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                                                                   EXHIBIT 10.10

                            ITLA CAPITAL CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                           (Effective January 1, 1997)
               Amended as of January 28, 2000 and January 1, 2003

                                    Preamble

ITLA Capital Corporation, a Delaware corporation, has adopted the ITLA
Supplemental Executive Retirement Plan, effective January 1, 1997, as amended as
of January 28, 2000 and January 1, 2003, for a select group of executives and
senior management personnel to ensure that the overall effectiveness of the
Company's executive compensation program will attract, retain and motivate
qualified executives and senior management personnel.

                                    ARTICLE I

                                   DEFINTTIONS

        When used herein, the following words shall have the meanings below
unless the context clearly indicates otherwise:

        1.1 "Applicable Measurement Period" means the period of time since the
last day investment credit had been previously allocated on the Participant's
Change in Control Cash Account Balance under Section 5.2.

        1.2 "Change in Control" means the occurrence of any of the following
events with respect to the Company: (1) any person (as the term is used in
section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange
Act") is or becomes the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly of securities of the Company representing
33.33% or more of the Company's outstanding voting securities; (2) individuals
who are members of the Board of Directors of the Company on the date hereof (the
"Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date
hereof whose election was approved by a vote of at least two thirds of the
directors comprising the Incumbent Board, or whose nomination for election by
the Company's stockholders was approved by the nominating committee serving
under an Incumbent Board, shall be considered a member of the Incumbent Board;
(3) a reorganization, merger, consolidation, sale of all or substantially all of
the assets of the Company or a similar transaction in which the Company is not
the resulting entity (unless the continuing ownership requirements clause (4)
below are met with respect to the resulting entity); or (4) a merger or
consolidation of the Company with any other corporation other than a merger or
consolidation in which the voting securities of the Company outstanding
immediately prior thereto represent at least 66.67% of the total voting power
represented by the voting securities of the Company or the surviving entity
outstanding immediately after such merger or consolidation. The term "Change in
Control" shall not include: (1) an acquisition of securities by an employee
benefit plan of the Company; or (2) any of the above mentioned events or
occurrences which require but do not receive the requisite government or
regulatory approval to bring the event or occurrence to fruition.

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        1.3 "Change in Control Cash Account Balance" means, with respect to a
Participant, a credit to a Participant under the Plan on the records of the
Company equal to the Initial Change in Control Cash Balance plus amounts
credited pursuant to Section 5.2. The Change in Control Cash Account Balance, if
applicable, shall be a bookkeeping entry only and shall be utilized solely as a
device for the measurement and determination of the cash amounts to be paid to a
Participant, or his or her Designated Beneficiary, pursuant to the Plan.

        1.4 "Claims Reviewer" means the Compensation Committee of the Board of
Directors of the Company, unless another person or organizational unit is
designated by the Company as Claims Reviewer.

        1.5 "Company" means ITLA Capital Corporation, a Delaware corporation,
and any successor thereto. For purposes of determining whether a Participant is
employed by, or received Earnings from, the Company at any particular time, the
term "Company" shall also include any entity that would be treated as a single
employer with the Company under Section 414 of the Internal Revenue Code of
1986, as amended.

        1.6 "Company Stock" means the Company's designated Recognition and
Retention Plan shares, treasury shares and publicly traded common stock
including publicly traded common stock of a successor in interest.

        1.7 "Designated Beneficiary" means the individual the Participant
designates as his or her Beneficiary in such Participant's Supplemental
Executive Retirement Plan designation of beneficiary form.

        1.8 "Disability" means total and permanent disability as defined in the
Company's long term disability plan.

        1.9 "Earnings" means the Participant's base annual salary from the
Company (without regard to any deferral election made by the Participant and/or
any bonuses paid to the Participant).

        1.10 "Haligowski Employment Agreement" means that certain employment
agreement between the Company and George Haligowski dated January 28, 2000, as
the same may be thereafter amended.

        1.11 "Initial Change in Control Cash Balance" means, with respect to a
Participant, the unsecured obligation of the Company that is intended to
represent a cash amount based upon the conversion of his Stock Account Balance
to cash on the day next following the consummation of a Change in Control
pursuant to a Participant's election, or an automatic conversion, under Section
5.1, in exchange for the cancellation of his or her Vested Stock Account
Balance, equal to the number of shares of Company Stock allocated to his or her
Vested Stock Account Balance as of the consummation of the Change in Control
multiplied by the cash value of the per share merger consideration to be
received in the Change in Control transaction as of the date of consummation of
the Change in Control (i.e., in the case of a common stock for

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common stock exchange, the exchange ratio multiplied by the closing sales price
of the acquiror's common stock on the date of the consummation of the Change in
Control (or if such day is not a trading day, then on the last trading day prior
thereto) with the amount thereby determined being multiplied by the number of
shares of Company Stock allocated to a Participant's Stock Vested Account
Balance as of the consummation of such Change in Control).

        1.12 "Participant" means any employee of the Company who meets the
eligibility requirements of Article II and is designated and approved for
participation in the Plan as set forth in Article II.

        1.13 "Participant's Account" or "Account" means the Vested Stock Account
Balance or Change in Control Cash Account Balance of each Participant, whichever
is applicable.

        1.14 "Plan" means the ITLA Capital Corporation Supplemental Executive
Retirement Plan, as set forth herein and as amended from time-to-time.

