Document:

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                                                                   EXHIBIT 10.33

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                                 TRUST AGREEMENT

                          dated as of February 26, 2001

                                     between

                               The Several Holders
                        from Time to Time Parties Hereto,
                                 as the Holders,

                                       and

                   FIRST SECURITY BANK, NATIONAL ASSOCIATION,
                              as the Owner Trustee

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                           STORAGE CENTERS TRUST 2001

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                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                          Page

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

ARTICLE II  AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS; DECLARATION OF TRUST BY
                TRUST COMPANY................................................................2
        SECTION 2.1      Authority To Execute and Perform Various Documents..................2
        SECTION 2.2      Declaration of Trust by Trust Company...............................2

ARTICLE III  CONTRIBUTIONS AND PAYMENTS......................................................3
        SECTION 3.1      Procedure for Holder Advances; Certificates.........................3
        SECTION 3.2      Holder Yield........................................................4
        SECTION 3.3      Scheduled Return of Holder Advances.................................5
        SECTION 3.4      Early Return of Advances............................................5
        SECTION 3.5      Payments from Trust Estate Only.....................................6
        SECTION 3.6      Method of Payment...................................................6
        SECTION 3.7      Computation of Yield................................................6
        SECTION 3.8      Conversion and Continuation Options.................................7
        SECTION 3.9      Notice of Amounts Payable...........................................8

ARTICLE IV  COLLECTIONS AND DISTRIBUTIONS....................................................8
        SECTION 4.1      Collections and Remittances by the Owner Trustee....................8
        SECTION 4.2      Priority of Distributions...........................................9
        SECTION 4.3      Excepted Payments...................................................9
        SECTION 4.4      Distributions after Default.........................................9

ARTICLE V  DUTIES OF THE OWNER TRUSTEE.......................................................9
        SECTION 5.1      Notice of Certain Events............................................9
        SECTION 5.2      Action Upon Instructions...........................................10
        SECTION 5.3      Indemnification....................................................10
        SECTION 5.4      No Duties Except as Specified In Trust Agreement or Instructions...10
        SECTION 5.5      No Action Except Under Specified Documents or Instructions.........11
        SECTION 5.6      Absence of Duties..................................................11

ARTICLE VI  THE OWNER TRUSTEE...............................................................12
        SECTION 6.1      Acceptance of Trust and Duties.....................................12
        SECTION 6.2      Furnishing of Documents............................................12
        SECTION 6.3      No Representations or Warranties as to the Properties or Operative
                         Agreements.........................................................12
        SECTION 6.4      No Segregation of Moneys; No Interest..............................13
        SECTION 6.5      Reliance; Advice of Counsel........................................13
        SECTION 6.6      Liability With Respect to Documents................................13
        SECTION 6.7      Not Acting In Individual Capacity..................................14
</TABLE>

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<TABLE>
<CAPTION>

<S>     <C>                                                                                 <C>
        SECTION 6.8      Books and Records; Tax Returns.....................................14

ARTICLE VII  INDEMNIFICATION OF THE OWNER TRUSTEE...........................................15
        SECTION 7.1      Indemnification Generally..........................................15
        SECTION 7.2      Compensation and Expenses..........................................15

ARTICLE VIII  TERMINATION OF TRUST AGREEMENT................................................15
        SECTION 8.1      Termination of Trust Agreement.....................................15
        SECTION 8.2      Termination at Option of the Holders...............................15
        SECTION 8.3      Termination at Option of the Owner Trustee.........................16
        SECTION 8.4      Actions by the Owner Trustee Upon Termination......................16

ARTICLE IX  SUCCESSOR OWNER TRUSTEES, CO-OWNER TRUSTEES AND SEPARATE OWNER TRUSTEES.........16
        SECTION 9.1      Resignation of the Owner Trustee; Appointment of Successor.........16
        SECTION 9.2      Co-Trustees and Separate Trustees..................................16
        SECTION 9.3      Notice.............................................................16

ARTICLE X   AMENDMENTS......................................................................16
        SECTION 10.1     Amendments.........................................................16
        SECTION 10.2     Limitation on Amendments...........................................16

ARTICLE XI  MISCELLANEOUS...................................................................16
        SECTION 11.1     No Legal Title to Trust Estate in the Holders......................16
        SECTION 11.2     Sale of a Property by the Owner Trustee is Binding.................16
        SECTION 11.3     Limitations on Rights of Others....................................16
        SECTION 11.4     Notices............................................................16
        SECTION 11.5     Severability.......................................................16
        SECTION 11.6     Limitation on the Holders' Liability...............................16
        SECTION 11.7     Separate Counterparts..............................................16
        SECTION 11.8     Successors and Assigns.............................................16
        SECTION 11.9     Headings...........................................................16
        SECTION 11.10    Governing Law......................................................16
        SECTION 11.11    Performance by the Holders.........................................16
        SECTION 11.12    Conflict with Operative Agreements.................................16
        SECTION 11.13    No Implied Waiver..................................................16
        SECTION 11.14    SUBMISSION TO JURISDICTION; VENUE..................................16
        SECTION 11.15    Certain Rights of Lessee...........................................16
</TABLE>

Schedule I - Holder Commitments

EXHIBIT A - Form of Holder Certificate
EXHIBIT B - Form of Assignment and Acceptance

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                                 TRUST AGREEMENT

        THIS TRUST AGREEMENT, dated as of February 26, 2001 (as amended,
modified, extended, supplemented, restated and/or replaced from time to time,
the "Trust Agreement"), is among the several banks and other financial
institutions from time to time parties to this Trust Agreement (individually,
each of the foregoing may be referred to as a "Holder," and collectively, the
foregoing together with such other persons and entities that become holders
hereunder, the "Holders"), and FIRST SECURITY BANK, NATIONAL ASSOCIATION, in its
individual capacity ("Trust Company"), and in its capacity as owner trustee
hereunder, together with its successors and assigns (the "Owner Trustee").

        WHEREAS, in order to provide a portion of the funds for carrying out the
other transactions contemplated by the Operative Agreements, each Holder will
make its respective Holder Advances pursuant to this Trust Agreement and the
Participation Agreement (as defined below);

        WHEREAS, the Holders desire to provide for the Trust to exist for the
purpose of (a) developing, acquiring, installing, constructing and testing
various Properties and leasing such Properties to Lessee and (b) carrying out
certain transactions contemplated by the Operative Agreements; and

        WHEREAS, Trust Company is willing to act as trustee hereunder and to
accept the trust created hereby (the "Trust").

        NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained and of other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

        SECTION 1.1   DEFINITIONS.

        For purposes of this Trust Agreement (including without limitation the
"WHEREAS" clauses set forth above), capitalized terms used in this Trust
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 Owner Trustee, 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

<PAGE>   5

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

        SECTION 1.2   INTERPRETATION.

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

                                   ARTICLE II

               AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS;
                      DECLARATION OF TRUST BY TRUST COMPANY

        SECTION 2.1   AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS.

        Each Holder hereby authorizes and directs the Owner Trustee (a) to
execute and deliver, as trustee for and on behalf of each such Holder, each
Operative Agreement to which the Owner Trustee is a party and any other
agreements, instruments, certificates or documents related to the transactions
contemplated hereby to which the Owner Trustee is a party, (b) to take whatever
action shall be required to be taken by the Owner Trustee by the terms of, and
exercise its rights and perform its duties under, each of the documents,
agreements, instruments and certificates referred to in clause (a) above as set
forth in such documents, agreements and certificates, and (c) subject to the
terms of this Trust Agreement, to take such other action in connection with the
foregoing as the Holders or Majority Holders (as required or permitted by the
Operative Agreements) may from time to time direct.

        SECTION 2.2   DECLARATION OF TRUST BY TRUST COMPANY.

               (a) Trust Company hereby declares that it will hold all estate,
        right, title and interest of the Owner Trustee in, to and under each
        Property, each Holder Advance, the Operative Agreements, any other
        property contributed by any Holder and any and all other property or
        assets from time to time of the Trust, including without limitation all
        amounts of Rent, insurance proceeds and condemnation awards, indemnity
        or other payments of any kind (collectively, the "Trust Estate") as the
        Owner Trustee upon the trusts set forth herein and for the use and
        benefit of each Holder, subject, however, to the provisions of the
        Credit Agreement and the Security Documents. The name of the Trust shall
        be "Storage Centers Trust 2001."

               (b) The purpose of the Trust is to hold title to the Trust
        Estate for the benefit of the Holders and to engage in activities
        ancillary and incidental thereto as the Holders shall determine to be
        desirable. Except in connection with the foregoing, the Owner Trustee
        shall not (i) engage in any business activity, (ii) have any property,
        rights or interest, whether real or personal, tangible or intangible,
        (iii) incur any legal liability or obligation, whether fixed or
        contingent, matured or unmatured, other than in the normal

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course  of the administration of the Trust or (iv) subject any of its property
        or assets to any mortgage, Lien, security interest or other claim or
        encumbrance, other than in favor of the Lenders or the Holders pursuant
        to the provisions of the Operative Agreements and this Trust Agreement.
        THIS TRUST IS NOT A BUSINESS TRUST. THE SOLE PURPOSE OF THE TRUST IS TO
        ACQUIRE AND HOLD TITLE TO THE TRUST ESTATE, SUBJECT TO THE RIGHTS OF THE
        LENDERS, FOR THE BENEFIT OF THE HOLDERS. THE OWNER TRUSTEE MAY NOT
        TRANSACT BUSINESS OF ANY KIND WITH RESPECT TO ANY PROPERTY COMPRISING
        THE TRUST ESTATE NOR SHALL THIS AGREEMENT BE DEEMED TO BE, OR CREATE OR
        EVIDENCE THE EXISTENCE OF A CORPORATION DE FACTO OR DE JURE, OR A
        MASSACHUSETTS TRUST, OR ANY OTHER TYPE OF BUSINESS TRUST, ASSOCIATION OR
        JOINT VENTURE BETWEEN OR AMONG THE OWNER TRUSTEE, THE HOLDERS, THE AGENT
        AND THE LENDERS.

                                   ARTICLE III

                           CONTRIBUTIONS AND PAYMENTS

        SECTION 3.1   PROCEDURE FOR HOLDER ADVANCES; CERTIFICATES.

               (a) Upon receipt from Lessee by the Agent of a Requisition, and
        subject to the terms and conditions of the Participation Agreement, the
        Agent shall request from each Holder its pro rata share of any Advance
        and each Holder shall make its pro rata share of any Advance under the
        Holder Commitment of such Holder, as set forth on Schedule 1 hereto, on
        each date Advances are made pursuant to Section 5 of the Participation
        Agreement. The Agent may request an Advance under the Holder Commitments
        during the Commitment Period on any date that an Advance may be
        requested pursuant to the terms of Section 5.2(a) of the Participation
        Agreement, provided, that the Agent shall give each Holder irrevocable
        notice (which notice must be received by such Holder no less than three
        (3) Business Days prior to the requested date of the Holder Advance)
        specifying (i) the amount to be advanced (which on any date shall not be
        in excess of the then aggregate Available Holder Commitments), (ii) the
        requested date of advance, (iii) whether the Holder Advance is to be a
        Eurodollar Holder Advance or an ABR Holder Advance or a combination
        thereof, (iv) if the Holder Advance is to be a combination of Eurodollar
        Holder Advances and ABR Holder Advances, the respective amounts of each
        type of Holder Advance and (v) the Interest Period applicable to any
        Eurodollar Holder Advances. Pursuant to the terms of the Participation
        Agreement, the Agent shall be deemed to have delivered such notice upon
        the delivery of a notice by the Construction Agent or Lessee containing
        such required information.

               (b) Upon receipt of any such notice delivered pursuant to Section
        3.1(a), each Holder shall make the amount of its Advance available to
        the Agent for the account of the Owner Trustee at the office of the
        Agent referred to in Section 12.2 of the Participation Agreement (or at
        such other address as may be identified by the Agent from time to time)

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        prior to 1:00 p.m., Pacific time on the date requested by Lessee in
        funds immediately available to the Owner Trustee.

               (c) Holder Yield accruing on each Holder Advance during the
        Construction Period with respect to any Property and that portion of
        Holder Yield accruing 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 amount of the Holder Advance on the relevant Scheduled
        Interest Payment Date. On such Scheduled Interest Payment Date, the
        Holder Property Cost shall be increased by the amount of Holder Yield
        added to the Holder Advance.

               (d) The Holder Advances made by each Holder to the Trust Estate
        shall be evidenced by a Certificate of the Owner Trustee, substantially
        in the form of Exhibit A hereto, issued in the name of the Holder and in
        an amount equal to the Holder Commitment of such Holder. Each
        Certificate shall (i) be dated on or about the Initial Closing Date,
        (ii) be stated to mature on the Maturity Date and (iii) bear a yield on
        the unpaid Holder Amount thereof from time to time outstanding at the
        Holder Yield.

               (e) To the extent that the Owner Trustee, in its capacity as
        Borrower under the Credit Agreement, shall have elected to terminate or
        reduce the amount of the Commitments pursuant to Section 2.5(a) of the
        Credit Agreement, a pro rata election shall be deemed to have been made
        with respect to the Holder Commitment. On any date on which the
        Commitments shall be reduced to zero (0) as a result of a Credit
        Agreement Event of Default, the Holder Commitments shall automatically
        be reduced to zero (0) and the Owner Trustee shall prepay the
        Certificates in full for the outstanding Holder Amount, together with
        accrued but unpaid Holder Yield thereon and all other amounts owing
        under the Certificates.

        SECTION 3.2   HOLDER YIELD.

               (a) Holder Advances shall bear yield payable by the Owner Trustee
        and calculated at the rate of Holder Yield applicable from time to time.
        The Owner Trustee shall pay to each Holder, from the Trust Estate, its
        pro rata portion of Holder Yield on Holder Advances made hereunder.
        Payment of Holder Yield to each Holder shall be made in arrears on each
        Scheduled Interest Payment Date occurring after the Rent Commencement
        Date or as otherwise provided herein, in Section 2.6 of the Credit
        Agreement or Section 5.1(b) or Section 8.7 of the Participation
        Agreement.

               (b) If (i) all or a portion of Holder Yield shall not be received
        by the Holders when due (whether at the stated maturity, by acceleration
        or otherwise), such overdue amount shall, without limiting the rights of
        the Holders hereunder or under any Operative Agreement, bear interest at
        a per annum rate equal to the Holder Overdue Rate, in each case from the
        date of nonpayment until paid (whether after or before judgment). All
        such amounts referenced in this Section 3.2(b) shall be paid upon
        demand.

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        SECTION 3.3   SCHEDULED RETURN OF HOLDER ADVANCES.

        The outstanding Holder Amount shall be due in full on the Expiration
Date. On the Expiration Date, subject to the terms of the Participation
Agreement, the Owner Trustee shall pay to each Holder its portion of the
aggregate Holder Amount then due, together with all accrued but unpaid Holder
Yield and all other amounts due to such Holders from the Owner Trustee hereunder
or under the Operative Agreements.

        SECTION 3.4   EARLY RETURN OF ADVANCES.

               (a) Subject to Sections 11.2(e), 11.3 and 11.4 of the
        Participation Agreement, the Owner Trustee may at any time and from time
        to time prepay the Certificates, in whole or in part, without premium or
        penalty, and without set-off, deduction or counterclaim, upon at least
        three (3) Business Days' irrevocable notice to the Agent, on behalf of
        the Holders, specifying the date and amount of prepayment and whether
        the prepayment is of ABR Holder Advances or Eurodollar Holder Advances
        or a combination thereof, and, if a combination thereof, the amount
        allocable to each. Upon receipt of such notice, the Agent shall promptly
        notify the Holders thereof. If such notice is given, the amount
        specified in such notice shall be due and payable on the date specified
        therein. Subject to the terms hereof and of the other Operative
        Agreements, the Owner Trustee may request that Holders Advances so
        repaid be readvanced by the Holders; provided however, once repaid the
        Initial Holder Advance may not be readvanced.

               (b) If on any date the Agent or the Owner Trustee 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 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 or such other applicable amount in
        connection with the exercise of a Purchase Option under Article XX of
        the Lease or the exercise of the option of the Owner Trustee 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 Owner Trustee pursuant to the Agency
        Agreement, then in each case, the Holders shall receive proceeds in
        accordance with Section 8.7(b) of the Participation Agreement.

               (c) Each prepayment of the Certificates pursuant to Section
        3.4(a) shall be allocated to reduce the respective Holder Property Costs
        of all Properties pro rata according to the Holder Property Costs of
        such Properties immediately before giving effect to such prepayment.
        Each prepayment of the Certificates pursuant to Section 3.4(b) shall be
        allocated to reduce the Holder 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.

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        SECTION 3.5   PAYMENTS FROM TRUST ESTATE ONLY.

        All payments to be made by the Owner Trustee under this Trust Agreement
(including without limitation any payments pursuant to Section 11.4 of the
Participation Agreement) shall be made only from the income and proceeds from
the Trust Estate and only to the extent that the Owner Trustee shall have
received income or proceeds from the Trust Estate to make such payments in
accordance with the terms hereof, except as specifically provided in Section
6.1. Each Holder agrees that it will look solely to the income and proceeds from
the Trust Estate to the extent available for payment as herein provided and
that, except as specially provided in any Operative Agreement, Trust Company
shall not be liable to any Holder for any amounts payable under this Trust
Agreement and shall not be subject to any liability under this Trust Agreement.

        SECTION 3.6   METHOD OF PAYMENT.

        All amounts payable to a Holder pursuant to this Trust Agreement shall
be paid or caused to be paid by the Owner Trustee to, or for the account of,
such Holder, or its nominee, by transferring such amount in immediately
available funds to a bank institution or banking institutions with bank wire
transfer facilities for the account of such Holder or as otherwise instructed in
writing from time to time by such Holder.

        SECTION 3.7   COMPUTATION OF YIELD.

               (a) Whenever it is calculated on the basis of the Prime Lending
        Rate, Holder Yield 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, Holder
        Yield shall be calculated on the basis of a year of three hundred sixty
        (360) days for the actual days elapsed. Any change in the Holder Yield
        resulting from a change in the ABR or the Eurodollar Reserve Percentage
        shall become effective as of the opening of business on the day on which
        such change becomes effective.

               (b) Pursuant to Section 12.12 of the Participation Agreement, the
        calculation of Holder Yield under this Section 3.7 shall be made by the
        Agent. Each determination of an interest rate by the Agent shall be
        conclusive and binding on the Owner Trustee and the Holders 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 Owner Trustee shall give or cause to be given telecopy or telephonic
        notice thereof to the Holders as soon as practicable after receipt of
        same from the Agent. Commencing on the Scheduled Interest Payment Date
        next occurring after the delivery of such notice and continuing until
        such time as the Eurodollar Rate can be determined by the Agent in the
        manner specified in the definition of such term, all outstanding Holder
        Advances shall bear a yield at the ABR. 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 Holder Advances
        shall be made or shall be continued as such at the end of the then
        current Interest Period

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        nor shall the Owner Trustee have the right to convert ABR Holder
        Advances to Eurodollar Holder Advances.

        SECTION 3.8   CONVERSION AND CONTINUATION OPTIONS.

               (a) The Owner Trustee may elect from time to time to convert
        Eurodollar Holder Advances to ABR Holder Advances by giving the Agent
        (on behalf of the Holders) at least three (3) Business Days' prior
        irrevocable notice of such election, provided, that any such conversion
        of Eurodollar Holder Advances 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 Holder
        Advance shall automatically be converted to an ABR Holder Advance. The
        Owner Trustee may elect from time to time to convert ABR Holder Advances
        to Eurodollar Holder Advances by giving the Agent (on behalf of the
        Holders) at least three (3) Business Days' prior irrevocable notice of
        such election. Upon receipt of any such notice, the Agent (on behalf of
        the Holders) shall promptly notify each Holder thereof. All or any part
        of outstanding Eurodollar Holder Advances or ABR Holder Advances may be
        converted as provided herein, provided, that (i) no ABR Holder Advance
        may be converted into a Eurodollar Holder Advance after the date that is
        one (1) month prior to the Maturity Date and (ii) the Interest Period
        for such Eurodollar Holder Advance 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 3.1, any
        Eurodollar Holder Advance may be continued as such upon the expiration
        of the then current Interest Period with respect thereto by the Owner
        Trustee giving irrevocable notice to the Agent (on behalf of the
        Holders) in accordance with the notice provisions for the conversion of
        ABR Holder Advances to Eurodollar Holder Advances set forth herein and
        the applicable provisions of the term "Interest Period" of the length of
        the next Interest Period to be applicable to such Eurodollar Holder
        Advances, provided, that no Eurodollar Holder Advance may be continued
        as such after the date that is one (1) month prior to the Maturity Date,
        provided, further, no Eurodollar Holder Advance 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 Holder Advance, and provided,
        further, that if the Owner Trustee shall fail to give any required
        notice as described above or if such continuation is not permitted
        pursuant to the preceding proviso or otherwise, such Advances shall
        automatically be converted to ABR Holder Advances on the last day of
        such then expiring Interest Period.

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

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        SECTION 3.9   NOTICE OF AMOUNTS PAYABLE.

