Document:

exv10w1

 

Exhibit 10.1

EXCHANGE AGREEMENT

     EXCHANGE AGREEMENT dated as of July 8, 2005 (the “Agreement”), entered into by and between AMB
Property, L.P., a Delaware limited partnership (the “Operating Partnership”), and Teachers
Insurance and Annuity Association of America, a New York corporation (the “Holder”).

R E C I T A L S

     WHEREAS, on June 30, 1998, the Operating Partnership issued $100,000,000 aggregate principal
amount of 6.90% Reset Put Securities Due June 30, 2015 – Putable/Callable 2005 (the “Notes”)
pursuant an Indenture dated as of June 30, 1998, by and among the Operating Partnership, AMB
Property Corporation, a Maryland corporation (the “Parent Corporation,” and together with the
Operating Partnership, the “Companies”), and State Street Bank and Trust Company of California, as
trustee thereunder (the “Predecessor Trustee”), as supplemented by: (a) the First Supplemental
Indenture dated as of June 30, 1998, by and among the Operating Partnership, the Parent Corporation
and the Predecessor Trustee; (b) the Second Supplemental Indenture dated as of June 30, 1998, by
and among the Operating Partnership, the Parent Corporation and the Predecessor Trustee; (c) the
Third Supplemental Indenture dated as of June 30, 1998, by and among the Operating Partnership, the
Parent Corporation and the Predecessor Trustee; (d) the Fourth Supplemental Indenture dated as of
August 15, 2000, by and among the Operating Partnership, the Parent Corporation and the Predecessor
Trustee; and (e) the Fifth Supplemental Indenture dated as of May 7, 2002, by and among the
Operating Partnership, the Parent Corporation and the Predecessor Trustee (as so supplemented, and
as to be supplemented by the Sixth Supplemental Indenture (as defined below), together, the
“Indenture”).

     WHEREAS, pursuant to and in accordance with the terms of the Indenture, Morgan Stanley & Co.
International Limited (the “Callholder”) exercised its right to call the Notes and accordingly on
June 30, 2005 (the “Coupon Reset Date”) purchased the aggregate principal amount of the Notes
issued and outstanding at a price equal to 100% of the aggregate principal amount thereof.

     WHEREAS, pursuant to and in accordance with the terms of the Indenture, Morgan Stanley & Co.
Incorporated (the “Seller”) obtained bids for the purchase of the Notes, matched the bid with the
lowest Yield to Maturity (as defined in the Indenture) and accordingly, on the Coupon Reset Date,
purchased the Notes from the Callholder.

     WHEREAS, on the Coupon Reset Date, pursuant to and in accordance with the terms of the
Purchase Agreement dated as of June 14, 2005, by and among the Operating Partnership, the Seller,
the Callholder and the Holder (the “Purchase Agreement”), the Seller sold the Notes to the Holder
pursuant to the exemptions from the registration requirements of the Securities Act of 1933, as
amended (the “Securities Act”), including but not limited to the exemption provided by Rule 144A
promulgated under the Securities Act.

     WHEREAS, the Holder and the Operating Partnership desire to cause an exchange of the Notes in
a private placement exempt from the registration requirements of the Securities Act (the
“Exchange”), whereby the Holder shall exchange all Notes held by the Holder for $112,491,000

 

 

in aggregate principal amount of 5.094% Notes Due 2015, which shall constitute a new series of
Securities (as defined in the Indenture) of the Operating Partnership (the “Exchange Notes”), which
are to be issued under the Sixth Supplemental Indenture to be dated as of the Closing Date, by and
among the Operating Partnership, the Parent Corporation and U.S. Bank National Association, a
national banking association organized and existing under the laws of the United States of America,
as successor-in-interest to the Predecessor Trustee (together with the Predecessor Trustee, as
applicable, the “Trustee”), substantially in the form attached hereto as EXHIBIT A (the
“Sixth Supplemental Indenture”).

     WHEREAS, the Operating Partnership and the Holder have executed a Loan Application and
Commitment Agreement, dated July 8, 2005 (as may be amended from time to time after the date
hereof, the “Loan Commitment Agreement”), pursuant to which, subject to the terms thereof, the
Holder has agreed to make one or more first mortgage loans to the Operating Partnership or one or
more of its subsidiaries or affiliated entities (the “Borrower”), in accordance with the terms of
the Loan Commitment Agreement (the “Mortgage Loans”), in exchange for cancellation of an equal
principal amount of Exchange Notes, to be secured by certain real property identified by the
Operating Partnership and approved by the Holder in accordance with the terms of the Loan
Commitment Agreement.

     WHEREAS, the Operating Partnership and the Holder desire to provide that the Operating
Partnership, on the terms and subject to the conditions set forth herein and in the Loan Commitment
Agreement, shall have the right to cancel all or any portion of the aggregate principal amount of
the Exchange Notes for an obligation of equal dollar amount under the Mortgage Loan.

A G R E E M E N T

     NOW, THEREFORE, in consideration of the premises and of the mutual representations,
warranties, covenants and undertakings contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Holder and the
Operating Partnership now hereby agree as follows:

     1. Exchange. Subject to the terms and conditions set forth below, on the Closing Date (as
defined below) the Holder shall assign and transfer to the Operating Partnership all the Notes held
by the Holder and the Operating Partnership shall issue and deliver to the Holder $112,491,000 in
aggregate principal amount of Exchange Notes.

     2. Delivery of Exchange Notes. Delivery of the Exchange Notes pursuant to Section 1 of this
Agreement shall occur at 10:00 a.m., New York City time, on July 11, 2005, or such other time or
date as shall be designated in writing by each of the Operating Partnership and the Holder (as
applicable, the “Closing Date”), and shall be delivered by “book-entry” with, and credited to the
securities account specified by the Holder at, the Depository Trust Company (“DTC”).

     3. Operating Partnership Condition to Closing. The obligations of the Operating Partnership
to deliver the Exchange Notes to the Holder on the Closing Date are subject to the following
conditions; provided, however, that the Operating Partnership may waive such condition in the sole
and absolute discretion of the Operating Partnership.

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          (a) The Holder has assigned and transferred to the Operating Partnership all Notes held by the
Holder; and

          (b) The representations, warranties and covenants of the Holder in Section 5 of this Agreement
shall be true and correct as of the Closing Date as set out in a certificate dated the Closing Date
executed by any managing director of the Holder.