        1.15 "Plan Year" means the calendar year.

        1.16 "Retirement Date" means the later of the date a Participant leaves
the employ of the Company or the date upon which the Participant attains the age
of 62.

        1.17 "Stock Account Balance" means, with respect to a Participant, the
number of shares of Company Stock allocated to a Participant, whether vested or
unvested, under the Plan.

        1.18 "Trust" means the Trust under the Company Rabbi Trust Agreement.

        1.19 "Trustee" means Union Bank of California or any other person or
corporation selected by the Company to serve in such capacity of the Trust.

        1.20 "Vested Stock Account Balance" means, with respect to a
Participant, the number of vested shares of Company Stock credited to the Stock
Account Balance of a Participant.

        1.21 "Vesting Cycle" means one the following of seven consecutive three
calendar year periods: (1) January 1, 1997 through December 31, 1999; (2)
January 1, 2000 through December 31, 2002; (3) January 1, 2003 through December
31, 2005; (4) January 1, 2006 through December 31, 2008; (5) January 1,2009
through December 31, 2011; (6) January 1, 2012 through December 31, 2014 and (7)
January 1, 2015 through December 31, 2017.

                                   ARTICLE II

                           ELIGIBILITY TO PARTICIPATE

        2.1 Eligibility to Participate. For purposes of Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), the Plan is
limited to a select group of management and highly compensated employees.

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        2.2 Designated Participants. An executive or senior management employee
of the Company is eligible to become a Participant in the Plan; provided such
employee is designated as a Participant below or, such employee is later
designated as a Participant by the Compensation Committee of the Board of
Directors of the Company and, such designation is attached as a written
amendment to the Plan signed by a duly authorized officer of the Company. Under
no circumstance shall an employee below the level of Managing Director or Senior
Vice President be eligible to participate in the Plan. The following individuals
are Participants in the Plan as of January 1, 2003.

George W. Haligowski (effective January 1997)
Norval L. Bruce (effective January 1997)
Timothy Doyle (effective January 1997)
Steven Romelt (effective January 1997)
Don Nickbarg (effective May 2000)
William Schack (effective January 2002)
Scott Wallace (effective January 2002)
William Callam (effective January 2003)

Once an employee becomes a Participant, he or she shall remain a Participant
until all benefits, if any, to which he or she (or his or her Designated
Beneficiary) is entitled under the Plan have been distributed.

                                   ARTICLE III

                  ELIGIBILITY FOR AND DISTRIBUTION OF BENEFITS

        3.1 Eligibility for Benefits. Each Participant shall be eligible to
receive his or her Vested Stock Account Balance or Change in Control Cash
Account Balance, whichever is applicable, under the Plan as provided in Sections
3.3 and 3.4 below. Except as set forth in Sections 3.5 and 6.1 below, no
benefits shall be payable from the Plan to a Participant while such Participant
is employed by the Company.

        3.2 Incidents of Ownership. Notwithstanding the above, a Participant
shall have no incidents of ownership with respect to the Company Stock or any
other assets held under the Plan. A Participant shall not have any right to vote
shares of Company Stock allocated or credited to the Participant's Stock Account
Balance under the Plan.

        3.3 Form of Distribution. A Participant's Vested Stock Account Balance
shall be distributed solely in Company Stock. A Participant's Change in Control
Cash Account Balance shall be distributed solely in cash.

        3.4 Election and Timing of Distribution. Except as provided in Sections
3.5 and 6.1, a Participant's Account shall be distributed either in a single
lump sum distribution, five (5) annual installments or ten (10) annual
installments in accordance with the written election of such Participant. Such
written election must be in form acceptable to the Compensation

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Committee of the Board of Directors of the Company and shall not be effective
until received by the Compensation Committee. A Participant's election may be
changed at any time by filing a new written election (which shall automatically
revoke his or her prior written election) with the Compensation Committee of the
Board of Directors of the Company, which election shall become effective upon
its receipt by the Compensation Committee; provided however, the most recent
written election received prior to the thirteenth (13th) month before the
Participant's termination of employment shall be controlling and any written
election received within the thirteen (13) month period immediately preceding
the Participant's termination of employment shall be disregarded; and provided
further, that the first written election made under the Plan by a Participant in
calendar year 2003 and received by the Compensation Committee prior to January
1, 2004 shall in all cases be honored unless timely revoked thereafter by a new
binding written election. If no written election is made, then the Participant's
Account shall be paid in a single lump sum distribution. A single lump sum
distribution shall be made within forty-five (45) days after a Participant's
termination of employment. In the case of an annual installment method (5 or 10
year term), the first annual distribution shall be made on the first day of the
calendar month next following the one year anniversary of the Participant's
termination of employment (1/5 or 1/10 of the Participant's Account, whichever
is applicable), and subsequent annual installments will be made on each annual
anniversary of the first distribution (1/4 or 1/9 of the Participant's Account
on the second distribution date, whichever is applicable). All distributions
under the Plan shall be less applicable tax and other required or authorized
withholdings. The Trust shall timely deliver to the Company a sufficient number
of shares of Company Stock from a Participant's Vested Stock Account Balance
(based upon the closing price of the most recent trading date prior to the date
of delivery) or cash from his or her Change in Control Cash Account Balance to
satisfy the withholding obligations of such Participant. All distributions of
Company Stock shall comply with federal and state securities laws.