               (a) In the event that any Holder becomes aware that any amounts
        are or will be owed to it pursuant to Sections 11.2(e) or 11.4 of the
        Participation Agreement or that it is unable to make Holder Advances
        which bear a yield based on the Eurodollar Rate plus the Applicable
        Percentage for Eurodollar Holder Advances, then it shall promptly notify
        the Owner Trustee thereof and, as soon as possible thereafter, such
        Holder shall submit to the Owner Trustee 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
        Owner Trustee hereunder.

               (b) In the event that any Holder delivers to the Owner Trustee a
        certificate in accordance with Section 3.9(a), or any Holder is required
        to make Holder Advances with Holder Yields calculated at the ABR in
        accordance with Section 11.3 of the Participation Agreement, subject to
        Section 9.2 of the Participation Agreement, the Owner Trustee may, at
        the expense of Lessee and in the discretion of the Owner Trustee, (i)
        require such Holder to transfer or assign, in whole or (with such
        Holder's consent) in part, without recourse (in accordance with Section
        11.8), all or (with such Holder'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 Owner Trustee (subject to Section 9.2 of the
        Participation Agreement) and with the full cooperation of such Holder)
        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 Holder) shall
        assume such assigned obligations, or (ii) during such time as no Default
        or Event of Default has occurred and is continuing, terminate the Holder
        Commitment of such Holder and prepay the outstanding Holder Advances of
        such Holder, provided, however, that (x) subject to Section 9.2 of the
        Participation Agreement, the Owner Trustee or such replacement bank or
        institution, as the case may be, shall have paid to such Holder in
        immediately available funds the amount of the Holder Advances and Holder
        Yield accrued to the date of such payment on the Holder Advances made by
        it hereunder (and, if such Holder is also a Lender, the principal and
        interest on all Loans accrued and unpaid thereon) and (y) such
        assignment or termination of the Holder Commitment of the Holder and
        prepayment of the Holder Advances do not conflict with any law, rule or
        regulation or order of any court or Governmental Authority.

                                   ARTICLE IV

                          COLLECTIONS AND DISTRIBUTIONS

        SECTION 4.1 COLLECTIONS AND REMITTANCES BY THE OWNER TRUSTEE.

        The Owner Trustee agrees that, subject to the provisions of this Trust
Agreement and the Operative Agreements, it will during the term of this Trust
administer the Trust Estate and, at the direction of the Holders, take steps to
collect all Rent and other sums payable to the Owner

                                       8
<PAGE>   12

Trustee by Lessee under the Lease. The Owner Trustee agrees to distribute, or
cause to be distributed, all proceeds received from the Trust Estate in
accordance with Article III and Sections 4.2 and 4.3. The Owner Trustee shall
make, or cause to be made, such distribution promptly upon receipt of such
proceeds (provided, such proceeds are available for distribution) by the Agent
(on behalf of the Owner Trustee), it being understood and agreed that the Owner
Trustee shall not be obligated to make, or to cause to be made, such
distribution until the funds for such distribution have been received by the
Agent (on behalf of the Owner Trustee) in cash or its equivalent reasonably
acceptable to the Owner Trustee.

        SECTION 4.2   PRIORITY OF DISTRIBUTIONS.

        Subject to the terms and requirements of the Operative Agreements, all
payments and amounts received by Trust Company as the Owner Trustee or on its
behalf shall be distributed to the Agent for allocation by the Agent in
accordance with the terms of Section 8.7 of the Participation Agreement or, if
such payments or amounts are received by the Owner Trustee from the Agent, then
they shall be distributed forthwith upon receipt in the following order of
priority: first, in accordance with the Holder Yield protection provisions set
forth in Section 11.4 of the Participation Agreement; and, second, the balance,
if any, of such payment or amount remaining thereafter shall be distributed to
the Holders pro rata (based on the ratio of the individual Holder's Holder
Commitment to the aggregate of all the Holders' Holder Commitments).

        SECTION 4.3   EXCEPTED PAYMENTS.

        Anything in this Article IV or elsewhere in this Trust Agreement to the
contrary notwithstanding, any Excepted Payment received at any time by the Owner
Trustee shall be distributed promptly to the Person entitled to receive such
Excepted Payment.

        SECTION 4.4   DISTRIBUTIONS AFTER DEFAULT.

        Subject to the terms of Section 5.1, the proceeds received by the Owner
Trustee from the exercise of any remedy under the Lease shall be distributed
pursuant to Section 4.2 above. This Trust shall cease and terminate in
accordance with the terms set forth in Section 8.1 and upon the final
disposition by the Owner Trustee of all of the Trust Estate pursuant to this
Section 4.4.

                                    ARTICLE V

                           DUTIES OF THE OWNER TRUSTEE

        SECTION 5.1   NOTICE OF CERTAIN EVENTS.

        In the event the Owner Trustee shall have knowledge of any Default or
Event of Default, the Owner Trustee shall give written notice thereof within
five (5) Business Days to each Holder, Lessee and the Agent unless such Default
or Event of Default no longer exists before the giving of such notice. Subject
to the provisions of Section 5.3 of this Trust Agreement and Sections 8.5

                                       9
<PAGE>   13

and 9.2 of the Participation Agreement, the Owner Trustee shall take or refrain
from taking such action as the Agent shall direct until such time as the Loans
are paid in full (and as more specifically provided in Sections 8.2(h) and 8.6
of the Participation Agreement) and thereafter as the Majority Holders shall
direct, in each case by written instructions to the Owner Trustee. If the Owner
Trustee shall have given the Agent and the Holders (and respecting Sections 8.5
and 9.2 of the Participation Agreement, the Lessee) notice of any event and
shall not have received written instructions as above provided within thirty
(30) days after mailing notice of such event to the Agent and the Holders (and
respecting Sections 8.5 and 9.2 of the Participation Agreement, the Lessee), the
Owner Trustee may, but shall be under no duty to, and shall have no liability
for its failure or refusal to, take or refrain from taking any action with
respect thereto, not inconsistent with the provisions of the Operative
Agreements, as the Owner Trustee shall deem advisable and in the best interests
of the Lenders and the Holders. For all purposes of this Trust Agreement, in the
absence of actual knowledge of a Responsible Officer in the Corporate Trust
Department of Trust Company, the Owner Trustee shall be deemed not to have
knowledge of any Default or Event of Default unless a Responsible Officer of the
Corporate Trust Department of Trust Company receives notice thereof given by or
on behalf of a Holder, Lessee or the Agent.

        SECTION 5.2   ACTION UPON INSTRUCTIONS.

        Subject to the provisions of Sections 5.1 and 5.3, upon the written
instructions of the Agent or the Majority Holders (as applicable), the Owner
Trustee will take or refrain from taking such action or actions as may be
specified in such instructions.

        SECTION 5.3   INDEMNIFICATION.

        The Owner Trustee shall not be required to take or refrain from taking
any action under this Trust Agreement or any other Operative Agreement (other
than the actions specified in the first sentence of Section 5.1 and in the last
sentence of Section 5.4) unless Trust Company shall have been indemnified by
Lessee or, at their election, by the Holders and the Lenders against any
liability, fee, cost or expense (including without limitation reasonable
attorneys' fees and expenses) that may be incurred or charged in connection
therewith, other than such as may result from the willful misconduct or gross
negligence of the Owner Trustee. The Owner Trustee shall not be required to take
any action under any Operative Agreement if the Owner Trustee shall reasonably
determine, or shall have been advised by counsel, that such action is likely to
result in personal liability for which the Owner Trustee has not been and will
not be adequately indemnified or is contrary to the terms hereof or of any
Operative Agreement to which the Owner Trustee is a party or is otherwise
contrary to law. The Owner Trustee shall be under no liability with respect to
any action taken or omitted to be taken by the Owner Trustee in accordance with
instructions of the Agent or the Majority Holders pursuant to Section 5.2.

        SECTION 5.4   NO DUTIES EXCEPT AS SPECIFIED IN TRUST AGREEMENT OR
        INSTRUCTIONS.

        The Owner Trustee shall not have any duty or obligation to manage,
control, use, make any payment in respect of, register, record, insure, inspect,
sell, dispose of or otherwise deal with

                                       10
<PAGE>   14

any Property or any other part of the Trust Estate, or to otherwise take or
refrain from taking any action under or in connection with any Operative
Agreement to which the Owner Trustee is a party, except as expressly provided by
the terms of this Trust Agreement or any other Operative Agreement or in written
instructions from the Agent and/or the Majority Holders, as applicable, received
pursuant to Sections 5.1, 5.2 or 8.4 of this Trust Agreement or Sections 8.2(h)
or 8.6 of the Participation Agreement or from the Lessee pursuant to Sections
8.5 or 9.2 of the Participation Agreement; and no implied duties or obligations
shall be read into this Trust Agreement against the Owner Trustee. The Owner
Trustee shall have no duty or obligation to supervise or monitor the performance
of the Construction Agent pursuant to the Agency Agreement which for all
purposes shall be an independent contractor. The Owner Trustee nevertheless
agrees that it will (in its individual capacity and at its own cost and expense)
promptly take all action as may be necessary to discharge any Lessor Liens on
any part of the Trust Estate.

        SECTION 5.5   NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
        INSTRUCTIONS.

        The Owner Trustee agrees that it will not manage, control, use, sell,
dispose of or otherwise deal with any Property or any other part of the Trust
Estate except (a) as required by the terms of the Operative Agreements, (b) in
accordance with the powers granted to, or the authority conferred upon, it
pursuant to this Trust Agreement, (c) in accordance with the express terms
hereof or with written instructions from the Agent and/or the Majority Holders,
as applicable, pursuant to Sections 5.1, 5.2 or 8.4 or (d) from the Lessee
pursuant to Sections 8.5 or 9.2 of the Participation Agreement.

        SECTION 5.6   ABSENCE OF DUTIES.

               (a) Except in accordance with written instructions furnished
        pursuant to Sections 5.1, 5.2 or 8.4, and without limitation of the
        generality of Section 5.4, the Owner Trustee shall not have any duty to
        (i) file, record or deposit any Operative Agreement or any other
        document, or to maintain any such filing, recording or deposit or to
        refile, rerecord or redeposit any such document; (ii) obtain insurance
        on any Property or effect or maintain any such insurance, other than to
        receive and forward to each Holder and the Agent any notices, policies,
        certificates or binders furnished to the Owner Trustee pursuant to the
        Lease; (iii) maintain any Property; (iv) pay or discharge any Tax or any
        Lien owing with respect to or assessed or levied against any part of the
        Trust Estate, except as provided in the last sentence of Section 5.4,
        other than to forward notice of such Tax or Lien received by the Owner
        Trustee to each Holder and the Agent; (v) confirm, verify, investigate
        or inquire into the failure to receive any reports or financial
        statements of Lessee or any other Person; (vi) inspect any Property at
        any time or ascertain or inquire as to the performance or observance of
        any of the covenants of Lessee or any other Person under any Operative
        Agreement with respect to any Property; or (vii) manage, control, use,
        sell, dispose of or otherwise deal with any Property or any part thereof
        or any other part of the Trust Estate, except as provided in Section
        5.5.

               (b) The Owner Trustee, in the exercise or administration of the
        trusts and powers hereunder, including without limitation its
        obligations under Section 5.2, may, at

                                       11
<PAGE>   15

        the expense of Lessee, employ agents, attorneys, accountants, and
        auditors and enter into agreements with any of them and the Owner
        Trustee shall not be liable, either in its individual capacity or in its
        capacity as the Owner Trustee, for the default or misconduct of any such
        agents, attorneys, accountants or auditors if such agents, attorneys,
        accountants or auditors shall have been selected by it in good faith.

                                   ARTICLE VI

                                THE OWNER TRUSTEE

        SECTION 6.1   ACCEPTANCE OF TRUST AND DUTIES.

        The Owner Trustee accepts the trust and duties hereby created and agrees
to perform the same, but only upon the terms of this Trust Agreement. The Owner
Trustee agrees to receive, manage and disburse all moneys constituting part of
the Trust Estate actually received by it as the Owner Trustee in accordance with
the terms of this Trust Agreement. The Owner Trustee shall not be answerable or
accountable under any circumstances, except for (i) its own willful misconduct
or gross negligence, (ii) the inaccuracy of any of its representations or
warranties contained in Section 6.3 of this Trust Agreement or Section 6.1 of
the Participation Agreement, (iii) its failure to perform obligations expressly
undertaken by it in the last sentence of Section 5.4 of this Trust Agreement or
in Section 8.2(a) of the Participation Agreement, (iv) Taxes based on or
measured by any fees, commissions or compensation received by it for acting as
the Owner Trustee in connection with any of the transactions contemplated by the
Operative Agreements, or (v) its failure to use ordinary care to receive, manage
and disburse moneys actually received by it in accordance with the terms of the
Operative Agreements.

        SECTION 6.2   FURNISHING OF DOCUMENTS.

        The Owner Trustee will furnish to each Holder and to the Agent, promptly
upon receipt thereof, duplicates or copies of all reports, notices, requests,
demands, opinions, certificates, financial statements and any other instruments
or writings furnished to the Owner Trustee hereunder or under the Operative
Agreements, unless by the express terms of any Operative Agreement a copy of the
same is required to be furnished by some other Person directly to the Holders
and/or the Agent, or the Owner Trustee shall have determined that the same has
already been furnished to the Holders and the Agent.

        SECTION 6.3 NO REPRESENTATIONS OR WARRANTIES AS TO THE PROPERTIES OR
OPERATIVE AGREEMENTS.

        THE OWNER TRUSTEE MAKES (i) NO REPRESENTATION OR WARRANTY, EITHER
EXPRESS OR IMPLIED, AS TO THE TITLE, VALUE, 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 THE OWNER TRUSTEE SHALL

                                       12
<PAGE>   16

NOT BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREIN OR THE FAILURE OF
ANY PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY LEGAL REQUIREMENT except
that the Owner Trustee hereby represents, warrants and covenants to each Holder
that it will comply with the last sentence of Section 5.4, and (ii) no
representation or warranty as to the validity or enforceability of any Operative
Agreement or as to the correctness of any statement made by a Person other than
the Owner Trustee or the Owner Trustee contained in any thereof, except that the
Owner Trustee represents, warrants and covenants to each Holder that this Trust
Agreement has been and each of the other Operative Agreements which contemplates
execution thereof by the Owner Trustee has been or will be executed and
delivered by its officers who are, or will be, duly authorized to execute and
deliver documents on its behalf.

        SECTION 6.4   NO SEGREGATION OF MONEYS; NO INTEREST.

        Except as otherwise provided herein or in any of the other Operative
Agreements, moneys received by the Owner Trustee hereunder need not be
segregated in any manner except to the extent required by law, and may be
deposited under such general conditions as may be prescribed by law, and neither
Trust Company nor the Owner Trustee shall be liable for any interest thereon,
except as may be agreed to in writing by the Owner Trustee or the Trust Company.

        SECTION 6.5   RELIANCE; ADVICE OF COUNSEL.

        The Owner Trustee shall not incur any liability to any Person in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it in good faith to be signed by the proper party or
parties. The Owner Trustee may accept and rely upon a certified copy of a
resolution of the board of directors or other governing body of any corporate
party as conclusive evidence that such resolution has been duly adopted by such
body and that the same is in full force and effect. As to any fact or matter the
manner of ascertainment of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on an Officer's Certificate of
the relevant party, as to such fact or matter, and such certificate shall
constitute full protection to the Owner Trustee for any action taken or omitted
to be taken by it in good faith in reliance thereon. In the administration of
the trusts hereunder, the Owner Trustee may execute any of the trusts or powers
hereof and perform its powers and duties hereunder directly or through agents or
attorneys and may consult with counsel, accountants and other skilled Persons to
be selected and employed by it, and the Owner Trustee shall not be liable for
anything done, suffered or omitted in good faith by it in accordance with the
advice or opinion of any such counsel, accountants or other skilled Persons and
not contrary to this Trust Agreement.

        SECTION 6.6   LIABILITY WITH RESPECT TO DOCUMENTS.

        The Owner Trustee, either in its trust or individual capacities, shall
not incur any liability to any Person for or in respect of the recitals herein,
the validity or sufficiency of this Trust Agreement or for the due execution
hereof by each Holder or for the form, character, genuineness, sufficiency,
value or validity of any Property or for or in respect of the validity or

                                       13
<PAGE>   17

sufficiency of any of the Operative Agreements and the Owner Trustee, either in
its trust or individual capacities, shall in no event assume or incur any
liability, duty or obligation to any Person or to any Holder, other than as
expressly provided for herein or in any of the other Operative Agreements.

        SECTION 6.7   NOT ACTING IN INDIVIDUAL CAPACITY.

        All Persons having any claim against the Owner Trustee by reason of the
transactions contemplated by the Operative Agreements shall look only to the
Trust Estate (or a part thereof, as the case may be) for payment or satisfaction
thereof, except as specifically provided in this Article VI and except to the
extent that the Owner Trustee shall otherwise expressly agree in any Operative
Agreement to which it is a party, including without limitation Section 6.1
hereof and Section 8.2(a) of the Participation Agreement and the last sentence
of Section 5.4 hereof.

        SECTION 6.8   BOOKS AND RECORDS; TAX RETURNS.

               (a) The Owner Trustee shall be responsible for the keeping of all
        appropriate books and records relating to the receipt and disbursement
        of all moneys that it may receive hereunder, or under any other
        Operative Agreement. The Owner Trustee shall, at the expense of Lessee,
        file an application with the Internal Revenue Service for a taxpayer
        identification number with respect to the trust created hereby. The
        Owner Trustee shall, at the expense of Lessee, prepare or cause to be
        prepared and the Owner Trustee shall sign and/or file the federal
        fiduciary tax return with respect to Taxes due and payable by the trust
        created hereby in connection with the transactions contemplated hereby
        and by any other Operative Agreement. Each Holder shall furnish the
        Owner Trustee with all such information as may be reasonably required
        from such Holder (as such is requested in writing by the Owner Trustee)
        in connection with the preparation of such tax returns. The Owner
        Trustee shall keep copies of all returns delivered to or filed by it.

               (b) The Owner Trustee, either in its trust or individual
        capacities, shall be under no obligation to appear in, prosecute or
        defend any action, which in its opinion may require it to incur any
        out-of-pocket expense or any liability unless the Owner Trustee shall be
        furnished with such reasonable security and indemnity by Lessee (or, at
        the election of the Majority Secured Parties, by the Holders and the
        Lenders) against such expense or liability as it may require. The Owner
        Trustee may, but shall be under no duty to, undertake such action as it
        may deem necessary at any and all times, without any further action by
        the Agent or any Holder to protect one or more of the Properties and the
        rights and interests of the Holders pursuant to the terms of this Trust
        Agreement; provided, however, that the Owner Trustee may obtain
        reimbursement for the out-of-pocket expenses and costs of such actions,
        undertakings or proceedings from Lessee.

                                       14
<PAGE>   18

                                   ARTICLE VII

                      INDEMNIFICATION OF THE OWNER TRUSTEE

        SECTION 7.1   INDEMNIFICATION GENERALLY.

        The Owner Trustee is indemnified for matters related to the transactions
described herein by Lessee pursuant to and subject to the terms of Section 11 of
the Participation Agreement. Except as may be specifically provided from time to
time hereafter in writing by the Holders, the Owner Trustee shall not have any
right of indemnification from any Holder with respect to the transactions
described herein or in any of the other Operative Agreements.

        SECTION 7.2   COMPENSATION AND EXPENSES.

        Lessee has agreed to pay the fees and expenses of the Owner Trustee and
the Holder Unused Fees as provided in Sections 7.3 and 7.4, respectively, of the
Participation Agreement.

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

        SECTION 8.1   TERMINATION OF TRUST AGREEMENT.

        This Trust Agreement and the trusts created hereby shall terminate and
the Trust Estate shall, subject to the provisions of the Participation
Agreement, the other Operative Agreements and Article IV of this Trust
Agreement, be distributed pro rata to the Holders, and this Trust Agreement
shall be of no further force or effect, upon the earliest of (a) the joint
written request of the Majority Holders following the sale or other final
disposition by the Owner Trustee of all property constituting part of the Trust
Estate and the final distribution by the Owner Trustee of all moneys or other
property or proceeds constituting part of the Trust Estate in accordance with
the terms hereof; provided, however, that (except as provided for in the
Operative Agreements) the Trust Estate shall not be subject to sale or other
final disposition by the Owner Trustee prior to the payment in full and
discharge of the Loans and all other indebtedness secured by the Credit
Documents and the release of the Credit Documents and the Liens granted thereby
and the payment in full of the Holder Amount and Holder Yield thereon and all
other amounts owing to the Holders under any of the Operative Agreements and (b)
fifty (50) years after the date hereof.

        SECTION 8.2 TERMINATION AT OPTION OF THE HOLDERS.