     4. Holder Conditions to Closing. The obligations of the Holder to exchange the
Exchange Notes for the Notes on the Closing Date are subject to the following conditions; provided,
however, that the Holder may waive such conditions in the sole and absolute discretion of the
Holder:

          (a) The representations, warranties and covenants of the Operating Partnership in Section 5A
of this Agreement shall be true and correct as of the Closing Date as set out in a certificate
dated the Closing Date executed by any executive officer of the Parent Corporation in the Parent
Corporation’s capacity as general partner of the Operating Partnership; and

          (b) The Operating Partnership shall have executed the Sixth Supplemental Indenture and the
Registration Rights Agreement substantially in the form attached hereto as EXHIBIT B (the
“Registration Rights Agreement”).

          (c) The Holder shall have received opinions of counsel from Ballard Spahr Andrews & Ingersoll
LLP and Tamra D. Browne, General Counsel of the Parent Corporation, substantially in the forms
attached hereto as EXHIBIT C and EXHIBIT D, respectively.

     5. Representations, Warranties and Covenants of the Holder. The Holder represents, warrants
and covenants, as of the date hereof, as of the Closing Date, and as of any Mortgage Loan Closing
Date, as applicable, as follows:

          (a) The Holder is (i) a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act (a “QIB”) and is an institutional “accredited investor” within the meaning of
Rule 501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act, (ii) aware
that the Exchange is a private placement exempt from the registration requirements of the
Securities Act and (iii) acquiring the Exchange Notes for its own account, for investment only and
not with a view toward their distribution in violation of federal or state securities laws.

          (b) The Holder understands and agrees that the Exchange is not a transaction involving any
public offering within the meaning of the Securities Act and that the Exchange Notes have not been
registered under the Securities Act, and that if prior to the expiration of the applicable holding
period specified in Rule 144(k) of the Securities Act the Holder decides to offer, resell, pledge
or otherwise transfer any of the Exchange Notes, such Exchange Notes may be offered, resold,
pledged or otherwise transferred only pursuant to and in accordance with the restrictions set forth
in Section 5(c) of this Agreement and the Sixth Supplemental Indenture; and (ii) no representation
is made as to the availability of any exemption under the Securities Act or any state securities
laws for the resale of the Exchange Notes.

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          (c) The Holder understands that the Exchange Notes will, until the earlier of the expiration
of the applicable holding period set forth in Rule 144(k) of the Securities Act, unless sold
pursuant to a registration statement that has been declared effective under the Securities Act or
in compliance with Rule 144, bear a legend substantially to the following effect:

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF (OR OF A BENEFICIAL INTEREST HEREIN) THE
HOLDER: (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A “QIB”), (B) IT IS NOT A U.S.
PERSON, IS NOT ACQUIRING THIS SECURITY FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON
AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE
SECURITIES ACT) (AN “IAI”); (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD
REFERRED TO UNDER RULE 144(k) (TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d)
UNDER THE SECURITIES ACT, IF APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON
THE DATE OF THE TRANSFER OF THIS SECURITY, RESELL OR OTHERWISE TRANSFER THIS
SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON WHOM
THE HOLDER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED
BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO
SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE REGISTRATION OF TRANSFER OF THIS
SECURITY, THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE, AND AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
SECURITY OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY OR ANY INTEREST
HEREIN WITHIN THE TIME PERIOD REFERRED TO ABOVE,

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THE HOLDER MUST CHECK THE APPROPRIATE BOX CONTAINED IN A CERTIFICATE OF TRANSFER
AVAILABLE FROM THE TRUSTEE RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS
CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN
VIOLATION OF THE FOREGOING RESTRICTIONS.

          (d) The Holder (i) is able to fend for itself in the transactions contemplated by this
Agreement, (ii) has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of its prospective investment in the Exchange Notes and
(iii) has the ability to bear the economic risks of its prospective investment and can afford the
complete loss of such investment.

          (e) The Holder acknowledges that (i) it has conducted its own investigation of the Companies
and the terms of the Exchange Notes and (ii) it has had access to the public filings of the
Companies with the Securities and Exchange Commission (the “Commission”) and to such financial and
other information as it deems necessary to make its decision to acquire the Exchange Notes.

          (f) The Holder understands that the Companies will rely upon the truth and accuracy of the
foregoing representations, acknowledgements and agreements and agrees that if any of the
representations or acknowledgements deemed to have been made by it in connection with the Exchange
is no longer accurate, the Holder shall promptly notify the Companies. If the Holder is acquiring
the Exchange Notes as a fiduciary or agent for one or more investor accounts, it represents that is
has sole investment discretion with respect to each such account and it has full power to make the
foregoing representations, acknowledgements and agreements on behalf of such account.

          (g) The Holder has full right, power, authority and capacity to enter into this Agreement and
to consummate the transactions contemplated hereby and has taken all necessary action to authorize
the execution, delivery and performance of this Agreement and the Exchange.

          (h) The Holder understands that nothing in this Agreement, the public filings of the Companies
with the Commission or any other materials presented to the Holder in connection with the Exchange
constitutes legal, tax or investment advice. The Holder has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with the Exchange and its investment in the Exchange Notes and has made its own
assessment and has satisfied itself concerning the relevant tax and other economic considerations
relevant to the Exchange and its investment in the Exchange Notes.

          (i) The Holder represents and warrants that, to the knowledge of the Holder, no direct or
indirect payment of commission or remuneration has been paid to any third party in connection with
the Exchange and the issuance of the Exchange Notes.

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          (j) The Holder has valid title to the Notes, free and clear of all security interests, claims,
liens, equities or other encumbrances created or authorized by it; and the delivery of the Notes by
the Holder pursuant to this Agreement will pass valid title thereto to the Operating Partnership,
free and clear of any “adverse claim” created or authorized by it (as defined in Section 8-102 of
the Uniform Commercial Code of the State of New York as in effect on the date hereof and on the
Closing Date).

     5A. Representations, Warranties and Covenants of the Operating Partnership. The Operating
Partnership represents, warrants and covenants, as of the date hereof, as of the Closing Date, and
as of any Mortgage Loan Closing Date, as applicable, as follows:

          (a) The Operating Partnership is a limited partnership duly organized, validly existing and in
good standing under the laws of the state of Delaware. The Operating Partnership has full right,
power, authority and capacity to enter into this Agreement, the Sixth Supplemental Indenture, the
Registration Rights Agreement, the Exchange Notes and to consummate the transactions contemplated
hereby and thereby and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement, the Indenture, the Sixth Supplemental Indenture, the Registration
Rights Agreement, the Exchange Notes and the Exchange.