        3.5 Advance Distribution for Financial Hardship. With the consent of the
Compensation Committee of the Board of Directors of the Company, and
notwithstanding anything contained in Section 3.4 to the contrary, a Participant
may withdraw up to one hundred percent (100%) of his or her Vested Stock Account
Balance (in shares) or Change in Control Cash Account Balance (in cash), in each
case less applicable tax and other required or authorized withholdings, prior to
termination of employment as may be required to meet a Participant's
Unforeseeable Financial Emergency (as defined herein), provided that the entire
amount requested by the Participant is not reasonably available from other
resources of the Participant. An "Unforeseeable Financial Emergency" shall mean
an unforeseeable, severe financial condition resulting from (1) a sudden and
unexpected illness or accident of the Participation or an immediate family
member of the Participant; (2) loss of the Participant's property due to
casualty; or (3) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant. The
withdrawal must be necessary to satisfy the Unforeseeable Financial Emergency
and no more may be withdrawn from the Participant's Account than is required to
relieve the financial need after taking into account other resources that are
reasonably available to the Participant for this purpose. The Participant must
certify that the financial need cannot be relieved through any other reasonable
sources, including but not limited to, reimbursement or compensation by
insurance or otherwise, liquidation of the Participant's assets, to the extent
such liquidation would not itself cause an immediate and heavy financial need or
by borrowing from commercial sources on reasonable commercial terms. This
Section 3.5 shall be interpreted in a manner consistent with Section
1.457-2(h)(4), (5) of the Treasury Regulations. The Participant's Account shall
be reduced by the amount of any advance distribution for financial hardship
including withholdings.

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        3.6 Limitation on Distribution to Covered Employees. Notwithstanding any
other provision of the Plan, in the event that the Participant is a "covered
employee" as defined in Section 1 62(m)(3) of the Internal Revenue Code of 1986,
as amended (the "Code"), or would be a covered employee if the benefits were
distributed in accordance with Section 3.5 or 6.1, the maximum amount which may
be distributed from the Participant's Account under Section 3.5 or 6.1 in any
Plan Year shall not exceed one million dollars ($1,000,000) less the amount of
compensation paid by the Company to the Participant in such Plan Year which is
not "performance-based" (as defined in Code Section 162(m)(4)(C)). The amount of
compensation which is not "performance-based" shall be reasonably determined by
the Company at the time of the proposed distribution. Any amount which is not
distributed to the Participant in a Plan Year as a result of the limitation set
forth in this Section 3.6 shall be distributed to the Participant in the next
Plan Year, subject to compliance with the foregoing limitation set forth in this
Section 3.6. The provisions of this Section 3.6 shall not apply if the
Compensation Committee of the Board of Directors of the Company, upon
consultation with legal counsel, determines that the restrictions of Code
Section 162(m) do not apply to limit the deductibility of distributions made
under the Plan (or otherwise by the Company) to the Participant.

                                   ARTICLE IV

                ALLOCATION AND FUNDING OF STOCK ACCOUNT BALANCES

        4.1 Allocation to Stock Account Balances. Shares of Company Stock under
the Plan are allocated to a Participant's Stock Account Balance on an annual
basis on or within ninety (90) days of the last day of the Plan Year. A
Participant must be employed by the Company as of the last day of the Plan Year
in order to receive an allocation of shares for such Plan Year under this
Section 4.1 and Section 4.2. The amount of Company Stock allocated to a
Participant's Stock Account Balance pursuant to this Section 4.1 and Section 4.2
shall be determined using the fair market value of the Company Stock as of
October 8, 1998, of nine dollars ($9.00) a share.

        4.2 Allocation Amounts. The annual amount allocated to a Participant
pursuant to Section 4.1 shall be calculated as follows, subject to approval of
the allocation by the Compensation Committee of the Board of Directors of the
Company and the award of sufficient shares of Company Stock to fund the annual
allocation:

                -       The annual amount shall be equal to 20% of each such
                        Participant's Earnings (except in the case of George
                        Haligowski, 33 1/3% of his Earnings) for the Plan Year.

Notwithstanding the preceding sentences, the Compensation Committee of the Board
of Directors of the Company may approve a greater or lesser award for any
Participant or determine that no award is appropriate for a Participant. In no
event, however, shall the total number of shares of Company Stock allocated
under the Plan (excluding reinvestments under Section 4.3 and stock dividends
and distributions) exceed the issued Recognition and Retention Plan shares to be
allocated under the Plan.

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        4.3 Contribution to Trust and Reinvestment of Cash Dividends. The
Company shall contribute shares of Company Stock to the Trust on an annual basis
in an amount equal to the total annual allocation for all Participants for the
Plan Year as determined under Section 4.2 to the extent that the Compensation
Committee of the Board of Directors of the Company approves such funding. The
contributed shares shall come from the issued Recognition and Retention Plan
shares approved for such use by the shareholders in the Company's Recognition
and Retention Plan. All Recognition and Retention Plan terms pertaining to the
granting of the shares shall remain in full force and effect. The Plan shall be
funded with Recognition and Retention Plan shares only to the extent that shares
are available and the shares are awarded by the Compensation Committee of the
Board of Directors of the Company.