        Notwithstanding Section 8.1, this Trust Agreement and the trusts created
hereby shall terminate and the Trust Estate shall be distributed pro rata to the
Holders, and this Trust Agreement shall be of no further force and effect, upon
the joint election of the Holders by notice to the Owner Trustee, if such notice
shall be accompanied by the written agreement of each Holder assuming all the
obligations of the Owner Trustee under or contemplated by the Operative
Agreements and all other obligations of the Owner Trustee incurred by it as
trustee

                                       15
<PAGE>   19

hereunder; provided, however, that each Holder agrees for the express benefit of
the Agent and the Lenders, that without the consent of the Majority Lenders, no
such election shall be effective until the Liens and security interests of the
Security Documents on the Collateral shall have been released and until full
payment of the principal of, and interest on the Loans and all other sums due to
the Lenders shall have been made. Such written agreement shall be reasonably
satisfactory in form and substance to the Owner Trustee and shall release the
Owner Trustee from all further obligations of the Owner Trustee hereunder and
under the agreements and other instruments mentioned in the preceding sentence.

        SECTION 8.3 TERMINATION AT OPTION OF THE OWNER TRUSTEE.

        At any time that the Lease shall no longer be in full force and effect
and the Agent shall have confirmed in writing to the Owner Trustee that the
Lenders have received payment in full of the principal of and interest on the
Loans and that all other sums due to the Agent and the Lenders under the
Operative Agreements shall have been made, then the Holders hereby authorize the
Owner Trustee to: (a) terminate this Trust Agreement and the trusts created
hereby and (b) distribute and convey the Trust Estate pro rata to the Holders by
executing the necessary transfer documents as contemplated by Section 8.4. The
exercise of such option by the Owner Trustee shall cause this Trust Agreement to
be of no further force and effect and shall release the Owner Trustee from all
further obligations of the Owner Trustee hereunder and under the agreements and
other instruments mentioned in the preceding sentence.

        SECTION 8.4   ACTIONS BY THE OWNER TRUSTEE UPON TERMINATION.

        Upon termination of this Trust Agreement and the trusts created hereby
pursuant to Sections 8.1, 8.2 or 8.3, the Owner Trustee shall upon notice of
such event take such action as may be necessary or as may be requested by the
Majority Holders to transfer the Trust Estate pro rata to the Holders, including
without limitation the execution of instruments of transfer or assignment with
respect to any of the Operative Agreements to which the Owner Trustee is a
party.

                                   ARTICLE IX

                   SUCCESSOR OWNER TRUSTEES, CO-OWNER TRUSTEES
                           AND SEPARATE OWNER TRUSTEES

        SECTION 9.1   RESIGNATION OF THE OWNER TRUSTEE; APPOINTMENT OF
        SUCCESSOR.

                      (a) The Owner Trustee may resign at any time without cause
        by giving at least thirty (30) days' prior written notice to each
        Holder, the Agent and Lessee; provided, however, that such resignation
        shall not be effective until the acceptance of appointment by a
        successor Owner Trustee under Section 9.1(b). The Owner Trustee may be
        removed with or without cause at any time by the Majority Holders upon
        consent to such removal by the Agent and with sixty (60) days' prior
        written notice to the Owner Trustee, a copy of which notice shall be
        concurrently delivered by the Majority Holders

                                       16
<PAGE>   20

        to the Agent and Lessee. Any such removal shall be effective upon the
        acceptance of appointment by a successor Owner Trustee under Section
        9.1(b). In case of the resignation or removal of the Owner Trustee, the
        Holders may appoint a successor Owner Trustee by an instrument signed by
        the Majority Holders; provided, however, that such successor Owner
        Trustee must be approved by the Agent. In the event the Owner Trustee
        shall be an individual, his death or incapacity, or termination of
        employment (whether voluntary or involuntary) with First Security Bank,
        National Association (or a successor corporate Owner Trustee) shall be
        treated as a resignation hereunder and shall be effective immediately.
        If a successor Owner Trustee shall not have been appointed within thirty
        (30) days after the giving of written notice of such resignation or the
        delivery of the written instrument with respect to such removal, the
        Owner Trustee or any Holder may apply to any court of competent
        jurisdiction to appoint a successor Owner Trustee to act until such
        time, if any, as a successor shall have been appointed and shall have
        accepted its appointment as above provided. Any successor Owner Trustee
        so appointed by such court shall immediately and without further act be
        superseded by any successor Owner Trustee appointed as above provided
        within one (1) year from the date of the appointment by such court.

               (b) Any successor Owner Trustee, however appointed, shall execute
        and deliver to the predecessor Owner Trustee an instrument accepting
        such appointment, and thereupon such successor Owner Trustee, without
        further act shall become vested with all the estates, properties,
        rights, powers, duties and trusts of the predecessor Owner Trustee in
        the trusts hereunder with like effect as if originally named an Owner
        Trustee herein; but nevertheless, upon the written request of such
        successor Owner Trustee such predecessor Owner Trustee shall execute and
        deliver an instrument transferring to such successor Owner Trustee, upon
        the trusts herein expressed, all the estates, properties, rights,
        powers, duties and trusts of such predecessor Owner Trustee, and such
        predecessor Owner Trustee shall duly assign, transfer, deliver and pay
        over to such successor Owner Trustee all moneys or other property then
        held by such predecessor Owner Trustee upon the trusts herein expressed.

               (c) Any successor Owner Trustee, however appointed, shall be a
        bank or trust company incorporated and doing business within the United
        States of America and having a combined capital and surplus of at least
        $50,000,000, if there be such an institution willing, able and legally
        qualified to perform the duties of the Owner Trustee hereunder upon
        reasonable or customary terms.

               (d) Any corporation into which the Owner Trustee may be merged or
        converted or with which it may be consolidated, or any corporation
        resulting from any merger, conversion or consolidation to which the
        Owner Trustee shall be a party, or any corporation to which
        substantially all the corporate trust business of the Owner Trustee may
        be transferred, shall, subject to the terms of Section 9.1(c), be the
        Owner Trustee under this Trust Agreement without further act.

                                       17
<PAGE>   21

        SECTION 9.2   CO-TRUSTEES AND SEPARATE TRUSTEES.

        Whenever (a) the Owner Trustee or the Majority Holders shall deem it
necessary or prudent in order to conform to any law of any jurisdiction in which
all or any part of the Trust Estate shall be situated or to which it may be
subject or to make any claim or bring any suit with respect to the Trust Estate
or any Operative Agreement, (b) the Owner Trustee shall be advised by counsel
satisfactory to it that it is so necessary or prudent, or (c) the Owner Trustee
shall have been directed to do so by the Majority Holders and the Agent, the
Owner Trustee and the Holders shall execute and deliver an agreement
supplemental hereto and all other instruments and agreements, and shall take all
other action, necessary or proper to constitute one or more Persons who need not
meet the requirements of Section 9.1(c) (and the Owner Trustee may appoint one
or more of its officers) either as co-trustee or co-trustees (the "Co-Owner
Trustee"), jointly with the Owner Trustee, of all or any part of the Trust
Estate, or as separate trustee or separate trustees of all or any part of the
Trust Estate, and to vest in such Persons, in such capacity, such title to the
Trust Estate or any part thereof and such rights or duties as may be necessary
or desirable, all for such period and under such terms and conditions as are
satisfactory to the Owner Trustee and the Holders. In accordance with the
foregoing:

               (i) The Owner Trustee shall appoint a Co-Owner Trustee hereunder
        in part so that if, under any present or future law of any state where
        any Property is located or of any jurisdiction in which it may be
        necessary to perform any act in carrying out the trusts herein created,
        the Owner Trustee or any of its successors may be incompetent or
        unqualified or incapacitated or unwilling to perform certain acts as
        such Owner Trustee, then upon the written request of the Owner Trustee
        of any of its successors received by any Co-Owner Trustee, all of such
        acts required to be performed in such jurisdiction in the execution of
        the trust hereby created, shall and will be performed by any Co-Owner
        Trustee, or any of his successors, in trust acting alone, as if he or
        such successor had been specifically authorized so to do or had been the
        sole Owner Trustee hereunder. Any Co-Owner Trustee shall continue to
        perform such acts until otherwise directed in writing by the Owner
        Trustee or any of its successors. Any request in writing by the Owner
        Trustee or any of its successors to the Co-Owner Trustee shall be
        sufficient warrant for him to take such action as may be so requested.

               (ii) Except as it may be deemed necessary for any Co-Owner
        Trustee or any of his successors solely or jointly to execute the trusts
        herein created, the Owner Trustee or any of its successors shall solely
        have and exercise the powers, and shall be solely charged with the
        performance of the duties, hereinbefore declared on the part of the
        Owner Trustee to be had, exercised and performed; and any Co-Owner
        Trustee shall not be liable therefor. Any Co-Owner Trustee or any
        successor to him may delegate to the Owner Trustee or its successor
        hereunder the exercise of any power, discretion or otherwise, conferred
        by any provision of this Trust Agreement.

               (iii) Any act of the Owner Trustee herein required or authorized
        shall and will be jointly or separately performed by the Owner Trustee
        or its successors hereunder and by any Co-Owner Trustee or any of his
        successors appointed hereunder, if such joint performance or separate
        performance shall be necessary to the legality of such act and

                                       18
<PAGE>   22

        when so acting all references herein to "First Security Bank, National
        Association" shall be deemed to be references to such Co-Owner Trustee
        in its individual capacity and all references to "Owner Trustee" shall
        be deemed to be references to any Co-Owner Trustee, and such Co-Owner
        Trustee shall be entitled to all the protection, indemnification,
        immunity and compensation herein provided to the Owner Trustee acting
        singly in reference to such acts (subject to the limitations to such a
        protection, indemnification, immunity and compensation set forth
        herein).

               (iv) The Owner Trustee or its successor in trust shall have and
        is hereby given the power at any time by an instrument in writing duly
        executed by a Vice President, to remove any Co-Owner Trustee or his
        successor, from his position as Co-Owner Trustee hereunder. In the case
        of death, resignation, removal, incapacity or inability to act hereunder
        of the Co-Owner Trustee, or his successor as Co-Owner Trustee, any adult
        citizen of the United States of America may be appointed Co-Owner
        Trustee hereunder by the person who shall at the time be a Vice
        President of the corporation then acting as the Owner Trustee hereunder
        by an instrument in writing duly executed, and under its corporate seal,
        and, subject to its right to revoke such appointment or to appoint
        another person, the Owner Trustee shall appoint a successor Co-Owner
        Trustee, such appointment to be immediately effective in case of the
        death, resignation, removal or inability or incapacity to act hereunder
        of the Co-Owner Trustee. In the event a vacancy occurs in the office of
        the Co-Owner Trustee, either by reason of resignation, removal,
        incapacity or inability to act and no successor is appointed pursuant to
        the foregoing provisions within thirty (30) days after such vacancy
        occurs, the Holders and the Agent may jointly appoint a successor to the
        Co-Owner Trustee in the same manner as is provided for the appointment
        of a successor to the Co-Owner Trustee hereunder.

               (v) At any time or times, for the purposes of meeting the legal
        requirements of any jurisdiction in which any part of the Trust Estate
        hereunder may at the time be located, or to avoid any violation of law
        or imposition of taxes not otherwise imposed on the Owner Trustee, or if
        the Owner Trustee shall deem it desirable for its own protection, the
        Owner Trustee shall have power to appoint one or more persons (who may
        be officers of the Owner Trustee either to act as an additional
        co-trustee, jointly with the Owner Trustee) of all or any part of the
        Trust Estate hereunder, or of any property constituting part thereof, or
        to act as separate trustee of any part of the Trust Estate in either
        case with such powers as may be provided in the instrument of
        appointment and are consistent with the terms hereof, and to vest in
        such person or persons in the capacity as aforesaid, any property,
        title, right or power deemed necessary or desirable, subject to the
        remaining provisions of this Section 9.2.

               (vi) Notwithstanding any provision of this Trust Agreement to the
        contrary, any additional co-trustee shall act upon and be subject to the
        following terms and conditions:

                        All rights, powers, duties and obligations conferred or
                imposed upon the Owner Trustee shall be conferred or imposed
                solely upon and solely exercised and performed by the Owner
                Trustee except to the extent that under any law of

                                       19
<PAGE>   23

                any jurisdiction in which any particular act or acts are to be
                performed the Owner Trustee or the Owner Trustee shall be
                incompetent or unqualified to perform such act or acts or to
                avoid any violation of law or imposition of taxes not otherwise
                imposed on the Owner Trustee, or if the Owner Trustee shall deem
                it desirable for its own protection, in which event such rights,
                powers, duties and obligations shall be exercised and performed
                by such co-trustee or Co-Owner Trustee.

               (vii) No power granted by this Trust Agreement to, or which this
        Trust Agreement provides may be exercised by, the Owner Trustee in
        respect of the custody, control and management of moneys may be
        exercised by any Co-Owner Trustee or any subsequently appointed
        co-trustee except jointly with, or with the consent in writing of, the
        Owner Trustee for disbursement or application in accordance with the
        terms hereof.

               (viii) All moneys which may be received or collected by any
        Co-Owner Trustee or such subsequently appointed co-trustees shall be
        paid over to the Owner Trustee to be distributed in accordance with this
        Trust Agreement and the other Operative Agreements.

               (ix) Any Co-Owner Trustee, or any subsequently appointed
        co-trustee to the extent permitted by law, does hereby constitute the
        Owner Trustee or its successors hereunder his or her agent or attorney
        in fact, with full power and authority to do any and all acts and things
        and exercise any and all discretion authorized or permitted by the
        Co-Owner Trustee or such subsequently appointed co-trustee, in its
        behalf or in its name.

               (x) No trustee hereunder shall be personally liable by reason of
        any act or omission of any other trustee hereunder.

        SECTION 9.3   NOTICE.

        At all times that a successor Owner Trustee is appointed pursuant to
Section 9.1, an Owner Trustee resigns pursuant to Section 9.1 or the Co-Owner
Trustee, a co-trustee or separate trustee, is appointed pursuant to Section 9.2,
the Holders shall give joint notice of such fact within thirty (30) days of its
occurrence to (x) Lessee, if the Lease is then in effect and (y) the Agent, if
the Credit Agreement is in effect.

                                    ARTICLE X

                                   AMENDMENTS

        SECTION 10.1  AMENDMENTS.

        This Trust Agreement may be terminated, amended, supplemented, waived or
modified in accordance with Section 12.4 of the Participation Agreement.

                                       20
<PAGE>   24

        SECTION 10.2  LIMITATION ON AMENDMENTS.

        Notwithstanding Section 10.1, the Owner Trustee shall not, without the
consent of the Agent execute any amendment that might result in the trusts
created hereunder being terminated prior to the satisfaction and discharge of
the Lien and security interest of the Security Documents on the Collateral or
prior to the payment in full of the principal of, and interest on the Loans and
other than in accordance with the terms of the Credit Agreement.

                                   ARTICLE XI

                                  MISCELLANEOUS

        SECTION 11.1  NO LEGAL TITLE TO TRUST ESTATE IN THE HOLDERS.

        The Holders shall not have legal title to any part of the Trust Estate;
provided, however, that each Holder has a pro rata beneficial interest in the
Trust Estate. No transfer, by operation of law or otherwise, of any right, title
or interest of a Holder in and to the Trust Estate or hereunder shall operate to
terminate this Trust Agreement or the Trust or the trusts hereunder or entitle
any successor or transferee to an accounting or to the transfer to it of legal
title to any part of the Trust Estate.

        SECTION 11.2 SALE OF A PROPERTY BY THE OWNER TRUSTEE IS BINDING.

        Any sale, transfer, or other conveyance of any Property or any part
thereof by the Owner Trustee made pursuant to the terms of this Trust Agreement
or any other Operative Agreement shall bind the Holders and shall be effective
to sell, transfer and convey all right, title and interest of the Owner Trustee
and the Holders in and to such Property or any part thereof. No purchaser or
other grantee shall be required to inquire as to the authorization, necessity,
expediency or regularity of such sale or conveyance or as to the application of
any sale or other proceeds with respect thereto by the Owner Trustee.

        SECTION 11.3  LIMITATIONS ON RIGHTS OF OTHERS.

        Nothing in this Trust Agreement whether express or implied, shall be
construed to give to any Person, other than the Owner Trustee and each Holder,
any legal or equitable right, remedy or claim under or in respect of this Trust
Agreement, any covenants, conditions or provisions contained herein or in the
Trust Estate; but this Trust Agreement shall be held for the sole and exclusive
benefit of the Owner Trustee and the Holders. The Agent shall have the right to
enforce the provisions of Sections 5.1, 5.2, 5.3, 5.4, 6.2, 6.8, 8.1, 8.2, 8.3,
9.1, 9.2, 9.3, 10.1 and 10.2 prior to the payment in full of the principal of
and interest on the Loans and such other amounts due and payable to the Lenders
or the Agent under the Operative Agreements.

                                       21
<PAGE>   25

        SECTION 11.4  NOTICES.

        Unless otherwise expressly specified or permitted by the terms hereof,
all notices hereunder shall be given as provided in Section 12.2 of the
Participation Agreement.

        SECTION 11.5  SEVERABILITY.

        Any provision of this Trust Agreement that may be determined by
competent authority to be 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 unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        SECTION 11.6  LIMITATION ON THE HOLDERS' LIABILITY.

        No Holder shall have any liability for the performance of this Trust
Agreement except as expressly set forth herein.

        SECTION 11.7  SEPARATE COUNTERPARTS.

        This Trust Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same
instrument.

        SECTION 11.8  SUCCESSORS AND ASSIGNS.

               (a) All covenants and agreements contained herein shall be
        binding upon, and inure to the benefit of, Trust Company, the Owner
        Trustee and its successors and assigns and each Holder and its
        successors and assigns, all as herein provided. Any request, notice,
        direction, consent, waiver or other instrument or action by a Holder
        shall bind the successors and assigns of such Holder.

               (b) Any Holder may transfer or assign all or any portion of its
        right, title and interest in the Trust Estate, this Trust Agreement and
        the Certificate of such Holder in accordance with the requirements of
        Section 10.1 of the Participation Agreement and pursuant to an
        assignment agreement in substantially the form of Exhibit B, which
        assignment agreement shall provide, without limitation, that the
        assignee undertakes and assumes all obligations and covenants of a
        Holder under this Trust Agreement and the other Operative Agreements.
        The Holder proposing the transfer or assignment shall notify the Owner
        Trustee, the Agent and Lessee in writing of the effective date of the
        transfer or assignment, which effective date shall be at least three (3)
        Business Days after the date of such notification. The Owner Trustee
        shall maintain a register showing the Holders and their respective
        interests in the Trust Estate and, upon the occurrence of a permitted
        assignment pursuant to this Section 11.8(b), shall issue a Certificate
        to the assignee and, if the assigning Holder is maintaining an interest
        hereunder, a new Certificate to such assigning Holder representing its
        revised interest in the Trust Estate.

                                       22
<PAGE>   26

        Any such Certificate issued upon any such registration of an assignment
        shall be the valid obligation of the Trust and shall be entitled to the
        same security and benefits under this Trust Agreement as such
        surrendered Certificate. The Owner Trustee shall not recognize any
        purported assignment or transfer by a Holder that does not comply with
        the terms of this Section 11.8 and any such attempted transfer or
        assignment by a Holder in violation of the terms of this Section 11.8
        shall be null and void and of no effect.

        SECTION 11.9  HEADINGS.

        The headings of the various articles and sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

        SECTION 11.10 GOVERNING LAW.

        THIS TRUST AGREEMENT HAS BEEN DELIVERED IN, AND SHALL IN ALL RESPECTS BE
GOVERNED BY AND CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE
INTERNAL LAWS OF, THE STATE OF UTAH (WITHOUT GIVING EFFECT TO THE PRINCIPLES
THEREOF RELATING TO CONFLICTS OF LAW).

        SECTION 11.11 PERFORMANCE BY THE HOLDERS.

        Any obligation of the Owner Trustee hereunder or under any Operative
Agreement or other document contemplated herein may be performed by the Holders
(or by one of them with the written consent of the other) and any such
performance shall not be construed as a revocation of the trusts created hereby.

        SECTION 11.12 CONFLICT WITH OPERATIVE AGREEMENTS.

        If this Trust Agreement (or any instructions given by a Holder pursuant
hereto) shall require that any action be taken with respect to any matter and
any other Operative Agreement (or any instructions duly given in accordance with
the terms thereof) shall require that a different action be taken with respect
to such matter, and such actions shall be mutually exclusive, the provisions of
such other Operative Agreement, in respect thereof, shall control.

        SECTION 11.13 NO IMPLIED WAIVER.

        No term or provision of this Trust Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing entered
into as provided in Section 10.1; and any such waiver of the term hereof shall
be effective only in the specific instance and for the specific purpose given.

        SECTION 11.14 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.

                                       23
<PAGE>   27

        SECTION 11.15 CERTAIN RIGHTS OF LESSEE.

        It is acknowledged and agreed by the parties hereto that, pursuant to
Section 9.2 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
Owner Trustee and the Trust, under this Agreement.

                            [signature pages follow]

                                       24
<PAGE>   28

        IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement
to be duly executed by their respective officers hereunto duly authorized, as of
the date set forth above.

                                 OWNER TRUSTEE:

                                 FIRST SECURITY BANK, NATIONAL ASSOCIATION

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

                          (Storage Centers Trust 2001)

<PAGE>   29

                                    HOLDERS:

                                    BANK OF AMERICA, N.A.

