improvements or

                                       15
<PAGE>   21

        Modifications in each case in amounts no less than the then current
        replacement value of such Property (assuming that such Property was in
        the condition required by the terms of this Lease immediately prior to
        such loss) and on terms that (i) are no less favorable than insurance
        covering other similar properties owned or leased, as applicable, by
        Lessee and (ii) are then carried by similarly situated companies
        conducting business similar to that conducted by Lessee. The policies
        shall name Lessee as the insured and shall be endorsed to name Lessor
        and the Agent (on behalf of the Secured Parties) as a named additional
        insured and loss payee; provided, so long as no Default or Event of
        Default has occurred and is continuing, any loss payable under the
        insurance policies required by this Section 14.2 will be paid to Lessee.

                (b) If, during the Term with respect to a Property the area in
        which such Property is located is designated a "flood-prone" area
        pursuant to the Flood Disaster Protection Act of 1973, or any amendments
        or supplements thereto or is in a zone designated A or V, then Lessee
        shall comply with the National Flood Insurance Program as set forth in
        the Flood Disaster Protection Act of 1973. In addition, Lessee will
        fully comply with the requirements of the National Flood Insurance Act
        of 1968 and the Flood Disaster Protection Act of 1973, as each may be
        amended from time to time, and with any other Legal Requirement,
        concerning flood insurance to the extent that it applies to any such
        Property.

        14.3 Coverage.

                (a) As of the date of this Lease and annually thereafter during
        the Term, Lessee shall furnish the Agent (on behalf of Lessor and the
        other beneficiaries of such insurance coverage) with certificates
        prepared by the insurers or insurance broker of Lessee showing the
        insurance required under Sections 14.1 and 14.2 to be in effect, naming
        (to the extent of their respective interests) Lessor, the Holders, the
        Agent and the Lenders as additional insureds and loss payees and
        evidencing the other requirements of this Article XIV. All such
        insurance shall be at the cost and expense of Lessee and provided by
        nationally recognized, financially sound insurance companies having an
        A+ or better rating by A.M. Best's Key Rating Guide. Lessee shall cause
        such certificates to include a provision for thirty (30) days' advance
        written notice by the insurer to the Agent (on behalf of Lessor and the
        other beneficiaries of such insurance coverage) in the event of
        cancellation or material alteration of such insurance. If an Event of
        Default has occurred and is continuing and the Agent (on behalf of
        Lessor and the other beneficiaries of such insurance coverage) so
        requests, Lessee shall deliver to the Agent (on behalf of Lessor and the
        other beneficiaries of such insurance coverage) copies of all insurance
        policies required by Sections 14.1 and 14.2.

                (b) Lessee agrees that the insurance policy or policies required
        by Sections 14.1, 14.2(a) and 14.2(b) shall include an appropriate
        clause pursuant to which any such policy shall provide that it will not
        be invalidated should Lessee or any Contractor, as the case may be,
        waive, at any time, any or all rights of recovery against any party for
        losses covered by such policy or due to any breach of warranty, fraud,
        action, inaction or misrepresentation by Lessee or any Person acting on
        behalf of Lessee. Lessee hereby

                                       16
<PAGE>   22

        waives any and all such rights against Lessor, the Holders, the Agent
        and the Lenders to the extent of payments made to any such Person under
        any such policy.

                (c) Neither Lessor nor Lessee shall carry separate insurance
        concurrent in kind or form or contributing in the event of loss with any
        insurance required under this Article XIV, except that Lessor may carry
        separate liability insurance at Lessor's sole cost so long as (i)
        Lessee's insurance is designated as primary and in no event excess or
        contributory to any insurance Lessor may have in force which would apply
        to a loss covered under Lessee's policy and (ii) each such insurance
        policy will not cause Lessee's insurance required under this Article XIV
        to be subject to a coinsurance exception of any kind.

                (d) Lessee shall pay as they become due all premiums for the
        insurance required by Section 14.1 and Section 14.2, shall renew or
        replace each policy prior to the expiration date thereof or otherwise
        maintain the coverage required by such Sections without any lapse in
        coverage.

        14.4 Additional Insurance Requirements.

        Not in limitation of any provision of the Operative Agreements but in
addition thereto, Lessee shall obtain, if requested by the Lessor, any and all
additional insurance policies (including without limitation with respect to
Condemnation) with regard to the Properties or otherwise with respect to the
type of transactions contemplated by the Operative Agreements as are customary
for the Lessee or for the self-storage industry in the respective locations of
the Properties.

                                   ARTICLE XV

        15.1 Casualty and Condemnation.

                (a) Subject to the provisions of the Agency Agreement and this
        Article XV and Article XVI (in the event Lessee delivers, or is
        obligated to deliver or is deemed to have delivered, a Termination
        Notice), and prior to the occurrence and continuation of a Default or an
        Event of Default, Lessee shall be entitled to receive (and Lessor hereby
        irrevocably assigns to Lessee all of Lessor's right, title and interest
        in) any condemnation proceeds, award, compensation or insurance proceeds
        under Sections 14.2(a) or 14.2(b) hereof to which Lessee or Lessor may
        become entitled by reason of their respective interests in a Property
        (i) if all or a portion of such Property is damaged or destroyed in
        whole or in part by a Casualty or (ii) if the use, access, occupancy,
        easement rights or title to such Property or any part thereof is the
        subject of a Condemnation; provided, however, if a Default or an Event
        of Default shall have occurred and be continuing, then such award,
        compensation or insurance proceeds shall be paid directly to Lessor or,
        if received by Lessee, shall be held in trust for Lessor, and shall be
        paid over by Lessee to the Agent for the benefit of the Lessor within
        three (3) Business Days of the Lessee's receipt thereof and held by the
        Agent for the benefit of the Lessor in accordance with the terms

                                       17
<PAGE>   23

        of this Article XV. All amounts held by the Agent for the benefit of the
        Lessor hereunder on account of any award, compensation or insurance
        proceeds either paid directly to Lessor or turned over to Lessor shall
        be held as security for the performance of Lessee's obligations
        hereunder and under the other Operative Agreements. In the event the
        Lessee satisfies all of its obligations with respect to such Casualty or
        Condemnation under the Operative Agreements and all of its other
        obligations which should have been satisfied pursuant to the Operative
        Agreements as of the date of such Casualty or Condemnation, and all
        Defaults or Event of Defaults then in existence have been cured or
        waived, all amounts so held by the Agent for the benefit of the Lessor
        shall be paid over to Lessee.

                (b) Lessee may appear in any proceeding or action to negotiate,
        prosecute, adjust or appeal any claim for any award, compensation or
        insurance payment on account of any such Casualty or Condemnation and
        shall pay all expenses thereof. At Lessee's reasonable request, and at
        Lessee's sole cost and expense, Lessor and the Agent shall participate
        in any such proceeding, action, negotiation, prosecution or adjustment.
        Lessor and Lessee agree that this Lease shall control the rights of
        Lessor and Lessee in and to any such award, compensation or insurance
        payment.

                (c) [intentionally omitted].

                (d) In the event of a Casualty or a Condemnation, this Lease
        shall terminate with respect to the applicable Property in accordance
        with Section 16.1 if Lessee elects such termination in its discretion or
        is required to elect such termination pursuant to the terms of Section
        15.1(g) hereof.

                (e) If pursuant to this Section 15.1 this Lease shall continue
        in full force and effect following a Casualty or Condemnation with
        respect to the affected Property, Lessee shall, at its sole cost and
        expense (subject to reimbursement in accordance with Section 15.1(a))
        promptly and diligently repair any damage to the applicable Property
        caused by such Casualty or Condemnation in conformity with the
        requirements of Sections 10.1 and 11.1, using the as-built Plans and
        Specifications or manufacturer's specifications for the applicable
        Improvements, Equipment or other components of the applicable Property
        (as modified to give effect to any subsequent Modifications, any
        Condemnation affecting the applicable Property and all applicable Legal
        Requirements), so as to restore the applicable Property to the same or a
        greater remaining economic value, useful life, utility, condition,
        operation and function as existed immediately prior to such Casualty or
        Condemnation (assuming all maintenance and repair standards have been
        satisfied). In such event, title to the applicable Property shall remain
        with Lessor.

                (f) In no event shall a Casualty or Condemnation affect Lessee's
        obligations to pay Rent pursuant to Article III.

                (g) Notwithstanding anything to the contrary set forth in
        Section 15.1(a) or Section 15.1(e), if during the Term with respect to a
        Property a Casualty occurs with respect to such Property or Lessee
        receives notice of a Condemnation with respect to such Property, and
        following such Casualty or Condemnation, the applicable Property

                                       18
<PAGE>   24

        cannot reasonably be restored, repaired or replaced on or before the day
        one hundred eighty (180) days prior to the Expiration Date or the date
        nine (9) months after the occurrence of such Casualty or Condemnation
        (if such Casualty or Condemnation occurs during the Term) to the same or
        a greater remaining economic value, useful life, utility, condition,
        operation and function as existed immediately prior to such Casualty or
        Condemnation (assuming all maintenance and repair standards have been
        satisfied) or on or before such day such Property is not in fact so
        restored, repaired or replaced, then Lessee shall be required to deliver
        a Termination Notice in accordance with Article VXI hereof and to
        exercise its Purchase Option for such Property on a Payment Date that is
        not more than 60 days after the date of such Termination Notice
        (notwithstanding the limits on such exercise contained in Section 20.2)
        and pay Lessor the Termination Value for such Property; provided, if any
        Default or Event of Default has occurred and is continuing, Lessee shall
        also promptly (and in any event within three (3) Business Days) pay to
        the Agent for the benefit of the Lessor any award, compensation or
        insurance proceeds received on account of any Casualty or Condemnation
        with respect to any Property; provided, further, that if no Default or
        Event of Default has occurred and is continuing, any Excess Proceeds
        shall be paid to Lessee. If a Default or an Event of Default has
        occurred and is continuing and any Loans, Holder Advances or other
        amounts are owing with respect thereto, then any Excess Proceeds (to the
        extent of any such Loans, Holder Advances or other amounts owing with
        respect thereto) shall be paid to the Agent for the benefit of the
        Lessor, held as security for the performance of Lessee's obligations
        hereunder and under the other Operative Agreements and applied to such
        obligations upon the exercise of remedies in connection with the
        occurrence of an Event of Default, with the remainder of such Excess
        Proceeds in excess of such Loans, Holder Advances and other amounts
        owing with respect thereto being distributed to the Lessee.