The number of shares of Company Stock allocated to each Participant's Stock
Account Balance under the Plan for a Plan Year under Sections 4.1 and 4.2 shall
be determined by dividing the Participant's allocation amount for such Plan Year
as determined in Section 4.2 above by the fair market value of Company Stock on
October 8, 1998, of nine dollars ($9.00) a share. If the available Recognition
and Retention Plan shares should be insufficient to cover the allocation amounts
for all Participants for any Plan Year as determined under Section 4.2 above,
the allocation amounts shall be reduced for each Participant on a pro rata
basis.

Stock dividends and distributions on shares of Company Stock allocated to a
Participant's Stock Account Balance shall be added to the Participant's Stock
Account Balance with the portion allocated to unvested shares being subject to
the same vesting requirements of the underlying shares. All cash dividends
received on shares of Company Stock allocated to a Participant's Stock Account
Balance, whether vested or unvested, shall be reinvested by the Trustee in
shares of Company Stock (rounded to the nearest whole share), such additional
shares shall be added to the Participant's Stock Account Balance, and the
Participant shall at all times be fully vested in such reinvestments.

        4.4 Special Allocation Upon Change of Control. In the event of a pending
Change of Control, the Company shall, on the business day next preceding the
consummation of the Change in Control, credit the Stock Account Balance of each
Participant in the employ of the Company on such date (or who has been
terminated involuntarily by action of the Company within the three months
preceding such date, unless such termination is for cause as defined in the
Company's Change of Control Severance Agreements) as follows:

                -       Each such Participant's Stock Account Balance shall be
                        credited with a number of shares of Company Stock, based
                        upon the average high and low quoted sales price of such
                        stock on the trading day next preceding the day the
                        shares are credited, such that the additional shares
                        credited in total value equal 60% of the Participant's
                        Earnings for the prior Plan Year (plus in the case of
                        George Haligowski, such additional shares to fund the
                        obligation set forth in Section 4(e) of the Haligowski
                        Employment Agreement); and

                -       The number of credited shares shall be contributed to
                        the Trust.

The number of shares to be contributed and allocated pursuant to this Section
4.4 is subject to the

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limitations set forth in Section 4.5. In the event the pending Change in Control
is abandoned or terminated after the contribution and allocation of shares
pursuant to this Section 4.4, then in that event, the shares contributed and
allocated pursuant to this Section 4.4 shall be forfeited as of the date of
abandonment or termination.

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        4.5 Reduction of Special Allocation. If the available Recognition and
Retention Plan shares are insufficient to fund the contribution and allocation
under Section 4.4, such contribution and allocation shall be reduced for each
Participant on a pro rata basis.

        4.6 Vesting. A Participant shall only have a vested right to the shares
allocated to his or her Stock Account Balance for a Vesting Cycle under Sections
4.1 and 4.2 (and any stock dividends and distributions relating thereto) if such
Participant is employed by the Company on the last day of the Vesting Cycle.
Notwithstanding the preceding sentence, a Participant shall be 100% vested in
all shares allocated to his or her Stock Account Balance under Sections 4.1 and
4.2 (including any stock dividends distributions relating thereto) in the event
of the consummation of a Change of Control (if he or she is employed immediately
prior to the Change in Control) or termination of employment due to death,
Disability or after Retirement Date. A Participant shall be vested in all shares
allocated to his or her Stock Account Balance under Section 4.4 upon the
consummation of the Change in Control. A Participant shall at all times be 100%
vested in reinvestments in Company Stock allocated to his or her Stock Account
Balance under Section 4.3. A Participant employed by the Company on the date of
termination of the Plan shall also be 100% vested in his or her Stock Account
Balance upon Plan termination. Notwithstanding the foregoing or anything
contained elsewhere in the Plan, a Participant's Vested Stock Account Balance
shall be subject to forfeiture as provided in Section 7.1.

        4.7 Forfeiture. In the event a Participant leaves the employ of the
Company prior to a Change in Control and before the end of a Vesting Cycle for
reasons other than death, Disability or after Retirement Date, all shares
allocated to his or her Stock Account Balance under Section 4.1 and 4.2
(including stock dividends and distributions relating thereto) for that Vesting
Cycle shall be forfeited. Shares allocated to a Participant's Stock Account
Balance under Section 4.4 shall be forfeited upon the abandonment or termination
of the pending Change in Control. Forfeited shares shall be returned to the
Company and may be reallocated to satisfy future contributions under Sections
4.1 through 4.4. Notwithstanding the foregoing or anything contained elsewhere
in the Plan, the Vested Stock Account Balance of a Participant shall be subject
to forfeiture as provided in Section 7.1.

        4.8 No Further Contributions after a Change in Control. No further
contributions of Company Stock shall be made under Sections 4.1 and 4.2 after a
Change in Control.

                                    ARTICLE V

   CONVERSION TO INITIAL CHANGE IN CONTROL CASH BALANCE AND INVESTMENT CREDITS

        5.1 Procedure for Conversion. Within 30 days prior to the consummation
of a Change in Control, a Participant (including a Participant or Designated
Beneficiary who is then receiving installment distributions of Company Stock
pursuant to Section 3.4) may make a written election to convert his or her
Vested Stock Account Balance to the Initial Change in Control Cash Balance as of
the day next following the Change in Control. Such written election must be
received by the Compensation Committee of the Board of Directors of the Company
within such 30 day period. If such written election is timely made, then on the
day next following the Change in

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Control, the Vested Stock Account Balance of the electing Participant shall
terminate and his or her benefits under the Plan shall then consist solely of
his or her Change in Control Cash Account Balance. In the event the Change in
Control transaction results in the exchange of the outstanding shares of common
stock of the Company for consideration other than publicly traded shares of the
acquiror (and cash in lieu of fractional share interests), then in that event,
immediately following the consummation of the Change in Control the Stock
Account Balance of each Participant shall be automatically converted to the
Initial Change in Control Cash Balance. Nothing herein shall alter the method of
distribution of a Participant's Account (i.e., lump sum, five (5) year
installments or ten (10) year installments) under Section 3.4.