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

<PAGE>   30

                                            BANK HAPOALIM B.M., as a Holder

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

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

<PAGE>   31

                                            THE BANK OF NOVA SCOTIA, as a Holder

                                            By:       /s/ PATRIK G. NORRIS
                                               --------------------------------
                                            Name:     Patrik G. Norris
                                                 ------------------------------
                                            Title:    Director
                                                  -----------------------------
<PAGE>   32

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

                                      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>   33

                                     KEYBANK NATIONAL ASSOCIATION, as a Holder

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

<PAGE>   34

                                    SUNTRUST BANK, as a Holder

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

<PAGE>   35

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

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

<PAGE>   36

                                    WASHINGTON MUTUAL BANK, as a Holder

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

<PAGE>   37

                                            FLEET NATIONAL BANK, as a Holder

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

<PAGE>   38

                               LASALLE BANK, NATIONAL ASSOCIATION, as a Holder

                               By:       /s/ KLAY SCHMEISSER
                                  ---------------------------------------
                               Name:     Klay Schmeisser
                                    -------------------------------------
                               Title:    Vice President
                                     ------------------------------------

<PAGE>   39

                                   SCHEDULE I

                               HOLDER COMMITMENTS

                                   [redacted]

                                  Schedule I-1<PAGE>   1
                                                                   EXHIBIT 10.34

================================================================================

                              AMENDED AND RESTATED

                       LIMITED LIABILITY COMPANY AGREEMENT

                                       OF

                            CCP/SHURGARD VENTURE, LLC

                                     BETWEEN

                          SHURGARD DEVELOPMENT IV, INC.

                                       AND

                               CCPRE-STORAGE, LLC

                                DECEMBER 26, 2000

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>

<S>                                                                                         <C>

Article I GENERAL PROVISIONS...............................................................  2
   1.1  Restatement and Continuation.......................................................  2
   1.2  Name...............................................................................  2
   1.3  Principal Place of Business; Registered Office and Agent...........................  2
   1.4  Formation of Company; Certificate..................................................  2
   1.5  Term...............................................................................  2
   1.6  Purpose............................................................................  3
   1.7  Title to Company Property..........................................................  3
   1.8  Publicity..........................................................................  3
   1.9  Confidentiality....................................................................  3
   1.10 Failure to Observe Formalities.....................................................  4
   1.11 Liability of Members to Third Parties..............................................  4
   1.12 Reliance by Third Parties..........................................................  4
   1.13 Operative Date.....................................................................  4
   1.14 Single Purpose Entity..............................................................  5

Article II CAPITAL CONTRIBUTIONS; PROFITS AND LOSSES.......................................  5
   2.1  Anticipated Capital Requirements...................................................  5
   2.2  Capital Contributions..............................................................  5
   2.3  Capital Accounts...................................................................  6
   2.4  Allocation of Net Income and Losses................................................  7
   2.5  Allocations of Income and Loss for Federal Income Tax Purposes; Curative Tax
        Allocations........................................................................  8
   2.6  Tax Status and Returns.............................................................  9

Article III CASH DISTRIBUTIONS.............................................................  9
   3.1  Distributions of Net Cash Flow From Operations.....................................  9
   3.2  Distributions of Net Cash Flow From Capital Transactions........................... 10
   3.3  Excess Tax Payment................................................................. 10

Article IV CONTRIBUTION OF PROPERTIES...................................................... 11
   4.1  Identification of Properties to Be Contributed..................................... 11
   4.2  Closing of Property Contributions.................................................. 11

Article V MANAGEMENT AND OPERATION......................................................... 12
   5.1  Management......................................................................... 12
   5.2  Annual Budget...................................................................... 12
   5.3  Engagement of Property Manager..................................................... 13
   5.4  Management Decisions............................................................... 13
   5.5  Company Expenses................................................................... 15
   5.6  Liability of Members; Indemnification.............................................. 16

Article VI OTHER AGREEMENTS OF THE MEMBERS................................................. 17
   6.1  No Restrictions on Competitive Business Activities................................. 17
   6.2  Exclusivity........................................................................ 17

</TABLE>

                                      -i-

<PAGE>   3

<TABLE>
<S>                                                                                         <C>
   6.3  Shurgard Notice.................................................................... 17
   6.4  Credit Facility.................................................................... 18

Article VII SALE AGREEMENT AND LIMITED GUARANTY............................................ 18
   7.1  Exercise of Sale Right............................................................. 18
   7.2  Sale Exercise Period............................................................... 18
   7.3  Shurgard Failure to Purchase....................................................... 18
   7.4  Limited Guaranty................................................................... 20

Article VIII SALE, ASSIGNMENT OR TRANSFER OF COMPANY INTEREST.............................. 20
   8.1  Prohibited Transfers............................................................... 20
   8.2  Permitted Transfers................................................................ 20
   8.3  Other Transfers.................................................................... 21

Article IX TERM, DISSOLUTION AND TERMINATION,  VOLUNTARY WITHDRAWAL AND DEFAULT............ 21
   9.1  Term and Dissolution............................................................... 21
   9.2  Termination and Distributions...................................................... 23
   9.3  Distribution Upon Liquidation...................................................... 23
   9.4  Clawback Obligations of Shurgard Return of Capital................................. 24
   9.5  Prohibition Against Withdrawal and Voluntary Withdrawal............................ 24
   9.6  Default............................................................................ 24

Article X BOOKS, RECORDS AND BANK ACCOUNTS................................................. 26
   10.1 Books and Records.................................................................. 26
   10.2 Reports............................................................................ 26
   10.3 Fiscal Year........................................................................ 28
   10.4 Bank Accounts...................................................................... 28

Article XI REPRESENTATIONS AND WARRANTIES.................................................. 29
   11.1 Representations and Warranties by Each Member...................................... 29
   11.2 Shurgard's Representations and Warranties.......................................... 29
   11.3 Chase's Representations and Warranties............................................. 29

Article XII MISCELLANEOUS.................................................................. 30
   12.1 Notices............................................................................ 30
   12.2 Successors and Assigns............................................................. 31
   12.3 Entire Agreement; Amendments....................................................... 31
   12.4 No Waiver.......................................................................... 31
   12.5 Foreign Status..................................................................... 31
   12.6 Captions........................................................................... 31
   12.7 Counterparts....................................................................... 31
   12.8 Applicable Law..................................................................... 32
   12.9 Affiliate.......................................................................... 32
   12.10  Covenant of Good Faith........................................................... 32
   12.11  Severability..................................................................... 32
   12.12  No In Kind Distributions......................................................... 32

</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>
<S>                                                                                         <C>
   12.13  Required Amendments.............................................................. 32
   12.14  Regulatory Matters............................................................... 32

</TABLE>

EXHIBIT A  PRO FORMA STATEMENT
EXHIBIT B  PROPERTIES
EXHIBIT C  FORM OF CONTRIBUTION AGREEMENT
EXHIBIT D  FORM OF MANAGEMENT AGREEMENT
EXHIBIT E  IDENTIFIED PROPERTIES AND RADIUS OF RELEVANT TRADE AREA
EXHIBIT F  EXISTING JOINT VENTURES
EXHIBIT G  INVESTMENT CRITERIA
EXHIBIT H  CREDIT FACILITY COMMITMENT LETTER
EXHIBIT I  FORM OF PURCHASE AND SALE AGREEMENT
EXHIBIT J  FORM OF GUARANTY
EXHIBIT K  FORM OF MONTHLY FINANCIAL OPERATING SUMMARY
EXHIBIT L  REGULATORY SIDELETTER
EXHIBIT M  DATES OF ISSUANCE OF CERTIFICATES OF OCCUPANCY

                                     -iii-

<PAGE>   5

                                                      This AMENDED AND RESTATED
                                            LIMITED LIABILITY COMPANY AGREEMENT
                                            (this "Agreement") of CCP/SHURGARD
                                            VENTURE, LLC (the "Company") is made
                                            and entered into as of December 26,
                                            2000 (the "Effective Date") by and
                                            between SHURGARD DEVELOPMENT IV,
                                            INC., a Washington corporation
                                            ("Shurgard"), and CCPRE - STORAGE,
                                            LLC, a Delaware limited liability
                                            company ("Chase"). Shurgard and
                                            Chase may each be referred to herein
                                            individually as a "Member" and
                                            collectively as the "Members."

                                    RECITALS

        A.     Shurgard is a wholly owned subsidiary of Shurgard Storage
Centers, Inc., a Washington corporation ("SSCI"), and Chase is a wholly owned
subsidiary of Chase Capital Investments, L.P., a Delaware limited partnership.

        B.     SSCI is a developer and manager of real estate with extensive
experience related to locating, purchasing, developing, leasing, financing and
selling facilities used principally for self-service storage property and with
extensive experience in operating such facilities and providing equipment and
services related thereto.

        C.     The Company was formed to acquire self-service storage properties
developed, or to be developed, by SSCI and to operate such properties pursuant
to the terms of that certain Limited Liability Company Agreement, entered into
by and between Shurgard and Chase, dated as of May 12, 2000 (the "Original LLC
Agreement") and pursuant to that certain Certificate (as defined below) filed
with the Secretary of State of the state of Delaware, with Shurgard and Chase as
Members of the Company.

        D.     The Original LLC Agreement was amended by that certain First
Amendment to Limited Liability Company Agreement dated as of June 21, 2000 and
was further amended by that certain Second Amendment to Limited Liability
Company Agreement dated as of August, 2000.

        E.     Shurgard and Chase desire to amend and restate, in its entirety,
the Original LLC Agreement, as amended.

        NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the Members hereby agree as follows (certain capitalized terms used
herein shall have the meanings set forth in Annex A attached hereto):

<PAGE>   6

                                   ARTICLE I

                               GENERAL PROVISIONS

1.1     RESTATEMENT AND CONTINUATION

        Shurgard and Chase, constituting all of the Members of the Company,
hereby amend and restate, in its entirety, the Original LLC Agreement, as
amended and continue the Company under the Act.

1.2     NAME

        The name of the Company shall be "CCP/Shurgard Venture, LLC." All
business of the Company shall be conducted under such name and under such
variations thereof as the Members deem necessary or appropriate to comply with
the requirements of law in any jurisdiction in which the Company may elect to do
business.

1.3     PRINCIPAL PLACE OF BUSINESS; REGISTERED OFFICE AND AGENT

          (a) The principal place of business of the Company will be located in
the same place as Shurgard's principal place of business, as the same may change
from time to time. The Members may at any time and from time to time, change the
location of the Company's principal place of business to a location other than
Shurgard's principal place of business. The Board shall take all actions
required under the laws of the states in which the Company carries on business
or owns its properties to qualify the Company to so carry on its business, or
own its properties and enforce its contracts as is contemplated hereby.

          (b) The registered office of the Company in the state of Delaware is
located at Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware
19801. The registered agent of the Company to accept service of process at that
address is Corporation Trust Center.

1.4     FORMATION OF COMPANY; CERTIFICATE

        The Members have formed the Company under and pursuant to the Act by
filing the Certificate of Formation for the Company (the "Certificate") with the
Secretary of State of the state of Delaware on April 27, 2000. The Company shall
exist under and be governed by, and this Agreement shall be construed in
accordance with, the Act and other applicable laws of the state of Delaware. The
Members shall make all filings and disclosures required by, and shall otherwise
comply with, all such laws. Each Member hereby acknowledges, adopts, confirms
and ratifies the form, terms and provisions of the Certificate and the filing
thereof with the Secretary of State of the state of Delaware.

1.5     TERM

        The term of the Company commenced upon the filing of the Certificate
with the Secretary of State of the state of Delaware and shall continue until
terminated in accordance with Article IX.

                                      -2-

<PAGE>   7

1.6     PURPOSE

          (a) The business of the Company shall be to operate certain newly
constructed self-service storage facilities contributed by Shurgard for use by
members of the public (including corporate entities), to sell and lease personal
property, including vehicles, storage containers and other property, used or
useful to the users of such facilities in connection with such storage
(including the hauling of property to and from such facilities), to engage in
any and all general business activities not inconsistent with the operation of
such facilities and to sell such self-service storage facilities. In furtherance
of the Company's purpose and subject to the limitations set forth in this
Agreement, the Company shall have the power to enter into and perform contracts,
to own, mortgage, pledge or otherwise deal in property, real or personal, to
exercise all rights, powers, and privileges and other incidents of ownership
with respect to assets or investments, to borrow money and issue notes, drafts
and bills of exchange, to lend any of its assets or funds, and to carry on any
other activities necessary to, in connection with or incidental to, the
foregoing.

          (b) The investment objective of the Members is the long-term
appreciation in the value of the Properties and the provision by the Company of
monthly distributions, beginning at such time as there is sufficient cash from
operations to make such distributions after satisfaction of the Company's
working capital requirements.

1.7     TITLE TO COMPANY PROPERTY

        All property owned by the Company whether real or personal, tangible or
intangible, shall be the property of the Company as an entity, and no Member,
individually, shall have any ownership interest in any such property.

1.8     PUBLICITY

        Neither the Company nor any Member may issue any public statement or
press release regarding the Company or its business without the prior consent of
all Members, except as required by law or any competent governmental authority
(provided that in the event of any such required disclosure, the disclosing
Member or the Company shall give the other Members advance notice of such
disclosure).

1.9     CONFIDENTIALITY

          (a) Each Member agrees: (i) to take all reasonable precautions and to
use commercially reasonable efforts to maintain the confidentiality of all
Confidential Information (as defined below) that such Member (the "Recipient")
obtains in respect to any other Member or the Company (the "Disclosing Party");
and (ii) not to use or disclose such Confidential Information to any third
parties other than with the written approval of the Disclosing Party or as
permitted by Section 1.9(b). For purposes of this Section 1.9, "Confidential
Information" means all proprietary or confidential information owned or provided
by a Disclosing Party other than information that (A) was previously known to
the Recipient or any of its Affiliates (other than from a Disclosing Party or an
Affiliate thereof), or (B) is available or, without the fault of the Recipient
or any of its Affiliates (other than the Company), becomes available to the
general public, or (C) is lawfully received by the Recipient from a third party
that, to the Recipient's

                                      -3-

<PAGE>   8

knowledge, is not bound by any similar obligation of confidentiality. The
disclosure of Confidential Information shall not constitute any grant of license
or any other rights nor generate any business arrangements unless specifically
set forth herein or in another agreement. The obligations of Recipients under
this Section 1.9 shall remain in effect until the fifth anniversary after the
termination of this Agreement.

          (b) A Recipient may disclose Confidential Information to appropriate
regulatory authorities, attorneys, accountants and pursuant to any order of a
court, administrative agency or other governmental authority and may take any
lawful action that it deems necessary to protect its interests or the interests
of its Affiliates under, or to enforce compliance with the terms and conditions
of, this Agreement.

1.10    FAILURE TO OBSERVE FORMALITIES

        A failure to observe any formalities or requirements of this Agreement,
the Certificate or the Act shall not be grounds for imposing personal liability
on the Members for the liabilities of the Company.

1.11    LIABILITY OF MEMBERS TO THIRD PARTIES

        Except as otherwise provided in the Act, no Member or Managing Member
shall be personally liable for any debt, obligation or liability of the Company
solely by reason of being a Member or Managing Member of the Company.

1.12    RELIANCE BY THIRD PARTIES

        This Agreement is entered into between the Members for the exclusive
benefit of the Company, the Members, and their successors and permitted assigns.
This Agreement is not intended for the benefit of any creditor of the Company or
any other person. Except to the extent provided by applicable statute and as set
forth in this Agreement, and then only to that extent, no creditor or third
party shall have any rights under this Agreement or under any other agreement
between the Company and any Member with respect to any contribution to the
Company or otherwise.

1.13    OPERATIVE DATE

        If the Operative Date has not occurred on or before December 29, 2000
then either Member shall be entitled to unilaterally terminate this Agreement by
notice to the other and dissolve the Company in accordance with Section 9.1(a)
hereof. If, before the Operative Date Shurgard and Chase are not able to proceed
with the transactions contemplated hereby because of the willful default of
either Shurgard or Chase, then the defaulting party will be responsible to
reimburse the non-defaulting party for all costs (including reasonable attorneys
fees, accounting fees and other third party fees) incurred in connection with
the performance of due diligence, the obtaining of appraisals, the preparation
of agreements, instruments and other documents in connection with the
transactions contemplated hereby, by the other Transaction Documents, and by the
Credit Facility, and otherwise in connection with the consummation of such
transactions. Notwithstanding the foregoing, the non-defaulting party shall have
the right to seek all available legal and equitable remedies from the defaulting
party, including specific performance.

                                      -4-

<PAGE>   9

        Before the Operative Date, the activities of the Company shall be
limited to the negotiation of the Credit Facility and performing administrative
functions, such as applying for business licenses and qualifications,
establishing bank accounts, and the performance of such other activities as the
Members may mutually agree. Unless the Members otherwise mutually agree, neither
Member shall have any obligation to make capital contributions prior to the
Operative Date. All costs of the Company incurred before the Operative Date
relating to its formation will be allocated between the Members based on their
proportionate capital contribution, not to exceed $5,000.00.

1.14    SINGLE PURPOSE ENTITY

        The Company shall at all times be a Single Purpose Entity.

                                   ARTICLE II

                    CAPITAL CONTRIBUTIONS; PROFITS AND LOSSES

2.1     ANTICIPATED CAPITAL REQUIREMENTS

          (a) The total capital needs of the Company to fund the development,
operation (including operating losses), maintenance and sale of self-service
storage facilities of the Company and the administration of the Company's
business and affairs are estimated to total approximately $111,000,000. Of the
Company's total capital needs, 40% are to be funded through capital
contributions of the Members as provided in Section 2.2. Any remaining amounts
of the Company's capital needs will be funded through the Credit Facility such
that of the Company's total estimated capital needs, the capital contributions
of the Members and the Credit Facility will be 40% and 60%, respectively. The
Credit Facility will be secured by a first priority security interest in the
Properties.

2.2     CAPITAL CONTRIBUTIONS

          (a) Subject to Section 2.2(c), the Members will make capital
contributions to fund 40% of the Company's total capital needs in proportion to
their Percentage Interests. Any and all capital contributions made by Chase and
Shurgard shall be made in cash, except the contribution of a portion of each
Property by Shurgard as provided in the Contribution Agreement (as defined
below). All capital contributions shall be made from time to time pursuant to an
Annual Budget (with it being understood that the initial budget shall be set
forth in the pro forma statement attached hereto as Exhibit A, which pro forma
will be updated as properties are contributed to the Company [the "Pro Forma"])
as funds are needed by the Company to fund operations and acquisitions of
Property and requested by the Managing Member in accordance with the procedures
described below.

          (b) Shurgard shall contribute the Properties listed on Exhibit B
attached hereto to the Company pursuant to the terms of the Contribution
Agreement in substantially the form attached hereto as Exhibit C and to be dated
as of the Operative Date, among Shurgard, Chase, SSCI, Shurgard Texas Limited
Partnership, SSC Evergreen and the Company (the "Contribution Agreement") and
Article IV of this Agreement. To effect such contributions, Shurgard may direct
that title to such properties be transferred directly from SSCI to the Company;
provided,

                                      -5-

<PAGE>   10

however, that for purposes of this Agreement, Shurgard shall be treated as
having made any such contribution directly.

          (c) No Member shall be required to contribute any capital to the
Company prior to the execution of documentation evidencing the availability of
no less than $67,700,000 pursuant to the Credit Facility. The maximum amount of
capital contributions that Chase and Shurgard (net of any reimbursements
received by Shurgard pursuant to Section 4.2) shall make to the Company pursuant
to this Agreement are $36,107,000 and $9,026,000, respectively. If additional
capital is required, the Members shall mutually agree as to the source of such
capital, giving consideration to the availability of third-party loans, loans
from the Members, and additional capital contributions.

          (d) Chase and Shurgard shall make capital contributions upon 10
Business Days' written notice from the Managing Member of the need for such
funds, which notice shall be consistent with the applicable Annual Budget, and
shall contain such additional documentation, explanation and certification as
Chase may reasonably require.

          (e) The Company shall use its best efforts to operate the Properties
in accordance with the Pro Forma or the applicable Annual Budgets, as the case
may be. The Members hereby acknowledge and agree that the Pro Forma and the
Annual Budgets have been and will be prepared for planning purposes and to
permit the Members to monitor the costs and the success of the Company's
operations. Except as provided in Section 7.4, neither Shurgard nor any
Affiliate thereof has, however, guaranteed that the Properties will perform as
favorably as budgeted in the applicable Annual Budget.

          (f) No interest shall accrue on any contribution to the capital of the
Company. No Member shall have the right to withdraw, or to be repaid, any
capital contributed by it, except as specifically provided in this Agreement.

          (g) Except as set forth in this Article II and Article IV, no Member
has any obligation to make any capital contributions or to extend any loans to
the Company.