                (h) The provisions of Sections 15.1(a) through 15.1(g) shall not
        apply to any Property until after the Construction Period Termination
        Date applicable to such Property.

        15.2 Environmental Matters.

             Promptly upon Lessee's actual knowledge of the presence of
Hazardous Substances in any portion of any Property or Properties in
concentrations and conditions that constitute an Environmental Violation and
which, in the reasonable opinion of Lessee, the cost to undertake any legally
required response, clean up, remedial or other action will or might result in a
cost to Lessee of more than $25,000, Lessee shall notify Lessor in writing of
such condition. In the event of any Environmental Violation (regardless of
whether notice thereof must be given), Lessee shall, not later than thirty (30)
days after Lessee has actual knowledge of such Environmental Violation, either
deliver to Lessor a Termination Notice with respect to the applicable Property
or Properties pursuant to Section 16.1, if applicable, or, at Lessee's sole cost
and expense, promptly and diligently undertake and diligently complete any
response, clean up, remedial or other action (including without limitation the
pursuit by Lessee of appropriate action against any off-site or third party
source for contamination) necessary to remove, cleanup or remediate the
Environmental Violation in accordance with all Environmental Laws. Any such

                                       19
<PAGE>   25

undertaking shall be timely completed in accordance with prudent industry
standards. If Lessee does not deliver a Termination Notice with respect to such
Property pursuant to Section 16.1, Lessee shall, upon completion of any remedial
action by Lessee required under applicable Environmental Laws, cause to be
prepared by a reputable environmental consultant acceptable to Lessor a report
describing the Environmental Violation and the actions taken by Lessee (or its
agents) in response to such Environmental Violation, and a statement by the
consultant that the Environmental Violation has been remedied in full compliance
with applicable Environmental Law. Not less than sixty (60) days and not more
than one hundred eighty (180) days prior to any time that Lessee elects to cease
operations with respect to any Property or to remarket any Property pursuant to
Section 20.1 hereof or any other provision of any Operative Agreement, Lessee at
its expense shall cause to be delivered to Lessor a Phase I environmental site
assessment respecting such Property recently prepared (no more than thirty (30)
days prior to the date of delivery of such report) by an independent recognized
professional acceptable to Lessor in its reasonable discretion and in form,
scope and content satisfactory to Lessor in its reasonable discretion.
Notwithstanding any other provision of any Operative Agreement, if Lessee fails
to comply with the foregoing obligation regarding the Phase I environmental site
assessment, Lessee shall be obligated to purchase such Property for its
Termination Value and shall not be permitted to exercise (and Lessor shall have
no obligation to honor any such exercise) any rights under any Operative
Agreement regarding a sale of such Property to a Person other than Lessee.

        15.3 Notice of Environmental Matters.

             Promptly, but in any event within ten (10) Business Days from the
date Lessee has actual knowledge thereof, Lessee shall provide to Lessor written
notice of any pending or threatened claim, action or proceeding involving any
Environmental Law or any Release on or in connection with any Property or
Properties. All such notices shall describe in reasonable detail the nature of
the claim, action or proceeding and Lessee's proposed response thereto. In
addition, Lessee shall provide to Lessor, within ten (10) Business Days of
receipt, copies of all material written communications with any Governmental
Authority relating to any Environmental Law in connection with any Property.
Lessee shall also promptly provide such detailed reports of any such material
environmental claims as may reasonably be requested by Lessor.

                                   ARTICLE XVI

        16.1 Termination Upon Certain Events.

             If Lessee has delivered, or is deemed to have delivered, written
notice of a termination of this Lease with respect to the applicable Property to
Lessor in the form described in Section 16.2(a) (a "Termination Notice")
pursuant to the provisions of this Lease, then following the applicable
Casualty, Condemnation or Environmental Violation, this Lease shall terminate
with respect to the affected Property on the applicable Termination Date.

                                       20
<PAGE>   26

        16.2 Procedures.

                (a) A Termination Notice shall contain: (i) notice of
        termination of this Lease with respect to the affected Property on a
        Payment Date not more than sixty (60) days after Lessor's receipt of
        such Termination Notice (the "Termination Date"); and (ii) a binding and
        irrevocable agreement of Lessee to pay the Termination Value for the
        applicable Property and purchase such Property on such Termination Date.

                (b) On each Termination Date, Lessee shall pay to Lessor the
        Termination Value for the applicable Property, and Lessor shall convey
        such Property or the remaining portion thereof, if any, to Lessee (or
        Lessee's designee), all in accordance with Section 20.2.

                                  ARTICLE XVII

        17.1 Lease Events of Default.

             If any one or more of the following events (each a "Lease Event of
Default") shall occur and be continuing:

                (a) Lessee shall fail to make payment of (i) any Basic Rent
        (except as set forth in clause (ii)) within three (3) days after receipt
        of written notice that the same has become due and payable or (ii) any
        Termination Value or Maximum Amount, on the date any such payment is due
        and payable, or any payment of Basic Rent or Supplemental Rent due on
        the due date of any such payment of Termination Value or Maximum Amount,
        or any amount due on the Expiration Date;

                (b) Lessee shall fail to make payment of any Supplemental Rent
        (other than Supplemental Rent referred to in Section 17.1(a)(ii)) or any
        other Credit Party shall fail to make any payment of any amount under
        any Operative Agreement which has become due and payable within three
        (3) days after receipt of written notice that such payment is due;

                (c) Lessee shall fail to maintain insurance as required by
        Article XIV of this Lease or to deliver any requisite annual certificate
        with respect thereto within ten (10) days of the date such certificate
        is due under the terms hereof;

                (d) (i) Lessee shall fail to observe or perform any term,
        covenant, obligation or condition of Lessee under this Lease (including
        without limitation the Incorporated Covenants) or any other Operative
        Agreement to which Lessee is a party other than those set forth in
        Sections 17.1(a), (b) or (c) hereof, or any other Credit Party shall
        fail to observe or perform any term, covenant, obligation or condition
        of such Credit Party under any Operative Agreement other than those set
        forth in Section 17.1(b) hereof and such failure shall continue for
        fifteen (15) days (or with respect to the Incorporated Covenants, the
        grace period, if any, applicable thereto) after notice thereof to the
        Lessee

                                       21
<PAGE>   27

        or such Credit Party or (ii) any representation or warranty made by
        Lessee or any other Credit Party set forth in this Lease (including
        without limitation the Incorporated Representations and Warranties) or
        in any other Operative Agreement or in any document entered into in
        connection herewith or therewith or in any document, certificate or
        financial or other statement delivered in connection herewith or
        therewith shall be false or inaccurate in any material respect when made
        or deemed made;

                (e) An Agency Agreement Event of Default shall have occurred and
        be continuing or any Credit Agreement Event of Default described in
        Section 6(a), 6(b), 6(c) or 6(g) of the Credit Agreement shall have
        occurred and be continuing;

                (f) (i) Any Credit Party or any Relevant Subsidiary shall fail
        to pay when due (whether by scheduled maturity, required prepayment,
        acceleration, demand or otherwise) any Indebtedness of such Credit Party
        or such Relevant Subsidiary or any interest or premium thereon in a
        cumulative amount in excess of $1,000,000 and such failure shall
        continue after the applicable grace period, if any, specified in the
        agreement or instrument relating to such Indebtedness, or (ii) any
        Credit Party or any Relevant Subsidiary shall fail to perform any term
        or covenant on its part to be performed under any agreement or
        instrument relating to any such Indebtedness and required to be
        performed or a default or event of default (however defined) shall occur
        under any such agreement or instrument and such failure or default shall
        continue after the applicable grace period, if any, specified in such
        agreement or instrument, if the effect of such failure to perform or
        default is to accelerate or to permit the acceleration of the maturity
        of such Indebtedness, or (iii) any such Indebtedness shall be declared
        to be due and payable or required to be prepaid (other than by regularly
        scheduled required prepayment) prior to the stated maturity thereof;

                (g) Any Credit Party or any Relevant Subsidiary shall: (i) file
        a petition seeking relief for itself under the Bankruptcy Code or file
        an answering consenting to, admitting the material allegations of or
        otherwise not controverting, or fail timely to controvert a petition
        filed against it seeking relief under the Bankruptcy Code; or (ii) file
        such petition or answer with respect to relief under the provisions of
        any other now existing or future applicable bankruptcy, insolvency, or
        other similar law of the United States of America or any State thereof
        or of any other country or jurisdiction providing for the
        reorganization, winding-up or liquidation of corporations or an
        arrangement, composition, extension or adjustment with creditors;

                (h) An order for relief shall be entered against any Credit
        Party or any Relevant Subsidiary under the Bankruptcy Code which order
        is not stayed; or upon the entry of an order, judgment or decree by
        operation of law or by a court having jurisdiction in the premises which
        is not stayed adjudging it a bankrupt or insolvent under, or ordering
        relief against it under, or approving as properly filed by a petition
        seeking relief against it under the provisions of any other now existing
        or future applicable bankruptcy, insolvency or other similar law of the
        United States of America or any State thereof or of any other country or
        jurisdiction providing for the reorganization, winding-up or liquidation
        of corporations or any arrangement, composition, extension or

                                       22
<PAGE>   28

        adjustment with creditors; or appointing a receiver, liquidator,
        assignee, sequestrator, trustee or custodian of any Credit Party or any
        Relevant Subsidiary or of any substantial part of any of their property,
        or ordering the reorganization, winding-up or liquidation of any of
        their affairs; or upon the expiration of 90 days after the filing of any
        involuntary petition against any Credit Party or any Relevant Subsidiary
        seeking any of the relief specified in Section 17.1(g) or this Section
        17.1(h) without the petition being dismissed prior to that time;