        5.2 Investment Credits. Each Participant's Change in Control Cash
Account Balance shall be credited with an investment credit through the close of
business on each of (i) the last day of the Plan Year and (ii) the day next
preceding the date of any distribution of benefits to the Participant from his
or her Change in Control Cash Account Balance. The investment credit shall be
determined by multiplying either (a) the average yield on the 10 year constant
maturity U.S. Treasury Securities, as published in the Federal Reserve
Statistical Release, determined by taking the average yield for the last active
trading day of each calendar month during the Applicable Measurement Period
times the average daily balance in the Participant's Change in Control Cash
Account Balance for such Applicable Measurement Period or (b) 125% of the
annualized average cost of funds of Imperial Capital Bank (or its successor in
interest) during the Applicable Account Period times the average daily balance
in the Participant's Change in Control Cash Account Balance for such Applicable
Measurement Period, whichever results in the highest yield, with the yield being
applied on a pro-rata basis for any Applicable Measurement Period that is less
than one year.

        5.3 Trust Provisions. As soon as practicable following the consummation
of a Change in Control (but not later than 30 days after the occurrence
thereof), the Company shall contribute cash to the Trust in an amount equal to
the Initial Change in Control Cash Account Balance of each Participant whose
Vested Stock Account Balance is converted pursuant to Section 5.1, and shares
contained in the Stock Account Balance of each such Participant shall be tended
by the Trustee to the Company in cancellation of such Stock Account Balance. The
preceding sentence shall not apply, if the shares of Company Stock in the Stock
Account Balance of a Participant are exchanged for cash in the Change in Control
transaction. To the extent that the actual earnings of a Participant's Change in
Control Cash Account Balance, based upon investments of the Trust, exceed the
amount of investment credit to be allocated to a Participant's Change in Control
Cash Account Balance pursuant to Section 5.2, the excess shall be distributed by
the Trust to the Company. To the extent that such actual earnings are less than
the investment credit to be allocated to a Participant's Change in Control Cash
Account Balance, the shortfall shall be promptly contributed in cash to the
Trust by the Company.

        5.4 Vested Benefits. The Change in Control Cash Account Balance of each
Participant shall be 100% vested at all times and shall not be subject to
forfeiture.

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                                   ARTICLE VI

                            AMENDMENT AND TERMINATION

        6.1 Amendment or Termination. The Company intends the Plan to remain in
existence until all Participants in the Plan have received all of their benefits
payable under the Plan. The Company, however, reserves the right to amend or
terminate the Plan prior to a Change in Control when, in the sole opinion of the
Company, such amendment or termination is advisable. Any such amendment or
termination shall be made pursuant to a resolution of the Compensation Committee
of the Board of Directors of the Company. No amendment or termination of the
Plan shall directly or indirectly reduce any Participant's Account below the
balance of such Account immediately prior to the effective date of the
resolution amending or terminating the Plan; nor shall any amendment or
termination of the Plan delay the distribution date for the Participant's
Account. Upon termination of the Plan any unvested shares of Company Stock
allocated to the Stock Account Balance of a Participant who is then employed by
the Company shall become fully vested. Notwithstanding anything contained in
Section 3.4 to the contrary, upon termination of the Plan all Participant
Accounts (including those Accounts which are then being distributed to
Participants or Designated Beneficiaries in installments) shall be paid in a
single lump sum distribution within 30 days after such termination but subject
to the limitations set forth in Section 3.6, regardless of the distribution
elections made by the Participants. Distribution of Stock Account Balances shall
be made solely in shares of Company Stock and distribution of Change in Control
Cash Account Balances, if applicable, shall be made solely in cash. No amendment
to (other than to comply with law) or termination of the Plan will be permitted
to be made by the Company after a Change in Control without the written consent
of all Participants including Participants or Designated Beneficiaries then
receiving distributions.

                                   ARTICLE VII

                                 ADMINISTRATION

        7.1 Termination of Benefits. Notwithstanding any other provision of the
Plan, the rights of a Participant or his or her Designated Beneficiary to
benefits under the Plan will, at the discretion of the Compensation Committee of
Board of Directors, be terminated, and the Company will have no obligation
hereunder to such Participant or his or her Designated Beneficiary, if such
Participant is discharged from employment from the Company for cause (as defined
in the Company's Change of Control Severance Agreements) prior to a Change in
Control.

        7.2 Unsecured Claims. The right of a Participant or his or her
Designated Beneficiary to receive a benefit hereunder shall be an unsecured
claim against the general assets of the Company, and neither a Participant nor
his or her Designated Beneficiary shall have any rights in or against any shares
or amount credited to any Accounts under this Plan or any other assets of the
Company. Notwithstanding any other provisions to the contrary, the Plan at all
times shall be considered entirely unfunded both for tax purposes and for
purposes of Title I of ERISA as amended. Any assets or investments hereunder
shall continue for all purposes to be part of the general assets of the Company
and available to its general creditors in the event of bankruptcy or

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insolvency. Accounts under this Plan and any benefits which may be payable
pursuant to this Plan are not subject in any manner to anticipation, sale,
alienation, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of a Participant or his or her Designated Beneficiary.
The Plan constitutes a mere unsecured promise by the Company to make benefit
distributions in the future. No interest or right to receive a benefit may be
taken, either voluntarily of involuntarily, for the satisfaction of the debts
of, or other obligations or claims against, such person or entity, including
claims for alimony, support, separate maintenance and claims in bankruptcy
proceedings.