          (b) The Parent Corporation is a corporation duly organized, validly existing and in good
standing under the laws of the state of Maryland. The Parent Corporation has full right, power,
authority and capacity to enter into the Indenture and the Sixth Supplemental Indenture and to
consummate the transactions contemplated hereby and thereby and has taken all necessary action to
authorize the execution, delivery and performance of the Indenture and the Sixth Supplemental
Indenture.

          (c) This Agreement and the Indenture constitute, and upon execution and delivery thereof, each
of the Sixth Supplemental Indenture, the Registration Rights Agreement and the Exchange Note will
constitute, a legal, valid and binding obligation of the Operating Partnership, enforceable against
the Operating Partnership in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

          (d) The Indenture constitutes, and upon execution and delivery thereof, the Sixth Supplemental
Indenture will constitute, a legal, valid and binding obligation of the Parent Corporation,
enforceable against the Parent Corporation in accordance with its terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

          (e) The execution, delivery and performance by the Operating Partnership of its obligations
under this Agreement, the Indenture, as it pertains to the transactions referenced herein, the
Sixth Supplemental Indenture, the Registration Rights Agreement and the Exchange Notes will not (i)
contravene, result in any breach of, or constitute a default under, or result in the

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creation of any material mortgage, lien, pledge, charge, security interest or other material
encumbrance in respect of any property of the Operating Partnership or any subsidiary of the
Operating Partnership under, any material indenture, mortgage, deed of trust, loan, purchase or
credit agreement, lease, corporate charter or by-laws, or any other material agreement or
instrument to which the Operating Partnership or any subsidiary is bound or by which the Operating
Partnership or any subsidiary or any of their respective properties may be bound or affected,
except for any cancellation pursuant to Section 7 hereof, (ii) conflict with or result in a breach
of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any
federal, state, local and other governmental authority, governmental or regulatory agency or body,
court, arbitrator or self-regulatory organization applicable to the Operating Partnership or any
subsidiary (each a “Governmental Authority”) or (iii) violate any provision of any statute or other
rule or regulation of any Governmental Authority applicable to the Operating Partnership or any
subsidiary.

          (f) The execution, delivery and performance by the Parent Corporation of its obligations under
the Indenture, as it pertains to the transactions referenced herein, and the Sixth Supplemental
Indenture will not (i) contravene, result in any breach of, or constitute a default under, or
result in the creation of any material mortgage, lien, pledge, charge, security interest or other
material encumbrance in respect of any property of the Parent Corporation under, any material
indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or
by-laws, or any material other agreement or instrument to which the Parent Corporation is bound or
by which the Parent Corporation or any of its properties may be bound or affected, except for any
cancellation pursuant to Section 7 hereof, (ii) conflict with or result in a breach of any of the
terms, conditions or provisions of any order, judgment, decree, or ruling of any Governmental
Authority applicable to the Parent Corporation or (iii) violate any provision of any statute or
other rule or regulation of any Governmental Authority applicable to the Parent Corporation.

          (g) No consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance by the
Operating Partnership or the Parent Corporation of this Agreement, the Indenture, the Sixth
Supplemental Indenture, the Registration Rights Agreement or the Exchange Notes.

          (h) Neither the Operating Partnership nor anyone acting on its behalf has offered the Exchange
Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or
otherwise approached or negotiated in respect thereof with, any person other than the Holder.
Neither the Operating Partnership nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Exchange Notes to the registration
requirements of Section 5 of the Securities Act.

          (i) On the Closing Date the Operating Partnership agrees to pay the Holder all accrued and
unpaid interest on the Notes up to, but not including, the Closing Date.

     6. Covenants of the Operating Partnership.

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          (a) Bloomberg. The Operating Partnership shall use its best efforts to make the Notes
available on the online financial service provided by Bloomberg, L.P. within thirty (30) calendar
days of the Exchange.

          (b) Registration Rights. The Operating Partnership and the Holder shall execute the
Registration Rights Agreement substantially in the form attached hereto as EXHIBIT B.

          (c) Ratings. For so long the Holder shall own any of the Exchange Notes, the Operating
Partnership shall use its commercially reasonable efforts to cause each of Standard & Poor’s
Ratings Services, Moody’s Investors Service, Inc. and Fitch, Inc. to provide a rating for the
Operating Partnership’s senior, unsecured debt.

     7. Cancellation of Exchange Notes; Mortgage Loans.

          (a) Demand Right. Subject to the terms and conditions set forth in this Agreement, at any
time and from time to time during the Demand Period (as defined below), the Operating Partnership
shall have the right in its sole discretion to exercise its Demand Right by providing a notice to
the Holder requiring the Holder to deliver for cancellation all or any portion of the aggregate
principal amount of the Exchange Notes (in integral multiples of $1,000, subject to the next
sentence) for an equal dollar amount of Mortgage Loans (the “Demand Right”). Notwithstanding
anything in this Agreement or the Loan Commitment Agreement to the contrary, the Operating
Partnership may not exercise its Demand Right for (i) less than $20,000,000 aggregate principal
amount of the Exchange Notes at any one time or (ii) more than $52,491,000 aggregate principal
amount of the Exchange Notes after January 11, 2007. The “Demand Period” shall commence on the
Closing Date and shall terminate on July 11, 2008. The Holder shall have the right to extend the
Demand Period in its sole discretion upon notice to the Operating Partnership.

          Notwithstanding the foregoing, the Demand Right and the obligation of the Holder to make any
Mortgage Loans shall immediately terminate and expire in the event that the Parent Corporation
shall consummate any transaction, whether by means of an exchange offer, liquidation, tender offer,
consolidation, merger, combination, reclassification, recapitalization or otherwise, in connection
with which the Parent Corporation is not the surviving entity, unless the Holder consents in
advance to such transaction in writing, which consent may be withheld in the Holder’s sole
discretion.

