Document:

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                                                                    EXHIBIT 10.2

                               GUARANTY OF PAYMENT

               GUARANTY OF PAYMENT (this "Guaranty"), made as of May 24, 2000,
between AMB PROPERTY CORPORATION, a Maryland corporation, having an address at
505 Montgomery Street, San Francisco, California 94111 ("Guarantor"), and MORGAN
GUARANTY TRUST COMPANY OF NEW YORK, as administrative agent ("Administrative
Agent") for the banks (the "Banks") listed on the signature pages of the
Revolving Credit Agreement (as the same may be amended, modified, supplemented
or restated, the "Credit Agreement"), dated as of the date hereof, among AMB
Property, L.P. ("Borrower"), the Banks, the Administrative Agent, BANK OF
AMERICA, N.A., as Syndication Agent, THE CHASE MANHATTAN BANK, as Documentation
Agent, J.P. MORGAN SECURITIES INC. and BANC OF AMERICA SECURITIES LLC, as Joint
Lead Arrangers and Joint Bookmanagers, BANK ONE, NA, COMMERZBANK
AKTIENGESELLSCHAFT NEW YORK AND GRAND CAYMAN BRANCHES, PNC BANK, NATIONAL
ASSOCIATION, and WACHOVIA BANK, N.A., as Managing Agents, and BANKERS TRUST
COMPANY and DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, as Co-Agents.

                              W I T N E S S E T H:

               WHEREAS, the Banks have agreed to make loans to Borrower in the
aggregate principal amount not to exceed Five Hundred Million Dollars
($500,000,000) (hereinafter collectively referred to as the "Loans");

               WHEREAS, the Loans are evidenced by certain promissory notes (the
"Notes") of Borrower made to each of the Banks in accordance with the terms of
the Credit Agreement;

               WHEREAS, the Credit Agreement and the Notes and any other
documents executed in connection therewith are hereinafter collectively referred
to as the "Loan Documents";

               WHEREAS, capitalized terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Credit Agreement;

               WHEREAS, Guarantor is the sole general partner of Borrower;

               WHEREAS, as a condition to the execution and delivery of the Loan
Documents, the Banks have required that Guarantor execute and deliver this
Guaranty of Payment; and

               NOW THEREFORE, in consideration of the premises and the benefits
to be derived from the making of the Loans by the Banks to Borrower, and in
order to induce the Administrative Agent, the Syndication Agent, the
Documentation Agent, the Joint Lead Arrangers and Joint Bookmanagers, the
Managing Agents, the Co-Agents and the Banks to enter into the Credit Agreement
and the other Loan Documents, and for other good and valuable

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consideration, the receipt and sufficiency of which are hereby acknowledged,
Guarantor hereby agrees as follows:

               1. Guarantor, on behalf of itself and its successors and assigns,
hereby irrevocably, absolutely and unconditionally guarantees the full and
punctual payment when due, whether at stated maturity or otherwise, of all
Obligations of Borrower now or hereafter existing under the Notes and the Credit
Agreement, for principal and/or interest as well as any and all other amounts
due thereunder, including, without limitation, all indemnity obligations of
Borrower thereunder, and any and all reasonable costs and expenses (including,
without limitation, reasonable attorneys' fees and disbursements) incurred by
the Administrative Agent and/or the Banks in enforcing their rights under this
Guaranty (all of the foregoing obligations being the "Guaranteed Obligations").

               2. It is agreed that the Guaranteed Obligations of Guarantor
hereunder are primary and this Guaranty shall be enforceable against Guarantor
and its successors and assigns without the necessity for any suit or proceeding
of any kind or nature whatsoever brought by the Administrative Agent or any of
the Banks against Borrower or its respective successors or assigns or any other
party or against any security for the payment and performance of the Guaranteed
Obligations and without the necessity of any notice of non-payment or
non-observance or of any notice of acceptance of this Guaranty or of any notice
or demand to which Guarantor might otherwise be entitled (including, without
limitation, diligence, presentment, notice of maturity, extension of time,
change in nature or form of the Guaranteed Obligations, acceptance of further
security, release of further security, imposition or agreement arrived at as to
the amount of or the terms of the Guaranteed Obligations, notice of adverse
change in Borrower's financial condition and any other fact which might
materially increase the risk to Guarantor), all of which Guarantor hereby
expressly waives; and Guarantor hereby expressly agrees that the validity of
this Guaranty and the obligations of Guarantor hereunder shall in no way be
terminated, affected, diminished, modified or impaired by reason of the
assertion of or the failure to assert by the Administrative Agent or any of the
Banks against Borrower or its respective successors or assigns, any of the
rights or remedies reserved to the Administrative Agent or any of the Banks
pursuant to the provisions of the Loan Documents. Guarantor agrees that any
notice or directive given at any time to the Administrative Agent or any of the
Banks which is inconsistent with the waiver in the immediately preceding
sentence shall be void and may be ignored by the Administrative Agent and the
Banks, and, in addition, may not be pleaded or introduced as evidence in any
litigation relating to this Guaranty for the reason that such pleading or
introduction would be at variance with the written terms of this Guaranty,
unless the Administrative Agent has specifically agreed otherwise in a writing,
signed by a duly authorized officer. Guarantor specifically acknowledges and
agrees that the foregoing waivers are of the essence of this transaction and
that, but for this Guaranty and such waivers, the Administrative Agent and the
Banks would not make the requested Loan to the Borrower.

               3. Guarantor waives, and covenants and agrees that it will not at
any time insist upon, plead or in any manner whatsoever claim or take the
benefit or advantage of, any and

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all appraisal, valuation, stay, extension, marshalling-of-assets or redemption
laws, or right of homestead or exemption, whether now or at any time hereafter
in force, which may delay, prevent or otherwise affect the performance by
Guarantor of its obligations under, or the enforcement by the Administrative
Agent or any of the Banks of, this Guaranty. Guarantor further covenants and
agrees not to set up or claim any defense, counterclaim, offset, setoff or other
objection of any kind to any action, suit or proceeding in law, equity or
otherwise, or to any demand or claim that may be instituted or made by the
Administrative Agent or any of the Banks other than the defense of the actual
timely payment and performance by Borrower of the Guaranteed Obligations
hereunder; provided, however, that the foregoing shall not be deemed a waiver of
Guarantor's right to assert any compulsory counterclaim, if such counterclaim is
compelled under local law or rule of procedure, nor shall the foregoing be
deemed a waiver of Guarantor's right to assert any claim which would constitute
a defense, setoff, counterclaim or crossclaim of any nature whatsoever against
Administrative Agent or any Bank in any separate action or proceeding. Guarantor
represents, warrants and agrees that, as of the date hereof, its obligations
under this Guaranty are not subject to any counterclaims, offsets or defenses
against the Administrative Agent or any Bank of any kind.

               4. The provisions of this Guaranty are for the benefit of the
Administrative Agent and the Banks and their successors and permitted assigns,
and nothing herein contained shall impair as between Borrower and the
Administrative Agent and the Banks the obligations of Borrower under the Loan
Documents.