                (i) Any Credit Party or any Relevant Subsidiary shall (i) make a
        general assignment for the benefit of its creditors or (ii) consent to
        the appointment of or taking possession by a receiver, liquidator,
        assignee, trustee, or custodian of all or a substantial part of the
        property of any Credit Party or any Relevant Subsidiary, as the case may
        be, or (iii) admit its insolvency or inability to pay its debts
        generally as they become due, or (iv) fail generally to pay its debts as
        they become due, or (v) take any action (or suffer any action to be
        taken by its directors or shareholders) looking to the dissolution or
        liquidation of any Credit Party or, looking to the dissolution or
        liquidation of any Relevant Subsidiary if such dissolution or
        liquidation would have a Material Adverse Effect;

                (j) Intentionally Omitted;

                (k) Any report, certificate, financial statement or other
        instrument delivered to Lessor by or on behalf of any Credit Party
        pursuant to the terms of this Lease or any other Operative Agreement is
        false or incomplete in any material respect when made or delivered and
        if (i)(A) such report, certificate, financial statement or other
        instrument is capable of being made true and complete and (B) such
        falsity or incompleteness of such report, certificate, financial
        statement or other instrument does not have a Material Adverse Effect,
        such Credit Party fails to make such report, certificate, financial
        statement or other instrument true and complete within 30 days after
        written notice thereof from the Agent or (ii)(1) such report,
        certificate, financial statement or other instrument is capable of being
        made true and complete and (2) the falsity or incompleteness of such
        report, certificate, financial statement or other instrument results in
        a Material Adverse Effect, such Credit Party fails to make such report,
        certificate, financial statement or other instrument true and complete
        within 10 days after written notice thereof from the Agent;

                (l) Any Lessee Credit Agreement Event of Default shall have
        occurred and be continuing and shall not have been waived;

                (m) A final judgment or order shall have been entered against
        any Credit Party or any Relevant Subsidiary (by a court or other
        tribunal having jurisdiction) for the payment of money in excess of
        $5,000,000 and such judgment or order shall not have been vacated,
        discharged, stayed, satisfied or bonded pending appeal; provided,
        however, that no judgment or order referred to in this Section 17.1(m)
        shall constitute an Event of Default if such judgment or order is
        covered by insurance with respect to which no subrogation right exists
        against any Credit Party or any Relevant Subsidiary;

                                       23
<PAGE>   29

                (n) Any Credit Party, any Relevant Subsidiary or any member of a
        Controlled Group shall fail to pay when due an amount or amounts which
        it shall have become liable to pay to the PBGC or to a Plan under
        Section 515 of ERISA or Title IV of ERISA other than premiums under
        Section 4007 of ERISA unless such failure would not have a Material
        Adverse Effect; or notice of intent to terminate a Plan or Plans (other
        than a multiemployer plan, as defined in Section 4001(a)(3) of ERISA)
        having aggregate Unfunded Vested Liabilities in excess of $1,000,000
        shall be filed under Title IV of ERISA by any Credit Party, or any
        Relevant Subsidiary or any member of a Controlled Group, any plan
        administrator or any combination of the foregoing; or the PBGC shall
        institute proceedings under Title IV of ERISA to terminate any Plan or
        Plans which termination could reasonably be expected to result in
        liability of any Credit Party or any Relevant Subsidiary unless such
        liability would not have a Material Adverse Effect;

                (o) Any Operative Agreement shall cease to be in full force and
        effect other than by agreement of each of the parties thereto;

                (p) Except as to any Credit Party which is released in
        connection with the Operative Agreements, the guaranty given by any
        Guarantor under the Participation Agreement or any material provision
        thereof shall cease to be in full force and effect, or any Guarantor or
        any Person acting by or on behalf of such Guarantor shall deny or
        disaffirm such Guarantor's obligations under such guaranty, or any
        Guarantor shall default in the due performance or observance of any
        term, covenant or agreement on its part to be performed or observed
        pursuant to any guaranty;

                (q) A substantial portion of the properties of any Credit Party
        or any Relevant Subsidiary shall be condemned, seized or appropriated
        and such action will have a Material Adverse Effect;

                (r) Any Government Action or registration or filing with any
        Governmental Authority now or hereafter required in connection with the
        performance by any Credit Party or any Relevant Subsidiary of its
        obligations set forth in the Operative Agreements shall be revoked,
        withdrawn or withheld or shall fail to remain in full force and effect
        unless such revocation, withdrawal or withholding does not have a
        Material Adverse Effect;

                (s) Any act of any Governmental Authority shall deprive any
        Credit Party or any Relevant Subsidiary of any right, privilege, or
        franchise or restrict the exercise thereof and such act is not revoked
        or rescinded within 60 days after it becomes effective or within 30 days
        after notice from Agent, whichever first occurs unless such act does not
        have a Material Adverse Effect;

                (t) Lessee's common stock shall not be listed on the New York
        Stock Exchange; or

                                       24
<PAGE>   30

                (u) Lessee shall cease to be qualified as a "real estate
        investment trust" under the Code or to be entitled to receive the tax
        benefits resulting from such qualification.

then, in any such event, Lessor may, in addition to the other rights and
remedies provided for in this Article XVII and in Section 18.1, terminate this
Lease by giving Lessee five (5) days notice of such termination (provided,
notwithstanding the foregoing, this Lease shall be deemed to be automatically
terminated without the giving of notice upon the occurrence of a Lease Event of
Default under Sections 17.1(g), (h) or (i)), and this Lease shall terminate, and
all rights of Lessee under this Lease shall cease. Lessee shall, to the fullest
extent permitted by law, pay as Supplemental Rent all costs and expenses
incurred by or on behalf of Lessor or any other Financing Party, including
without limitation reasonable fees and expenses of counsel, as a result of any
Lease Event of Default hereunder.

        A POWER OF SALE HAS BEEN GRANTED IN THIS LEASE. A POWER OF SALE MAY
ALLOW LESSOR TO TAKE THE PROPERTIES AND SELL THE PROPERTIES WITHOUT GOING TO
COURT IN A FORECLOSURE ACTION UPON THE OCCURRENCE OF A LEASE EVENT OF DEFAULT.

        17.2 Surrender of Possession.

             If a Lease Event of Default shall have occurred and be continuing,
and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall, upon thirty (30) days written notice, surrender to Lessor
possession of the Properties. Lessor may enter upon and repossess the Properties
by such means as are available at law or in equity, and may remove Lessee and
all other Persons and any and all personal property and Lessee's equipment and
personalty and severable Modifications from the Properties. Lessor shall have no
liability by reason of any such entry, repossession or removal performed in
accordance with applicable law. Upon the written demand of Lessor, Lessee shall
return the Properties promptly to Lessor, in the manner and condition required
by, and otherwise in accordance with the provisions of, Section 22.1(c) hereof.

        17.3 Reletting.

             If a Lease Event of Default shall have occurred and be continuing,
and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessor may, but shall be under no obligation to, relet any or all of the
Properties, for the account of Lessee or otherwise, for such term or terms
(which may be greater or less than the period which would otherwise have
constituted the balance of the Term) and on such conditions (which may include
concessions or free rent) and for such purposes as Lessor may determine, and
Lessor may collect, receive and retain the rents resulting from such reletting.
Lessor shall not be liable to Lessee for any failure to relet any Property or
for any failure to collect any rent due upon such reletting.

        17.4 Damages.

             Neither (a) the termination of this Lease as to all or any of the
Properties pursuant to Section 17.1; (b) the repossession of all or any of the
Properties; nor (c) the failure of Lessor

                                       25
<PAGE>   31

to relet all or any of the Properties, the reletting of all or any portion
thereof, nor the failure of Lessor to collect or receive any rentals due upon
any such reletting, shall relieve Lessee of its liabilities and obligations
hereunder, all of which shall survive any such termination, repossession or
reletting. If any Lease Event of Default shall have occurred and be continuing
and notwithstanding any termination of this Lease pursuant to Section 17.1,
Lessee shall forthwith pay to Lessor all Rent and other sums due and payable
hereunder to and including without limitation the date of such termination.
Thereafter, on the days on which the Basic Rent or Supplemental Rent, as
applicable, are payable under this Lease or would have been payable under this
Lease if the same had not been terminated pursuant to Section 17.1 and until the
end of the Term hereof or what would have been the Term in the absence of such
termination, Lessee shall pay Lessor, as current liquidated damages (it being
agreed that it would be impossible accurately to determine actual damages) an
amount equal to the Basic Rent and Supplemental Rent that are payable under this
Lease or would have been payable by Lessee hereunder if this Lease had not been
terminated pursuant to Section 17.1, less the net proceeds, if any, which are
actually received by Lessor with respect to the period in question of any
reletting of any Property or any portion thereof; provided, that Lessee's
obligation to make payments of Basic Rent and Supplemental Rent under this
Section 17.4 shall continue only so long as Lessor shall not have received the
amounts specified in Section 17.6. In calculating the amount of such net
proceeds from reletting, there shall be deducted all of Lessor's, any Holder's,
the Agent's and any Lender's reasonable expenses in connection therewith,
including without limitation repossession costs, brokerage or sales commissions,
fees and expenses for counsel and any necessary repair or alteration costs and
expenses incurred in preparation for such reletting. To the extent Lessor
receives any damages pursuant to this Section 17.4, such amounts shall be
regarded as amounts paid on account of Rent. Lessee specifically acknowledges
and agrees that its obligations under this Section 17.4 shall be absolute and
unconditional under any and all circumstances and shall be paid and/or
performed, as the case may be, without notice or demand and without any
abatement, reduction, diminution, setoff, defense, counterclaim or recoupment
whatsoever.