          (b) Notice of Exercise of Demand Right. Subject to Section 7(h) below, if the Operating
Partnership chooses to exercise its Demand Right, the Operating Partnership shall notify the Holder
at least ninety (90) calendar days in advance of each date that the Operating Partnership wishes to
cancel Exchange Notes for an obligation of equal dollar amount under the Mortgage Loan (each such
date on which Exchange Notes shall be cancelled and Loan Documents shall be executed, a “Mortgage
Loan Closing Date”). Such notice (the “Exchange Notice”) shall be irrevocable by the Operating
Partnership once the Holder and the Operating Partnership have agreed on the value of the
properties that will secure such Mortgage Loan. Notwithstanding the preceding sentence, the
Operating Partnership shall have the right to delay the Mortgage Loan Closing Date for up to one
hundred and twenty (120) calendar days in the event that, subsequent to the delivery of such
notice, (x) the Operating Partnership or the

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Corporation determines in its good faith judgment that the cancellation of any Exchange Notes
or the consummation of a Mortgage Loan Closing with respect to such notice would require the
disclosure of non-public material information that the Operating Partnership or the Parent
Corporation has a bona fide business purpose for preserving as confidential or the disclosure of
which would impede the Operating Partnership’s or the Parent Corporation’s ability to consummate a
material action, or (y) all reports required to be filed by the Companies pursuant to the Exchange
Act have not been filed by the required date without regard to any extension, or if the
consummation of any business combination by either of the Companies has occurred or is probable for
purposes of Rule 3-05 or Article 11 of Regulation S-X under the Act.

          (c) Mortgage Loan Closing Representations by the Holder. On each Mortgage Loan Closing Date,
the Holder shall deliver a certificate to the Operating Partnership executed by any managing
director of the Holder and making, on behalf of the Holder, the representations, warranties and
covenants set forth in EXHIBIT E hereto.

          (d) Conditions to the Holder’s Obligations. The Holder’s obligation to deliver Exchange Notes
for cancellation for an equal dollar amount of Mortgage Loans at any Mortgage Loan Closing (as
defined below) shall be subject to satisfaction or waiver of all of the conditions to such Mortgage
Loan Closing contained in the Loan Commitment Agreement.

          (e) Procedure for Mortgage Loan Closings. Subject to Section 7(d) hereof and the Loan
Commitment Agreement, on each Mortgage Loan Closing Date, the Borrower and the Holder shall execute
Loan Documents (as defined in the Loan Commitment Agreement) or execute additional Loan Documents,
or otherwise amend or supplement existing Loan Documents, as appropriate, to evidence a Mortgage
Loan in an amount equal to the aggregate principal amount of the Exchange Notes to be cancelled
(such amount, the “Demand Amount”). In addition, on such Mortgage Loan Closing Date, the Operating
Partnership shall pay to the Holder (i) any accrued but unpaid interest due on the Exchange Notes
to be cancelled to, but excluding, the Mortgage Loan Closing Date and (ii) a cancellation fee equal
to 0.20% of the Demand Amount. In consideration of the foregoing, on such Mortgage Loan Closing
Date the Holder shall cause to be delivered to the account of the trustee for the Exchange Notes a
book-entry interest in the Exchange Notes in a principal amount equal to the Demand Amount. Upon
receipt of such book-entry interest and the execution of Loan Documents evidencing the Mortgage
Loan on the Mortgage Loan Closing Date, the Operating Partnership shall cause the trustee to cancel
such book-entry interest and such book-entry interest shall thereafter be of no further effect.
The consummation of the transactions contemplated by this Section 7(e) on a Mortgage Loan Closing
Date shall be referred to in this Agreement as the “Mortgage Loan Closing” with respect to such
Mortgage Loan Closing Date.

          (f) Limitations on Sale of Exchange Notes.

               (i) If at any time the Holder desires to sell all or a portion of the Exchange Notes, the
Holder shall promptly notify the Operating Partnership (such notice, for purposes of this Section
7(f)(i), the “Sale Notice”). The Operating Partnership shall have the option, exercisable by
delivering a notice (such notice, for purposes of this Section 7(f)(i), the “Repurchase Notice”) to
the Holder within three (3) business days following receipt of the Sale Notice, to repurchase from
the Holder all or any portion (in integral multiples of $1,000) of the Exchange Notes subject to
the Sale Notice from the Holder at a repurchase price equal to 100%

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of the aggregate principal amount of such Exchange Notes, plus any accrued but unpaid interest
due on such Exchange Notes to, but excluding, the date of repurchase. The closing of any such
repurchase by the Operating Partnership shall occur within seven (7) business days following
receipt by the Holder of the Repurchase Notice, unless the parties mutually agree to extend such
closing date and if such closing does not occur within seven (7) business days or such later period
agreed to by the parties, the Holder may sell the Exchange Note in compliance with Section 5(b) and
5(c) hereof.

               (ii) Subject to the provisions of (f)(i) above, if an Exchange Notice has become irrevocable
by the Operating Partnership pursuant to Section 7(b) of this Agreement, until ninety (90) calendar
days from the date such Exchange Notice became irrevocable (or such later date coinciding with any
delayed Mortgage Closing Date) (such 90-day or later period, the “Lockout Period”), the Holder
shall not sell any Exchange Notes unless after giving effect to such sale, the Holder would own
Exchange Notes having an aggregate principal amount at least equal to the Demand Amount with
respect to such Exchange Notice (plus any other Exchange Notices previously made and for which the
Lockout Period with respect thereto has not expired, provided that if any such sale should occur,
such sale is in compliance with Section 5(b) and 5(c) hereof.

          Notwithstanding the preceding paragraph, if a Downgrade Trigger (as defined below) occurs
during the Lockout Period, the Holder shall have the right to sell immediately all or any portion
of the Exchange Notes that are subject to the restrictions on sale pursuant to the preceding
paragraph, provided that any such sale is in compliance with Section 5(b) and 5(c) hereof. If the
Holder desires to sell all or any portion of the Exchange Notes pursuant to one of the two
preceding sentences, the Holder shall promptly notify the Operating Partnership (such notice, for
purposes of this Section 7(f)(ii), the “Sale Notice”). The Operating Partnership shall have the
option, exercisable by delivering a notice (such notice, for purposes of this Section 7(f)(ii), the
“Repurchase Notice”) to the Holder within three (3) business days following receipt of the Sale
Notice, to repurchase from the Holder all or any portion (in integral multiples of $1,000) of the
Exchange Notes subject to the Sale Notice from the Holder at a repurchase price equal to 100% of
the aggregate principal amount of such Exchange Notes, plus any accrued but unpaid interest due on
such Exchange Notes to, but excluding, the date of repurchase. The closing of any such repurchase
by the Operating Partnership shall occur within five (5) business days following receipt by the
Holder of the Repurchase Notice, unless the parties mutually agree to extend such closing date.