               5. This Guaranty shall be a continuing, unconditional and
absolute guaranty and the liability of Guarantor hereunder shall in no way be
terminated, affected, modified, impaired or diminished by reason of the
happening, from time to time, of any of the following, although without notice
or the further consent of Guarantor:

               (a) any assignment, amendment, modification or waiver of or
        change in any of the terms, covenants, conditions or provisions of any
        of the Guaranteed Obligations or the Loan Documents or the invalidity or
        unenforceability of any of the foregoing; or

               (b) any extension of time that may be granted by the
        Administrative Agent to Borrower, any guarantor, or their respective
        successors or assigns, heirs, executors, administrators or personal
        representatives; or

               (c) any action which the Administrative Agent may take or fail to
        take under or in respect of any of the Loan Documents or by reason of
        any waiver of, or failure to enforce any of the rights, remedies, powers
        or privileges available to the Administrative Agent under this Guaranty
        or available to the Administrative Agent at law, equity or otherwise, or
        any action on the part of the Administrative Agent granting indulgence
        or extension in any form whatsoever; or

               (d) any sale, exchange, release, or other disposition of any
        property pledged,

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        mortgaged or conveyed, or any property in which the Administrative Agent
        and/or the Banks have been granted a lien or security interest to secure
        any indebtedness of Borrower to the Administrative Agent and/or the
        Banks; or

               (e) any release of any person or entity who may be liable in any
        manner for the payment and collection of any amounts owed by Borrower to
        the Administrative Agent and/or the Banks; or

               (f) the application of any sums by whomsoever paid or however
        realized to any amounts owing by Borrower to the Administrative Agent
        and/or the Banks under the Loan Documents in such manner as the
        Administrative Agent shall determine in its sole discretion; or

               (g) Borrower's or Guarantor's voluntary or involuntary
        liquidation, dissolution, sale of all or substantially all of their
        respective assets and liabilities, appointment of a trustee, receiver,
        liquidator, sequestrator or conservator for all or any part of
        Borrower's or Guarantor's assets, insolvency, bankruptcy, assignment for
        the benefit of creditors, reorganization, arrangement, composition or
        readjustment, or the commencement of other similar proceedings affecting
        Borrower or Guarantor or any of the assets of any of them, including,
        without limitation, (i) the release or discharge of Borrower or any
        guarantor from the payment and performance of their respective
        obligations under any of the Loan Documents by operation of law, or (ii)
        the impairment, limitation or modification of the liability of Borrower
        or any guarantor in bankruptcy, or of any remedy for the enforcement of
        the Guaranteed Obligations under any of the Loan Documents, or any
        guarantor's liability under this Guaranty, resulting from the operation
        of any present or future provisions of the Bankruptcy Code or other
        present or future federal, state or applicable statute or law or from
        the decision in any court; or

               (h) any improper disposition by Borrower of the proceeds of the
        Loans, it being acknowledged by Guarantor that the Administrative Agent
        or any Bank shall be entitled to honor any request made by Borrower for
        a disbursement of such proceeds and that neither the Administrative
        Agent nor any Bank shall have any obligation to see the proper
        disposition by Borrower of such proceeds.

               6. Guarantor agrees that if at any time all or any part of any
payment at any time received by the Administrative Agent from Borrower or
Guarantor under or with respect to this Guaranty is or must be rescinded or
returned by the Administrative Agent or any Bank for any reason whatsoever
(including, without limitation, the insolvency, bankruptcy or reorganization of
Borrower or Guarantor), then Guarantor's obligations hereunder shall, to the
extent of the payment rescinded or returned, be deemed to have continued in
existence notwithstanding such previous receipt by such party, and Guarantor's
obligations hereunder shall continue to be effective or reinstated, as the case
may be, as to such payment, as though such previous payment had never been made.

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               7. Until this Guaranty is terminated pursuant to the terms
hereof, Guarantor (i) shall have no right of subrogation against Borrower or any
entity comprising same by reason of any payments or acts of performance by
Guarantor in compliance with the obligations of Guarantor hereunder, (ii) waives
any right to enforce any remedy which Guarantor now or hereafter shall have
against Borrower or any entity comprising same by reason of any one or more
payment or acts of performance in compliance with the obligations of Guarantor
hereunder and (iii) from and after an Event of Default (as defined in the Credit
Agreement), subordinates any liability or indebtedness of Borrower or any entity
comprising same now or hereafter held by Guarantor or any affiliate of Guarantor
to the obligations of Borrower under the Loan Documents. The foregoing, however,
shall not be deemed in any way to limit any rights that Guarantor may have
pursuant to the Agreement of Limited Partnership of Borrower or which it may
have at law or in equity with respect to any other partners of Borrower.

               8. Guarantor represents and warrants to the Administrative Agent
and the Banks with the knowledge that the Administrative Agent and the Banks are
relying upon the same, as follows:

               (a) as of the date hereof, Guarantor is the sole general partner
        of Borrower;

               (b) based upon such relationships, Guarantor has determined that
        it is in its best interests to enter into this Guaranty;

               (c) this Guaranty is necessary and convenient to the conduct,
        promotion and attainment of Guarantor's business, and is in furtherance
        of Guarantor's business purposes;

               (d) the benefits to be derived by Guarantor from Borrower's
        access to funds made possible by the Loan Documents are at least equal
        to the obligations undertaken pursuant to this Guaranty;

               (e) Guarantor is solvent and has full power and legal right to
        enter into this Guaranty and to perform its obligations under the term
        hereof and (i) Guarantor is organized and validly existing under the
        laws of the State of Maryland, (ii) Guarantor has complied with all
        provisions of applicable law in connection with all aspects of this
        Guaranty, and (iii) the person executing this Guaranty has all the
        requisite power and authority to execute and deliver this Guaranty;

               (f) to the best of Guarantor's knowledge, there is no action,
        suit, proceeding, or investigation pending or threatened against or
        affecting Guarantor at law, in equity, in admiralty or before any
        arbitrator or any governmental department, commission, board, bureau,
        agency or instrumentality (domestic or foreign) which is likely to
        materially and adversely impair the ability of Guarantor to perform its
        obligations under this Guaranty;

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               (g) the execution and delivery of and the performance by
        Guarantor of its obligations under this Guaranty have been duly
        authorized by all necessary action on the part of Guarantor and do not
        (i) violate any provision of any law, rule, regulation (including,
        without limitation, Regulation U or X of the Board of Governors of the
        Federal Reserve System of the United States), order, writ, judgment,
        decree, determination or award presently in effect having applicability
        to Guarantor or the organizational documents of Guarantor the
        consequences of which violation is likely to materially and adversely
        impair the ability of Guarantor to perform its obligations under this
        Guaranty or (ii) violate or conflict with, result in a breach of or
        constitute (with due notice or lapse of time or both) a default under
        any indenture, agreement or other instrument to which Guarantor is a
        party, or by which Guarantor or any of its property is bound, the
        consequences of which violation, conflict, breach or default is likely
        to materially and adversely impair the ability of Guarantor to perform
        its obligations under this Guaranty;

               (h) this Guaranty has been duly executed by Guarantor and
        constitutes the legal, valid and binding obligation of Guarantor,
        enforceable against it in accordance with its terms except as
        enforceability may be limited by applicable insolvency, bankruptcy or
        other laws affecting creditors' rights generally or general principles
        of equity, whether such enforceability is considered in a proceeding in
        equity or at law;

               (i) no authorization, consent, approval, license or formal
        exemption from, nor any filing, declaration or registration with, any
        Federal, state, local or foreign court, governmental agency or
        regulatory authority is required in connection with the making and
        performance by Guarantor of this Guaranty, except those which have
        already been obtained; and

               (j) Guarantor is not an "investment company" as that term is
        defined in, nor is it otherwise subject to regulation under, the
        Investment Company Act of 1940, as amended.

               9. Guarantor and Administrative Agent each acknowledge and agree
that this Guaranty is a guarantee of payment and performance and not of
collection and enforcement in respect of any obligations which may accrue to the
Administrative Agent and/or the Banks from Borrower under the provisions of any
Loan Document.