        7.3 Plan Administration. The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company, which shall
have the authority, duty and power to interpret and construe the provisions of
the Plan as the Compensation Committee deems appropriate including the authority
to determine eligibility for benefits under the Plan. The Compensation Committee
shall have the duty and responsibility of maintaining records, making the
requisite calculations and distributions hereunder. The interpretations,
determinations, regulations and calculations of the Compensation Committee shall
be final and binding on all persons and parties concerned. The Compensation
Committee may delegate any of its duties to an employee or employees of the
Company or other persons as it deems appropriate.

        7.4 Expenses. Expenses of administration shall be paid by the Company.
The Compensation Committee of the Board of Directors of the Company shall be
entitled to rely on all tables, valuations, certificates, opinions, data and
reports furnished by any actuary, accountant, controller, counsel or other
person employed or retained by the Company with respect to the Plan.

        7.5 Statements. The Compensation Committee of the Board of Directors of
the Company (or the Trustee if such duty is delegated to the Trustee) shall
furnish individual annual or more frequent statements of accrued benefits to
each Participant (or if the Participant's Designated Beneficiary is currently
receiving benefits under the Plan, to such Participant's Designated Beneficiary)
in such form as determined by the Compensation Committee of the Board of
Directors of the Company or as required by the law.

        7.6 No Enlargement of Rights. The sole rights of a Participant or his or
her Designated Beneficiary under the Plan shall be to have this Plan
administered according to its provisions, to receive whatever benefits he or she
may be entitled to hereunder, and nothing in the Plan shall be interpreted as a
guaranty that any assets or funds in any trust which may be established in
connection with the Plan or assets of the Company will be sufficient to pay any
benefit hereunder. Further, the adoption and maintenance of this Plan shall not
be construed as creating any contract of employment between the Company and the
Participant. The Plan shall not affect the right of the Company to deal with any
Participants in employment respects, including their hiring, discharge,
compensation and conditions of employment.

        7.7 Rules and Procedures. The Company may from time to time establish
rules and procedures which it determines to be necessary for the proper
administration of the Plan and the benefits payable to an individual in the
event that individual is declared incompetent and a conservator or other person
legally charged with that individual's care is appointed. Except as

                                       12
<PAGE>

otherwise provided herein, when the Company determines that such individual is
unable to manage his or her financial affairs, the Company may pay such
individual's benefits to such conservator, person legally charged with such
individual's care, or institution then contributing toward or providing for the
care and maintenance of such individual. Any such distribution shall constitute
a complete discharge of any liability of the Company, the Plan, the Trust and
the Trustee to such individual.

        7.8 Information. Each Participant shall keep the Company informed of his
or her current address and the current address of his or her Designated
Beneficiary. The Company shall not be obligated to search for any person. If
such person(s) is (are) not located within three (3) years after the date on
which distribution of the Participant's benefits payable under this Plan may
first be made, distribution may be made as though the Participant or his or her
Designated Beneficiary had died at the end of such three-year period.

        7.9 Loss. Notwithstanding any provision herein to the contrary, neither
the Company nor any individual acting as an employee or agent of the Company
including the Trustee shall be liable to any Participant, his or her Designated
Beneficiary, or any other person for any claim, loss, liability or expense
incurred in connection with the Plan, unless attributable to fraud or willful
misconduct on the part of the Company or any such employee or agent of the
Company.

        7.10 Indemnification. The Company shall indemnify and hold harmless the
members of the Board of Directors, the Trustee, and any other persons to whom
any responsibility with respect to the Plan is allocated or delegated, from and
against any and all liabilities, costs and expenses, including attorneys' fees,
incurred by such persons as a result of any act, or omission to act, in
connection with the performance of their duties, responsibilities and
obligations under the Plan and under ERISA, other than such liabilities, costs
and expenses as may result from the bad faith, willful misconduct or criminal
acts of such persons or to the extent such indemnification is specifically
prohibited by ERISA. The Company shall have the obligation to conduct the
defense of such persons in any proceeding to which this Section applies. If any
Board member or any person covered by this indemnification clause determines
that the defense provided by the Company is inadequate, that member or person
shall be entitled to retain separate legal counsel for his or her defense and
the Company shall be obligated to pay for all reasonable legal fees and other
court costs incurred in the course of such defense unless a court of competent
jurisdiction finds such person has acted in bad faith or engaged in willful
misconduct or criminal acts.

        7.11 Trust Matters. The Company's obligations under the Plan with
respect to the Accounts may be satisfied with Trust assets distributed pursuant
to the terms of the Plan and any such distribution shall reduce the Company's
corresponding obligation under the Plan with respect to the Accounts. The
provisions of the Plan shall govern the rights of a Participant to receive
distributions pursuant to the Plan. The provisions of the Trust shall govern the
rights of the Company, Participants and the creditors of the Company to the
assets transferred to and/or held by the Trust. The Company shall at all times
remain liable to carry out its obligations under the Plan. Except for amendments
to the Trust to comply with applicable laws, no amendment or modification shall
be made to the Trust without the prior written consent of all Participants who
have Accounts.