          As used herein, a “Downgrade Trigger” shall be deemed to have occurred at any time that (i)
Standard & Poor’s Ratings Services shall maintain a rating for the Operating Partnership’s senior,
unsecured debt of BBB- with a negative outlook, or lower, (ii) Moody’s Investors Service, Inc.
shall maintain a rating for the Operating Partnership’s senior, unsecured debt of Baa2 with a
negative outlook, or lower, or (iii) Fitch, Inc. shall maintain a rating for the Operating
Partnership’s senior, unsecured debt of BBB with a negative outlook, or lower.

          (g) Expiration of the Demand Period. Notwithstanding anything in this Agreement or the Loan
Commitment Agreement to the contrary, the Operating Partnership may not exercise its Demand Right
pursuant to Section 7(a) hereof subsequent to the expiration of the Demand Period.

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          (h) Mortgage Loan Closings. Mortgage Loan Closings may take place subsequent to the
expiration of the Demand Period provided that the Operating Partnership made proper exercises of
its Demand Right prior to the expiration of the Demand Period with respect to such Mortgage Loan
Closings. In the event that the Holder approves the properties that will secure such Mortgage Loan
and the parties agree as to the loan amount, the Mortgage Loan Closing with respect thereto must
take place within (but not later than) sixty (60) calendar days subsequent to such approval (or
such longer period as the parties hereto agree). The parties agree that they will use their
commercially reasonable efforts to cause such Mortgage Loan Closing to occur promptly.

     8. Miscellaneous Provisions.

          (a) Each subsequent holder of any Exchange Note by its acceptance thereof shall be deemed to
agree to the provisions set forth in Sections 5(b) and 5(c) hereof.

          (b) No provision of this Agreement may be amended, waived or modified other than by a document
signed by the Operating Partnership and the Holder.

          (c) This Agreement and all actions arising out of or in connection with this Agreement shall
be governed by and construed in accordance with the laws of the State of New York, without regard
to the conflicts of law provisions of the State of New York or of any other state.

          (d) This Agreement together with the Sixth Supplemental Indenture (including the Form of
Exchange Note contained therein), the Loan Commitment Agreement and the Registration Rights
Agreement shall constitute the full and entire understanding and agreement between the parties with
regard to the subject matter hereof.

          (e) All notices and other communications required or permitted hereunder shall be in writing
and shall be sent via facsimile (and deemed delivered upon facsimile machine confirmation of
delivery received), overnight courier service or mailed by certified or registered mail, postage
prepaid, return receipt requested, addressed or sent as set forth below:

	 	(i)	 	if to the Operating Partnership:
	 
	 	 	 	AMB Property, L.P.

c/o AMB Property Corporation

Pier One, Bay One

San Francisco, CA 94111

Attn: General Counsel

Facsimile Number: (415) 394-9001
	 
	 	(ii)	 	with a copy to:
	 
	 	 	 	Latham & Watkins LLP

505 Montgomery Street, Suite 2000

San Francisco, CA 94111

11

 

	 	 	 	Attn: Laura L. Gabriel, Esq.

Facsimile Number: (415) 395-8095
	 
	 	(iii)	 	if to the Holder, to:

Teachers Insurance and Annuity Association of America

730 Third Avenue

New York, NY 10017

Attn: Joseph Romano, Managing Director

Facsimile Number: (212) 916-6960
	 
	 	(iv)	 	with a copy to:
	 
	 	 	 	Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY 10019-5820

Attn: Jin K. Kim

Facsimile Number: (212) 849-5696

          (f) If any provision of this Agreement shall be judicially determined to be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

          (g) The Operating Partnership shall bear its own expenses and legal fees incurred with respect
to this Agreement and the transactions contemplated herein. In addition, the Operating Partnership
shall: (i) pay the reasonable documented fees and disbursements of Mayer, Brown, Rowe & Maw LLP,
special counsel to the Holder, (ii) pay the reasonable documented fees and disbursements of special
counsel to the Holder in connection with any amendment, waiver or consent with respect to this
Agreement or the Exchange Notes or any Cancellation of any Exchange Notes contemplated by Section
7(a) hereof (including the cost of issuing and transmitting a book-entry interest in any
replacement Exchange Notes), and all other reasonable expenses in connection therewith, including
the reasonable fees and expenses of enforcing the collection of amounts due on the Exchange Notes,
whether before or after any bankruptcy, reorganization, dissolution, winding up or liquidation of
the Operating Partnership and (iii) reimburse the Holder for its reasonable documented
out-of-pocket expenses in connection with the transactions contemplated hereby and such amendments,
waivers or consents, and any items of the character referred to in clause (ii) which shall have
been paid by the Holder (except out-of-pocket expenses occasioned by any sale or transfer of any of
the Exchange Notes).

          (h) The headings and subheadings used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement.

          (i) This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall be deemed to constitute one instrument.

          (j) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns; provided, however, that no assignment,

12

 

delegation or other transfer shall be made by any party without the prior written consent of
all the other parties hereto.

[Intentionally Left Blank]

13

 

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

	 	 	 	 	 
	 

	 	 	 	AMB PROPERTY, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,
	 

	 	 	 	          as General Partner
	 
	 	 	 	 
	 

	 	By:
	 	          /s/ Michael A. Coke
	 

	 	 	 	 
	 

	 	 	 	Name: Michael A. Coke

Title: Executive Vice President and

          Chief Financial Officer

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	TEACHERS INSURANCE AND
          
ANNUITY ASSOCIATION OF AMERICA
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ Stephen J. Kraljic	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Stephen J. Kraljic	 	 
	 

	 	 	 	Title: Directorexv4w2

 

Exhibit 4.2

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.

     UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”) TO THE OPERATING
PARTNERSHIP (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF (OR OF A BENEFICIAL INTEREST HEREIN) THE
HOLDER: (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A “QIB”), (B) IT IS NOT A U.S.
PERSON, IS NOT ACQUIRING THIS SECURITY FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON
AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE
SECURITIES ACT) (AN “IAI”); (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD
REFERRED TO UNDER RULE 144(k) (TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d)
UNDER

 

 

THE SECURITIES ACT, IF APPLICABLE) UNDER THE
SECURITIES ACT AS IN EFFECT ON THE DATE OF THE
TRANSFER OF THIS SECURITY, RESELL OR OTHERWISE
TRANSFER THIS SECURITY EXCEPT (A) TO THE OPERATING
PARTNERSHIP OR ANY SUBSIDIARY THEREOF, (B) TO A
PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A QIB
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QIB IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT, (D) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE), (E) TO AN
IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE
REGISTRATION OF TRANSFER OF THIS SECURITY, THE FORM
OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE,
AND AN OPINION OF COUNSEL ACCEPTABLE TO THE
OPERATING PARTNERSHIP THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT OR (F) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS; AND (3)
AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
THIS SECURITY OR AN INTEREST HEREIN IS TRANSFERRED
A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS
SECURITY OR ANY INTEREST HEREIN WITHIN THE TIME
PERIOD REFERRED TO ABOVE, THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH IN A CERTIFICATE OF
TRANSFER AVAILABLE FROM THE TRUSTEE RELATING TO THE
MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE
TO THE TRUSTEE. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
PERSON” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902
OF REGULATION S UNDER THE SECURITIES ACT. THE
INDENTURE CONTAINS A PROVISION REQUIRING THE
TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
SECURITY IN VIOLATION OF THE FOREGOING
RESTRICTIONS.

 

 

	 	 	 
	No.: E-1

	 	CUSIP No.: 00163M AF 1

 

AMB PROPERTY, L.P.

 

5.094% Notes Due 2015

(U.S. $112,491,000 Aggregate Principal Amount)

 

     AMB PROPERTY, L.P., a Delaware limited partnership (the “Operating Partnership,” which term
includes any successor under the Indenture referred to below), for value received hereby promises
to pay to Cede & Co., or registered assigns, the aggregate principal amount then shown on
Schedule A hereto on June 30, 2015 (the “Stated Maturity Date”), and to pay interest
thereon from July 11, 2005, semiannually on June 30 and December 30 of each year (each, an
“Interest Payment Date”), commencing with December 30, 2005, to but excluding the Stated Maturity
Date at the rate of 5.094% per annum until the principal hereof is paid or duly made available for
payment.

     Interest on the 5.094% Notes Due 2015 (the “Notes”)shall be calculated on the basis of
a 360-day year consisting of twelve 30-day months. The interest so payable and punctually paid or
duly provided for on any Interest Payment Date shall, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is registered at the close
of business on the Regular Record Date for such interest, which shall be the May 31 or November 30
(whether or not a Business Day), as the case may be, immediately preceding such Interest Payment
Date. Any such interest which is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date shall forthwith cease to be payable to the registered Holder hereof on the
relevant Regular Record Date by virtue of having been such Holder, and may be paid to the Person in
whose name this Note (or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to the Holder of this Note not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Notes may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in such Indenture.

     Payment of the principal of (and premium, if any), and the interest on the Notes shall be made
at the office or agency of the Operating Partnership maintained for that purpose, in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts; provided, however, that, at the option of the Operating Partnership,
interest may be paid by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register or by wire transfer to an account maintained by the payee
located in the United States of America.

     This Note is one of a duly authorized issue of Securities of the Operating Partnership issued
and to be issued under an Indenture dated as of June 30, 1998, by and among the Operating
Partnership, AMB Property Corporation, a Maryland corporation (the “Guarantor”), and State Street
Bank and Trust Company of California, N.A., a national banking association organized and

 

 

existing under the laws of the United States of America (the “Predecessor Trustee”), as
trustee thereunder, as supplemented by the First Supplemental Indenture dated as of June 30, 1998,
by and among the Operating Partnership, the Guarantor and the Predecessor Trustee, the Second
Supplemental Indenture dated as of June 30, 1998, by and among the Operating Partnership, the
Guarantor and the Predecessor Trustee, the Third Supplemental Indenture dated as of June 30, 1998,
by and among the Operating Partnership, the Guarantor and the Predecessor Trustee, the Fourth
Supplemental Indenture dated as of August 15, 2000, by and among the Operating Partnership, the
Guarantor and the Predecessor Trustee, the Fifth Supplemental Indenture dated as of May 7, 2002, by
and among the Operating Partnership, the Guarantor and the Predecessor Trustee, and the Sixth
Supplemental Indenture dated as of July 11, 2005, by and among the Operating Partnership, the
Guarantor and U.S. Bank National Association, a national banking association organized and existing
under the laws of the United States of America, as successor-in-interest to the Predecessor
Trustee, as trustee thereunder (as so supplemented, together, the “Indenture”), to which such
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Operating
Partnership, the Trustee and the Holders, and the terms upon which the Notes shall be authenticated
and delivered.

[Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the Operating Partnership has caused this instrument to be duly
executed.

Dated: July 11, 2005

	 	 	 	 	 
	 

	 	 	 	   AMB PROPERTY, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	   AMB PROPERTY CORPORATION,

          as General Partner
	 
	 	 	 	 
	 

	 	By:	 	   /s/ Michael A. Coke
	 

	 	 	 	 
	 

	 	 	 	   Name: Michael A. Coke
	 

	 	 	 	   Title: Executive Vice President and Chief Financial Officer

Attest:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

	 	 	 	 	 
	 

	 	U.S. BANK NATIONAL	 	 
	 

	 	     ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 /s/ Bradley E. Scarbrough	 	 
	 

	 	 	 	 
	 

	 	Name: Bradley E. Scarbrough	 	 
	 

	 	Title: Authorized Signatory	 	 

 

 

[REVERSE OF NOTE]

     The
Notes shall be limited in aggregate principal amount to $112,491,000.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
of the Notes may be declared due and payable in the manner and with the effect provided in the
indenture.

     The Indenture and the Notes may be amended as set forth in the Indenture.