               10. Subject to the terms and conditions of the Credit Agreement,
and in conjunction therewith, the Administrative Agent or any Bank may assign
any or all of its rights under this Guaranty. In the event of any such
assignment, the Administrative Agent shall give Guarantor prompt notice of same.
If the Administrative Agent elects to sell all the Loans or participations in
the Loans and the Loan Documents, including this Guaranty, the Administrative
Agent or any Bank may forward to each purchaser and prospective purchaser all
documents and

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information relating to this Guaranty or to Guarantor, whether furnished by
Borrower or Guarantor or otherwise, subject to the terms and conditions of the
Credit Agreement.

               11. Guarantor agrees, upon the written request of the
Administrative Agent, to execute and deliver to the Administrative Agent, from
time to time, any modification or amendment hereto or any additional instruments
or documents reasonably considered necessary by the Administrative Agent or its
counsel to cause this Guaranty to be, become or remain valid and effective in
accordance with its terms, provided, that, any such modification, amendment,
additional instrument or document shall not increase Guarantor's obligations or
diminish its rights hereunder and shall be reasonably satisfactory as to form to
Guarantor and to Guarantor's counsel.

               12. The representations and warranties of Guarantor set forth in
this Guaranty shall survive until this Guaranty shall terminate in accordance
with the terms hereof.

               13. This Guaranty contains the entire agreement among the parties
with respect to the subject matter hereof and supersede all prior agreements
relating to such subject matter and may not be modified, amended, supplemented
or discharged except by a written agreement signed by Guarantor and the
Administrative Agent.

               14. If all or any portion of any provision contained in this
Guaranty shall be determined to be invalid, illegal or unenforceable in any
respect for any reason, such provision or portion thereof shall be deemed
stricken and severed from this Guaranty and the remaining provisions and
portions thereof shall continue in full force and effect.

               15. This Guaranty may be executed in counterparts which together
shall constitute the same instrument.

               16. All notices, requests and other communications to any party
hereunder shall be in writing (including bank wire, telex, facsimile
transmission followed by telephonic confirmation or similar writing) and shall
be addressed to such party at the address set forth below or to such other
address as may be identified by any party in a written notice to the others:

If to Guarantor              AMB Property Corporation
                             505 Montgomery Street
                             San Francisco, California 94111
                             Attn: Chief Financial Officer
                             Telecopy Number: (415) 394-4001

With Copies of
Notices to Guarantor to:     AMB Property Corporation
                             505 Montgomery Street
                             San Francisco, California 94111

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                             Attn: General Counsel
                             Telecopy Number: (415) 394-4001

If to the
Administrative Agent:        Morgan Guaranty Trust Company of New York
                             60 Wall Street
                             New York, New York 10260-0060
                             Attn: David Stone
                             Telecopy Number: (212) 648-5018

and to:                      J.P. Morgan Securities Inc.
                             500 Stanton-Christiana Road
                             Newark, Delaware 19719-2107
                             Attn: Nancy Douglas
                             Telecopy Number: (302) 634-4189

With Copies of
Notices to
Administrative Agent:        Skadden, Arps, Slate, Meagher & Flom LLP
                             919 Third Avenue
                             New York, New York 10036
                             Attn:  Martha Feltenstein, Esq.
                             Telecopy Number: (917) 777-2272

               Each such notice, request or other communication shall be
effective (i) if given by telex or facsimile transmission, when such telex or
facsimile is transmitted to the telex number or facsimile number specified in
this Section and the appropriate answerback or facsimile confirmation is
received, (ii) if given by certified registered mail, return receipt requested,
with first class postage prepaid, addressed as aforesaid, upon receipt or
refusal to accept delivery, (iii) if given by a nationally recognized overnight
carrier, 24 hours after such communication is deposited with such carrier with
postage prepaid for next day delivery, or (iv) if given by any other means, when
delivered at the address specified in this Section.

               17. Any acknowledgment or new promise, whether by payment of
principal or interest or otherwise by Borrower or Guarantor, with respect to the
Guaranteed Obligations shall, if the statute of limitations in favor of
Guarantor against the Administrative Agent shall have commenced to run, toll the
running of such statute of limitations, and if the period of such statute of
limitations shall have expired, prevent the operation of such statute of
limitations.

               18. This Guaranty shall be binding upon Guarantor and its
successors and assigns and shall inure to the benefit of the Administrative
Agent and the Banks and their successors and permitted assigns.

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               19. The failure of the Administrative Agent to enforce any right
or remedy hereunder, or promptly to enforce any such right or remedy, shall not
constitute a waiver thereof, nor give rise to any estoppel against the
Administrative Agent, nor excuse Guarantor from its obligations hereunder. Any
waiver of any such right or remedy to be enforceable against the Administrative
Agent must be expressly set forth in a writing signed by the Administrative
Agent.

               20.    (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

                      (b) Any legal action or proceeding with respect to this
Guaranty and any action for enforcement of any judgment in respect thereof may
be brought in the courts of the State of New York or of the United States of
America for the Southern District of New York, and, by execution and delivery of
this Guaranty, the Guarantor hereby accepts for itself and in respect of its
property, generally and unconditionally, the non-exclusive jurisdiction of the
aforesaid courts and appellate courts from any thereof. The Guarantor
irrevocably consents to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to the Guarantor at its address
for notices set forth herein. The Guarantor hereby irrevocably waives any
objection which it may now or hereafter have to the laying of venue of any of
the aforesaid actions or proceedings arising out of or in connection with this
Guaranty brought in the courts referred to above and hereby further irrevocably
waives and agrees not to plead or claim in any such court that any such action
or proceeding brought in any such court has been brought in an inconvenient
forum. Nothing herein shall affect the right of the Administrative Agent to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Guarantor in any other
jurisdiction.

                      (c) GUARANTOR HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF
ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING OUT OF THIS
GUARANTY. IT IS HEREBY ACKNOWLEDGED BY GUARANTOR THAT THE WAIVER OF A JURY TRIAL
IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT TO ACCEPT THIS GUARANTY
AND THAT THE LOANS MADE BY THE BANKS ARE MADE IN RELIANCE UPON SUCH WAIVER.
GUARANTOR FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER HAS BEEN KNOWINGLY
AND VOLUNTARILY MADE, FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF
LITIGATION, THIS GUARANTY MAY BE FILED BY THE ADMINISTRATIVE AGENT IN COURT AS A
WRITTEN CONSENT TO A NON-JURY TRIAL.

                      (d) Guarantor does hereby further covenant and agree to
and with the Administrative Agent that Guarantor may be joined in any action
against Borrower in connection

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with the Loan Documents and that recovery may be had against Guarantor in such
action or in any independent action against Guarantor (with respect to the
Guaranteed Obligations), without the Administrative Agent first pursuing or
exhausting any remedy or claim against Borrower or its successors or assigns.
Guarantor also agrees that, in an action brought with respect to the Guaranteed
Obligations in any jurisdiction, it shall be conclusively bound by the judgment
in any such action by the Administrative Agent (wherever brought) against
Borrower or its successors or assigns, as if Guarantor were a party to such
action, even though Guarantor was not joined as a party in such action.

                      (e) Guarantor agrees to pay all reasonable expenses
(including, without limitation, attorneys' fees and disbursements) which may be
incurred by the Administrative Agent or the Banks in connection with the
enforcement of their rights under this Guaranty, whether or not suit is
initiated.

               21. Notwithstanding anything to the contrary contained herein,
this Guaranty shall terminate and be of no further force or effect upon the full
performance and payment of the Guaranteed Obligations hereunder. Upon
termination of this Guaranty in accordance with the terms of this Guaranty, the
Administrative Agent promptly shall deliver to Guarantor such documents as
Guarantor or Guarantor's counsel reasonably may request in order to evidence
such termination.

               22. All of the Administrative Agent's rights and remedies under
each of the Loan Documents or under this Guaranty are intended to be distinct,
separate and cumulative and no such right or remedy therein or herein mentioned
is intended to be in exclusion of or a waiver of any other right or remedy
available to the Administrative Agent.