        17.5 Power of Sale.

             Without limiting any other remedies set forth in this Lease, Lessor
and Lessee agree that Lessee has granted, pursuant to Section 7.1(b) hereof and
each Lease Supplement, a Lien against the Properties WITH POWER OF SALE, and
that, upon the occurrence and during the continuance of any Lease Event of
Default, Lessor shall have the power and authority, to the extent provided by
law, after prior notice and lapse of such time as may be required by law, to
foreclose its interest (or cause such interest to be foreclosed) in all or any
part of the Properties.

        17.6 Final Liquidated Damages.

             If a Lease Event of Default shall have occurred and be continuing,
whether or not this Lease shall have been terminated pursuant to Section 17.1
and whether or not Lessor shall have collected any current liquidated damages
pursuant to Section 17.4, Lessor shall have the right to recover, by demand to
Lessee and at Lessor's election, and Lessee shall pay to Lessor, as and for
final liquidated damages, but exclusive of the indemnities payable under Section
11 of the Participation Agreement (which, if requested, shall be paid
concurrently), and in lieu of all current liquidated damages beyond the date of
such demand (it being agreed that it would be

                                       26
<PAGE>   32

impossible accurately to determine actual damages) the Termination Value (except
to the extent total damages are limited by Section 2.1 of the Agency Agreement).
Upon payment of the amount specified pursuant to the first sentence of this
Section 17.6, Lessee shall be entitled to receive from Lessor, either at
Lessee's request or upon Lessor's election, in either case at Lessee's cost, an
assignment of Lessor's entire right, title and interest in and to the
Properties, Improvements, Fixtures, Modifications, Equipment and all components
thereof, in each case in recordable form and otherwise in conformity with local
custom and free and clear of the Lien of this Lease (including without
limitation the release of any memoranda of Lease and/or the Lease Supplement
recorded in connection therewith) and any Lessor Liens. The Properties shall be
conveyed to Lessee "AS-IS, WHERE-IS" and in their then present physical
condition. If any statute or rule of law shall limit the amount of such final
liquidated damages to less than the amount agreed upon, Lessor shall be entitled
to the maximum amount allowable under such statute or rule of law; provided,
however, Lessee shall not be entitled to receive an assignment of Lessor's
interest in the Properties, the Improvements, Fixtures, Modifications, Equipment
or the components thereof unless Lessee shall have paid in full the Termination
Value. Lessee specifically acknowledges and agrees that its obligations under
this Section 17.6 shall be absolute and unconditional under any and all
circumstances and shall be paid and/or performed, as the case may be, without
notice or demand and without any abatement, reduction, diminution, setoff,
defense, counterclaim or recoupment whatsoever.

        17.7 Environmental Costs.

             If a Lease Event of Default shall have occurred and be continuing,
and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall pay directly to any third party (or at Lessor's election,
reimburse Lessor) for the cost of any environmental testing and/or remediation
work reasonably undertaken respecting any Property, as such testing or work is
deemed appropriate in the reasonable judgment of Lessor, and shall indemnify and
hold harmless Lessor and each other Indemnified Person therefrom. Lessee shall
pay all amounts referenced in the immediately preceding sentence within ten (10)
days of any request by Lessor for such payment. The provisions of this Section
17.7 shall not limit the obligations of Lessee under any Operative Agreement
regarding indemnification obligations, environmental testing, remediation and/or
work.

        17.8 Waiver of Certain Rights.

             If this Lease shall be terminated pursuant to Section 17.1, Lessee
waives, to the fullest extent permitted by Law, (a) any notice of re-entry or
the institution of legal proceedings to obtain re-entry or possession; (b) any
right of redemption, re-entry or possession; (c) the benefit of any laws now or
hereafter in force exempting property from liability for rent or for debt; and
(d) any other rights which might otherwise limit or modify any of Lessor's
rights or remedies under this Article XVII.

        17.9 Assignment of Rights Under Contracts.

             If a Lease Event of Default shall have occurred and be continuing,
and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall upon Lessor's

                                       27
<PAGE>   33

demand immediately assign, transfer and set over to Lessor all of Lessee's
right, title and interest in and to each agreement executed by Lessee in
connection with the acquisition, installation, testing, use, development,
construction, operation, maintenance, repair, refurbishment and restoration of
the Properties (including without limitation all right, title and interest of
Lessee with respect to all warranty, performance, service and indemnity
provisions), as and to the extent that the same relate to the acquisition,
installation, testing, use, development, construction, operation, maintenance,
repair, refurbishment and restoration of the Properties or any of them.

        17.10 Remedies Cumulative.

              The remedies herein provided shall be cumulative and in addition
to (and not in limitation of) any other remedies available at law, equity or
otherwise, including without limitation any mortgage foreclosure remedies.

                                  ARTICLE XVIII

        18.1 Lessor's Right to Cure Lessee's Lease Defaults.

             Lessor, without waiving or releasing any obligation or Lease Event
of Default, may (but shall be under no obligation to) remedy any Lease Event of
Default for the account and at the sole cost and expense of Lessee, including
without limitation the failure by Lessee to maintain the insurance required by
Article XIV, and may, to the fullest extent permitted by law, and
notwithstanding any right of quiet enjoyment in favor of Lessee, enter upon any
Property, and take all such action thereon as may be necessary or appropriate
therefor. No such entry shall be deemed an eviction of any lessee. All
reasonable out-of-pocket costs and expenses so incurred (including without
limitation fees and expenses of counsel), together with interest thereon at the
Overdue Rate from the date on which such sums or expenses are paid by Lessor,
shall be paid by Lessee to Lessor on demand.

                                   ARTICLE XIX

        19.1 Provisions Relating to Lessee's Exercise of its Purchase Option.

             Subject to Section 19.2, in connection with any termination of this
Lease with respect to any Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to any Property, and upon tender by
Lessee of the amounts set forth in Sections 16.2(b) or 20.2, as applicable,
Lessor shall execute and deliver to Lessee (or to Lessee's designee) at Lessee's
cost and expense an assignment (by deed or other appropriate instrument) of
Lessor's entire interest in such Property, in each case in recordable form and
otherwise in conformity with local custom and free and clear of any Lessor Liens
attributable to Lessor but without any other warranties (of title or otherwise)
from Lessor. Such Property shall be conveyed to Lessee "AS-IS, "WHERE-IS" and in
then present physical condition.

                                       28
<PAGE>   34

        19.2 No Purchase or Termination With Respect to Less than All of a
Property.

             Lessee shall not be entitled to exercise its Purchase Option or the
Sale Option separately with respect to a portion of any Property consisting of
Land, Equipment, Improvements and/or any interest pursuant to a Ground Lease but
shall be required to exercise its Purchase Option or the Sale Option with
respect to an entire Property.

                                   ARTICLE XX

        20.1 Purchase Option or Sale Option-General Provisions.

             Not less than one hundred twenty (120) days and no more than two
hundred forty (240) days prior to the Expiration Date or (respecting the
Purchase Option only) not less than 30 days nor more than 45 days prior to any
Payment Date, Lessee may give Lessor irrevocable written notice (the "Election
Notice") that Lessee is electing to exercise either (a) (i) in the case of the
Expiration Date, the option to purchase all, but not less than all, the
Properties on the Expiration Date or (ii) in the case of any Payment Date (other
than the Expiration Date), the option to purchase one or more of the Properties
on the applicable Payment Date specified in the Election Notice (the "Purchase
Option") or (b) with respect to an Election Notice given in connection with the
Expiration Date only, the option to remarket all, but not less than all, the
Properties to a Person other than Lessee or any Affiliate of Lessee and cause a
sale of such Properties to occur on the Expiration Date pursuant to the terms of
Section 22.1 (the "Sale Option"). If Lessee does not give an Election Notice
indicating the Purchase Option or the Sale Option at least one hundred twenty
(120) days and not more than two hundred forty (240) days prior to the
Expiration Date, then Lessee shall be deemed to have elected the Purchase
Option. If Lessee shall either (A) elect (or be deemed to have elected) to
exercise the Purchase Option or (B) elect the Sale Option and fail to cause all,
but not less than all, the Properties to be sold in accordance with the terms of
Section 22.1 on the Expiration Date, then in either case Lessee shall pay to
Lessor on the date on which such purchase or sale is scheduled to occur an
amount equal to the Termination Value for all, but not less than all, the
Properties (which the parties do not intend to be a "bargain" purchase price)
and, upon receipt of such amounts and satisfaction of such obligations, Lessor
shall transfer to Lessee all of Lessor's right, title and interest in and to
all, but not less than all, the Properties in accordance with Section 20.2.

             Notwithstanding the foregoing, the Lessee shall not be permitted to
elect to exercise the Purchase Option with respect to some, but not all, of the
Properties (a "Limited Purchase Option"), if (x) there would be less than ten
(10) total Properties after giving effect to the requested purchase or (y) the
aggregate Property Cost of all Properties in the Property Pool is greater than
or equal to twenty percent (20%) of the aggregate Property Cost of all
Properties for which the Completion Date has occurred; provided, however, the
Lessee may exercise such Limited Purchase Option if (i) such Election Notice
seeks to exercise such Limited Purchase Option with respect to a Property or
Properties in the Property Pool and (ii) after giving effect to the purchase of
such Property or Properties by the Lessee, the aggregate Property Cost of all
Properties in the Property Pool is less than twenty percent (20%) of the
aggregate Property Cost of all Properties for which the Completion Date has
occurred.

                                       29
<PAGE>   35

        20.2 Lessee Purchase Option.

             Provided, no Default or Event of Default shall have occurred and be
continuing (other than those that will be cured by the payment of the
Termination Value for such Property or Properties) and provided, that the
Election Notice has been appropriately given specifying the Purchase Option,
Lessee shall purchase all the Properties on the Expiration Date or one or more
Properties on the applicable Payment Date at a price equal to the Termination
Value for such Property or Properties (which the parties do not intend to be a
"bargain" purchase price); provided, however, if one or more Properties are
being purchased prior to the Expiration Date pursuant to the terms of this
Article XX the Financing Parties agree that, with respect to the first such
purchase, the Termination Value for such Property or Properties shall include
the full amount of the Initial Holder Advance.