2.3     CAPITAL ACCOUNTS

          (a) There shall be established for each Member on the books of the
Company a "Capital Account," which shall be maintained and adjusted as provided
in this Section 2.3. The Capital Account of a Member shall be initially credited
by the amount of cash and the fair market value of any property contributed by
such Member to the Company (net of any liabilities secured by such property that
the Company is considered to assume or take subject to Section 752 of the
Internal Revenue Code of 1986, as amended (the "Code"), or any reimbursements
due such Member pursuant to the Contribution Agreement). For purposes of the
foregoing sentence, the parties agree that the fair market value of each
Property contributed by Shurgard pursuant to Article IV shall be such Property's
Contribution Value plus the Cost Overrun, if any. The Capital Account of a
Member shall be further increased by any additional capital contributions to the
Company and the amount of Net Profits (or items of gross income or gain)
allocated to such Member pursuant to Section 2.4. The Capital Account of a
Member shall be decreased by (i) the amount of any Net Losses (or items of loss
or deduction) allocated to such Member pursuant to

                                      -6-

<PAGE>   11

Section 2.4, (ii) the amount of any cash distributed to such Member pursuant to
Article III, and (iii) the fair market value of any property distributed to such
Member by the Company (net of any liabilities secured by such property that the
Member is considered to assume or take subject to under Section 752 of the
Code). The Capital Account of each Member shall be adjusted appropriately to
reflect any other adjustment required pursuant to Treasury Regulations Section
1.704-1 or 1.704-2.

          (b) Upon the occurrence of any event specified in Treasury Regulations
Section 1.704-1(b)(2)(iv)(f), the Company may cause the Capital Accounts of the
Members to be adjusted to reflect the fair market value of the Company's assets
at such time in accordance with such Treasury Regulation.

          (c) If any assets of the Company are distributed in kind pursuant to
this Agreement, the amount of Net Profits or Net Losses that would have been
realized had such assets been sold at their fair market value, as determined by
the Members, shall be allocated to the Members pursuant to Section 2.4
immediately prior to such distribution.

          (d) If any interest in the Company is transferred in accordance with
the terms of this Agreement, the transferee shall succeed to the Capital Account
of the transferor to the extent it relates to the transferred interest.

2.4     ALLOCATION OF NET INCOME AND LOSSES

          (a) Subject to Section 2.4(c), the Net Income of the Company from
Capital Transactions for each taxable year shall, after giving effect to all
Capital Account adjustments attributable to contributions and distributions
(other than liquidating distributions) made during such year, be allocated among
the Members as follows:

              (i) first, to the Members, if any, with negative MG Capital
        Account balances in an amount up to such Members' aggregate negative MG
        Capital Account balances, in proportion to their respective negative MG
        Capital Account balances;

              (ii) second, to the Members in the amounts and proportions
        necessary to cause their respective MG Capital Account balances (as
        adjusted to reflect any allocations of tax items for such year pursuant
        to Section 2.4(c)) to equal their respective Target Amounts as of the
        end of such year; and

              (iii) third, to the Members in accordance with their respective
        Percentage Interests.

          (b) Subject to Section 2.4(c), the Net Losses of the Company from
Capital Transactions for each taxable year shall, after giving effect to all
Capital Account adjustments attributable to contributions and distributions
(other than liquidating distributions) made during such year, be allocated among
the Members as follows:

              (i) first, to the Members with MG Capital Account balances (as
        adjusted to reflect any allocations of tax items for such year pursuant
        to Section 2.4(c)) in excess of their respective Target Amounts, to the
        extent of and in proportion to excess amounts;

                                      -7-

<PAGE>   12

              (ii) second, to the Members with positive Capital Account balances
        (as adjusted to reflect any allocations of tax items for such year
        pursuant to Section 2.4(c)) pro rata to the extent of their respective
        Capital Account balances; and

              (iii) third, to the Members in accordance with their respective
        Percentage Interests.

          (c) The Net Income and Net Losses of the Company other than from
Capital Transactions shall be allocated to the Members pro rata, based on their
respective Percentage Interests.

          (d) Notwithstanding Sections 2.4(a), 2.4(b) and 2.4(c), special
allocations of Net Income, Net Loss or specific items of income, gain, loss or
deduction may be required for any taxable year as follows:

              (i) The Company shall allocate items of Company income and gain
        among the Members at such times and in such amounts as necessary to
        satisfy the minimum gain chargeback requirements of Treasury Regulation
        Sections 1.704-2(f) and 1.704-2(i) (4).

              (ii) Any deductions attributable to any "partner nonrecourse debt"
        (as defined in Treasury Regulation Section 1.704-2(b) (4)) shall be
        allocated among the Members that bear the economic risk of loss for such
        liability in accordance with the ratios in which such Members share such
        economic risk of loss and in a manner consistent with the requirements
        of Treasury Regulation Sections 1.704-2(c), 1.704-2(i) (2) and 1.704-2
        (j) (1) .

              (iii) The Company shall specially allocate Net Loss and items of
        income and gain when and to the extent required to satisfy the
        "qualified income offset" requirement within the meaning of Treasury
        Regulation Section 1.704-1(b) (2) (ii) (d).

2.5     ALLOCATIONS OF INCOME AND LOSS FOR FEDERAL INCOME TAX PURPOSES; CURATIVE
        TAX ALLOCATIONS

          (a) The Company's ordinary income and losses and capital gains and
losses as determined for federal income tax purposes (and each item of income,
gain, loss or deduction entering into the computation thereof) shall be
allocated to the Members in the same proportions as the corresponding "book"
items are allocated pursuant to Section 2.4. Notwithstanding the foregoing
sentence, federal income tax items relating to any "Section 704(c) Property" (as
defined in Treasury Regulations Section 1.704-3(a)(3)) shall be allocated among
the Members in accordance with Section 704(c) of the Code and Treasury
Regulations Section 1.704-1(b)(2)(iv)(g) to take into account the difference
between the fair market value and the tax basis of such Section 704(c) Property
as of the date of contribution (with respect to contributed property having book
value differing from tax basis) or its revaluation pursuant to Section 2.3(b)
(in the case of revalued property). Items described in this Section 2.5 shall
neither be credited nor charged to the Members' Capital Accounts.

          (b) In the event the adjusted tax basis of a Property contributed by
Shurgard to the Company pursuant to Article IV differs from its Contribution
Value, solely for income tax

                                      -8-

<PAGE>   13

purposes, allocations of income, gain, loss and deduction attributable to such
Property shall be specially allocated among the Members so as to take into
account such difference in a manner consistent with the principles of Section
704(c) of the Code so that the aggregate allocations of taxable income or loss
allocated to each Member (other than Shurgard) for any fiscal year of the
Company is, to the greatest extent possible, equal to the amount of taxable
income or loss each would have been allocated had the tax basis of such Property
been equal to its Contribution Value.

2.6     TAX STATUS AND RETURNS

          (a) It is the express intention of the Members that the Company be
classified as a partnership for federal income taxation and not as an
association taxable as a corporation. No Member or Manager shall take any action
inconsistent with such treatment. It is the further intention of the Members
that this Agreement be interpreted and applied accordingly.

          (b) The Company shall prepare or cause to be prepared by the principal
certified public accountant for the Company not later than thirty (30) days
prior to the date of the required filing thereof (including extensions) all tax
returns and statements, if any, that must be filed on behalf of the Company with
any taxing authority, and shall submit such returns and statements to all the
Members for their approval prior to filing, and when approved by the Members, or
when due, if necessary, without approval, make timely filing thereof. Shurgard
shall provide preliminary tax information with respect to the Company's
immediately preceding taxable year (which will be based on unaudited financial
information) to Chase not later than forty-five (45) days prior to the required
filing date of the Company's tax returns (without extensions).

          (c) Shurgard shall act as the "tax matters partner" of the Company
within the meaning of Section 6231(a)(7) of the Code and in any similar capacity
under applicable state or local tax law. Shurgard shall keep the other Members
fully informed and consult with them regarding matters for which it is
responsible while acting in such capacity. All expenses incurred by Shurgard
while acting in such capacity shall be paid or reimbursed by the Company.
Notwithstanding the foregoing, Shurgard shall not have the authority to make
elections or settle any tax-related disputes with respect to the Company without
the prior written agreement of Chase.

                                  ARTICLE III

                               CASH DISTRIBUTIONS

3.1     DISTRIBUTIONS OF NET CASH FLOW FROM OPERATIONS

          (a) Within 30 days after the end of each month, the Company shall
review the financial results of the fiscal period to determine if there is any
Net Cash Flow From Operations available for distribution to the Members. Before
making any distributions to the Members, the Company shall repay Company
borrowings, pursuant to the terms of such borrowings (including loans made by
the Members), then due and payable, and shall set aside such cash as may be
necessary to cover the other liabilities and expenses, working capital and
reserves that the Company deems reasonably required for the proper operation of
the business of the Company.

                                      -9-

<PAGE>   14

          (b) Except as provided in Section 3.2 with respect to distributions of
Net Cash Flow From Capital Transactions and as provided in Section 9.3 with
respect to distributions upon liquidation of the Company, the Company shall make
quarterly distributions of Net Cash Flow From Operations as follows:

              (i) first, to Chase until the cumulative amount distributed to
        Chase pursuant to this Section 3.1(b)(i) and Section 3.2(a) equals the
        Equity Deficit of Chase; and

              (ii) thereafter, between the Members in proportion to their
        respective Percentage Interests.

3.2     DISTRIBUTIONS OF NET CASH FLOW FROM CAPITAL TRANSACTIONS

        The Company shall distribute Net Cash Flow From Capital Transactions
within three (3) business days' receipt thereof unless otherwise agreed upon by
both of the Members. Any retained Net Cash Flow From Capital Transactions may,
upon the unanimous consent of the Members, be reinvested by the Company in
additional Property investments consistent with the Annual Budget or as
otherwise approved by both Members. Subject to Section 7.3, all distributions of
Net Cash Flow From Capital Transactions, other than upon liquidation of the
Company, shall be made between the Members in the following order and priority:

          (a) First, to Chase until the cumulative amount distributed to Chase
pursuant to this Section 3.2(a) and Section 3.1(b)(i) equals the Equity Deficit
of Chase immediately prior to the applicable Capital Transaction;

          (b) Second, for so long as the Investment Return of Chase, taking into
account all current and prior distributions pursuant to Section 3.1 and this
Section 3.2, is less than 12%, between the Members in proportion to their
Percentage Interest;

          (c) Third, for so long as the Investment Return of Chase, taking into
account all current and prior distributions pursuant to Sections 3.1 and 3.2, is
less than 18% but greater than or equal to 12%, (i) 66.4% to Chase and (ii)
33.6% to Shurgard; and

          (d) Fourth, for so long as the Investment Return of Chase, taking into
account all current and prior distributions pursuant to Sections 3.1 and 3.2, is
greater than or equal to 18%, (i) 62.4% to Chase and (ii) 37.6% to Shurgard.

3.3     EXCESS TAX PAYMENT

        If Chase is allocated Net Income or items of gross income or gain in
excess of the amount of Net Income or items of gross income or gain that would
be allocated to Chase if all allocations were made pro rata based on Percentage
Interests, or Chase is advised by its tax advisors that it is required to
recognize income or gain as a result of a capital shift upon execution of this
Agreement (either such amount, the "Excess Tax Amount"), then the Company shall
promptly (and in no event later than 15 days after such allocation or advice)
make a distribution to Chase equal to the product of .5 multiplied by the Excess
Tax Amount (such amount being the "Excess Tax Distribution"). Notwithstanding
anything contained herein to the contrary, the Excess Tax

                                      -10-

<PAGE>   15

Distribution shall not be included in determining Chase's Investment Return or
Equity Deficit. Any amounts distributed pursuant to this Section 3.3 will be
applied against the amount otherwise distributed to Chase pursuant to Section
3.1(b)(ii) and Section 3.2(b).

                                   ARTICLE IV

                           CONTRIBUTION OF PROPERTIES

4.1     IDENTIFICATION OF PROPERTIES TO BE CONTRIBUTED

          (a) On the Operative Date, but in no event later than December 29,
2000, Shurgard will cause each Property listed on Exhibit B annexed hereto to be
contributed to the Company in accordance with the terms and conditions of the
Contribution Agreement.

          (b) Notwithstanding the foregoing, with the express consent of Chase
and the Lender, Shurgard shall be permitted, in order to facilitate the
construction of the Property and minimize transfer costs associated with the
contribution of the Property to the Company, to contribute title to a Property,
on or about the Operative Date, or thereafter, to the Company (or if required by
Chase or the Lender under the Credit Facility, to a limited liability company
owned in the same proportion and by the same members as the Company) prior to
completion of construction of the Property or prior to the issuance of a
permanent certificate of occupancy for any such Property, provided, however,
that Shurgard agrees to indemnify Chase for any cost or liability that may arise
from the contribution of a Property to the Company or such limited liability
company before construction is complete; provided further, however, that
Shurgard shall pay any additional accounting and legal fees that may be
associated with such early contribution, to the extent such early contribution
only benefits Shurgard. After completion of construction of such Property, any
such limited liability company shall be merged with and into the Company.

4.2     CLOSING OF PROPERTY CONTRIBUTIONS

        In connection with the closing of Shurgard's contribution of each
Property to the Company pursuant to the terms of the Contribution Agreement, the
Company shall reimburse Shurgard as provided in the Contribution Agreement, with
reimbursement funded through the Credit Facility and capital contributions by
Chase and Shurgard in proportion to the funding percentages described in
Sections 2.1(a) and 2.2 hereof. For example, if Shurgard contributes a Property
having a Contribution Value of $1,000,000, the Company shall reimburse Shurgard
for $920,000 funded with $600,000 through the Credit Facility (60% of the
Contribution Value) and $320,000 from Chase capital contributions (80% of the
Contribution Value remaining after reimbursement from the Credit Facility).
Shurgard's capital account would accordingly be credited for $80,000 (reflecting
20% of such remaining Contribution Value).

                                      -11-

<PAGE>   16

                                   ARTICLE V

                            MANAGEMENT AND OPERATION

5.1     MANAGEMENT

          (a) The business and affairs of the Company shall be managed by the
managing member (the "Managing Member").

          (b) The initial Managing Member shall be Shurgard.

          (c) Chase may remove Shurgard as the Managing Member and become the
Managing Member of the Company, by giving notice to Shurgard upon (a) Shurgard
becoming a Defaulting Member pursuant to Section 9.6 of this Agreement, (b) a
Change of Control, (c) any act of gross negligence, fraud or willful misconduct
of Shurgard, (d) Shurgard becoming the subject of a Bankruptcy or (e) the
default by the Company of any material obligation of the Company under any
contract or loan agreement beyond any applicable notice or cure periods, which
default is under Shurgard's control; provided, however, this clause will not
apply to any default that is being contested in good faith and for which
adequate reserves have been established on the books of the Company.
Notwithstanding anything in this Agreement to the contrary, in the event of the
replacement of Shurgard as the Managing Member hereunder by Chase, Shurgard
shall no longer possess any of the rights or duties of the Managing Member and
such rights and duties shall be then deemed transferred to Chase.

          (d) Subject to limitations and restrictions set forth in Section 5.4,
the Managing Member shall have the sole and exclusive right to independently
manage the day-to-day business of the Company. The signature of the Managing
Member designated pursuant to this Agreement shall be sufficient to bind the
Company to any agreement or on any document or instrument. Any person dealing
with the Company may rely upon a certificate signed by the Managing Member as to
(a) the identity of any Member, (b) any fact relevant to the Company, and (c)
the due authority of persons purporting to act on behalf of the Company.

5.2     ANNUAL BUDGET

          (a) The Managing Member shall prepare or cause to be prepared and
submit to Chase annually, for Chase's approval, an operating budget and/or a
capital improvement budget and leasing and operating plan with respect to each
Property individually, and all of the Properties in the aggregate for the
next-succeeding fiscal year (the "Annual Budget"). The Annual Budget shall be
submitted to Chase at least 30 days prior to the beginning of such fiscal year.
The operating budget shall set forth the projected income and receipts from each
Property for such next succeeding fiscal year and the operating costs to be
incurred during such fiscal year, including all costs associated with leasing
activities, such operating costs to be set forth in reasonable detail with each
category of income and expense listed on a separate line. The capital
improvement budget shall set forth in reasonable detail a description of all
capital improvements, repairs, replacements and alterations in respect of which
the Managing Member proposes to incur capital costs during the next-succeeding
fiscal year and the estimated cost of each thereof, with each such improvement,
repair, replacement or alteration to be listed on a separate line. The

                                      -12-

<PAGE>   17

leasing and operating plan shall set forth in reasonable detail a description of
all expected leasing activities, and a plan of operation of each Property for
the following fiscal year. Within a reasonable time after receipt of the
proposed Annual Budget, Chase shall approve or disapprove all or any part of the
Annual Budget. The Managing Member may propose changes to the Annual Budget in
response to the items disapproved by Chase.

          (b) If the Managing Member is unable to provide Chase with an
acceptable Annual Budget for any fiscal year then the last Annual Budget that
was approved by Chase shall continue to be effective until Chase approves a new
Annual Budget.

5.3     ENGAGEMENT OF PROPERTY MANAGER

        On or prior to the Operative Date, the Company shall engage SSCI to act
as property manager (the "Property Manager") of the Properties acquired by the
Company, on the terms set forth in a Management Services Agreement (the
"Management Agreement"), substantially in the form attached hereto as Exhibit D.
Pursuant to the Management Agreement and as more fully described therein,
Shurgard will cause SSCI to prepare for presentation to the Members as provided
in Section 5.2 an Annual Budget.

5.4     MANAGEMENT DECISIONS

          (a) Subject to, and without limiting, the delegation of authority to
SSCI under the Management Agreement, all decisions pertaining to the business,
affairs and operations of the Company must be approved by each Member.

          (b) Except as otherwise expressly contemplated by this Agreement, no
action may be taken by either Member, nor may the Property Manager be given the
authority to take any action in the name and/or on behalf of the Company, with
respect to any matter that is a Major Decision unless the Major Decision is
approved by both Members; provided, however, that items (i), (ii) and (iii) of
this Section 5.4(b) shall only require the unilateral approval of Chase. The
following are "Major Decisions":

              (i) Approving the Annual Budget;

              (ii) Entering into any amendment to the Management Agreement or
        permitting the manager under the Management Agreement to do any act that
        represents a material departure from the Management Agreement or
        terminating the Property Manager under the Management Agreement after an
        event of default thereunder;

              (iii) Making any amendment to any Annual Budget previously
        approved by the Members;

              (iv) Except for insured claims (including those settled within the
        deductible or self-insured retention), compromising, settling or
        adjusting claims, liabilities or causes of action of or against the
        Company or a Property;

              (v) Purchasing any real property other than as specifically
        contemplated and identified by the capital budget;

                                      -13-

<PAGE>   18

              (vi) Selling, exchanging or mortgaging a Property or any interest
        in a Property, or any other assets of a Property, except as specifically
        set forth in an Annual Budget;

              (vii) Incurring any indebtedness of the Company, including
        entering into senior financing agreements (other than the Credit
        Facility), or causing the Company to become liable as an endorser,
        guarantor, surety or otherwise for any debt obligation or undertaking of
        any other Person, except for Company endorsements for deposit or
        collection of checks, drafts and similar instruments received by the
        Company in the ordinary course of business;

              (viii) Causing or permitting the Company to grant any lien,
        mortgage, pledge or hypothecate Company assets to secure any
        indebtedness for borrowed money of the Company or prepaying any
        indebtedness of the Company;

              (ix) The making of any loan;

              (x) Merging or consolidating with, or acquisition of any equity
        interest in, any corporation, limited liability company, partnership,
        association or other business organization;

              (xi) Entering into material agreements with an annual value in
        excess of $50,000 that is not in the ordinary course of business;

              (xii) Admitting any additional Members to the Company (other than
        pursuant to a permitted transfer);

              (xiii) The issuance of any equity securities or causing the
        Company to invest in or become a member, participant, venturer or
        shareholder, in any other company, venture, corporation, business,
        enterprise or the like;

              (xiv) Taking any action that would have a material adverse impact
        upon the viability of allocations of Net Profits and Net Losses under
        Section 704(b) of the Code;

              (xv) Taking any action that would be an Event of Bankruptcy;

              (xvi) Filing or revoking any election or otherwise causing the
        Company to be characterized other than as a Company for federal, state,
        local or other tax purposes;

              (xvii) With respect to each Property owned by the Company, causing
        the Company to perform any services or enter into any lease or other
        contract that would cause any or all of the gross income received by the
        Company attributable to such Property to be treated as other than "rents
        from real property" as defined in Section 856(d) of the Code;

              (xviii) Performing any act that would adversely affect the
        qualification of SSCI as a real estate investment trust pursuant to
        Sections 856-860 of the Code;

                                      -14-

<PAGE>   19

              (xix) Approving the Company's attorneys and certified public
        accountants.

              (xx) Any changes or modifications to this Agreement;

              (xxi) Liquidation of the Company;

              (xxii) The making of any distributions other than as provided by
        Sections 3.1 and 3.2;

              (xxiii) The setting aside of reserves for the Company whether from
        Capital Transactions or otherwise; or

              (xxiv) Any commitment, agreement or understanding to do any of the
        foregoing.

          (c) For so long as SSCI or any Affiliate of SSCI is Property Manager,
any Company decisions, including, without limitation, Major Decisions, with
respect solely to the Management Agreement shall be made unilaterally by Chase.

          (d) Action on all Major Decisions submitted to the Members for
approval in accordance with Section 5.4(a) shall be taken by the Members as soon
as reasonably practicable, and in any event within 15 days of the date such
Major Decision was submitted for approval, except with respect to the Major
Decisions described in Sections 5.4(b) (ii), (iv) and (xxiv), as to which action
shall be taken within 5 business days of the date such Major Decision was
submitted for approval if a Member does not approve such Major Decision within
the time period set forth above, such Major Decision shall not be approved.