               23. The Guarantor shall not use any assets of an "employee
benefit plan" within the meaning of Section 3(3) of ERISA or a "plan" within the
meaning of Section 4975(e)(1) of the Internal Revenue Code (the "Code") to repay
or secure the Loan, the Note, the Obligations or this Guaranty. The Guarantor
shall not assign, sell, pledge, encumber, transfer, hypothecate or otherwise
dispose of any of its rights or interests (direct or indirect) in Borrower, or
attempt to do any of the foregoing or suffer any of the foregoing, or permit any
party with a direct or indirect interest or right in Borrower to do any of the
foregoing, if such action would cause the Note, the Loan, the Obligations, this
Guaranty, or any of the Loan Documents or the exercise of any of the
Administrative Agent's or Bank's rights in connection therewith, to constitute a
prohibited transaction under ERISA or the Code (unless the Guarantor furnishes
to the Administrative Agent a legal opinion satisfactory to the Administrative
Agent that the transaction is exempt from the prohibited transaction provisions
of ERISA and the Code (and for this purpose, the Administrative Agent and the
Banks, by accepting the benefits of this Guaranty, hereby agree to supply
Guarantor all relevant non-confidential, factual information reasonably
necessary to such legal opinion and reasonably requested by Guarantor) or would
otherwise result in the Administrative Agent or any of the Banks being deemed in
violation of Sections 404 or 406 of ERISA or Section 4975 of the Code or would
otherwise result in the Administrative

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Agent or any of the Banks being a fiduciary or party in interest under ERISA or
a "disqualified person" as defined in Section 4975(e)(2) of the Code with
respect to an "employee benefit plan" within the meaning of Section 3(3) of
ERISA or a "plan" within the meaning of Section 4975(e)(1) of the Code. The
Guarantor shall indemnify and hold each of the Administrative Agent and the
Banks free and harmless from and against all loss, costs (including attorneys'
fees and expenses), expenses, taxes and damages (including consequential
damages) that each of the Administrative Agent and the Banks may suffer by
reason of the investigation, defense and settlement of claims and in obtaining
any prohibited transaction exemption under ERISA necessary in Administrative
Agent's reasonable judgment as a result of Guarantor's action or inaction or by
reason of a breach of the foregoing provisions by Guarantor.

                            [SIGNATURE PAGE FOLLOWS]

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               IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Guaranty as of the date and year first above written.

                                             GUARANTOR:
                                             AMB PROPERTY CORPORATION

                                             By:
                                                  ------------------------------
                                                  Name:  Carlie Headapohl
                                                  Title: Vice President

ACCEPTED:

MORGAN GUARANTY TRUST COMPANY
   OF NEW YORK, as Administrative Agent

By:
     ------------------------------
     Name:  R. David Stone
     Title:  Vice President

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                          ACKNOWLEDGMENT FOR GUARANTOR

STATE OF CALIFORNIA                 )
                                    ) SS.
COUNTY OF SAN FRANCISCO             )

               On May __, 2000, before me personally came Carlie Headapohl, to
me known to be the person who executed the foregoing instrument, and who, being
duly sworn by me, did depose and say that she is Vice President of AMB Property
Corporation, and that she executed the foregoing instrument in the
organization's name, and that she had authority to sign the same, and she
acknowledged to me that she executed the same as the act and deed of said
organization for the uses and purposes therein mentioned.

[Seal]

                                             -----------------------------------
                                             Notary Public

                                       13<PAGE>   1

                                                                   EXHIBIT 10.14

                                 BANK OF AMERICA

                             BUSINESS LOAN AGREEMENT

This Agreement dated as of December 27, 1999, is between Bank of America, N.A.
(the "Bank") and Next Level Communications, Inc. (the "Borrower").

1.     LINE OF CREDIT AMOUNT AND TERMS

1.1    LINE OF CREDIT AMOUNT.

       (a)    During the availability period described below, the Bank will
              provide a line of credit to the Borrower. The amount of the line
              of credit (the "Commitment") is the lesser of:

              (i)    Fifty Million Dollars ($50,000,000) or

              (ii)   the loan value of marketable securities pledged to the
                     Bank. The loan value of a marketable securities will be a
                     percentage of its fair market value. The fair market value
                     will be determined by the Bank from time to time in its
                     sole discretion. The percentage applied to a particular
                     marketable security will be set by the Bank at the time it
                     is pledged by the Bank. The percentage can be changed by
                     the Bank at any time for reasonable cause. The Bank's
                     records of the applicable percentage will be controlling.

              If at any time the total amount of principal outstanding under the
              line of credit exceeds this limit, the Borrower will immediately
              either increase the loan value of marketable securities or other
              acceptable collateral pledged to the Bank, or reduce the total
              amount outstanding in order to comply with this limit. If any of
              the pledged assets are margin stock, the Borrower will provide the
              Bank a Form U-1 Purpose Statement, and the Bank and the Borrower
              will comply with the restrictions imposed by Regulation U of the
              Federal Reserve, which may require a reduction in the loan value
              of the margin stock pledged to the Bank.

              For regulatory reasons, the Bank will not accept as collateral
              Ineligible Securities while they are being underwritten by Banc of
              America Securities LLC, or for thirty days thereafter. Banc of
              America Securities LLC is a wholly-owned subsidiary of Bank of
              America Corporation, and is a registered broker-dealer which is
              permitted to underwrite and deal in certain Ineligible Securities.
              "Ineligible Securities" means securities which may not be
              underwritten or dealt in by member banks of the Federal Reserve
              System under Section 16 of the Banking Act of 1933 (12 U.S.C.
              Section 24, Seventh), as amended.

<PAGE>   2

              In addition, pursuant to regulations of the Comptroller of the
              Currency, the Bank will not accept as collateral any investments
              made in variable amount demand notes, commonly known as "master
              notes."

       (b)    This is a revolving line of credit providing for cash advances and
              letters of credit. During the availability period, the Borrower
              may repay principal amounts and reborrow them.

       (c)    The Borrower agrees not to permit the outstanding principal
              balance of advances under the line of credit plus the outstanding
              amounts of any letters of credit, including amounts drawn on
              letters of credit and not yet reimbursed, to exceed the
              Commitment.

1.2    AVAILABILITY PERIOD. The line of credit is available between the date of
       this Agreement and October 1, 2001, or such earlier date as the
       availability may terminate as provided in this Agreement (the "Expiration
       Date").

1.3    INTEREST RATE.

       (a)    Unless the Borrower elects an optional interest rate as described
              below, the interest rate is the Bank's Prime Rate.

       (b)    The Prime Rate is the rate of interest publicly announced from
              time to time by the Bank as its Prime Rate. The Prime Rate is set
              by the Bank based on various factors, including the Bank's costs
              and desired return, general economic conditions and other factors,
              and is used as a reference point for pricing some loans. The Bank
              may price loans to its customers at, above, or below the Prime
              Rate. Any change in the Prime Rate shall take effect at the
              opening of business on the day specified in the public
              announcement of a change in the Bank's Prime Rate.

1.4    REPAYMENT TERMS.

       (a)    The Borrower will pay interest on January 1, 2000, and then
              monthly thereafter until payment in full of any principal
              outstanding under this line of credit.

       (b)    The Borrower will repay in full all principal and any unpaid
              interest or other charges outstanding under this line of credit no
              later than the Expiration Date.

1.5    OPTIONAL INTEREST RATES. Instead of the interest rate based on the Bank's
       Prime Rate, the Borrower may elect the optional interest rates listed
       below during interest periods agreed to by the Bank and the Borrower. The
       optional interest rates shall be subject to the terms and conditions
       described later in this Agreement, Any principal amount bearing interest
       at an optional rate under this Agreement is referred to as a "Portion."
       The following optional interest rates are available:

       (a)    the IBOR Rate plus 0.7 percentage point.