                                       13
<PAGE>

        7.12 Applicable Law. All questions pertaining to the construction,
validity and effect of the Plan shall be determined in accordance with the laws
of the State of California.

                                  ARTICLE VIII

                                CLAIMS PROCEDURE

        8.1 Claims Procedure. An initial claim for benefits under the Plan must
be made by the Participant or his or her Designated Beneficiary in accordance
with the terms of the Plan through which the benefits are provided. Not later
than 90 days after receipt of such a claim, the Claims Reviewer will render a
written decision on the claim to the claimant, unless special circumstances
require the extension of such 90-day period. If such extension is necessary, the
Claims Reviewer shall provide the Participant or his or her Designated
Beneficiary with written notification of such extension before the expiration of
the initial 90-day period. Such notice shall specify the reason or reasons for
such extension and the date by which the final decision can be expected. In no
event shall such extension exceed a period of 90 days from the end of the
initial 90-day period. In the event the Claims Reviewer denies the claim of a
Participant or his or her Designated Beneficiary in whole or in part, the Claims
Reviewer's written notification shall specify, in a manner calculated to be
understood by the claimant, the reason for the denial; a reference to the Plan
or other document or form that is the basis for the denial; a description of any
additional material or information necessary for the claimant to perfect the
claim; an explanation as to why such information or material is necessary; and
an explanation of the applicable claims procedure. Should the claim be denied in
whole or in part and should the claimant be dissatisfied with the Claim's
Reviewer's disposition of the claimant's claim, the claimant may have a full and
fair review of the claim by the Company upon written request therefore submitted
by the claimant or the claimant's duly authorized representative and received by
the Company within 60 days after the claimant receives written notification that
the claimant's claim has been denied. In connection with such review, the
claimant or the claimant's duly authorized representative shall be entitled to
review pertinent documents and submit the claimant's views as to the issues, in
writing. The Company shall act to deny or accept the claim within 60 days after
receipt of the claimant's written request for review unless special
circumstances require the extension of such 60-day period. If such extension is
necessary, the Company shall provide the claimant with written notification of
such extension before the expiration of such initial 60-day period. In all
events, the Company shall act to deny or accept the claim within 120 days of the
receipt of the claimant's written request for review. The action of the Company
shall be in the form of a written notice to the claimant and its contents shall
include all of the requirements for action on the original claim. In no event
may a claimant commerce legal action for benefits the claimant believes are due
the claimant until the claimant has exhausted all of the remedies and procedures
afforded the claimant by this Article VIII.

                                       14
<PAGE>

ITLA Capital Corporation has caused this Plan to be executed on this 13th day
of November 2003 (but effective January 1, 2003).

                                     By /s/ JEFFREY L. LIPSCOMB
                                        ----------------------------------------
                                     Name Jeffrey L. Lipscomb, Member of the
                                            Board of Directors
                                          Chairman of the Compensation Committee
                                         ---------------------------------------
                                     On behalf of ITLA Capital Corporation

                                       15exv4w1

 

Exhibit 4.1

(FACE OF NOTE)

	 	 	 	 	 
	 	 	
AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES B	 	 
	REGISTERED	 	
(FIXED RATE)
	 	REGISTERED

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.

Note No: FXR - B-1

Original Issue Date:
November 10, 2003

Maturity Date: November 1, 2013

Trade Date: November 5, 2003

Exchange Rate Agent:

(if other than State Street Bank and Trust Company of California, N.A.)

Redemption:

	 	 	 
	[x]	 	
The Note cannot be redeemed prior to maturity
	[  ]	 	
The Note may be redeemed at the option of the
Operating Partnership prior to maturity
	 	 	
Redemption Commencement Date:
	 	 	
Initial Redemption Percentage:          %
	 	 	
Annual Redemption Percentage Reduction:          %

	 	 	 	 	 	 	 	 	 	 	 	 
	Addendum	 	
Attached:
	 	[  ]
	 	Yes
	 	[x]
	 	No

CUSIP NO.: 00163X AH3

Registered Holder: CEDE & CO.

	 	 	 	 	 	 	 
	Form:	 	
[x]
	 	Book-Entry
	 	 
	 	 	
[ ]
	 	Certificated	 	 

Agent’s Discount or
Commission: N/A%

Net Proceeds To Issuer: $75,000,000

Interest
Rate: 5.53% per annum

Repayment:

	 	 	 
	[x]	 	
The Note cannot be repaid prior to maturity
	[  ]	 	
The Note may be repaid prior to maturity at the option of the
Holder of the Note
	 	 	
Optional Repayment Date(s):
	 	 	
Repayment Price:     %

Principal Amount: $75,000,000

Specified Currency: U.S. DOLLARS

Principal Financial Center:

(if the Specified Currency is other than U.S. dollars or Euro)

Authorized Denomination:

(if other than $1,000 or integral multiples thereof)

Interest Payment Dates:
November 1 and May 1, commencing May 1, 2004

Regular Record Dates:
October 15 and April 15, commencing April 15, 2004

	 	 	 	 	 	 	 	 	 	 	 	 
	Discount Notes:	 	[ ]	 	Yes	 	[x]	 	No

Issue Price:

Total Amount of OID:

Yield to Maturity:

Initial Accrual Period:

	 	 	 
	Other/Additional Provisions:	 	

 

 

     AMB Property, L.P., a Delaware limited partnership (hereinafter called the
“Operating Partnership”, which term includes any successor under the Indenture
referred to below), for value received, hereby promises to pay to the
Registered Holder specified on the face hereof, or registered assigns
(“Holder”), upon presentation and surrender of this Note, on the Maturity Date
specified on the face hereof (except to the extent repaid or redeemed prior to
the Maturity Date) the Principal Amount specified on the face hereof in the
Specified Currency specified on the face hereof, and to pay interest thereon at
the Interest Rate per annum specified on the face hereof, until the principal
hereof is paid or duly made available for payment.