          (e) With respect to all Company decisions other than Major Decisions,
any such matter will be deemed disapproved within 5 Business Days after it is
submitted to a Member for approval, unless prior to the expiration of such
period, such Member in writing indicates its approval or requests further
information reasonably necessary to make such decision.

          (f) The written approval by a Member of a proposed Annual Budget shall
constitute for all purposes that Member's written consent to each specific item
expressly set forth in such Annual Budget.

5.5     COMPANY EXPENSES

          (a) The Company shall pay and be responsible for all reasonable costs
and expenses incurred by or on behalf of the Company. To the extent practicable,
all Company expenses shall be billed directly to and paid by the Company. If,
however, acting within the scope of such Member's authority as granted by this
Agreement, a Member should incur any of those expenses, the Company shall
promptly reimburse such Member for such expenses upon receipt of satisfactory
evidence of such payment.

          (b) By way of illustration, and not in limitation upon the scope of
Section 5.8(a), the Company shall pay the following costs and expenses:

                                      -15-

<PAGE>   20

              (i) All state and local filing or similar expenses incurred by the
        Members in connection with the formation of the Company;

              (ii) All costs and expenses incurred by or on behalf of SSCI in
        accordance with the Management Agreement that are allocable to and are
        to be borne by the Company pursuant to the terms of the Management
        Agreement; and

              (iii) The actual out-of-pocket expenses incurred by a Member for
        goods, materials and services used for or by the Company (provided any
        such services performed by a Member must be approved in advance to be
        eligible for reimbursement).

          (c) Except as expressly provided for herein or in the Management
Agreement or as hereafter approved by the Members, no payment will be made to
any Member for the services of such Member or of any member, director, officer
or employee of such Member rendered in connection with the business or affairs
of the Company.

5.6     LIABILITY OF MEMBERS; INDEMNIFICATION

        The Company shall (to an extent not in excess of the net assets of the
Company, without additional contribution or loan by any Member) indemnify and
hold harmless each Member and each partner, member or shareholder of any Member
and each of their respective officers and directors and the successors, heirs,
executors and administrators of each of them and each member of the Board
(herein "Indemnified Parties"), from and against any loss, expense, damage or
injury suffered or sustained by such Indemnified Party by reason of any act,
omission or alleged act or omission arising in connection with the business of
the Company, including, but not limited to, any judgment, fine, penalty, award,
settlement, reasonable attorneys' fees and other costs or expenses incurred in
connection with the defense or prosecution of any actual or threatened action,
suit, proceeding, appeal, investigation or claim, be it civil, criminal,
administrative, legislative or other, or any appeal relating thereto that is
brought or threatened by any person, entity, governmental authority or
instrumentality, provided that the act, omission or alleged act or omission upon
which such actual or threatened action, suit, proceeding, investigation or claim
is based (a) is within the scope of authority granted to such person pursuant to
the terms of this Agreement, (b) was performed or omitted in good faith in what
the Indemnified Party reasonably believed to be in the best interests of the
Company and (c) was not performed fraudulently or as a result of gross
negligence or willful malfeasance by such Indemnified Party. The Company shall
advance to any Indemnified Party its expenses incurred in connection with such
defense or prosecution so long as net assets of the Company are available
therefor, neither the Company nor any Member has any reason to believe the
Indemnified Party is not in fact entitled to indemnification pursuant to this
Section 5.6 and the Indemnified Party agrees in writing to return the funds so
advanced if it is subsequently determined that such Indemnified Party was not
entitled to indemnification hereunder. To the extent that an Indemnified Party
has been successful on the merits in defense of any such proceeding or in
defense of any claim or matter therein, it shall be deemed that the applicable
criteria established in clauses (a) and (b) have been satisfied. The
indemnification provided hereunder shall not be deemed exclusive of any other
rights to which the Indemnified Parties may be entitled under any applicable
statute, agreement, vote of the Members or otherwise.

                                      -16-

<PAGE>   21

                                   ARTICLE VI

                         OTHER AGREEMENTS OF THE MEMBERS

6.1     NO RESTRICTIONS ON COMPETITIVE BUSINESS ACTIVITIES

          (a) Except as expressly provided in Sections 6.1(b) and 6.2, each
Member and its Affiliates shall be free to engage in any and all business
activities whatsoever, including activities that compete with the Company's
business.

          (b) Notwithstanding the foregoing paragraph (a), SSCI and Shurgard
hereby agree that, during the term of this Agreement, they shall not, nor shall
they approve any action by an Affiliate of SSCI and/or Shurgard to, own an
economic interest in, operate, or otherwise participate in the management of any
self-service storage facilities within a three mile radius of the Trade Area of
any Property, which radius shall be reduced with respect to those properties
identified on Exhibit E.

6.2     EXCLUSIVITY

        Shurgard and SSCI agree that, except as otherwise provided in Section
4.1 and this Section 6.2, the Company will be the sole entity through which
either SSCI or Shurgard may develop self-service storage facilities or
properties during the term of this Agreement or until such time as the Members'
capital commitments have been fully funded. This exclusivity agreement, however,
shall not apply to (i) any existing development joint ventures listed on Exhibit
F attached hereto or (ii) self-service storage facility development joint
ventures that Shurgard or SSCI may enter into with regional development partners
similar to those development joint ventures currently in existence in Orlando,
Florida, Nashville, Tennessee and Orange County, California that fit the
criteria set forth on Exhibit G attached hereto; provided, that Shurgard and/or
SSCI shall, within 10 days of executing definitive documentation for any joint
venture during the term of this Agreement, provide written notice, including a
reasonable description of such joint venture, to Chase. This exclusivity
provision shall not apply to any development properties for which Shurgard
and/or SSCI have provided Chase with investment criteria and all reasonably
requested due diligence materials, if available, and in which Chase, after
having the exclusive opportunity to invest on materially similar terms and for
no less than 15 Business Days, elects not to invest. If Chase declines to invest
in three development transactions that are consistent with the investment
criteria set forth in this Agreement, the exclusivity provisions of this Section
6.2 shall terminate.

6.3     SHURGARD NOTICE

        In the event that Shurgard, SSCI, or any Affiliate of Shurgard and/or
SSCI acquires an economic interest in, manages, or enters into bona fide
negotiations to acquire an economic interest in or manage any property within a
three mile radius (which radius shall be reduced with respect to those
Properties identified on Exhibit E) of any Property, SSCI and/or Shurgard shall,
within 5 days, give Chase written notice of such relationship or negotiations.
Any such notice shall describe, in reasonable details, the nature of SSCI or
Shurgard's economic interests in and obligations to, including, without
limitation, management of, such property.

                                      -17-

<PAGE>   22

6.4     CREDIT FACILITY

        The Company shall obtain permanent senior financing from General
Electric Capital Corporation ("GECC") for no less than $67,700,000 on terms that
are substantially in accordance with the terms set forth in that certain
commitment letter issued by GECC, dated as of November 15, 2000, and annexed
hereto as Exhibit H (the "Credit Facility"). In the event that the closing of
the Credit Facility does not occur on or before December 29, 2000, then Chase
shall be entitled to unilaterally terminate this Agreement by notice to Shurgard
and dissolve the Company in accordance with Section 9.1(a) hereof.

                                  ARTICLE VII

                       SALE AGREEMENT AND LIMITED GUARANTY

7.1     EXERCISE OF SALE RIGHT

        Chase shall have the right, but not the obligation, to cause the Company
to sell to Shurgard and to require Shurgard to purchase from the Company any or
all of the Properties at the respective Sales Price of each such Property (the
"Sale Right") from and after the thirty-first month following the issuance of a
temporary certificate of occupancy for any such Property, as set forth on
Exhibit M annexed hereto.

        In order to exercise a Sale Right, Chase shall provide Shurgard with
written notice (a "Sale Notice") stating that Chase is exercising its Sale Right
and specifying the particular parcel of Property that is the subject of the Sale
Notice (the "Sale Property"). The Company shall execute a purchase and sale
agreement (the "Purchase Agreement") in the form of the agreement attached
hereto as Exhibit I for each such Sale Property and deliver it to Shurgard
together with the Sale Notice.

7.2     SALE EXERCISE PERIOD

        Upon receipt of a Sale Notice from Chase, SSCI or Shurgard shall execute
the Purchase Agreement and deliver it to Chase no later than six (6) months
after the date of the Sale Notice together with a firm financing commitment,
satisfactory to Chase, from a third party institutional lender ("Purchase
Financing Commitment") and shall thereafter have ten (10) months from the date
of the Sale Notice to consummate the purchase of the Sale Property.

7.3     SHURGARD FAILURE TO PURCHASE

        Notwithstanding anything in Section 9.6 to the contrary, if SSCI or
Shurgard fails to deliver the executed Purchase Agreement and Purchase Financing
Commitment to Chase within six (6) months of the date of the Sale Notice or, if
after SSCI or Shurgard delivers the executed Purchase Agreement and Purchase
Financing Commitment within six (6) months of the date of the Sale Notice, SSCI
or Shurgard fails to purchase the Sale Property within ten (10) months of the
date of the Sale Notice:

          (a) Chase shall have the right, without the need to obtain the consent
of Shurgard, to: (i) sell the Sale Property to a third party without any further
obligation to Shurgard with

                                      -18-

<PAGE>   23

respect to such Property; or (ii) sell the Property and liquidate the Company
with all distributions arising therefrom being based upon the Adjusted
Percentage Interest of each Member; or (iii) sell its Adjusted Percentage
Interest, cause Shurgard to sell its Adjusted Percentage Interest and distribute
the proceeds of such sale pursuant solely to Sections 3.2(a) and (b) and without
regard to Sections 3.2(c) and (d) (a sale pursuant to clause (ii) or (iii) shall
hereinafter be referred to as a "Default Sale"); provided, however, that Chase
shall not sell any Property nor cause Shurgard to sell its Adjusted Percentage
Interest in the Company, pursuant to clauses (ii) or (iii) above, unless and
until Shurgard fails to purchase a Sale Property with respect to Properties in
which Chase's aggregate allocable portion of capital invested in such Properties
equals or exceeds $10 million.

          (b) If Shurgard fails to purchase the Sale Property and Chase
exercises its right to sell the subject Sale Property, at the time the Sale
Property is sold, Shurgard shall be subject to a reduction in its Percentage
Interest equal to the quotient of (i) twice the amount that Chase would have
received had Shurgard consummated the purchase of the Sale Property and the
Company distributed the proceeds of such sale to the Members according to their
Percentage Interest, less (x) the actual amount (if any) that the Company
distributed to Chase from the sale of the Sale Property and (y) the amount of
any Shurgard forfeited distributions (described below) , over (ii) Shurgard's
Invested Capital. For purposes of this Section 7.3, the Percentage Interest of
each Member after adjustment provided for in this subparagraph shall be referred
to as the "Adjusted Percentage Interest". If Shurgard fails to purchase the Sale
Property, the Company shall not make any distributions to Shurgard with respect
to, (x) the Sale Property that Shurgard failed to purchase until such Property
is sold, and (y) all Property until such time as the Company has distributed the
equivalent of the Sale Price for that Sale Property that Shurgard failed to
purchase to Chase. Once Chase has received the equivalent of the Sale Price with
respect to the Sale Property that Shurgard failed to purchase, the Company shall
make all further distributions to the Members solely in accordance with Section
3.2(a) and (b) and without regard to Section 3.2(c) and (d).

          (c) If Chase elects to cause a Default Sale, Shurgard shall consent to
and raise no objections against such Default Sale, and if the Default Sale is
structured as (i) a merger or consolidation of the Company, or a sale of all or
substantially all of the Company's assets, Shurgard shall, and hereby agrees to,
waive any dissenters' rights, appraisal rights or similar rights in connection
with such merger, consolidation or asset sale, or (ii) a sale of each Member's
Adjusted Percentage Interest, Shurgard shall, and hereby agrees to, sell its
Adjusted Percentage Interest on the terms and conditions approved by Chase and
in each such instance shall, and hereby agrees to, waive any claims Shurgard may
have against the Members, including Chase in connection with such Default Sale.
All Members shall take all necessary and desirable actions approved by Chase, in
connection with the consummation of the Default Sale, including the execution of
such agreements and such instruments and other actions reasonably necessary to
(1) provide the representations, warranties, indemnities, covenants, conditions,
escrow agreements and other provisions and agreements relating to such Default
Sale and (2) effectuate the allocation and distribution of the aggregate
consideration upon the Default Sale as if it were a liquidating distribution.

          (d) Upon the occurrence of Shurgard's failure to purchase a Sale
Property and until the earlier of the consummation of a Default Sale or the date
that Chase receives the

                                      -19-

<PAGE>   24

equivalent of the Sale Price with respect to the Sale Property that Shurgard
failed to purchase, neither Shurgard nor its designated Manager shall be
entitled to vote on any matters for which Member approval is required under the
terms of this Agreement, including, without limitation, all Major Decisions.

7.4     LIMITED GUARANTY

        For purposes of calculating the Sale Price under Section 7.1, Shurgard
guaranties that the Sale Price for the Helotes Property and the East Washington
Property (each as identified on Exhibit B attached hereto) shall be $3,421,000
and $3,601,000, respectively. If such Sale Price is not realized by the Company
upon a sale of such Properties, Shurgard will pay to Chase such amounts as Chase
would have received if such Sale Price were realized and such payment made to
Chase and shall not be treated as a contribution of capital pursuant to this
Agreement. To the extent that actual Net Operating Income exceeds the original
pro forma Net Operating Income used to establish the price for these properties
then the excess Net Operating Income as reflected in the Pro Forma will be
distributed to Shurgard. In connection with this Article VII and Section 9.4,
the Members will sign, on the Operative Date, the Guarantee Agreement in
substantially the form attached hereto as Exhibit J.

                                  ARTICLE VIII

                SALE, ASSIGNMENT OR TRANSFER OF COMPANY INTEREST

8.1     PROHIBITED TRANSFERS

        Except as specifically permitted in this Article VIII, no Member may
transfer, pledge, encumber, or grant a lien or security interest in, or make a
gift of (any such transaction being generically referred to as a "Transfer") all
or any part of its interest in the Company or in its rights to profits, losses
or cash distributions of the Company, either as an owner or a creditor. Any such
Transfer prohibited by this Article VIII shall be ineffective, null and void.

8.2     PERMITTED TRANSFERS

          (a) A Member may Transfer an interest in itself without obtaining any
prior consent from the other Member, so long as the following conditions are
satisfied: (a) all voting and other management rights (including, without
limitation, all rights to receive information, to give and receive notices,
etc.) are not in any way affected by the Transfer of the interest, (b) the
Company does not bear any of the costs and expenses of any such Transfer, (c)
any such Transfer complies with all state and federal laws applicable thereto,
(d) the Transferring Member shall first indemnify the other Member and the
Company against any and all loss, damage, liability, claim, demand and expense
(including increased or accelerated income or property tax expense) arising from
or in any way connected with the Member's Transfer pursuant to a written
indemnity in form and substance reasonably satisfactory to the nontransferring
Member, (e) the Transfer does not in any way limit the Transferring Member's
obligation to make capital contributions or to satisfy any of its other
obligations under this Agreement, and (f) the Transfer does not result in a
default under or breach of any material agreement to which the Company is a
party.

                                      -20-

<PAGE>   25

          (b) Notwithstanding anything to the contrary contained herein, Chase
may (i) Transfer all or any portion of its interests in the Company to an
institutional investor reasonably acceptable to Shurgard and/or (ii) pledge,
hypothecate or otherwise leverage its interest in the Company to secure
financing; provided that such pledge, hypothecation or leveraging does not have
an unreasonable adverse effect on Shurgard or the Company.

8.3     OTHER TRANSFERS

        Transfers, other than those expressly permitted by Sections 8.1 and 8.2,
shall be permitted only with the prior written consent of the nontransferring
Member, which consent may be withheld in the sole discretion of such Member.

                                   ARTICLE IX

                       TERM, DISSOLUTION AND TERMINATION,
                        VOLUNTARY WITHDRAWAL AND DEFAULT

9.1     TERM AND DISSOLUTION

          (a) If the Transaction Documents and documents relating to the Credit
Facility have not closed pursuant to their terms on or prior to the Operative
Date, then either Member may unilaterally terminate this Agreement by notice to
the other Member, and dissolve the Company promptly thereafter. For purposes of
this paragraph (a), the execution of a firm, written financing commitment which
has been approved by the Members shall constitute the execution of documents
relating to the Credit Facility. Upon any termination of this Agreement before
the Operative Date as a result of a Change of Control of SSCI or its inability
or unwillingness to perform under the Transaction Documents, Shurgard and/or
SSCI agree to jointly and severally reimburse Chase for all costs (including
reasonable attorneys fees, accounting fees and other third party fees) incurred
in connection with the performance of due diligence, the preparation of
agreements, instruments and other documents in connection with the transactions
contemplated hereby, by the other Transaction Documents, and by the Credit
Facility, and otherwise in connection with the consummation of such
transactions.

          (b) Following the Operative Date, the Company will continue until the
happening of any of the following events (individually referred to as an "Event
of Dissolution") at which time, subject to the rights contained herein of the
Members to continue the Company, the Company will be dissolved upon:

              (i) Both of the Members mutually agreeing in writing that the
        Company will be dissolved;

              (ii) The sale or other disposition of all or substantially all the
        assets of the Company and the collection of all proceeds therefrom;

              (iii) The occurrence of an Event of Bankruptcy (as defined below)
        with respect to any Member or the attempt by any Member to cause the
        Property to be partitioned in violation of Section 9.3, unless within 90
        days after such event the other Member elects not to treat such event as
        an Event of Dissolution;

                                      -21-

<PAGE>   26

              (iv) The tenth anniversary date of this Agreement; or

              (v) A Member causing a dissolution of the Company in contravention
        of Section 9.4.

          (c) A Member to whom an Event of Bankruptcy has occurred is referred
to herein as a "Bankrupt Member." A Bankrupt Member shall have no right to
participate in the management and control of the Company (including, without
limitation, the approval or disapproval of a Major Decision) and shall have no
authority to legally bind the Company. The term "Event of Bankruptcy" as used
herein means any one or more of the following:

              (i) If a Member files a voluntary petition in bankruptcy, or files
        any petition or answer seeking any reorganization, arrangement,
        composition, readjustment, liquidation, dissolution or similar relief
        for itself under the present or any future Federal Bankruptcy Code or
        any other present or future applicable federal, state or other statute
        or law relating to bankruptcy, insolvency or other relief for debtors,
        or seeks or consents to or acquiesces in the appointment of any trustee,
        receiver, custodian, conservator or liquidator of the Member or of all
        or any substantial part of such Member's properties or such Member's
        interest in the Company (the term "acquiesces" as used in this Article
        IX includes, but is not limited to, the failure to file a petition or
        motion to vacate or discharge any order, judgment or decree within 15
        Business Days after the date of such order, judgment or decree); or

              (ii) If a court of competent jurisdiction enters an order,
        judgment or decree approving a petition filed against a Member seeking
        any reorganization, arrangement, composition, readjustment, liquidation,
        dissolution or similar relief under the present or any future Federal
        Bankruptcy Code or any other present or future applicable federal, state
        or other statute or law relating to bankruptcy, insolvency or other
        relief for debtors, and such Member acquiesces in the entry of such
        order, judgment or decree, or such order, judgment or decree remains
        unvacated and unstayed for an aggregate of 60 days (whether or not
        consecutive) from the date of entry thereof, or any trustee, receiver,
        custodian, conservator or liquidator of such Member or of all or any
        substantial part of such Member's properties or interest in the Company
        is appointed without the consent or acquiescence of such party and such
        appointment remains unvacated and unstayed for an aggregate of 60 days
        (whether or not consecutive); or

              (iii) If a Member is unable to pay its debts as they become due or
        mature; or

              (iv) If a Member makes an assignment (other than assignments
        solely for security purposes) of all or substantially all its assets for
        the benefit of creditors or takes any other similar action for the
        protection or benefit of creditors.

          (d) Dissolution of the Company shall be effective on the day on which
the event giving rise to the dissolution occurs, but the Company shall not
terminate until the assets of the Company have been distributed as provided in
Section 9.2. Notwithstanding the dissolution of the Company, prior to the
termination of the Company the business of the Company and the affairs of the
Members will continue to be governed by this Agreement.

                                      -22-

<PAGE>   27

9.2     TERMINATION AND DISTRIBUTIONS

          (a) Upon the occurrence of an Event of Dissolution, Shurgard shall act
as the liquidating Member on the terms set forth in this Section 9.2, unless
Shurgard has caused the Event of Dissolution under Section 9.1(b)(iii), (iv) or
(v), in which case Chase shall act as the liquidating Member. Any Member who
caused the Event of Dissolution shall have no authority or power to bind the
Company or the other Members, but such Member shall be obligated to assist the
liquidating Member (the "Liquidator") in the dissolution and winding-up of the
Company and the assets thereof.