                                        2
<PAGE>   3

1.6    LETTERS OF CREDIT.

       (a)    This line of credit may be used for financing:

              (i)    standby letters of credit with a maximum maturity of 365
                     days but not to extend beyond the Expiration Date. The
                     standby letters of credit may include a provision providing
                     that the maturity date will be automatically extended each
                     year for an additional year unless the Bank gives written
                     notice to the contrary.

       (b)    The Borrower agrees:

              (i)    any sum drawn under a letter of credit may, at the option
                     of the Bank, be added to the principal amount outstanding
                     under this Agreement. The amount will bear interest and be
                     due as described elsewhere in this Agreement.

              (ii)   If there is a default under this Agreement, to immediately
                     prepay and make the Bank whole for any outstanding letters
                     of credit.

              (iii)  the issuance of any letter of credit and any amendment to a
                     letter of credit is subject to the Bank's written approval
                     and must be in form and content satisfactory to the Bank
                     and in favor of a beneficiary acceptable to the Bank,

              (iv)   to sign the Bank's form Application and Agreement for
                     Standby Letter of Credit.

              (v)    to pay the issuance fee of 0.50% per year and to pay any
                     other fees that the Bank notifies the Borrower will be
                     charged for issuing and processing letters of credit for
                     the Borrower.

              (vi)   to allow the Bank to automatically charge its checking
                     account for applicable fees, discounts, and other charges.

2.     OPTIONAL INTEREST RATES

2.1    OPTIONAL RATES. Each optional interest rate is a rate per year. Interest
       will be paid on the last day of each interest period, and on the first
       day of each month during the interest period. At the end of any interest
       period, the interest rate will revert to the rate based on the Prime
       Rate, unless the Borrower has designated another optional interest rate
       for the Portion. No Portion will be converted to a different interest
       rate during the applicable interest period. Upon the occurrence of an
       event of default under this Agreement, the Bank may terminate the
       availability of optional interest rates for interest periods commencing
       after the default occurs.

2.2    IBOR RATE. The election of IBOR Rates shall be subject to the following
       terms and requirements:

                                        3
<PAGE>   4

       (a)    The interest period during which the IBOR Rate will be in effect
              will be no shorter than 30 days and no longer than 90 days. The
              last day of the interest period will be determined by the Bank
              using the practices of the offshore dollar inter-bank market.

       (b)    Each IBOR Rate Portion will be for an amount not less than One
              Million Dollars ($1,000,000).

       (c)    The Borrower may not elect an IBOR Rate with respect to any
              principal amount which is scheduled to be repaid before the last
              day of the applicable interest period.

       (d)    The "IBOR Rate" means the interest rate determined by the
              following formula, rounded upward to the nearest 1/100 of one
              percent. (All amounts in the calculation will be determined by the
              Bank as of the first day of the interest period.)

                                               IBOR Base Rate
                            IBOR Rate = ---------------------------
                                        (1.00 - Reserve Percentage)

              Where,

              (i)    "IBOR Base Rate" means the interest rate at which the
                     Bank's Grand Cayman Branch, Grand Cayman, British West
                     Indies, would offer U.S. dollar deposits for the applicable
                     interest period to other major banks in the offshore dollar
                     inter-bank market.

              (ii)   "Reserve Percentage" means the total of the maximum reserve
                     percentages for determining the reserves to be maintained
                     by member banks of the Federal Reserve System for
                     Eurocurrency Liabilities, as defined in Federal Reserve
                     Board Regulation D, rounded upward to the nearest 1/100 of
                     one percent. The percentage will be expressed as a decimal,
                     and will include, but not be limited to, marginal,
                     emergency, supplemental, special, and other reserve
                     percentages.

       (e)    Each prepayment of an IBOR Rate Portion, whether voluntary, by
              reason of acceleration or otherwise, will be accompanied by the
              amount of accrued interest on the amount prepaid, and a prepayment
              fee as described below. A "prepayment" is a payment of an amount
              on a date earlier than the scheduled payment date for such amount
              as required by this Agreement.

       (f)    The prepayment fee shall be in an amount sufficient to compensate
              the Bank for any loss, cost or expense incurred by it as a result
              of the prepayment, including any loss of anticipated profits and
              any loss or expense arising from the liquidation or reemployment
              of funds obtained by it to maintain such Portion or from fees
              payable to terminate the deposits from which such funds were
              obtained. The Borrower shall also pay any customary administrative
              fees charged by the Bank in connection with the foregoing. For
              purposes of this paragraph, the Bank shall be

                                        4
<PAGE>   5

              deemed to have funded each Portion by a matching deposit or other
              borrowing in the applicable interbank market, whether or not such
              Portion was in fact so funded.

       (g)    The Bank will have no obligation to accept an election for an IBOR
              Rate Portion if any of the following described events has occurred
              and is continuing:

              (i)    Dollar deposits in the principal amount, and for periods
                     equal to the interest period, of an IBOR Rate Portion are
                     not available in the offshore dollar inter-bank market; or

              (ii)   the IBOR Rate does not accurately reflect the cost of an
                     IBOR Rate Portion.

3.     FEES AND EXPENSES

3.1    FEES.

       (a)    UNUSED COMMITMENT FEE. The Borrower agrees to pay a fee on any
              difference between the Commitment and the amount of credit it
              actually uses, determined by the weighted average credit
              outstanding during the specified period. The fee will be
              calculated at 0.125% per year. The calculation of credit
              outstanding shall include the undrawn amount of letters of credit.
              This fee is due on March 31, 2000, and quarterly thereafter until
              the expiration of the availability period.

3.2    EXPENSES. The Borrower agrees to immediately repay the Bank for expenses
       that include, but are not limited to, filing, recording and search fees,
       appraisal fees, title report fees and documentation fees.

4.     COLLATERAL

4.1    PERSONAL PROPERTY. The Borrower's obligations to the Bank under this
       Agreement will be secured by personal property the Borrower now owns or
       will own in the future as listed below. The collateral is further defined
       in security agreement(s) executed by the Borrower.

       (a)    Cash, stock and other securities held in the collateral account
              maintained by the Bank's Investment Management Services Group. No
              collateral is required at any time that there is no credit
              (including any letters of credit) outstanding under this
              Agreement.

5.     DISBURSEMENTS, PAYMENTS AND COSTS

5.1    REQUESTS FOR CREDIT. Each request for an extension of credit will be made
       in writing in a manner acceptable to the Bank, or by another means
       acceptable to the Bank.

5.2    DISBURSEMENTS AND PAYMENTS. Each disbursement by the Bank and each
       payment by the Borrower will be:

                                        5
<PAGE>   6

       (a)    made at the Bank's branch (or other location) selected by the Bank
              from time to time;

       (b)    made for the account of the Bank's branch selected by the Bank
              from time to time;

       (c)    made in immediately available funds, or such other type of funds
              selected by the Bank;

       (d)    evidenced by records kept by the Bank. In addition, the Bank may,
              at its discretion, require the Borrower to sign one or more
              promissory notes.

5.3    TELEPHONE AND TELEFAX AUTHORIZATION.

       (a)    The Bank may honor telephone or telefax instructions for advances
              or repayments and telefax requests for the issuance of letters of
              credit given, or purported to be given, by any one of the
              individuals authorized to sign loan agreements on behalf of the
              Borrower, or any other individual designated by any one of such
              authorized signers.

       (b)    Advances will be deposited in and repayments will be withdrawn
              from the Borrower's account number 14993-05249, or such other of
              the Borrower's accounts with the Bank as designated in writing by
              the Borrower.