     Subject to and in accordance with the provisions of the Indenture, the Notes shall be
redeemable, in whole or in part, at any time before the Stated Maturity Date at the option of the
Operating Partnership. The price to be paid by the Operating Partnership in connection with any
such redemption on the applicable Redemption Date shall be as follows: (a) in the event that the
Operating Partnership shall redeem any Notes at any time prior to June 30, 2012, the price to be
paid in connection with such redemption shall be an amount equal to the greater of (i) 100% of the
principal amount thereof and (ii) the sum of the present values of the remaining scheduled payments
of principal and interest thereon (exclusive of interest accrued to such Redemption Date)
discounted to such Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate plus 25 basis points, plus, in either case, accrued and
unpaid interest on the principal amount being redeemed to, but excluding, such Redemption Date; (b)
in the event that the Operating Partnership shall redeem any Notes on or after June 30, 2012, the
price to be paid in connection with such redemption shall be equal to 100% of the principal amount
of the Notes to be redeemed plus accrued and unpaid interest on the principal amount being redeemed
to, but excluding, such Redemption Date.

     No reference herein to the Indenture and no provision of the Notes or of the Indenture shall
alter or impair the obligation of the Operating Partnership, which is absolute and unconditional,
to pay the principal of and interest on the Notes, at the time, place and rate, and in the coin or
currency, herein and in the Indenture prescribed.

     Subject to and in accordance with the provisions of the Indenture, the transfer of the Notes
may be registered on the Security Register upon surrender of any such Note for registration of
transfer at the office or agency of the Operating Partnership maintained for the purpose in any
place where the principal of and interest on the Notes are payable, duly endorsed, or accompanied
by a written instrument of transfer in form satisfactory to the Operating Partnership and the
Security Registrar duly executed by the Holder hereof or by his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, shall be issued to the designated transferee or transferees. The Notes
shall be issuable only in registered form without coupons in the denominations of $1,000 and
integral multiples of $1,000.

     Subject to and in accordance with the provisions of the Indenture, the Notes shall be
exchangeable for a like aggregate principal amount of Notes of authorized denominations as
requested by the Holders surrendering the same. No service charge shall be made for any such
registration of transfer or exchange, but the Operating Partnership may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith, other
than in certain cases provided in the Indenture. Prior to due presentment of any Notes for

 

 

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

     Subject to and in accordance with the provisions of the Indenture, the Indenture contains
provisions whereby (i) the Operating Partnership may be discharged from its obligations with
respect to the Notes (subject to certain exceptions) or (ii) the Operating Partnership may be
released from its obligations under specified covenants and agreements in the Indenture, in each
case if the Operating Partnership irrevocably deposits with the Trustee money or Government
Obligations sufficient to pay and discharge the entire indebtedness on all Notes, and satisfies
certain other conditions, all as more fully provided in the Indenture.

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF NEW YORK. Capitalized terms used in this Note which are not defined herein shall have the
meanings assigned to them in the Indenture.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee under the Indenture by the manual signature of one of its authorized signatories, this Note
shall not be entitled to any benefits under the Indenture or be valid or obligatory for any
purpose.

[Intentionally Left Blank]

 

 

PARENT GUARANTEE

     FOR VALUE RECEIVED, the undersigned hereby, jointly and severally with the Subsidiary
Guarantors, if any, unconditionally guarantees to the Holder of the accompanying 5.094% Notes Due
2015 (the “Notes”) issued by AMB Property, L.P. (the “Operating Partnership”) under an Indenture
dated as of June 30, 1998 (together with the Sixth Supplemental Indenture thereto, the “Indenture”)
among the Operating Partnership, AMB Property Corporation, and U.S. Bank National Association, as
successor trustee to State Street Bank and Trust Company of California, N.A., as trustee (the
“Trustee”), (a) the full and prompt payment of the principal of and premium, if any, on such Notes
when and as the same shall become due and payable, whether on the Stated Maturity Date, by
acceleration, by redemption, repurchase or otherwise, and (b) the full and prompt payment of the
interest on such Notes when and as the same shall become due and payable, according to the terms of
such Notes and of the Indenture. In case of the failure of the Operating Partnership punctually to
pay any such principal, premium or interest, the undersigned hereby agrees to cause any such
payment to be made punctually when and as the same shall become due and payable, whether on the
Stated Maturity Date, upon acceleration, by redemption, repayment or otherwise, and as if such
payment were made by the Operating Partnership. The undersigned hereby agrees, jointly and
severally with the Subsidiary Guarantors, if any, that its obligations hereunder shall be as
principal and not merely as surety, and shall be absolute and unconditional, and shall not be
affected, modified or impaired by the following: (a) the failure to give notice to the Guarantors
of the occurrence of an Event of Default under the Indenture; (b) the waiver, surrender,
compromise, settlement, release or termination of the payment, performance or observance by the
Operating Partnership or the Guarantors of any or all of the obligations, covenants or agreements
of either of them contained in the Indenture or the Notes; (c) the acceleration, extension or any
other changes in the time for payment of any principal of or interest or any premium on any Notes
or for any other payment under the Indenture or of the time for performance of any other
obligations, covenants or agreements under or arising out of the Indenture or the Notes; (d) the
modification or amendment (whether material or otherwise) of any obligation, covenant or agreement
set forth in the Indenture or the Notes; (e) the taking or the omission of any of the actions
referred to in the Indenture and in any of the actions under the Notes; (f) any failure, omission,
delay or lack on the part of the Trustee to enforce, assert or exercise any right, power or remedy
conferred on the Trustee in the Indenture, or any other action or acts on the part of the Trustee
or any of the Holders from time to time of the Notes; (g) the voluntary or involuntary liquidation,
dissolution, sale or other disposition of all or substantially all the assets, marshaling of assets
and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition with creditors or readjustment of, or other similar
proceedings affecting the Guarantors or the Operating Partnership or any of the assets of any of
them, or any allegation or contest of the validity of the Parent Guarantee in any such proceeding;
(h) to the extent permitted by law, the release or discharge by operation of law of the Guarantors
from the performance or observance of any obligation, covenant or agreement contained in the
Indenture; (i) to the extent permitted by law, the release or discharge by operation of law of the
Operating Partnership from the performance or observance of any obligation, covenant or agreement
contained in the Indenture; (j) the default or failure of the Operating Partnership or the Trustee
fully to perform any of its obligations set forth in the Indenture or the Notes; (k) the
invalidity, irregularity or unenforceability of the Indenture or the Notes or any part of any
thereof; (l) any judicial or governmental action affecting the Operating Partnership or any Notes
or consent or indulgence granted by the Operating Partnership by the Holders or by the Trustee; or
(m) the recovery of any

 

 

judgment against the Operating Partnership or any action to enforce the same or any other
circumstance which might constitute a legal or equitable discharge of a surety or guarantor. The
undersigned hereby waives diligence, presentment, demand of payment, filing of claims with a court
in the event of merger, sale, lease or conveyance of all or substantially all of its assets,
insolvency or bankruptcy of the Operating Partnership, any right to require a proceeding first
against the Operating Partnership, protest or notice with respect to such Notice or the
indebtedness evidenced thereby and all demands whatsoever, and covenants that this Parent Guarantee
will not be discharged except by complete performance of the obligations contained in such Notes
and in this Parent Guarantee.