          (b) The Liquidator shall undertake to wind up and liquidate the assets
of the Company as promptly as business circumstances and orderly business
practices will permit. During the period of such winding-up, the Company's
business and affairs shall be conducted in a manner to maintain and to preserve
the value of its assets, consistent with the winding-up of the affairs thereof,
and no further business shall be undertaken except for the completion of any
incomplete transactions that may be necessary to wind up the affairs of the
Company in an orderly manner and except that the Properties may be operated in
the ordinary course of business if the Member not causing the Event of
Dissolution so elects.

9.3     DISTRIBUTION UPON LIQUIDATION

          (a) The Liquidator shall apply and distribute the proceeds of the
liquidation of the assets of the Company (to the extent available) in the
following order of priority:

              (i) To the payment of the debts and liabilities of the Company
        (other than those to Members) in the order of priority provided by law;
        provided, however, that the Liquidator shall first pay, to the extent
        permitted by law, liabilities with respect to which any Member is or may
        be personally liable;

              (ii) To the payment of the expenses of liquidation of the Company
        in the order of priority provided by law; provided, however, the
        Liquidator shall first pay, to the extent permitted by law, expenses
        with respect to which any Member is or may be personally liable;

              (iii) To the setting up of such reserves as the Liquidator may
        deem reasonably necessary for any contingent or unforeseen liabilities
        or obligations of the Company arising out of or in connection with its
        business; provided, however, that any such reserves will be held by the
        Liquidator for the purposes of (A) disbursing such reserves in payment
        of any of such contingencies and (B) at the expiration of such period as
        the Liquidator deems advisable, distributing the balance thereafter
        remaining in the manner and in the priority provided below;

              (iv) To the payment of any loans from the Members to the Company;

              (v) To and among the Members as provided in Article III:

          (b) Except as set forth in Section 9.4, if distributions pursuant to
Section 9.3(a)(v) are insufficient to return to any Member the full amount of
such Member's Capital Account, such

                                      -23-

<PAGE>   28

Member shall have no recourse against any other Member. Except as set forth in
this Agreement, no Member shall have any obligation to restore a deficit in such
Member's Capital Account either on liquidation of the Company or liquidation of
such Member's interest in the Company.

9.4     CLAWBACK OBLIGATIONS OF SHURGARD RETURN OF CAPITAL

          (a) To the extent the cumulative amount distributed to Chase from the
Company pursuant to Sections 3.1, 3.2 and 9.3(a)(i) through (v) is less than the
greater of (A) the amount necessary for Chase to have realized an Investment
Return equal to at least 12% or (B) the amount that Chase would have received
had each Property been sold for a value equal to its Net Operating Income
divided by 9.25% (such deficiency being referred to as the "Deficiency Amount"),
then Shurgard shall pay to the Company (and such amount will be distributed to
Chase) an amount equal to the lesser of the Deficiency Amount or the aggregate
amount of cash distributed to Shurgard pursuant to Sections 3.1, 3.2 and 9.3
(the "Clawback Amount"); provided, however, that Shurgard shall not be obligated
to pay a Clawback Amount in excess of Shurgard's aggregate Capital Contributions
to the Company (excluding the Clawback Amount) as of the date of the
liquidation.

          (b) In addition to the foregoing, notwithstanding Section 9.3(a)(v),
after the final distribution of the assets of the Company among the Members as
provided in Section 9.3(a)(v), if the aggregate amount distributed to Shurgard
pursuant to Sections 3.2(c) and 3.2(d) is in excess of the amount that Shurgard
would have been entitled to receive after applying the Investment Return of
Chase over the life of the Company (such excess being referred to as the "Excess
Distributions"), Shurgard will pay to the Company (and such amount will be
distributed to Chase) an amount equal to the amount of such Excess
Distributions; provided, however, that Shurgard shall not be obligated to pay an
amount in excess of the aggregate distributions it has received from the
Company.

          (c) No amounts paid by Shurgard pursuant to this Section 9.4 will be
included in (i) Shurgard's Capital Account, (ii) the calculation of any Member's
Invested Capital, or (iii) the calculation of any Members' Percentage Interest.

9.5     PROHIBITION AGAINST WITHDRAWAL AND VOLUNTARY WITHDRAWAL

        Neither Member may withdraw from the Company without the prior written
consent of the other Member. Subject to the terms of this Agreement, no Member
shall have the right to voluntarily cause the dissolution of the Company in any
manner or for any reason whatsoever. The provisions hereof with respect to
distributions upon withdrawal are exclusive, and no Member shall be entitled to
claim any further or different distribution upon withdrawal under Section 18-604
of the Act or otherwise. This Section 9.5 shall not apply to Transfers permitted
under this Agreement

9.6     DEFAULT

        If any Member fails to perform in any material respect any of its
obligations hereunder or violates the terms of this Agreement in any material
respect (such Member being referred to as the "Defaulting Member"), any other
Member (a "Non-Defaulting Member") shall have the right

                                      -24-

<PAGE>   29

to give the Defaulting Member a default notice specifically setting forth the
nature of the default and stating that the Defaulting Member has a period of 10
days to cure such default, if it is a default in payment of money (a "Payment
Default") to the Company or the Non-Defaulting Member pursuant to this
Agreement, or a period of 45 days to cure such default, if it is any default
other than a Payment Default, provided that such Defaulting Member has provided
evidence to the non-defaulting member that it is diligently seeking to cure such
default. If the Defaulting Member does not cure such Payment Default within such
10-day period, or in the case of any other default the Defaulting Member has not
cured such default within such 45-day period, a Non-Defaulting Member shall, in
addition to other rights and remedies it may have hereunder or at law or in
equity:

          (a) have the right to bring any proceeding in the nature of specific
performance, injunction or other equitable remedy, it being acknowledged by each
of the Members that damages at law may be an inadequate remedy for a default or
threatened breach of this Agreement;

          (b) bring any action at law by or on behalf of the Company as may be
permitted by applicable law, in order to recover damages

          (c) the Defaulting Member shall lose its rights to participate in the
making of Major Decisions or other decisions affecting the Company pursuant to
Section 5.4;

          (d) if Shurgard is the Defaulting Member, (i) Chase shall have the
right to remove Shurgard as the Managing Member and become the Managing Member
of the Company and (ii) Chase shall have the right to terminate SSCI as the
Property Manager;

          (e) if Shurgard is the Defaulting Member then all future distributions
of Net Cash Flow from Capital Transactions will be made solely pursuant to
Sections 3.2(a) and (b) and without regard to Sections 3.2(c) and (d);

          (f) in the case of a Payment Default, the Non-Defaulting Member shall
have the option of either (i) making a loan to the Company in the amount of such
Payment Default at an annual interest rate equal to the lesser of 20% and the
highest rate allowed by law or (ii) make a capital contribution to the Company
equal to the amount of such Payment Default, provided that, for all purposes of
this Agreement, such amount shall be deemed to equal 200% of the amount actually
contributed and Percentage Interests of the Members shall be adjusted
accordingly; and

          (g) in addition to and without limiting the foregoing, if the
Defaulting Member does not cure a default as required above, the Non-Defaulting
Member shall also be entitled, in its sole discretion, to not make any further
capital contributions to the Company until such monetary default has been cured
by the Defaulting Member.

                                      -25-

<PAGE>   30

                                   ARTICLE X

                        BOOKS, RECORDS AND BANK ACCOUNTS

10.1 BOOKS AND RECORDS

      The Managing Member in consultation with Chase shall keep or cause to be
kept complete and accurate books of account and records which shall reflect all
transactions and other matters and include all documents and other materials
with respect to the Company business as are usually entered and maintained by
persons engaged in similar businesses. Such books of account shall be kept on
the accrual basis in accordance with the accounting methods and elections
followed by the Company for Federal income tax purposes applied in a consistent
manner. The Managing Member in consultation with Chase shall establish
procedures to ensure that all deeds, leases, contracts, title matters, surveys
and other documentation, records and financial information relating to the
ownership, maintenance, development and sale of the Property are maintained in
safekeeping and organized and accessible to the Members. Each Member and its
duly authorized representatives shall have the right to examine the Company
books, records and documents at all reasonable times, and copies of Company
books, records and documents shall be furnished to any Member upon reasonable
request therefor.

10.2 REPORTS

      (a) The Managing Member in consultation with Chase shall, at the cost of
the Company, cause to be prepared and shall deliver to Chase:

            (i) no later than the twenty-fifth day of the next following month,
      the monthly financial operating summary in the form attached hereto as
      Exhibit K.

            (ii) within 30 days after the end of each quarter of each fiscal
      year:

                  (A) a balance sheet of the Company as of the end of such
            quarter and statements of operations and source and application of
            funds (including changes in financial position) of the Company for
            such quarter and for that part of the fiscal year ending at the end
            of such quarter, each prepared on an accrual basis in accordance
            with generally accepted accounting principles and procedures,
            subject, however, to audit and year-end adjustment;

                  (B) statements of operations, source and application of funds
            (including changes in financial position) Net Cash Flow from
            Operations and Net Cash Flow From Capital Transactions for such
            quarter and for that part of the fiscal year ending at the end of
            such quarter, each prepared on a cash basis; and

                  (C) a report of any significant Company activities during such
            quarter; indicating, in the case of the cash and accrual statements
            of operations, comparisons with the corresponding items in the then
            current approved Annual Budget for such period, and all certified by
            the Managing Member, subject, however, to audit and year-end
            adjustment;

                                      -26-
<PAGE>   31

            (iii) within 60 days after the end of each fiscal year:

                  (A) a balance sheet of the Company as of the end of such year,
            statements of operations and source and application of funds
            (including changes in financial position) of the Company for such
            year, and a statement showing distributions to the Members and
            allocations to the Members of Company taxable income, gains, losses,
            deductions, credits and items of tax preference, indicating, in the
            case of the statement of operations, comparisons with the
            corresponding items in the then current approved Annual Budget for
            such period; such financial statements to set forth in comparative
            form the figures for the preceding year and to be in reasonable
            detail and accompanied by an opinion thereon of the Company's
            accountants to the effect that such financial statements have been
            prepared in accordance with generally accepted accounting principles
            and procedures consistently applied (except for changes in
            application specified in such opinion and in which the Company's
            accountants concur) and that the examination of such accountants in
            connection with such financial statements has been made in
            accordance with generally accepted auditing standards and
            accordingly included such tests of the accounting records, internal
            controls and such other auditing procedures as were considered
            necessary in the circumstances; and

                  (B) statements of operations and source and application of
            funds (including changes in financial position), Net Cash Flow from
            Operations and Net Cash Flow from Capital Transactions of the
            Company for such year, indicating, in the case of the statement of
            operations, comparisons with the corresponding items in the then
            current approved Annual Budget for such period and an analysis of
            the amount and type of all distributions made to the Members and the
            sources and users of all Company funds;

such financial statements to set forth in comparative form the figures for the
preceding year and to be in reasonable detail and accompanied by a special
report and/or an audit opinion of the Company's accountants confirming that any
and all distributions made were made in accordance with the terms of this
Agreement and to the effect that such financial statements present fairly the
financial condition of the Company on a cash receipts and disbursements basis
and that the examination of such accountants in connection with such financial
statements has been made in accordance with generally accepted auditing
standards and accordingly included such tests of the accounting records,
internal controls and such other auditing procedures as were considered
necessary in the circumstances;

            (iv) promptly after receipt thereof, one copy of each other report
      or management letter submitted to the Company by the Company's accountants
      in connection with any annual, interim or special audit made by them of
      the books of the Company;

            (v) after the end of each fiscal year, a copy of the Company's
      Federal and state income tax returns and reports for such year, with
      Schedule K-1 attached to the

                                      -27-
<PAGE>   32
      Federal return, prepared by the Company's accountants and subject to the
      consent of Chase, such returns to be delivered within 90 days after the
      end of such year; and

            (vi) such other reports as Chase any Member shall from time to time
      reasonably request in connection with the ownership, operation or
      management of the Property.

      (b) Each quarterly or annual report furnished to the Members hereunder
shall also state whether any default exists with respect to any material
obligation of the Company or whether any material litigation is pending against
the Company or the Property. The Managing Member shall promptly notify Chase of
the occurrence of any event which if not cured or resolved would be required to
be described in the next quarterly or annual report to be furnished hereunder.

      (c) The Company's accountants shall be Deloitte & Touche LLP or such other
nationally recognized accounting firm as the Members shall jointly agree to.

      (d) The Managing Member, in consultation with Chase, shall, at the cost of
the Company, prepare any and all reports required by GECC pursuant to the
documents executed by the Company in connection with the Credit Facility. The
Managing Member shall deliver all such reports to Chase simultaneously with
delivery of same to GECC.

10.3 FISCAL YEAR

     The fiscal year of the Company for both reporting and Federal income tax
purposes shall begin with the first day of January and end on the thirty-first
day of December in each calendar year.

10.4 BANK ACCOUNTS

     Subject to Section 5.4, the bank accounts of the Company will be maintained
in such banking institutions as the Members may determine. Such accounts may be
used for the payment of the expenditures incurred in connection with the
business of the Company and for payments to the Members in accordance with this
Agreement. Any and all cash receipts of the Company shall be deposited in such
accounts. All such amounts shall be and remain the property of the Company, and
shall be received, held and disbursed by the Members for the purposes specified
in this Agreement. There may not be deposited in any of said accounts any funds
other than funds belonging to the Company, and no other funds may in any way be
commingled with such funds. This Section 10.4 is not intended to in anyway limit
or define SSCI's rights and obligations to establish and maintain accounts
pursuant to the Management Agreement.

                                      -28-
<PAGE>   33

                                   ARTICLE XI

                         REPRESENTATIONS AND WARRANTIES

11.1 REPRESENTATIONS AND WARRANTIES BY EACH MEMBER

     Each Member hereby represents and warrants to the other Member the
following:

          (a) It has the legal power, right and authority to consummate the
transactions contemplated hereby. All actions required to be taken by it to
consummate the transactions contemplated hereby have been taken.

          (b) This Agreement and all other documents that have been executed and
delivered by such Member pursuant to this Agreement constitute valid and binding
obligations of such Member, enforceable against such Member in accordance with
their respective terms.

          (c) The execution and delivery of this Agreement by such Member, the
incurrence by it of the obligations herein set forth, the consummation of the
transactions contemplated hereby, the compliance by such Member with the terms
of this Agreement and the operation by it of the business of the Company do not
and will not conflict with or result in a breach of any of the terms, conditions
or provisions of, or do not and will not constitute a default under, (i) any
bond, note or other evidence of indebtedness or other contract, indenture,
mortgage, deed of trust, loan agreement, lease or other instrument to which such
Member is a party or by which it is bound or (ii) any order, finding or decree
of any court or governmental authority having jurisdiction.

11.2 SHURGARD'S REPRESENTATIONS AND WARRANTIES

     Shurgard hereby represents and warrants to Chase that it is a corporation
duly organized and validly existing under the laws of the state of Washington
and that the individuals who executed this Agreement on behalf of Shurgard have
full power and authority to enter into this Agreement. For all purposes Chase is
entitled to rely on the approval by either of Shurgard's designated
representatives on the Board, acting individually, as to all matters relating to
or arising out of this Agreement and the transactions contemplated hereby.

11.3 CHASE'S REPRESENTATIONS AND WARRANTIES

     Chase hereby represents and warrants to Shurgard that it is a limited
liability company duly organized and validly existing under the laws of the
state of Delaware and that the individuals who executed this Agreement on behalf
of Chase have full power and authority to enter into this Agreement. For all
purposes Shurgard is entitled to rely on the approval by either of Chase's
designated representatives on the Board, acting individually, as to all matters
relating to or arising out of this Agreement and the transactions contemplated
hereby.

                                      -29-
<PAGE>   34

                                  ARTICLE XII

                                  MISCELLANEOUS

12.1 NOTICES

     Any and all notices, elections or demands permitted or required to be made
under this Agreement must be in writing, signed by the Member giving such
notice, election or demand, and must be delivered personally, transmitted by
electronic facsimile with receipt confirmed or sent by nationally reputed
courier service that provides verification of delivery, to the other Member, at
the address set forth below, or at such other address as may be supplied by
written notice given in conformity with the terms of this Section 12.1. The date
of personal delivery or the date of refusal or receipt, as the case may be, is
the date such notice is effective.

                      If to Shurgard:

                          Shurgard Development IV, Inc.
                          Attn: Chief Executive Officer
                          Suite 400, 1155 Valley Street
                          Seattle, WA  98109
                          Facsimile:  (206) 652-3760

                      with a copy to:

                          Shurgard Storage Centers, Inc.
                          Attn: Division Counsel
                          Suite 400, 1155 Valley Street
                          Seattle, WA  98109
                          Facsimile:  (206) 652-3760

                      If to Chase:

                          CCPRE - Storage, LLC
                          c/o Chase Capital Partners
                          Attn: Patrick J. Sullivan
                          1221 Avenue of the Americas, 40th Floor
                          New York, NY 10020
                          Facsimile: (212) 899-3771

                      with a copy to:

                          O'Sullivan Graev & Karabell, LLP
                          Attn:  Steven C. Koppel
                          30 Rockefeller Plaza
                          New York, NY 10112
                          Facsimile: (212) 218-6223

                                      -30-
<PAGE>   35

12.2 SUCCESSORS AND ASSIGNS

     Subject to the restrictions on Transfer set forth in Article VIII, this
Agreement shall be binding on and shall inure to the benefit of the respective
parties hereto and their permitted successors and assigns.

12.3 ENTIRE AGREEMENT; AMENDMENTS

     This Agreement, together with the agreements expressly contemplated hereby,
constitutes the full and complete agreement of the parties hereto with respect
to the subject matter hereof.

     This Agreement may be amended, modified or otherwise changed only in
writing signed by both Members hereto. Without limiting the generality of the
foregoing, no amendment to this Agreement may be effected nor may any other
action be taken that would result in the admission of additional members to the
Membership, except by the specific written agreement of both Members.

12.4 NO WAIVER

     The failure of any Member to insist on strict performance of a covenant
hereunder or of any obligation hereunder, irrespective of the length of time for
which such failure continues, will not be a waiver of such Member's rights to
demand strict compliance in the future. No consent or waiver, express or
implied, to or of any breach or default in the performance of any obligation
hereunder will constitute a consent or waiver to or of any other breach or
default in the performance of the same or any other obligation hereunder.

12.5 FOREIGN STATUS

     By executing this Agreement, each Member declares under penalties of
perjury that, for purposes of Section 1446 of the Code, it is not a foreign
person, that its name, office address and tax identification number are
accurately set forth herein and that it will notify the Company within 60 days
of any change to foreign status.

12.6 CAPTIONS

     Titles or captions of Articles or Sections contained in this Agreement are
inserted only as a matter of convenience and for reference, and in no way
define, limit, extend or describe the scope of this Agreement or the intent of
any provision hereof.

12.7 COUNTERPARTS

     This Agreement and any amendments hereto may be executed in any number of
counterparts, all of which together for all purposes constitute one agreement,
binding on both the Members notwithstanding that both Members have not signed
the same counterpart.

                                      -31-
<PAGE>   36

12.8 APPLICABLE LAW

     This Agreement and the rights and obligations of the parties hereunder
shall be governed by and interpreted, construed and enforced in accordance with
the laws of the state of Delaware. References in this Agreement to provisions of
the Code and Treasury Regulations thereunder shall apply to corresponding
successor provisions.

12.9 AFFILIATE

     The term "Affiliate" means any person or entity owning, directly or
indirectly, a 10% or greater legal or beneficial interest in such entity or any
entity in which such person or entity, directly or indirectly, owns a 10% or
greater legal or beneficial interest or is serving as an executive officer
thereof.

12.10 COVENANT OF GOOD FAITH

      Each Member covenants and agrees that whenever it is authorized by this
Agreement to take or omit to take any action, or to give or withhold any
approval or consent, whether or not in its sole discretion, it will take or omit
to take such action, or give or withhold such approval or consent, in good faith
and not in an arbitrary or capricious manner.

12.11 SEVERABILITY

      If any provision of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable to any extent, the
remainder of this Agreement and the application of such provision to other
persons or circumstances shall not be affected thereby and shall be enforced to
the greatest extent permitted by law.

12.12 NO IN KIND DISTRIBUTIONS

      The Company shall not make any distributions in kind.

12.13 REQUIRED AMENDMENTS

      The Members shall cooperate by incorporation into this Agreement, by
suitable amendment, from time to time, any provision that may reasonably be
required by the Lender under the Credit Facility. The Members each agree to
execute and deliver any agreement necessary to effect any such amendment;
provided, however, that any such amendment shall not in any way affect the
economic terms under this Agreement or otherwise, in any materially adverse way.

12.14 REGULATORY MATTERS

         (a) Each Member agrees to cooperate with the Company in all reasonable
respects in complying with the terms and provisions of the letter agreement
between the Company and Investor, a copy of which is attached hereto as Exhibit
L, regarding regulatory matters (the "Regulatory Sideletter"), including without
limitation, voting to approve amending this Agreement in a manner reasonably
acceptable to the Members and the Investor or any

                                      -32-
<PAGE>   37

Affiliate of the Investor entitled to make such request pursuant to the
Regulatory Sideletter in order to remedy a Regulatory Problem (as defined in the
Regulatory Sideletter). Anything contained in this Section 12.14 to the contrary
notwithstanding, no Member shall be required under this Section 12.14 to take
any action that would adversely affect in any material respect such Members
rights under this Agreement or as a member of the Company.