       (c)    The Borrower will indemnify and hold the Bank harmless from all
              liability, loss, and costs in connection with any act resulting
              from telephone or telefax instructions the Bank reasonably
              believes are made by any individual authorized by the Borrower to
              give such instructions. This paragraph will survive this
              Agreement's termination, and will benefit the Bank and its
              officers, employees, and agents.

5.4    DIRECT DEBIT (PRE-BILLING).

       (a)    The Borrower agrees that the Bank will debit the Borrower's
              deposit account number 14995-05249, or such other of the
              Borrower's accounts with the Bank as designated in writing by the
              Borrower (the "Designated Account") on the date each payment of
              interest and any fees from the Borrower becomes due (the "Due
              Date"). If the Due Date is not a banking day, the Designated
              Account will be debited on the next banking day.

       (b)    Approximately 10 days prior to each Due Date, the Bank will mail
              to the Borrower a statement of the amounts that will be due on
              that Due Date (the "Billed Amount"). The calculation will be made
              on the assumption that no new extensions of credit or payments
              will be made between the date of the billing statement and the Due
              Date, and that there will be no changes in the applicable interest
              rate.

                                        6
<PAGE>   7

       (c)    The Bank will debit the Designated Account for the Billed Amount,
              regardless of the actual amount due on that date (the "Accrued
              Amount"). If the Billed Amount debited to the Designated Account
              differs from the Accrued Amount, the discrepancy will be treated
              as follows:

              (i)    If the Billed Amount is less than the Accrued Amount, the
                     Billed Amount for the following Due Date will be increased
                     by the amount of the discrepancy. The Borrower will not be
                     in default by reason of any such discrepancy.

              (ii)   If the Billed Amount is more than the Accrued Amount, the
                     Billed Amount for the following Due Date will be decreased
                     by the amount of the discrepancy.

                     Regardless of any such discrepancy, interest will continue
                     to accrue based on the actual amount of principal
                     outstanding without compounding. The Bank will not pay the
                     Borrower Interest on any overpayment.

       (d)    The Borrower will maintain sufficient funds in the Designated
              Account to cover each debit. If there are insufficient funds in
              the Designated Account on the date the Bank enters any debit
              authorized by this Agreement, the debit will be reversed.

5.5    BANKING DAYS. Unless otherwise provided in this Agreement, a banking day
       is a day other than a Saturday or a Sunday on which the Bank is open for
       business in California. All payments and disbursements which would be due
       on a day which is not a banking day will be due on the next banking day.
       All payments received on a day which is not a banking day will be applied
       to the credit on the next banking day.

5.6    TAXES. If any payments to the Bank under this Agreement are made from
       outside the United States, the Borrower will not deduct any foreign taxes
       from any payments it makes to the Bank. If any such taxes are imposed on
       any payments made by the Borrower (including payments under this
       paragraph), the Borrower will pay the taxes. and will also pay to the
       Bank, at the time interest is paid, any additional amount which the Bank
       specifies as necessary to preserve the after-tax yield the Bank would
       have received if such taxes had not been imposed. The Borrower will
       confirm that it has paid the taxes by giving the Bank official tax
       receipts (or notarized copies) within 30 days after the due date.

5.7    ADDITIONAL COSTS. The Borrower will pay the Bank, on demand, for the
       Bank's costs or losses arising from any statute or regulation, or any
       request or requirement of a regulatory agency which is applicable to all
       national banks or a class of all national banks. The costs and losses
       will be allocated to the loan in a manner determined by the Bank, using
       any reasonable method. The costs include the following

       (a)    any reserve or deposit requirements; and

       (b)    any capital requirements relating to the Bank's assets and
              commitments for credit.

                                        7
<PAGE>   8

5.8    INTEREST CALCULATION. Except as otherwise stated in this Agreement, all
       interest and fees, if any, will be computed on the basis of a 360-day
       year and the actual number of days elapsed. This results in more interest
       or a higher fee than if a 365-day year is used. Installments of principal
       which are not paid when due under this Agreement shall continue to bear
       interest until paid.

5.9    DEFAULT RATE. Upon the occurrence of any default under this Agreement,
       principal amounts outstanding under this Agreement will at the option of
       the Bank bear interest at a rate which is 2 percentage point(s) higher
       than the rate of interest otherwise provided under this Agreement. This
       will not constitute a waiver of any default.

6.     CONDITIONS

The Bank must receive the following items, in form and content acceptable to the
Bank, before it is required to extend any credit to the Borrower under this
Agreement:

6.1    AUTHORIZATIONS. Evidence that the execution, delivery and performance by
       the Borrower of this Agreement and any instrument or agreement required
       under this Agreement have been duly authorized.

6.2    GOVERNING DOCUMENTS. A copy of the Borrower's articles of incorporation.

6.3    SECURITY AGREEMENTS. Signed original security agreements, assignments,
       financing statements and fixture filings (together with collateral in
       which the Bank requires a possessory security interest), which the Bank
       requires.

6.4    EVIDENCE OF PRIORITY. Evidence that security interests and liens in favor
       of the Bank are valid, enforceable, and prior to all others' rights and
       interests, except those the Bank consents to in writing.

6.5    INSURANCE. Evidence of insurance coverage, as required in the "Covenants"
       section of this Agreement.

6.6    OTHER ITEMS. Any other items that the Bank reasonably requires.

7.     REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full,
the Borrower makes the following representations and warranties. Each request
for an extension of credit constitutes a renewed representation:

7.1    ORGANIZATION OF BORROWER. The Borrower is a corporation duly formed and
       existing under the laws of the state where organized.

7.2    AUTHORIZATION. This Agreement, and any instrument or agreement required
       hereunder, are within the Borrower's powers, have been duly authorized,
       and do not conflict with any of its organizational papers.

                                        8
<PAGE>   9

7.3    ENFORCEABLE AGREEMENT. This Agreement is a legal, valid and binding
       agreement of the Borrower, enforceable against the Borrower in accordance
       with its terms, and any instrument or agreement required hereunder, when
       executed and delivered, will be similarly legal, valid, binding and
       enforceable.

7.4    GOOD STANDING. In each state in which the Borrower does business, it is
       properly licensed, in good standing, and, where required, in compliance
       with fictitious name statutes.

7.5    NO CONFLICTS. This Agreement does not conflict with any law, agreement,
       or obligation by which the Borrower is bound.

7.6    FINANCIAL INFORMATION. All financial and other information that has been
       or will be supplied to the Bank is:

       (a)    sufficiently complete to give the Bank accurate knowledge of the
              Borrower's (and any guarantor's) financial condition, including
              all material contingent liabilities.

       (b)    in compliance with all government regulations that apply.

7.7    LAWSUITS. There is no lawsuit, tax claim or other dispute pending or
       threatened against the Borrower which, if lost, would impair the
       Borrower's financial condition or ability to repay the loan, except as
       have been disclosed in writing to the Bank.

7.8    COLLATERAL. All collateral required in this Agreement is owned by the
       grantor of the security interest free of any title defects or any liens
       or interests of others.

7.9    PERMITS, FRANCHISES. The Borrower possesses all permits, memberships,
       franchises, contracts and licenses required and all trademark rights,
       trade name rights, patent rights and fictitious name rights necessary to
       enable it to conduct the business in which it is now engaged.

7.10   OTHER OBLIGATIONS. The Borrower is not in default on any obligation for
       borrowed money, any purchase money obligation or any other material
       lease, commitment, contract, instrument or obligation.

7.11   INCOME TAX MATTERS. The Borrower has no knowledge of any pending
       assessments or adjustments of its income tax for any year.