     No reference herein to such Indenture and no provision of this Parent Guarantee or of such
Indenture shall alter or impair the guarantee of the undersigned, which is absolute and
unconditional, of the full and prompt payment of the principal of and premium, if any, and interest
on the Notes.

     THIS PARENT GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS
OF THE STATE OF NEW YORK.

     This Parent Guarantee shall not be valid or obligatory for any purpose until the certificate
of authentication on the Notes shall have been executed by the Trustee under the Indenture referred
to above by the manual signature of one of its authorized officers. The validity and enforceability
of this Parent Guarantee shall not be affected by the fact that it is not affixed to any particular
Notes.

     An Event of Default under the Indenture or the Notes shall constitute an event of default
under this Parent Guarantee, and shall entitle the Holders of Notes to accelerate the obligations
of the undersigned hereunder in the same manner and to the same extent as the obligations of the
Operating Partnership.

     Notwithstanding any other provision of this Parent Guarantee to the contrary, the undersigned
hereby waives any claims or other rights which it may now have or hereafter acquire against any
other Guarantor or the Operating Partnership that arise from the existence or performance of its
obligations under this Parent Guarantee (all such claims and rights are referred to as “Guarantor’s
Conditional Rights”), including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, or indemnification, any right to participate in any claim or remedy
against any Guarantor or the Operating Partnership, whether or not such claim, remedy or right
arises in equity or under contract, statute or common law, by any payment made hereunder or
otherwise, including without limitation, the right to take or receive from any Guarantor or the
Operating Partnership, directly or indirectly, in cash or other property or by setoff or in any
other manner, payment or security on account of such claim or other rights. The undersigned hereby
agrees not to exercise any rights which may be acquired by way of contribution under this Parent
Guarantee or any other agreement, by any payment made hereunder or otherwise, including, without
limitation, the right to take or receive from any other guarantor, directly or indirectly, in cash
or other property or by setoff or in any other manner, payment or security on account of such
contribution rights. If, notwithstanding the foregoing provisions, any amount shall be paid to the
undersigned on account of the Guarantor’s Conditional Rights and either (i) such amount is paid to
such undersigned party at any time when the indebtedness shall not have been paid or performed in
full, or (ii) regardless of when such

 

 

amount is paid to such undersigned party, any payment made by any Guarantor or the Operating
Partnership to a Holder that is at any time determined to be a Preferential Payment (as defined
below), then such amount paid to the undersigned shall be held in trust for the benefit of such
Holder and shall forthwith be paid such Holder to be credited and applied upon the indebtedness,
whether matured or unmatured. Any such payment is herein referred to as a “Preferential Payment” to
the extent any Guarantor or the Operating Partnership makes any payment to Holder in connection
with the Note, and any or all of such payment is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid or paid over to a trustee, receiver
or any other entity, whether under any bankruptcy act or otherwise.

     To the extent that any of the provisions of the immediately preceding paragraph shall not be
enforceable, the undersigned agrees that until such time as the indebtedness has been paid and
performed in full and the period of time has expired during which any payment made by the Operating
Partnership or the undersigned to a Holder may be determined to be a Preferential Payment,
Guarantor’s Conditional Rights to the extent not validly waived shall be subordinate to Holders’
right to full payment and performance of the indebtedness and the undersigned shall not enforce any
of Guarantor’s Conditional Rights until such time as the indebtedness has been paid and performed
in full and the period of time has expired during which any payment made by any Guarantor, the
Operating Partnership or the undersigned to Holders may be determined to be a Preferential Payment.

     The obligations of the undersigned to the Holders of the Notes and to the Trustee pursuant to
this Parent Guarantee and the Indenture are expressly set forth in Article 14 of the Indenture and
reference is hereby made to the Indenture for the precise terms of this Parent Guarantee and all of
the other provisions of the Indenture to which this Parent Guarantee relates.

     Capitalized terms used in this Parent Guarantee which are not defined herein shall have the
meanings assigned to them in the Indenture.

[Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Parent Guarantee to be duly executed.

Dated: July 11, 2005

	 	 	 	 	 
	 	 	AMB PROPERTY CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Michael A. Coke
	 

	 	 	 	 
	 

	 	 	 	Name: Michael A. Coke
	 

	 	 	 	Title: Executive Vice President and
          
Chief Financial Officer

 

 

FORM OF ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned registered Holder hereby sell(s), assign(s) and
transfer(s) the Notes all as set forth below:

	 
	SOCIAL SECURITY /

	OTHER IDENTIFYING

	NUMBER OF ASSIGNEE:

	 

	NAME / ADDRESS OF

	ASSIGNEE:

	 

	ATTORNEY-IN-FACT OF

ASSIGNOR:

	 

	DATE:

     Please note that the signature to this assignment must correspond with the name as it appears
upon the face of the within Note in every particular, without alteration or enlargement or any
change whatever.

 

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or

regulations:

	 	 	 
	TEN COM:

	 	Tenants in common
	 
	 	 
	 

	 	______Custodian______Under Uniform Gifts to Minors Act ______
	UNIF GIFT MIN ACT:

	 	(State)
	 
	 	 
	TEN ENT:

	 	Tenants by the entireties
	 
	 	 
	JT TEN:

	 	Joint tenants with right of survivorship, not as tenants in common

     Additional abbreviations may also be used though not in the above list.

 

 

Schedule A

Schedule of Exchanges of Interests in the Global Note

The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	 
	 	 	 	 	 	 	this Global Note	 	 
	 	 	Amount of Decrease in	Amount of Increase in	Following such	 	Signature of
	 	 	Principal Amount of	 	Principal Amount of	 	Decrease	 	Authorized Officer of
	Date of Exchange	 	this Global Note	 	this Global Note	 	(or Increase)	 	Trustee or Custodian

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]