             Subject to Section 19.2, in connection with any termination of this
Lease with respect to any Property pursuant to the terms of Section 16.2, or in
connection with Lessee's exercise of its Purchase Option, upon the date on which
this Lease is to terminate with respect to a Property or all of the Properties,
and upon tender by Lessee of the amounts set forth in Section 16.2(b) or this
Section 20.2, as applicable, Lessor shall execute, acknowledge (where required)
and deliver to Lessee (or to such other Person as Lessee shall designate), at
Lessee's cost and expense, each of the following: (a) a termination or
assignment (as requested by the Lessee) of each applicable Ground Lease and
special or limited warranty Deeds conveying each Property (to the extent it is
real property not subject to a Ground Lease) to Lessee (or such other Person)
free and clear of the Lien of this Lease, the Lien of the Credit Documents and
any Lessor Liens; (b) a Bill of Sale conveying each Property (to the extent it
is personal property) to Lessee (or such other Person) free and clear of the
Lien of this Lease, the Lien of the Credit Documents and any Lessor Liens; (c)
any real estate tax affidavit or other document required by law to be executed
and filed in order to record the applicable Deed and/or the applicable Ground
Lease termination; (d) FIRPTA affidavits; and (e) such other instruments and
documents as may be necessary in the jurisdiction in which each such Property is
located to consummate such transfer. All of the foregoing documentation must be
in form and substance reasonably satisfactory to Lessor. The applicable Property
shall be conveyed to Lessee (or such other Person) "AS-IS, WHERE-IS" and in then
present physical condition.

            If any Property is the subject of remediation efforts respecting
Hazardous Substances at the Expiration Date which could materially and adversely
impact the Fair Market Sales Value of such Property (with materiality determined
in Lessor's discretion), then Lessee shall be obligated to purchase each such
Property pursuant to Section 20.2.

            On the Expiration Date and/or any Payment Date on which Lessee has
elected to exercise its Purchase Option, Lessee shall pay (or cause to be paid)
to Lessor, the Agent and all other parties, as appropriate, the sum of all
actual out-of-pocket costs and expenses reasonably incurred by any such party in
connection with the election by Lessee to exercise its Purchase Option and all
Rent and all other amounts then due and payable or accrued under this Lease
and/or any other Operative Agreement.

                                       30
<PAGE>   36

        20.3 Third Party Sale Option.

                (a) Provided, that (i) no Default or Event of Default shall have
        occurred and be continuing and (ii) the Election Notice has been
        appropriately given specifying the Sale Option, Lessee shall undertake
        to cause a sale of the Properties on the Expiration Date (all as
        specified in the Election Notice) in accordance with the provisions of
        Section 22.1 hereof.

                (b) In the event Lessee exercises the Sale Option then, as soon
        as practicable and in all events not less than sixty (60) days and not
        more than two hundred forty (240) days prior to the date of delivery,
        Lessee shall cause to be delivered to Lessor a Phase I environmental
        site assessment for each of the Properties recently prepared (no more
        than thirty (30) days old prior to the date of delivery of such report)
        by an independent recognized professional reasonably acceptable to
        Lessor and in form, scope and content reasonably satisfactory to Lessor.
        Lessor (at the direction of the Agent) shall elect whether the costs
        incurred respecting the above-referenced Phase I environmental site
        assessment shall be paid by either (i) sales proceeds from the
        Properties, (ii) Lessor (but only the extent amounts are available
        therefor within the Available Commitments and the Available Holder
        Commitments or each Lender and each Holder approves the necessary
        increases of its Available Commitment and its Available Holder
        Commitment, respectively, to fund such costs) or (iii) Lessee; provided,
        amounts funded by the Lenders and the Holders with respect to the
        foregoing shall be added to the Property Cost of each applicable
        Property; provided, further, amounts funded by Lessee with respect to
        the foregoing shall be a part of (and limited by) the Maximum Residual
        Guarantee Amount. In the event that Lessor shall not have received such
        environmental site assessment by the date sixty (60) days prior to the
        Expiration Date or in the event that such environmental assessment shall
        reveal the existence of any material violation of Environmental Laws,
        other material Environmental Violation or potential material
        Environmental Violation (with materiality determined in each case by
        Lessor in its reasonable discretion), then Lessee on the Expiration Date
        shall pay to Lessor an amount equal to the Termination Value for all the
        Properties and any and all other amounts due and owing hereunder. Upon
        receipt of such payment and all other amounts due under the Operative
        Agreements, Lessor shall transfer to Lessee all of Lessor's right, title
        and interest in and to all the Properties in accordance with Section
        19.1.

                                   ARTICLE XXI

        21.1 [INTENTIONALLY OMITTED].

                                       31
<PAGE>   37

                                  ARTICLE XXII

        22.1 Sale Procedure.

                (a) During the Marketing Period, Lessee, on behalf of Lessor,
        shall obtain bids for the cash purchase of all the Properties in
        connection with a sale to one or more third party purchasers to be
        consummated on the Expiration Date or such earlier date as is acceptable
        to the Agent and the Lessee (the "Sale Date") for the highest price
        available, shall notify Lessor promptly of the name and address of each
        prospective purchaser and the cash price which each prospective
        purchaser shall have offered to pay for each such Property and shall
        provide Lessor with such additional information about the bids and the
        bid solicitation procedure as Lessor may reasonably request from time to
        time. All such prospective purchasers must be Persons other than Lessee
        or any Affiliate of Lessee. On the Sale Date, Lessee shall pay (or cause
        to be paid) to Lessor and all other parties, as appropriate, all Rent
        and all other amounts then due and payable or accrued under this Lease
        and/or any other Operative Agreement and Lessor (at the direction of the
        Agent) shall elect whether the costs and expenses incurred by Lessor
        and/or the Agent respecting the sale of one or more Properties shall be
        paid by either (i) sales proceeds from the Properties, (ii) Lessor (but
        only to the extent amounts are available therefor within the Available
        Commitments and the Available Holder Commitments or each Lender and each
        Holder approves the necessary increases in its Available Commitment and
        its Available Holder Commitment, respectively, to fund such costs and
        expenses) or (iii) Lessee; provided, amounts funded by the Lenders and
        the Holders with respect to such costs and expenses shall be added to
        the Property Cost of each applicable Property; provided, further,
        amounts funded by Lessee with respect to such costs and expenses shall
        be a part of (and limited by) the Maximum Residual Guarantee Amount.

                Lessor may reject any and all bids and may solicit and obtain
        bids by giving Lessee written notice to that effect; provided, however,
        that notwithstanding the foregoing, Lessor may not reject the bids
        submitted by Lessee if such bids, in the aggregate, are greater than or
        equal to the sum of the Limited Recourse Amount for all the Properties,
        and represent bona fide offers from one or more third party purchasers.
        If the highest price which a prospective purchaser or the prospective
        purchasers shall have offered to pay for all the Properties on the Sale
        Date is less than the sum of the Limited Recourse Amount for all the
        Properties or if such bids do not represent bona fide offers from one or
        more third parties or if there are no bids, Lessor may elect to retain
        one or more of the Properties by giving Lessee prior written notice of
        Lessor's election to retain the same, and promptly upon receipt of such
        notice, Lessee shall surrender, or cause to be surrendered, each of the
        Properties specified in such notice in accordance with the terms and
        conditions of Section 10.1. Upon acceptance of any bid, Lessor agrees,
        at Lessee's request and expense, to execute a contract of sale with
        respect to such sale, so long as the same is consistent with the terms
        of this Article 22 and provides by its terms that it is nonrecourse to
        Lessor.

                Unless Lessor shall have elected to retain one or more of the
        Properties pursuant to the provisions of the preceding paragraph, Lessee
        shall arrange for Lessor to sell all the

                                       32
<PAGE>   38

        Properties free and clear of the Lien of this Lease and any Lessor Liens
        attributable to Lessor, without recourse or warranty (of title or
        otherwise), for cash on the Sale Date to the purchaser or purchasers
        offering the highest cash sales price, as identified by Lessee or
        Lessor, as the case may be; provided, however, solely as to Lessor or
        the Trust Company, in its individual capacity, any Lessor Lien shall not
        constitute a Lessor Lien so long as Lessor or the Trust Company, in its
        individual capacity, is diligently and in good faith contesting, at the
        cost and expense of Lessor or the Trust Company, in its individual
        capacity, such Lessor Lien by appropriate proceedings in which event the
        applicable Sale Date, all without penalty or cost to Lessee, shall be
        delayed for the period of such contest. To effect such transfer and
        assignment, Lessor shall execute, acknowledge (where required) and
        deliver to the appropriate purchaser each of the following: (a) special
        or limited warranty Deeds conveying each such Property (to the extent it
        is real property titled to Lessor) and an assignment of the Ground Lease
        conveying the leasehold interest of Lessor in each such Property (to the
        extent it is real property and subject to a Ground Lease) to the
        appropriate purchaser free and clear of the Lien of this Lease, the Lien
        of the Credit Documents and any Lessor Liens; (b) a Bill of Sale
        conveying each such Property (to the extent it is personal property)
        titled to Lessor to the appropriate purchaser free and clear of the Lien
        of this Lease, the Lien of the Credit Documents and any Lessor Liens;
        (c) any real estate tax affidavit or other document required by law to
        be executed and filed in order to record each Deed and/or each Ground
        Lease assignment; (d) FIRPTA affidavits, as appropriate; and (e) such
        other instruments and documents as may be necessary in the jurisdiction
        in which each such Property is located to consummate such transfer. All
        of the foregoing documentation must be in form and substance reasonably
        satisfactory to Lessor. Lessee shall surrender the Properties so sold or
        subject to such documents to each purchaser in the condition specified
        in Section 10.1, or in such other condition as may be agreed between
        Lessee and such purchaser. Lessee shall not take or fail to take any
        action which would have the effect of unreasonably discouraging bona
        fide third party bids for any Property. If each of the Properties is not
        either (i) sold on the Sale Date in accordance with the terms of this
        Section 22.1, or (ii) retained by Lessor pursuant to an affirmative
        election made by Lessor pursuant to the second sentence of the second
        paragraph of this Section 22.1(a), then (x) Lessee shall be obligated to
        pay Lessor on the Sale Date an amount equal to the aggregate Termination
        Value for all the Properties less any sales proceeds received by the
        Lessor, and (y) Lessor shall transfer each applicable Property to Lessee
        in accordance with Section 20.2.