7.12   NO EVENT OF DEFAULT. There is no event which is, or with notice or lapse
       of time or both would be, a default under this Agreement.

7.13   INSURANCE. The Borrower has obtained, and maintained in effect, the
       insurance coverage required in the "Covenants" section of this Agreement.

7.14   LOCATION OF BORROWER. The Borrower's place of business (or, if the
       Borrower has more than one place of business, its chief executive office)
       is located at the address listed under the Borrower's signature on this
       Agreement.

                                        9
<PAGE>   10

7.15   YEAR 2000 COMPLIANCE. The Borrower has conducted a comprehensive review
       and assessment of the Borrower's systems and equipment applications with
       respect to the "year 2000 problem" (that is, the inability of computers,
       as well as embedded microchips in non-computing devices, to properly
       perform date-sensitive functions with respect to certain dates prior to
       and after December 31, 1999). Based on that review, the Borrower does not
       believe the year 2000 problem, including costs of remediation, will
       result in a material adverse change in the Borrower's business condition
       (financial or otherwise), operations, properties or prospects, or ability
       to repay the credit. The Borrower has developed adequate contingency
       plans to ensure uninterrupted and unimpaired business operation in the
       event of a failure of its own or a third party's systems or equipment due
       to the year 2000 problem, including those of vendors, customers, and
       suppliers, as well as a general failure of or interruption in its
       communications and delivery infrastructure.

8.     COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and
until the Bank is repaid in full:

8.1    USE OF PROCEEDS. To use the proceeds of the credit only for general
       corporate purposes (excluding investments in marketable securities), and
       at the option of the Bank, to finance drafts drawn under any letter of
       credit issued hereunder.

8.2    FINANCIAL INFORMATION. To provide the following financial information and
       statements in form and content acceptable to the Bank, and such
       additional information as requested by the Bank from time to time:

       (a)    Within 120 days of the Borrower's fiscal year end, the Borrower's
              annual financial statements. These financial statements must be
              audited by a Certified Public Accountant ("CPA") acceptable to the
              Bank. The statements shall be prepared on a consolidated basis.

       (b)    Within 10 days of month end or upon the Bank's request, copies of
              monthly statements from depository institutions or other, evidence
              acceptable to the Bank of the Borrower's securities account(s)
              pledged to the Bank.

8.3    NOTICES TO BANK. To promptly notify the Bank in writing of:

       (a)    any lawsuit over One Hundred Thousand Dollars ($100,000) against
              the Borrower (or any guarantor).

       (b)    any substantial dispute between the Borrower (or any guarantor)
              and any government authority.

       (c)    any failure to comply with this Agreement.

       (d)    any material adverse change in the Borrower's (or any guarantor's)
              business condition (financial or otherwise), operations,
              properties or prospects, or ability to repay the credit.

                                       10
<PAGE>   11

       (e)    any change in the Borrower's name, legal structure, place of
              business, or chief executive office if the Borrower has more than
              one place of business.

       (f)    any actual contingent liabilities of the Borrower (or any
              guarantor), and any such contingent liabilities which are
              reasonably foreseeable.

8.4    BOOKS AND RECORDS. To maintain adequate books and records.

8.5    AUDITS. To allow the Bank and its agents to inspect the Borrowers
       properties and examine, audit, and make copies of books and records at
       any reasonable time. If any of the Borrowers properties, books or records
       are in the possession of a third party, the Borrower authorizes that
       third party to permit the Bank or its agents to have access to perform
       inspections or audits and to respond to the Bank's requests for
       information concerning such properties, books and records.

8.6    COMPLIANCE WITH LAWS. To comply with the laws (including any fictitious
       name statute), regulations, and orders of any government body with
       authority over the Borrower's business.

8.7    PRESERVATION OF RIGHTS. To maintain and preserve all rights, privileges,
       and franchises the Borrower now has.

8.8    MAINTENANCE OF PROPERTIES. To make any repairs, renewals, or replacements
       to keep the Borrower's properties in good working condition.

8.9    PERFECTION OF LIENS. To help the Bank perfect and protect its security
       interests and liens, and reimburse it for related costs it incurs to
       protect its security interests and liens.

8.10   COOPERATION. To take any action reasonably requested by the Bank to carry
       out the intent of this Agreement.

8.11   GENERAL BUSINESS INSURANCE. To maintain insurance as is usual for the
       business it is in.

8.12   LIQUIDATION. Not to, without the Bank's written consent, liquidate or
       dissolve the Borrower's business.

9.     DEFAULT

If any of the following events occurs, the Bank may do one or more of the
following: declare the Borrower in default, stop making any additional credit
available to the Borrower, and require the Borrower to repay its entire debt
immediately and without prior notice. If an event of default occurs under the
paragraph entitled "Bankruptcy," below, with respect to the Borrower, then the
entire debt outstanding under this Agreement will automatically be due
immediately.

9.1    FAILURE TO PAY. The Borrower fails to make a payment under this Agreement
       when due.

                                       11
<PAGE>   12

9.2    LIEN PRIORITY. The Bank fails to have an enforceable first lien (except
       for any prior liens to which the Bank has consented in writing) on or
       security interest in any property given as security for this Agreement
       (or any guaranty).

9.3    FALSE INFORMATION. The Borrower (or any guarantor) has given the Bank
       false or misleading information or representations.

9.4    BANKRUPTCY. The Borrower (or any guarantor) files a bankruptcy petition,
       a bankruptcy petition is filed against the Borrower (or any guarantor) or
       the Borrower (or any guarantor) makes a general assignment for the
       benefit of creditors.

9.5    RECEIVERS. A receiver or similar official is appointed for the Borrower's
       (or any guarantor's) business, or the business is terminated.

9.6    GOVERNMENT ACTION. Any government authority takes action that the Bank
       believes materially adversely affects the Borrowers (or any guarantor's)
       financial condition or ability to repay.

9.7    MATERIAL ADVERSE CHANGE. A material adverse change occurs, or is
       reasonably likely to occur, in the Borrower's (or any guarantors)
       business condition (financial or otherwise), operations, properties or
       prospects, or ability to repay the credit.

9.8    CROSS-DEFAULT. Any default occurs under any agreement in connection with
       any credit the Borrower (or any guarantor) has obtained from anyone else
       or which the Borrower (or any guarantor) has guaranteed.

9.9    DEFAULT UNDER RELATED DOCUMENTS. Any guaranty, subordination agreement,
       security agreement, deed of trust, or other document required by this
       Agreement is violated or no longer in effect.

9.10   OTHER BANK AGREEMENTS. The Borrower (or any guarantor) fails to meet the
       conditions of, or fails to perform any obligation under any other
       agreement the Borrower (or any guarantor) has with the Bank or any
       affiliate of the Bank.

9.11   OTHER BREACH UNDER AGREEMENT. The Borrower fails to meet the conditions
       of, or fails to perform any obligation under, any term of this Agreement
       not specifically referred to in this Article. This includes any failure
       or anticipated failure by the Borrower to comply with any financial
       covenants set forth in this Agreement, whether such failure is evidenced
       by financial statements delivered to the Bank or is otherwise known to
       the Borrower or the Bank.

10.    ENFORCING THIS AGREEMENT; MISCELLANEOUS

10.1   GAAP. Except as otherwise stated in this Agreement, all financial
       information provided to the Bank and all financial covenants will be made
       under generally accepted accounting principles, consistently applied.

10.2   CALIFORNIA LAW. This Agreement is governed by California law.

                                       12
<PAGE>   13

10.3   SUCCESSORS AND ASSIGNS. This Agreement is binding on the Borrower's and
       the Bank's successors and assignees. The Borrower agrees that it may not
       assign this Agreement without the Bank's prior consent. The Bank may sell
       participations in or assign this loan, and may exchange financial
       information about the Borrower with actual or potential participants or
       assignees; provided that such actual or potential participants or
       assignees shall agree to treat all financial information exchanged as
       confidential. If a participation is sold or the loan is assigned, the
       purchaser will have the right of set-off against the Borrower.