         (b) The Company and each Member agree not to amend or waive the voting
or other provisions of this Agreement if such amendment or waiver would cause
the Investor or any its Affiliates to have a Regulatory Problem (as defined in
the Regulatory Sideletter). The Investor agrees to notify the Company as to
whether or not it would have a Regulatory Problem promptly after the Investor
has notice of such amendment or waiver.

                                      -33-
<PAGE>   38

               IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

                                            SHURGARD DEVELOPMENT IV, INC.

                                            a Washington corporation

                                            By: /s/ HARRELL L. BECK
                                                --------------------------------
                                                Name:  Harrell L. Beck
                                                Title: Senior Vice President

                                            CCPRE-STORAGE, LLC
                                            a Delaware limited liability company

                                            By: Chase Capital Investments, L.P.
                                                its Sole Member

                                            By: Chase Capital Partners,
                                                as Investment Manager

                                            By: /s/ PATRICK SULLIVAN
                                                --------------------------------
                                                Name: Patrick Sullivan
                                                Title: Investment Manager

The undersigned hereby accepts and agrees to guaranty Shurgard's obligations
under Sections 1.13, 6.4, Article VII and Section 9.4 of this Agreement:

                                            SHURGARD STORAGE CENTERS, INC.

                                            By: /s/ HARRELL L. BECK
                                                --------------------------------
                                                 Name: Harrell L. Beck
                                                 Title: Senior Vice President

The undersigned hereby accepts and agrees to guaranty CCPRE-Storage, LLC's
obligations under Section 1.13 and 6.4 of this Agreement:

                                            Chase Capital Investments, L.P.
                                            By: Chase Capital Partners,
                                                as Investment Manager

                                            By: /s/ PATRICK SULLIVAN
                                                -------------------------------
                                                Name: Patrick Sullivan
                                                Title: Investment Manager

<PAGE>   39

                                     ANNEX I

                                   DEFINITIONS

               "Act" shall mean the Delaware Limited Liability Company Act.

               "Adjusted Percentage Interest" shall have the meaning set forth
in Section 7.3(b).

               "Affiliate" shall have the meaning set forth in Section 12.9.

               "Agreement" shall mean this Agreement.

               "Annual Budget" shall have the meaning set forth in Section
5.2(a).

               "Bankrupt or Bankruptcy" means, with respect to a Member, the
filing by such Member of a petition in bankruptcy or for an arrangement,
composition, readjustment, liquidation, dissolution, reorganization, or similar
relief pursuant to Title 11 of the United States Code entitled "Bankruptcy", as
amended (the "Bankruptcy Code"), and any judicial and administrative
interpretation thereof (section references to the Bankruptcy Code are to the
Bankruptcy Code as in effect on the date of this Agreement and any subsequent
provisions of the Bankruptcy Code, amendatory thereof, supplemental thereto or
in substitution thereof or any similar or successor law, Federal or state); or a
decree by a court of competent jurisdiction, adjudicating such Member a
bankrupt, or declaring such Member insolvent or the entering of an order for
relief against such Member in any bankruptcy or insolvency proceeding; or the
making by such Member of an assignment for the benefit of creditors, or the
admission in writing by such Member of its inability to pay its debts generally
as they become due, or the consenting by such Member to the appointment of a
receiver or receivers of all or any substantial part of its property; or the
filing by any of the creditors of such Member of a petition in bankruptcy
against such Member or for an arrangement, composition, readjustment,
liquidation, dissolution, reorganization, or similar relief with respect to such
Member pursuant to the Bankruptcy Code or similar or successor law, Federal or
state, if such petition shall not be discharged or dismissed within sixty (60)
days after the date on which such petition is filed.

               "Bankrupt Member" shall have the meaning set forth in Section
9.1(c).

               "Business Days" means a day on which banks are open for business
in New York City, New York.

               "Capital Account" shall have the meaning set forth in Section
2.3(a).

               "Capital Contribution" shall mean an actual or deemed
contribution of capital (either in cash or the fair value of property) to the
Company (other than a loan from a Member) that is required or permitted pursuant
to this Agreement.

                                      -2-
<PAGE>   40

               "Capital Transaction" means, with respect to each Property, a
sale, Transfer, exchange, refinancing, condemnation or other disposition of the
Property, or a casualty loss, affecting all or a substantial portion of the
Property in which the Property is not rebuilt within twenty-four (24) months of
such casualty loss.

               "Certificate" shall have the meaning set forth in Section 1.4.

               "Change in Control" means the (i) purchase of fifty percent or
more of the common stock or assets of SSCI by any party, or (ii) replacement of
the incumbent Board of Directors with individuals nominated other then by
incumbent Board of Directors.

               "Chase" shall have the meaning set forth in the Preamble.

               "Clawback Amount" shall have the meaning set forth in Section
9.4(a).

               "Code" has the meaning set forth in Section 2.3.

               "Company" has the meaning set forth in the caption of this
Agreement.

               "Confidential Information" has the meaning set forth in Section
1.9(a).

               "Contractual Net Cash Flow" means, with respect to each Capital
Transaction, the Net Cash Flow from Capital Transactions that would have been
realized by the Company attributable to such Capital Transaction assuming the
Property being sold, Transferred, exchanged or otherwise disposed were valued
based on the Property's Net Operating Income divided by a 9.25% capitalization
rate.

               "Contribution Agreement" shall have the meaning set forth in
Section 2.2(b).

               "Contribution Value" shall have the meaning set forth in the
Contribution Agreement.

               "Cost Overrun" means, with respect to each Property, the amount
by which the cost to Shurgard of acquiring and constructing such Property
exceeds such Property's Contribution Value; provided that, the total Cost
Overrun shall never exceed 2% of the Contribution Value of all the Properties.

               "Credit Facility" shall have the meaning set forth in Section
6.4.

               "Defaulting Member" shall have the meaning set forth in Section
9.6.

               "Default Sale" shall have the meaning set forth in Section
7.3(a).

               "Deficiency Amount" shall have the meaning set forth in Section
9.4(a).

               "Disclosing Party" shall have the meaning set forth in Section
1.9(a).

               "Effective Date" shall have the meaning set forth in the
Preamble.

                                      -3-
<PAGE>   41

               "Equity Deficit" means, with respect to Chase, the excess, if any
(in the aggregate, when required by the use of this defined term), of the
Contractual Net Cash Flow attributable to each Capital Transaction that would
(i) be distributed to Chase pursuant to such Section 3.2 without taking into
account the provisions of Section 3.2(a) if each Property that was sold was sold
for Contractual Net Cash Flow over (ii) the Net Cash Flow be distributed to
Chase pursuant to Section 3.2, again without taking into account the provisions
of Section 3.2(a).

               "Event of Bankruptcy" shall have the meaning set forth in Section
9.1(c).

               "Event of Dissolution" shall have the meaning set forth in
Section 9.1(b).

               "Excess Distributions" shall have the meaning set forth in
Section 9.4(b).

               "Excess Tax Amount" shall have the meaning set forth in Section
3.3.

               "Excess Tax Distribution" shall have the meaning set forth in
Section 3.3.

               "GECC" shall have the meaning set forth in Section 6.4.

               "Indemnified Parties" shall have the meaning set forth in Section
5.6.

               "Invested Capital" for each Member means the sum of such Member's
initial capital contribution and any additional capital contributions or loans
made to the Company by such Member pursuant to the terms of this Agreement, less
(i) the aggregate amount of any capital distributed to such Member pursuant to
Article III or Article IX provided that any amounts paid to the Company pursuant
to Section 7.4 shall not be part of Invested Capital.

               "Investment Return" means as of any date (the "Calculation
Date"), that unique positive discount rate (if any), compounded annually,
realized by Chase at which the sum of: (i) the present value of all Capital
Contributions made by Chase pursuant to Section 2.2 reflected as a negative
amount (taken into account as of the date such Capital Contributions were made)
plus (ii) the present value of all distributions of Net Cash Flow distributed to
Chase pursuant to Sections 3.1 and 3.2 equals zero. For the avoidance of doubt,
it is acknowledged that Chase will not have received a positive Investment
Return of any amount until such time as the aggregate distributions of Net Cash
Flow received by Chase exceed its aggregate Capital Contributions. The
accounting firm preparing the annual financial statements of the Company will
make the Investment Return calculation.

               "Liquidator" has the meaning set forth in Section 9.2.

               "Major Decision" shall have the meaning set forth in Section
5.4(b).

               "Management Agreement" shall have the meaning set forth in
Section 5.3.

               "Managing Member" shall have the meaning set forth in Section
5.1(a).

                                      -4-
<PAGE>   42

               "Members" has the meaning set forth in the Preamble.

               "MG Capital Account" of any Member as of the end of any taxable
year means such Member's Capital Account balance (whether positive or negative)
as of the end of such taxable year (after all distributions for such year other
than any liquidating distributions, but before any allocations of tax items for
such year), increased by such Member's share of any Minimum Gain of the Company
as of the end of such taxable year.

               "Minimum Gain" has the meaning prescribed by Treasury Regulation
Sections 1.704-2(d) and 1.704-2(i)(3).

               "Net Cash Flow" means, collectively, Net Cash Flow From Capital
Transactions and Net Cash Flow From Operations.

               "Net Cash Flow From Capital Transactions" means, during the
fiscal period for which Net Cash Flow From Capital Transactions is being
determined, the gross cash proceeds actually received by the Company from
Capital Transactions less the sum of the following items: (i) expenses incurred
and paid with respect to such Capital Transactions to the extent that such
expenses have not already been reflected in the Company's Net Cash Flow From
Operations for such fiscal period, and (ii) amounts that the Company has decided
to set aside as reserves for working capital, debt service payments, capital
expenditures, contingent liabilities, and other future costs and expenses of the
Company.

               "Net Cash Flow From Operations" means the sum of (i) all cash
received from rents, lease payments and all other sources, but excluding (A)
security or other deposits, (B) Capital Contributions and interest thereon
(other than if used to pay for an item deducted below in determining cash flow),
(C) proceeds from Capital Transactions, (D) Shurgard's return of cash proceeds
required under Section 2.2 of the Contribution Agreement and (E) interest on
reserves not available for distribution, (ii) the net proceeds of any insurance,
other than fire and extended coverage and title insurance, to the extent not
reinvested, and (iii) any other funds deemed available for distribution by
Chase, less the sum of (i) all cash expenditures, and all expenses unpaid but
properly accrued, which have been incurred in the operation of the Company's
business (whether or not such expenditure is deducted, amortized or capitalized
for tax purposes), (ii) all payments on account of any loans made to the Company
(whether such loan is made by a Member or otherwise), and (iii) any cash
reserves for working capital, capital expenditures, repairs, replacements and
anticipated expenditures, in such amounts as may be required under the Credit
Facility or may be determined from time to time by the Members to be advisable
for the operation of the Company.

               "Net Income" or "Net Loss", as appropriate, means, for any
period, the taxable income or tax loss of the Company for such period for
Federal income tax purposes, determined taking into account any separately
stated tax items and increased by the amount of any tax-exempt income of the
Company during such period and decreased by the amount of any Section 705(a) (2)
(B) expenditures (within the meaning of

                                      -5-
<PAGE>   43

Treasury Regulation Section 1.704-1(b) (2) (iv) (i)) of the Company; provided,
however, that (i) items of income, gain, loss and deduction attributable to
Section 704(c) Property shall be determined in accordance with the principles of
Treasury Regulation Section 1.704-l(b) (2) (iv) (q) and (ii) the Net Income and
Net Loss of the Company shall be computed without regard to the amount of any
items of income, gain, loss or deduction that are specially allocated pursuant
to Section 2.4(c). In the event that the Capital Accounts are adjusted pursuant
to Section 2.3(b), the Net Income and Net Loss of the Company (and the
constituent items of income, gain, loss and deduction) realized thereafter shall
be computed in accordance with the principles of Treasury Regulation Section
1.704-1(b)(2)(iv)(g).

               "Net Operating Income" shall be determined in accordance with the
formula by which "NOI" is determined on Exhibit A attached hereto.

               "Non-Defaulting Member" has the meaning set forth in Section 9.6.

               "Operative Date" means the date on which the last of the
Transaction Documents shall be deemed "closed" pursuant to its terms.

               "Original LLC Agreement" has the meaning set forth in the
Recitals.

               "Payment Default" has the meaning set forth in Section 9.6.

               "Percentage Interest" means, as of any time with respect to each
Member, the percentage equivalent of a fraction, the numerator of which shall be
the amount of such Member's Invested Capital and the denominator of which shall
be the amount of the aggregate Invested Capital of all of the Members, subject
to adjustment as provided in this Agreement (including, without limitation,
Section 7.3(b) hereof). The Members contemplate that the Percentage Interest of
the Members will be 80% for Chase and 20% for Shurgard.

               "Person" shall mean any individual, partnership, corporation,
association, joint venture, trust or other legal entity (including any heirs,
executors, administrators, legal representatives, successors and assigns),
governments or agencies or political subdivisions thereof, multistate compact
authorities and other associations and entities where the context requires.

               "Pro Forma" shall have the meaning set forth in Section 2.2(a).

               "Property" or "Properties," as the case may be, means the
self-storage facilities owned or leased and recently constructed or currently
under construction by SSCI or its Affiliates all as listed on Exhibit B.

               "Property Manager" shall have the meaning set forth in Section
5.3.

               "Purchase Agreement" shall have the meaning set forth in Section
7.1.

                                      -6-
<PAGE>   44

               "Purchase Financing Commitment" has the meaning set forth in
Section 7.2.

               "Recipient" shall have the meaning set forth in Section 1.9(a).

               "Regulatory Sideletter" shall have the meaning set forth in
Section 12.14.

               "Sale Agreement" shall have the meaning set forth in Section 7.1.

               "Sale Notice" shall have the meaning set forth in Section 7.1.

               "Sale Price" with respect to any parcel of Property means the
greater of: (i) the amount necessary to provide Chase with a 12% Investment
Return on its Invested Capital with respect to such Property, or (ii) the
annualized Net Operating Income for the Sale Property for the six month period
ending on the date of delivery of the Sale Notice with respect to such Sale
Property, capitalized at 9.25%; provided, however, that should the annualized
Net Operating Income for the Sale Property for the six month period ending on
the date of the consummation of the sale of the Sale Property to Shurgard be
higher than the Net Operating Income for the Sale Property for the six month
period ending on the date of delivery of the Sale Notice, the higher number
shall be used in calculating the Sale Price.

               "Sale Property" shall have the meaning set forth in Section 7.1.

               "Sale Right" shall have the meaning set forth in Section 7.1.

               "Shurgard" has the meaning set forth in the Preamble.

               "Single Purpose Entity" means a limited liability company which:

                  (i) is organized solely for the purpose of one of the
            following: (a) acquiring, developing, owning, holding, selling,
            leasing, transferring, exchanging, managing and operating the
            Properties, entering into the Credit Facility, refinancing the
            Properties in connection with a permitted repayment of the Credit
            Facility, and transacting any and all lawful business that is
            incident, necessary and appropriate to accomplish the foregoing;

                  (ii) is not engaged and will not engage in any business
            unrelated to the acquisition, development, ownership, management or
            operation of the Properties;

                  (iii) does not have and will not have any assets other than
            those related to the Properties;

                  (iv) has not engaged, sought or consented to and will not
            engage in, seek or consent to any dissolution, winding up,
            liquidation, consolidation, merger, sale of all or substantially all
            of its assets, transfer of membership interests, except as permitted
            pursuant to the terms of this Agreement, or any amendment of its

                                      -7-
<PAGE>   45

            certificate of formation or operating agreement with respect to the
            matters set forth in this definition;

                  (v) has articles of organization, a certificate of formation
            and/or an operating agreement, as applicable, that provide that such
            entity (a) will not dissolve, merge, liquidate or consolidate; (b)
            sell all or substantially all of its assets or the assets of any
            other entity in which it has a direct or indirect legal or
            beneficial ownership interest; (c) engage in any other business
            activity, other than as permitted pursuant to this Agreement and the
            Credit Facility, or amend its organizational documents with respect
            to the matters set forth in this definition without obtaining all
            consents necessary for such amendment; and (d) shall not file a
            bankruptcy or insolvency petition or otherwise institute insolvency
            proceedings with respect to itself or to any other entity in which
            it has a direct or indirect legal or beneficial ownership interest
            or is the direct or indirect general partner or manager without the
            affirmative vote of all of the directors of the entity;

                  (vi) is and will remain solvent and pay its debts and
            liability (including, as applicable, shared personnel and overhead
            expenses) from its assets as the same shall become due, and is
            maintaining and will maintain adequate capital for the normal
            obligations reasonably foreseeable in a business of its size and
            character and in light of its contemplated business operations;

                  (vii) has not failed and will not fail to correct any known
            misunderstanding regarding the separate identity of such entity;

                  (viii) has maintained and will maintain its accounts, books
            and records separate from any other Person and will file its own tax
            returns, except to the extent that it is required to file
            consolidated tax returns by law;

                  (ix) has not commingled and will not commingle its funds or
            assets with those of any other Person;

                  (x) has held and will hold its assets in its own name;

                  (xi) has maintained and will maintain financial statements
            that properly and accurately show its separate assets and
            liabilities and do not show the assets or liabilities of any other
            Person, and has not permitted and will not permit its assets to be
            listed as assets on the financial statement of any other entity;

                  (xii) has paid and will pay its own liabilities and expenses,
            including, but not limited to, the salaries of its own employees (if
            any), out of its own funds and assets, and has maintained and will
            maintain a sufficient number of employees in light of its
            contemplated business operations;

                  (xiii) has observed and will observe all limited liability
            company formalities, as applicable;

                                      -8-
<PAGE>   46

                  (xiv) has not incurred and will not incur any debt other than
            (a) the Credit Facility and (b) trade and operational debt which is
            (i) incurred in the ordinary course of business, (ii) not more than
            sixty (60) days past due, (iii) with trade creditors, (iv) in the
            aggregate, in an amount less than $3,000,000.00, (v) not evidenced
            by a note, and (vi) paid when due. No Debt other than the Credit
            Facility may be secured (subordinate or pari passu) by the
            Properties, unless otherwise approved by GECC, until such time as
            the amounts due under the Credit Facility is repaid and fully
            satisfied;

                  (xv) has not and will not assume or guarantee or become
            obligated for the debts of any other Person or hold out its credit
            as being available to satisfy the obligations of any other Person
            except as permitted pursuant to this Agreement or the Credit
            Facility;

                  (xvi) has not and will not acquire obligations or securities
            of its members or any other affiliate;

                  (xvii) has allocated and will allocate fairly and reasonably
            any overhead expenses that are shared with an affiliate, including,
            but not limited to, paying for shared office space and services
            performed by any officer or employee of an affiliate;

                  (xviii) except in connection with the Credit Facility, has not
            pledged and will not pledge its assets for the benefit of any other
            Person;

                  (xix) has conducted business, held itself out and identified
            itself and will conduct business, hold itself out and identify
            itself as a separate and distinct entity under its own name or in a
            name franchised or licensed to it by a Person other than an
            affiliate of the Company and not as a division or part of any other
            Person;

                  (xx) has maintained and will maintain its assets in such a
            manner that it will not be costly or difficult to segregate,
            ascertain or identify its individual assets from those of any other
            Person;

                  (xxi) has not made and will not make loans to any Person or
            hold evidence of indebtedness issued by any other Person (other than
            cash and securities issued by an entity that is not an affiliate or
            subject to common ownership with such entity);

                  (xxii) has not identified and will not identify its members or
            any affiliate of any of them, as a division or part of it, and has
            not identified itself and shall not identify itself as a division of
            any other Person;

                  (xxiii) has not entered into or been a party to, and will not
            enter into or be a party to, any transaction with its members or
            affiliates except in the ordinary course of its business and on
            terms which are intrinsically fair, commercially

                                      -9-
<PAGE>   47
            reasonable and are no less favorable to it than would be obtained in
            a comparable arm's-length transaction with an unrelated third party;

                  (xxiv) has not and will not have any obligation to indemnify
            its partners, officers, directors or members, as the case may be,
            unless such obligation is fully subordinated to the indebtedness
            evidenced by the Credit Facility and will not constitute a claim
            against it in the event that, after payment of the indebtedness
            evidenced by the Credit Facility, cash flow is insufficient to pay
            such obligation;

                  (xxv) does not and will not have any of its obligations
            guaranteed by any affiliate.

               "SSCI" has the meaning set forth in the Recitals.

               "Target Amount" means, with respect to any Member as of the end
of any taxable year, the maximum amount that hypothetically would be
distributable to such Member as of the end of such year pursuant to Article III
if the Company were to sell each of its noncash assets on hand as of the end of
such year for an amount of cash equal to its adjusted "book" basis in such asset
(as determined under the principles for the computation of Net Income and Net
Losses) and then liquidate, distributing the Net Cash Flow from Capital
Transactions from such sale and all its other assets pursuant to Article VIII
(taking into account any distributions previously made during such year).

               "Trade Area" means the radius of the relevant trade area of a
Property as set forth on Exhibit E.

               "Transfer" shall have the meaning set forth in Section 8.1.

               "Transaction Documents" shall mean this Agreement, the
Contribution Agreement, the Management Agreement and the Purchase Agreement.

                                      -10-

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