                (b) If the Properties are sold on a Sale Date to one or more
        third party purchasers in accordance with the terms of Section 22.1(a)
        and the aggregate purchase price paid for all the Properties is less
        than the sum of the aggregate Property Cost for all the Properties
        (hereinafter such difference shall be referred to as the "Deficiency
        Balance"), then Lessee hereby unconditionally promises to pay to Lessor
        on the Sale Date all Rent and all other amounts then due and owing
        pursuant to the Operative Agreements and the lesser of (i) the
        Deficiency Balance, or (ii) the Maximum Residual Guarantee Amount for
        all the Properties. On a Sale Date if (x) Lessor receives the aggregate
        Termination Value for all the Properties from one or more third party
        purchasers, (y) Lessor and such other parties receive all other amounts
        specified in the last sentence of the first paragraph of Section 22.1(a)
        and (z) the aggregate purchase price

                                       33
<PAGE>   39

        paid for all the Properties on such date exceeds the sum of the
        aggregate Property Cost for all the Properties, then Lessee shall retain
        such excess (and, to the extent such excess is received by Lessor, it
        shall immediately be remitted to Lessee). If one or more of the
        Properties are retained by Lessor pursuant to an affirmative election
        made by Lessor pursuant to the provisions of Section 22.1(a), then
        Lessee hereby unconditionally promises to pay to Lessor on the Sale Date
        all Rent and all other amounts then due and owing pursuant to the
        Operative Agreements and an amount equal to the Maximum Residual
        Guarantee Amount for the Properties so retained. Any payment of the
        foregoing amounts described in this Section 22.1(b) shall be made
        together with a payment of all other amounts referenced in the last
        sentence of the first paragraph of Section 22.1(a).

                (c) In the event that all the Properties are either sold to one
        or more third party purchasers on the Sale Date or retained by Lessor in
        connection with an affirmative election made by Lessor pursuant to the
        provisions of Section 22.1(a), then in either case on the applicable
        Sale Date Lessee shall provide Lessor or such third party purchaser
        (unless otherwise agreed by such third party purchaser) with (i) all
        permits, certificates of occupancy, governmental licenses and
        authorizations necessary to use, operate, repair, access and maintain
        each such Property for the purpose it is being used by Lessee, and (ii)
        such manuals, permits, easements, licenses, intellectual property,
        know-how, rights-of-way and other rights and privileges in the nature of
        an easement as are reasonably necessary or desirable in connection with
        the use, operation, repair, access to or maintenance of each such
        Property for its intended purpose or otherwise as Lessor or such third
        party purchaser(s) shall reasonably request (and a royalty-free license
        or similar agreement to effectuate the foregoing on terms reasonably
        agreeable to Lessor or such third party purchaser(s), as applicable).
        All assignments, licenses, easements, agreements and other deliveries
        required by clauses (i) and (ii) of this paragraph (c) shall be in form
        reasonably satisfactory to Lessor or such third party purchaser(s), as
        applicable, and shall be fully assignable (including without limitation
        both primary assignments and assignments given in the nature of
        security) without payment of any fee, cost or other charge. Lessee shall
        also execute any documentation requested by Lessor or such third party
        purchaser(s), as applicable, evidencing the continuation or assignment
        of each Ground Lease.

        22.2 Application of Proceeds of Sale.

             In the event Lessee receives any proceeds of sale of any Property,
such proceeds shall be deemed to have been received in trust on behalf of Lessor
and Lessee shall promptly remit such proceeds to Lessor. Lessor shall apply the
proceeds of sale of any Property in the following order of priority:

                (a) FIRST, to pay or to reimburse Lessor (and/or the Agent, as
        the case may be) for the payment of all reasonable out-of-pocket costs
        and expenses incurred by Lessor (and/or the Agent, as the case may be)
        in connection with the sale (to the extent Lessee has not satisfied its
        obligation to pay such costs and expenses);

                                       34
<PAGE>   40

                (b) SECOND, so long as the Credit Agreement is in effect and any
        Loans or Holder Advances or any amount is owing to the Financing Parties
        under any Operative Agreement, to the Agent to be applied pursuant to
        intercreditor provisions among Lessor, the Lenders and the Holders
        contained in the Operative Agreements; and

                (c) THIRD, to Lessee.

        22.3 Indemnity for Excessive Wear.

             If the proceeds of the sale described in Section 22.1 with respect
to the Properties shall be less than the Limited Recourse Amount with respect to
the Properties, and at the time of such sale it shall have been reasonably
determined (pursuant to the Appraisal Procedure) that the Fair Market Sales
Value of the Properties shall have been impaired by greater than expected wear
and tear during the term of the Lease, Lessee shall pay to Lessor within ten
(10) days after receipt of Lessor's written statement (i) the amount of such
excess wear and tear determined by the Appraisal Procedure or (ii) the amount of
the Sale Proceeds Shortfall, whichever amount is less.

        22.4 Appraisal Procedure.

             For determining the Fair Market Sales Value of the Properties or
any other amount which may, pursuant to any provision of any Operative
Agreement, be determined by an appraisal procedure, Lessor and Lessee shall use
the following procedure (the "Appraisal Procedure"). Lessor and Lessee shall
endeavor to reach a mutual agreement as to such amount for a period of ten (10)
days from commencement of the Appraisal Procedure under the applicable section
of the Lease, and if they cannot agree within ten (10) days, then two qualified
appraisers, one chosen by Lessee and one chosen by Lessor, shall mutually agree
thereupon, but if either party shall fail to choose an appraiser within twenty
(20) days after notice from the other party of the selection of its appraiser,
then the appraisal by such appointed appraiser shall be binding on Lessee and
Lessor. If the two (2) appraisers cannot agree within twenty (20) days after
both shall have been appointed, then a third appraiser shall be selected by the
two (2) appraisers or, failing agreement as to such third appraiser within
thirty (30) days after both shall have been appointed, by the American
Arbitration Association. The decisions of the three (3) appraisers shall be
given within twenty (20) days of the appointment of the third appraiser and the
decision of the appraiser most different from the average of the other two (2)
shall be discarded and such average shall be binding on Lessor and Lessee;
provided, that if the highest appraisal and the lowest appraisal are equidistant
from the third appraisal, the third appraisal shall be binding on Lessor and
Lessee. The fees and expenses of the appraiser appointed by Lessee shall be paid
by Lessee; the fees and expenses of the appraiser appointed by Lessor shall be
paid by Lessor (such fees and expenses not being indemnified pursuant to Section
11 of the Participation Agreement); and the fees and expenses of the third
appraiser shall be divided equally between Lessee and Lessor.

                                       35
<PAGE>   41

        22.5 Certain Obligations Continue.

             During the Marketing Period, the obligation of Lessee to pay Rent
with respect to the Properties (including without limitation the installment of
Basic Rent due on the Expiration Date) shall continue undiminished until payment
in full to Lessor of the sale proceeds, if any, the Maximum Residual Guarantee
Amount, the amount due under Section 22.3, if any, and all other amounts due to
Lessor or any other Person with respect to all Properties or any Operative
Agreement. Lessor shall have the right, but shall be under no duty, to solicit
bids, to inquire into the efforts of Lessee to obtain bids or otherwise to take
action in connection with any such sale, other than as expressly provided in
this Article XXII.

                                  ARTICLE XXIII

        23.1 Holding Over.

             If Lessee shall for any reason remain in possession of a Property
after the expiration or earlier termination of this Lease as to such Property
(unless such Property is conveyed to Lessee), such possession shall be as a
tenancy at sufferance during which time Lessee shall continue to pay
Supplemental Rent that would be payable by Lessee hereunder were the Lease then
in full force and effect with respect to such Property and Lessee shall continue
to pay Basic Rent at the lesser of the highest lawful rate and one hundred ten
percent (110%) of the last payment of Basic Rent due with respect to such
Property prior to such expiration or earlier termination of this Lease. Such
Basic Rent shall be payable from time to time upon demand by Lessor and such
additional amount of Basic Rent shall be applied by Lessor ratably to the
Lenders and the Holders based on their relative amounts of the then outstanding
aggregate Property Cost for all Properties. During any period of tenancy at
sufferance, Lessee shall, subject to the second preceding sentence, be obligated
to perform and observe all of the terms, covenants and conditions of this Lease,
but shall have no rights hereunder other than the right, to the extent given by
law to tenants at sufferance, to continue their occupancy and use of such
Property. Nothing contained in this Article XXIII shall constitute the consent,
express or implied, of Lessor to the holding over of Lessee after the expiration
or earlier termination of this Lease as to any Property (unless such Property is
conveyed to Lessee) and nothing contained herein shall be read or construed as
preventing Lessor from maintaining a suit for possession of such Property or
exercising any other remedy available to Lessor at law or in equity.

                                  ARTICLE XXIV

        24.1 Risk of Loss.

             During the Term, unless Lessee shall not be in actual possession of
any Property in question solely by reason of Lessor's exercise of its remedies
of dispossession under Article XVII, the risk of loss or decrease in the
enjoyment and beneficial use of such Property as a result of the damage or
destruction thereof by fire, the elements, casualties, thefts, riots, wars or
otherwise is assumed by Lessee, and Lessor shall in no event be answerable or
accountable therefor.

                                       36
<PAGE>   42

                                   ARTICLE XXV

        25.1 Assignment.

                (a) Lessee may not assign this Lease or any of its rights or
        obligations hereunder or with respect to any Property in whole or in
        part to any Person without the prior written consent of the Agent, the
        Lenders, the Holders and Lessor, which consent may be granted or
        withheld in the sole discretion of each such Person.