10.4   ARBITRATION.

       (a)    This paragraph concerns the resolution of any controversies or
              claims between the Borrower and the Bank, whether arising in
              contract, tort or by statute, including but not limited to
              controversies or claims that arise out of or relate to: (i) this
              Agreement (including any renewals, extensions or modifications);
              or (ii) any document related to this Agreement (collectively a
              "Claim").

       (b)    At the request of the Borrower or the Bank, any Claim shall be
              resolved by arbitration in accordance with the Federal Arbitration
              Act (Title 9, U. S. Code) (the "Act"). The Act will apply even
              though this Agreement provides that it is governed by the law of a
              specified state.

       (c)    Arbitration proceedings will be determined in accordance with the
              Act, the rules and procedures for the arbitration of financial
              services disputes of J.A.M.S./Endispute or any successor thereof
              ("J.A.M.S."), and the terms of this paragraph. In the event of any
              inconsistency, the terms of this paragraph shall control.

       (d)    The arbitration shall be administered by J.A.M.S. and conducted in
              any U.S. state where real or tangible personal property collateral
              for this credit is located or if there is no such collateral, in.
              All Claims shall be determined by one arbitrator; however, if
              Claims exceed Five Million Dollars ($5,000,000), upon the request
              of any party, the Claims shall be decided by three arbitrators.
              All arbitration hearings shall commence within ninety (90) days of
              the demand for arbitration and close within ninety (90) days of
              commencement and the award of the arbitrator(s) shall be issued
              within thirty (30) days of the close of the hearing. However, the
              arbitrator(s), upon a showing of good cause, may extend the
              commencement of the hearing for up to an additional sixty (60)
              days. The arbitrator(s) shall provide a concise written statement
              of reasons for the award. The arbitration award may be submitted
              to any court having jurisdiction to be confirmed and enforced.

       (e)    The arbitrator(s) will have the authority to decide whether any
              Claim is barred by the statute of limitations and, if so, to
              dismiss the arbitration on that basis. For purposes of the
              application of the statute of limitations, the service on J.A.M.S.
              under applicable J.A.M.S. rules of a notice of Claim is the
              equivalent of the filing of a lawsuit. Any dispute concerning this
              arbitration provision or whether a Claim

                                       13
<PAGE>   14

              is arbitrable shall be determined by the arbitrator(s). The
              arbitrator(s) shall have the power to award legal fees pursuant to
              the terms of this Agreement.

       (f)    This paragraph does not limit the right of the Borrower or the
              Bank to: (i) exercise self-help remedies, such as but not limited
              to, setoff; (ii) initiate judicial or nonjudicial foreclosure
              against any real or personal property collateral; (iii) exercise
              any judicial or power of sale rights, or (iv) act in a court of
              law to obtain an interim remedy, such as but not limited to,
              injunctive relief, writ of possession or appointment of a
              receiver, or additional or supplementary remedies.

       (g)    The filing of a court action is not intended to constitute a
              waiver of the right of the Borrower or the Bank, including the
              suing party, thereafter to require submittal of the Claim to
              arbitration.

10.5   SEVERABILITY; WAIVERS. If any part of this Agreement is not enforceable,
       the rest of the Agreement may be enforced. The Bank retains all rights,
       even if it makes a loan after default. If the Bank waives a default, it
       may enforce a later default. Any consent or waiver under this Agreement
       must be in writing.

10.6   ADMINISTRATION COSTS. The Borrower shall pay the Bank for all reasonable
       costs incurred by the Bank in connection with administering this
       Agreement.

10.7   ATTORNEYS' FEES. The Borrower shall reimburse the Bank for any reasonable
       costs and attorneys' fees incurred by the Bank in connection with the
       enforcement or preservation of any rights or remedies under this
       Agreement and any other documents executed in connection with this
       Agreement, and in connection with any amendment, waiver, "workout" or
       restructuring under this Agreement. In the event of a lawsuit or
       arbitration proceeding, the prevailing party is entitled to recover costs
       and reasonable attorneys' fees incurred in connection with the lawsuit or
       arbitration proceeding, as determined by the court or arbitrator. In the
       event that any case is commenced by or against the Borrower under the
       Bankruptcy Code (Title 11, United States Code) or any similar or
       successor statute, the Bank is entitled to recover costs and reasonable
       attorneys' fees incurred by the Bank related to the preservation,
       protection, or enforcement of any rights of the Bank in such a case. As
       used in this paragraph, "attorneys' fees" includes the allocated costs of
       the Bank's in-house counsel.

10.8   ONE AGREEMENT. This Agreement and any related security or other
       agreements required by this Agreement, collectively:

       (a)    represent the sum of the understandings and agreements between the
              Bank and the Borrower concerning this credit;

       (b)    replace any prior oral or written agreements between the Bank and
              the Borrower concerning this credit; and

       (c)    are intended by the Bank and the Borrower as the final, complete
              and exclusive statement of the terms agreed to by them.

                                       14
<PAGE>   15

In the event of any conflict between this Agreement and any other agreements
required by this Agreement, this Agreement will prevail.

10.9   INDEMNIFICATION. The Borrower will indemnify and hold the Bank harmless
       from any loss, liability, damages, judgments, and costs of any kind
       relating to or arising directly or indirectly out of (a) this Agreement
       or any document required hereunder, (b) any credit extended or committed
       by the Bank to the Borrower hereunder, and (c) any litigation or
       proceeding related to or arising out of this Agreement, any such
       document, or any such credit. This indemnity includes but is not limited
       to attorneys' fees (including the allocated cost of in-house counsel).
       This indemnity extends to the Bank, its parent, subsidiaries and all of
       their directors, officers, employees, agents, successors, attorneys, and
       assigns, This indemnity will survive repayment of the Borrower's
       obligations to the Bank. All sums due to the Bank hereunder shall be
       obligations of the Borrower, due and payable immediately without demand.

10.10  NOTICES. All notices required under this Agreement shall be personally
       delivered or sent by first class mail, postage prepaid, or by overnight
       courier, to the addresses on the signature page of this Agreement, or
       sent by facsimile to the fax numbers listed on the signature page, or to
       such other addresses as the Bank and the Borrower may specify from time
       to time in writing. Notices sent by first class mail shall be deemed
       delivered on the earlier of actual receipt or on the fourth business day
       after deposit in the U.S. mail.

10.11  HEADINGS. Article and paragraph headings are for reference only and shall
       not affect the interpretation or meaning of any provisions of this
       Agreement.

10.12  COUNTERPARTS. This Agreement may be executed in as many counterparts as
       necessary or convenient, and by the different parties on separate
       counterparts each of which, when so executed, shall be deemed an original
       but all such counterparts shall constitute but one and the same
       agreement.

This Agreement is executed as of the date stated at the top of the first page.

<TABLE>
<CAPTION>
BANK OF AMERICA, N.A.                                NEXTLEVEL COMMUNICATIONS, INC.

<S>                                                  <C>
     /s/ Ginger P. Trimble                                /s/  Next Level Communications
---------------------------------------------        ------------------------------------------
By:  Ginger P. Trimble, Vice-President               By:

Address where notices to the Bank are to be sent:
                                                     ------------------------------------------
                                                     By:
San Francisco Commercial Banking
Office #01499
345 Montgomery Street                                Address for Notices:
San Francisco, CA 94104
                                                     6085 State Farm Drive
                                                     Rohnert Park, CA 94928
</TABLE>

                                       15

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