                (b) No assignment by Lessee (referenced in this Section 25.1 or
        otherwise) or other relinquishment of possession to any Property shall
        in any way discharge or diminish any of the obligations of Lessee to
        Lessor hereunder and Lessee shall remain directly and primarily liable
        under the Operative Agreements as to any rights or obligations assigned
        by Lessee or regarding any Property in which rights or obligations have
        been assigned or otherwise transferred.

        25.2 Subleases.

                (a) Promptly, but in any event within five (5) Business Days,
        following the execution and delivery of any sublease permitted by this
        Article XXV, Lessee shall notify Lessor of the execution of such
        sublease. As of the date of each Lease Supplement, Lessee shall lease
        the respective Property described in such Lease Supplement from Lessor,
        and any existing tenant respecting such Property shall automatically be
        deemed to be a subtenant of Lessee and not a tenant of Lessor.

                (b) Without the prior written consent of the Agent, any Lender,
        any Holder or Lessor and subject to the other provisions of this Section
        25.2, Lessee may sublet any Property or portion thereof to any Person
        subject to the applicable terms of the Operative Agreements including
        without limitation this Section 25.2. All subleasing shall be done on
        market terms (provided that a sublease will be deemed to be on market
        terms if the sublease rent required to be paid thereunder is greater
        than or equal to the sum of the Basic Rent and the Supplemental Rent for
        the applicable Property under this Lease) and shall in no way diminish
        the fair market value or useful life of any applicable Property.

                (c) No sublease (referenced in this Section 25.2 or otherwise)
        or other relinquishment of possession to any Property shall in any way
        discharge or diminish any of Lessee's obligations to Lessor hereunder
        and Lessee shall remain directly and primarily liable under this Lease
        as to such Property, or portion thereof, so sublet. During the Basic
        Term, the term of any such sublease shall not extend beyond the Basic
        Term. During the Renewal Term, the term of any such sublease shall not
        extend beyond the Renewal Term. Each sublease shall be expressly subject
        and subordinate to this Lease.

                                       37
<PAGE>   43

                (d) Lessor acknowledges that in the ordinary course and
        operation of the Properties Lessee shall sublease portions of the
        Properties to its self-storage customers, cellular telephone
        transmission companies and billboard companies. Lessor acknowledges and
        agrees that such subleases in the ordinary course of Lessee's business
        shall not be subject to the requirements or restrictions of this Section
        25.

                                  ARTICLE XXVI

        26.1 No Waiver.

             No failure by Lessor or Lessee to insist upon the strict
performance of any term hereof or to exercise any right, power or remedy upon a
default hereunder, and no acceptance of full or partial payment of Rent during
the continuance of any such default, shall constitute a waiver of any such
default or of any such term. To the fullest extent permitted by law, no waiver
of any default shall affect or alter this Lease, and this Lease shall continue
in full force and effect with respect to any other then existing or subsequent
default.

                                  ARTICLE XXVII

        27.1 Acceptance of Surrender.

             No surrender to Lessor of this Lease or of all or any portion of
any Property or of any part of any thereof or of any interest therein shall be
valid or effective unless agreed to and accepted in writing by Lessor and no act
by Lessor or the Agent or any representative or agent of Lessor or the Agent,
other than a written acceptance, shall constitute an acceptance of any such
surrender.

        27.2 No Merger of Title.

             There shall be no merger of this Lease or of the leasehold estate
created hereby by reason of the fact that the same Person may acquire, own or
hold, directly or indirectly, in whole or in part, (a) this Lease or the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate, (b) any right, title or interest in any Property, (c) any Notes, or (d)
a beneficial interest in Lessor.

                                 ARTICLE XXVIII

        28.1 Incorporation of Covenants.

             Reference is made to the Lessee Credit Agreement and the
representations and warranties of Lessee contained in Article 6 of the Lessee
Credit Agreement (hereinafter referred to as the "Incorporated Representations
and Warranties") and the covenants contained in Articles

                                       38
<PAGE>   44

7 and 8 of the Lessee Credit Agreement (hereinafter referred to as the
"Incorporated Covenants"). Lessee agrees with Lessor that the Incorporated
Representations and Warranties and the Incorporated Covenants (and all other
relevant provisions of the Lessee Credit Agreement related thereto, including
without limitation the defined terms contained in Article 1 thereof which are
used in the Incorporated Representations and Warranties and the Incorporated
Covenants, hereinafter referred to as the "Additional Incorporated Terms") are
hereby incorporated by reference into this Lease to the same extent and with the
same effect as if set forth fully herein and shall inure to the benefit of
Lessor, without giving effect to any waiver, amendment, modification or
replacement of the Lessee Credit Agreement or any term or provision of the
Incorporated Representations and Warranties or the Incorporated Covenants
occurring subsequent to the date of this Lease, except to the extent otherwise
specifically provided in the following provisions of this paragraph. In the
event a waiver is granted under the Lessee Credit Agreement or an amendment or
modification is executed with respect to the Lessee Credit Agreement, and such
waiver, amendment and/or modification affects the Incorporated Representations
and Warranties, the Incorporated Covenants or the Additional Incorporated Terms,
then such waiver, amendment or modification shall be effective with respect to
the Incorporated Representations and Warranties, the Incorporated Covenants and
the Additional Incorporated Terms as incorporated by reference into this Lease
unless the Agent (acting upon the direction of the Majority Secured Parties)
gives notice to the Lessee otherwise. In the event of any replacement of the
Lessee Credit Agreement with a similar credit facility (the "New Facility"), the
representations and warranties, covenants and additional terms contained in the
New Facility which correspond to the representations and warranties and
covenants contained in Article 6 and Articles 7 and 8, respectively, and such
additional terms (each of the foregoing contained in the Lessee Credit
Agreement) shall become the Incorporated Representations and Warranties, the
Incorporated Covenants and the Additional Incorporated Terms unless the Agent
(acting upon the direction of the Majority Secured Parties) gives notice to the
Lessee otherwise; provided that if such notice is given by the Agent to the
Lessee or if the Lessee Credit Agreement is terminated and not replaced, then
the representations and warranties and covenants contained in Article 6 and
Articles 7 and 8, respectively, and such additional terms (each of the foregoing
contained in the Lessee Credit Agreement (together with any modifications or
amendments approved in accordance with this paragraph)) shall continue to be the
Incorporated Representations and Warranties, the Incorporated Covenants and the
Additional Incorporated Terms hereunder.

                                  ARTICLE XXIX

        29.1 Notices.

             All notices required or permitted to be given under this Lease
shall be in writing and delivered as provided in the Participation Agreement.

                                       39
<PAGE>   45

                                   ARTICLE XXX

        30.1 Miscellaneous.

             Anything contained in this Lease to the contrary notwithstanding,
all claims against and liabilities of Lessee or Lessor arising from events
commencing prior to the expiration or earlier termination of this Lease shall
survive such expiration or earlier termination. If any provision of this Lease
shall be held to be unenforceable in any jurisdiction, such unenforceability
shall not affect the enforceability of any other provision of this Lease and
such jurisdiction or of such provision or of any other provision hereof in any
other jurisdiction.

        30.2 Amendments and Modifications.

             Neither this Lease nor any Lease Supplement may be amended, waived,
discharged or terminated except in accordance with the provisions of Section
12.4 of the Participation Agreement.

        30.3 Successors and Assigns.

             All the terms and provisions of this Lease shall inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

        30.4 Headings and Table of Contents.

             The headings and table of contents in this Lease are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

        30.5 Counterparts.

             This Lease may be executed in any number of counterparts, each of
which shall be an original, but all of which shall together constitute one and
the same instrument.

        30.6 GOVERNING LAW.

             THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF WASHINGTON
(WITHOUT GIVING EFFECT TO THE PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW),
EXCEPT TO THE EXTENT THE LAWS OF THE STATE WHERE A PARTICULAR PROPERTY IS
LOCATED ARE REQUIRED TO APPLY.

        30.7 Calculation of Rent.

             All calculation of Rent payable hereunder shall be computed based
on the actual number of days elapsed over a year of three hundred sixty (360)
days or, to the extent such Rent

                                       40
<PAGE>   46

is based on the Prime Lending Rate, three hundred sixty-five (365) (or three
hundred sixty-six (366), as applicable) days.

        30.8 Memoranda of Lease and Lease Supplements.

             This Lease shall not be recorded against any Property; provided,
Lessor and Lessee shall promptly record (a) a memorandum of this Lease and the
applicable Lease Supplement (in substantially the form of Exhibit B attached
hereto) or a short form lease (in form and substance reasonably satisfactory to
Lessor) regarding each Property promptly after the acquisition thereof in the
local filing office with respect thereto and as required under applicable law to
sufficiently evidence this Lease and any such Lease Supplement in the applicable
real estate filing records. Lessor (at the direction of the Agent) shall elect
whether the costs and expenses incurred by Lessor and/or the Agent respecting
the recordation of the above-referenced items shall be paid by either (i) Lessor
(but only the extent amounts are available therefor within the Available
Commitments and the Available Holder Commitments or each Lender and each Holder
approves the necessary increases in its Available Commitment and its Available
Holder Commitment, respectively, to fund such costs and expenses) or (ii)
Lessee; provided, amounts funded by the Lenders and the Holders with respect to
such costs and expenses shall be added to the Property Cost of each applicable
Property; provided, further, amounts funded by Lessee with respect to such costs
and expenses shall be a part of (and limited by) the Maximum Residual Guarantee
Amount.

        30.9 Allocations between the Lenders and the Holders.

             Notwithstanding any other term or provision of this Lease to the
contrary, the allocations of the proceeds of the Properties and any and all
other Rent and other amounts received hereunder shall be subject to the
inter-creditor provisions between the Lenders and the Holders contained in the
Operative Agreements (or as otherwise agreed among the Lenders and the Holders
from time to time).

        30.10 Limitations on Recourse.

              Notwithstanding anything contained in this Lease to the contrary,
Lessee agrees to look solely to Lessor's interest in the Properties (and in no
circumstance to the Agent, the Lenders, the Holders or otherwise to Lessor) for
the collection of any judgment requiring the payment of money by Lessor in the
event of liability by Lessor, and no other property or assets of Lessor or any
shareholder, owner or partner (direct or indirect) in or of Lessor, or any
director, officer, employee, beneficiary, Affiliate of any of the foregoing
shall be subject to levy, execution or other enforcement procedure for the
satisfaction of the remedies of Lessee under or with respect to this Lease, the
relationship of Lessor and Lessee hereunder or Lessee's use of the Properties or
any other liability of Lessor to Lessee. Nothing in this Section shall be
interpreted so as to limit the terms of Sections 6.1 or 6.2 or the provisions of
Section 12.9 of the Participation Agreement or to limit Lessee's recourse
against Lessor for claims for Lessor's gross negligence or willful misconduct.

                                       41
<PAGE>   47

        30.11 WAIVERS OF JURY TRIAL.

              EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY, TO THE
FULLEST EXTENT ALLOWED BY APPLICABLE LAW, WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS LEASE AND FOR ANY COUNTERCLAIM THEREIN.

        30.12 Exercise of Lessor Rights.

              Lessee hereby acknowledges and agrees that the rights and powers
of Lessor under this Lease have been assigned to the Agent pursuant to the terms
of the Security Agreement and the other Operative Agreements. Lessor and Lessee
hereby acknowledge and agree that (a) the Agent shall, in its discretion, direct
and/or act on behalf of Lessor pursuant to the provisions of Sections 8.2(h) and
8.6 of the Participation Agreement, (b) all notices to be given to Lessor shall
be given to the Agent and (c) all notices to be given by Lessor may be given by
the Agent, at its election.

        30.13 SUBMISSION TO JURISDICTION; VENUE.

              THE PROVISIONS OF THE PARTICIPATION AGREEMENT RELATING TO
SUBMISSION TO JURISDICTION AND VENUE ARE HEREBY INCORPORATED BY REFERENCE
HEREIN, MUTATIS MUTANDIS.

        30.14 USURY SAVINGS PROVISION.

              IT IS THE INTENT OF THE PARTIES HERETO TO CONFORM TO AND
CONTRACT IN STRICT COMPLIANCE WITH APPLICABLE USURY LAW FROM TIME TO TIME IN
EFFECT. TO THE EXTENT ANY RENT OR PAYMENTS HEREUNDER ARE HEREINAFTER
CHARACTERIZED BY ANY COURT OF COMPETENT JURISDICTION AS THE REPAYMENT OF
PRINCIPAL AND INTEREST THEREON, THIS SECTION 30.14 SHALL APPLY. ANY SUCH RENT OR
PAYMENTS SO CHARACTERIZED AS INTEREST MAY BE REFERRED TO HEREIN AS "INTEREST."
ALL AGREEMENTS AMONG THE PARTIES HERETO ARE HEREBY LIMITED BY THE PROVISIONS OF
THIS PARAGRAPH WHICH SHALL OVERRIDE AND CONTROL ALL SUCH AGREEMENTS, WHETHER NOW
EXISTING OR HEREAFTER ARISING AND WHETHER WRITTEN OR ORAL. IN NO WAY, NOR IN ANY
EVENT OR CONTINGENCY (INCLUDING WITHOUT LIMITATION PREPAYMENT OR ACCELERATION OF
THE MATURITY OF ANY OBLIGATION), SHALL ANY INTEREST TAKEN, RESERVED, CONTRACTED
FOR, CHARGED, OR RECEIVED UNDER THIS LEASE OR OTHERWISE, EXCEED THE MAXIMUM
NONUSURIOUS AMOUNT PERMISSIBLE UNDER APPLICABLE LAW. IF, FROM ANY POSSIBLE
CONSTRUCTION OF ANY OF THE OPERATIVE AGREEMENTS OR ANY OTHER DOCUMENT OR
AGREEMENT, INTEREST WOULD OTHERWISE BE PAYABLE IN EXCESS OF THE MAXIMUM
NONUSURIOUS AMOUNT, ANY SUCH CONSTRUCTION

                                       42
<PAGE>   48

SHALL BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH AND SUCH AMOUNTS UNDER SUCH
DOCUMENTS OR AGREEMENTS SHALL BE AUTOMATICALLY REDUCED TO THE MAXIMUM
NONUSURIOUS AMOUNT PERMITTED UNDER APPLICABLE LAW, WITHOUT THE NECESSITY OF
EXECUTION OF ANY AMENDMENT OR NEW DOCUMENT OR AGREEMENT. IF LESSOR SHALL EVER
RECEIVE ANYTHING OF VALUE WHICH IS CHARACTERIZED AS INTEREST WITH RESPECT TO THE
OBLIGATIONS OWED HEREUNDER OR UNDER APPLICABLE LAW AND WHICH WOULD, APART FROM
THIS PROVISION, BE IN EXCESS OF THE MAXIMUM LAWFUL AMOUNT, AN AMOUNT EQUAL TO
THE AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE INTEREST SHALL, WITHOUT PENALTY, BE
APPLIED TO THE REDUCTION OF THE COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL AND
NOT TO THE PAYMENT OF INTEREST, OR REFUNDED TO LESSEE OR ANY OTHER PAYOR
THEREOF, IF AND TO THE EXTENT SUCH AMOUNT WHICH WOULD HAVE BEEN EXCESSIVE
EXCEEDS THE COMPONENT OF PAYMENTS DEEMED TO BE PRINCIPAL. THE RIGHT TO DEMAND
PAYMENT OF ANY AMOUNTS EVIDENCED BY ANY OF THE OPERATIVE AGREEMENTS DOES NOT
INCLUDE THE RIGHT TO RECEIVE ANY INTEREST WHICH HAS NOT OTHERWISE ACCRUED ON THE
DATE OF SUCH DEMAND, AND LESSOR DOES NOT INTEND TO CHARGE OR RECEIVE ANY
UNEARNED INTEREST IN THE EVENT OF SUCH DEMAND. ALL INTEREST PAID OR AGREED TO BE
PAID TO LESSOR SHALL, TO THE EXTENT PERMITTED BY APPLICABLE LAW, BE AMORTIZED,
PRORATED, ALLOCATED, AND SPREAD THROUGHOUT THE FULL STATED TERM (INCLUDING
WITHOUT LIMITATION ANY RENEWAL OR EXTENSION) OF THIS LEASE SO THAT THE AMOUNT OF
INTEREST ON ACCOUNT OF SUCH PAYMENTS DOES NOT EXCEED THE MAXIMUM NONUSURIOUS
AMOUNT PERMITTED BY APPLICABLE LAW.

                            [signature page follows]

                                       43
<PAGE>   49

        IN WITNESS WHEREOF, the parties have caused this Lease to be duly
executed and delivered as of the date first above written.

                                FIRST SECURITY BANK, NATIONAL ASSOCIATION, as
                                Owner Trustee under the Storage Centers Trust
                                2001, as Lessor

                                By:           /s/ Val T. Orton
                                   --------------------------------------------
                                Name:             Val T. Orton
                                     ------------------------------------------
                                Title:            Vice President
                                      -----------------------------------------

                                SHURGARD STORAGE CENTERS, INC., as Lessee

                                By:           /s/ Harrell Beck
                                   --------------------------------------------
                                Name:             Harrell Beck
                                     ------------------------------------------
                                Title:            CFO
                                      -----------------------------------------

Receipt of this original
counterpart of the foregoing
Lease is hereby acknowledged
as the date hereof

BANK OF AMERICA, N.A.,
as the Agent

By:         /s/ Dora A. Brown
   --------------------------------------------
Name:           Dora A. Brown
     ------------------------------------------
Title:          Vice President
      -----------------------------------------

<PAGE>   50

STATE OF UTAH                               )
                                            ) ss.
COUNTY OF  Salt Lake                        )

On this _____ day of _________________, 2001, before me, the undersigned, a
Notary Public in and for the State of Utah, duly commissioned and sworn,
personally appeared Val T. Orton, to me known to be the person who signed as
Vice President of First Security Bank of N.A., the national banking association
that executed the within and foregoing instrument, and acknowledged said
instrument to be the free and voluntary act and deed of said national banking
association for the uses and purposes therein mentioned, and on oath stated that
Val T. Orton was duly elected, qualified and acting as said officer of the
national banking association, that Val T. Orton was authorized to execute said
instrument and that the seal affixed, if any, is the seal of said national
banking association.

IN WITNESS WHEREOF I have hereunto set my hand and official seal the day and
year first above written.

                                       /s/ Dalyn Casto
                                   --------------------------------------------
                                       (Signature of Notary)

                                   --------------------------------------------
                                   (Print or stamp name of Notary)

                                   NOTARY PUBLIC in and for the State of Utah,
                                   residing at_________________________________.

                                   My appointment expires:_____________________.

<PAGE>   51

STATE OF WASHINGTON                         )
                                            ) ss.
COUNTY OF      King                         )

On this 2nd day of February 2001, before me, the undersigned, a Notary Public in
and for the State of Washington, duly commissioned and sworn, personally
appeared Harrell Beck, to me known to be the person who signed as Senior Vice
President & CFO of Shurgard Storage Centers, Inc., the corporation that executed
the within and foregoing instrument, and acknowledged said instrument to be the
free and voluntary act and deed of said corporation for the uses and purposes
therein mentioned, and on oath stated that he was duly elected, qualified and
acting as said officer of the corporation, that he was authorized to execute
said instrument and that the seal affixed, if any, is the seal of said
corporation.

IN WITNESS WHEREOF I have hereunto set my hand and official seal the day and
year first above written.

                                          /s/ Paul M. Newell
                                   --------------------------------------------
                                   (Signature of Notary)

                                          Paul M. Newell
                                   --------------------------------------------
                                   (Print or stamp name of Notary)

                                   NOTARY PUBLIC in and for the State of
                                   Washington, residing at Seattle.

                                   My appointment expires: April 3, 2002.
                                                           ---------------------

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