     Unless otherwise specified on the face hereof, the Operating Partnership
will pay interest (other than defaulted interest) on each Interest Payment Date
(as defined below), commencing with the first Interest Payment Date next
succeeding the Original Issue Date specified on the face hereof, to the person
who is the Holder of this Note on the applicable Regular Record Date (as
defined below); provided that if the Original Issue Date occurs between a
Regular Record Date and an Interest Payment Date, the Operating Partnership
will make the first payment of interest on the Interest Payment Date following
the next Regular Record Date to the registered owner on that Regular Record
Date.

     The Operating Partnership will pay interest due on the Maturity Date,
Redemption Date (as defined on the reverse hereof) or Repayment Date (as
defined on the reverse hereof), as applicable, to the same person to whom it is
paying the principal amount; provided that if the Operating Partnership would
have made a regular interest payment on the Maturity Date, Redemption Date or
Repayment Date, as the case may be, it will make that regular interest payment
to the Holder as of the applicable Regular Record Date, even if it is not the
same person to whom it is paying the principal amount.

     Any such interest not so punctually paid or duly provided for (“Defaulted
Interest”) will forthwith cease to be payable to the Holder on any Regular
Record Date, and shall be paid, at the election of the Operating Partnership,
to either (i) to the Holder at the close of business on a special record date
(the “Special Record Date”) for the payment of such Defaulted Interest to be
fixed by the Trustee (as defined on the reverse hereof), notice whereof shall
be given to the Holder of this Note by the Trustee not less than 10 calendar
days prior to such Special Record Date or (ii) at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which this Note may be listed, and upon such notice as may be required by such
exchange, all as more fully provided for in the Indenture.

     Unless specified on the face hereof, payments of interest on this Note
with respect to any Interest Payment Date, Maturity Date, Redemption Date or
Repayment Date, as applicable, will include interest accrued from and including
each immediately preceding Interest Payment Date (or from and including the
Original Date of Issue if no interest has been paid or duly provided for), to,
but excluding, the Interest Payment Date, Maturity Date, Redemption Date or
Repayment Date, as the case may be.

     If an Interest Payment Date, Maturity Date, Redemption Date or Repayment
Date, as applicable, falls on a day that is not a Business Day (as defined
below), interest (or interest and principal) will be paid on the next Business
Day; provided that interest on the payment will not accrue for the period from
the original Interest Payment Date, Maturity Date, Redemption Date or Repayment
Date, as the case may be, to the date of such payment on the next Business Day.

     Unless otherwise specified on the face hereof, the “Interest Payment
Dates” shall be June 30 and December 30 of each year. The “Regular Record
Dates” shall be June 15 for a June 30 interest payment date, December 15 for a
December 30 interest payment date and the date that is 15 calendar days before
any other interest payment date, whether or not those dates are Business Days.

     “Business Day” as used herein means any day, other than a Saturday or
Sunday, (a) that is neither a legal holiday nor a day on which banking
institutions are authorized or required by law or regulation to close (x) in
The City of New York or (y) for notes denominated in a specified currency other
than U.S. dollars, Australian dollars or euro, in the principal financial
center of the country of the specified currency or (z) for notes denominated
in Australian dollars, in Sydney, and (b) for notes denominated in euro, that
is also a day on which the Trans-European

1

 

Automated Real-time Gross Settlement Express Transfer System, which is
commonly referred to as “TARGET,” is operating.

     Payment of principal (and premium, if any) and interest on, this Note on
any day, if the Holder of this Note is DTC (or its nominee or other depository,
a “Depository”), will be made in accordance with any applicable provisions of
such written agreement between the Operating Partnership, the Trustee and the
Depository (or its nominee) as may be in effect from time to time. Otherwise
payment of principal (and premium, if any) and interest on, this Note on any
day shall be payable and this Note may be surrendered for the registration of
transfer or exchange at the Office of the Trustee at 100 Wall Street,
Suite 1600, New York, New York 10005, unless the Holder of this Note is notified otherwise; 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 Operating Partnership’s Security Register or by wire transfer, if
proper wire instructions are on file with the Trustee or are received at
presentment, to an account maintained by the payee located in the United
States. Unless the Holder of this Note is notified otherwise, the place where
notices or demands to or upon the Operating Partnership in respect of this Note
and the Indenture may be served shall be the Corporate Trust Office of the
Trustee at 100 Wall Street,
Suite 1600, New York, New York 10005.

     To receive payment of a U.S. dollar denominated Note upon redemption (if
applicable) or at maturity, a Holder must make presentation and surrender of
such Note on or before the Redemption Date or Maturity Date, as applicable. To
receive payment of a Note denominated in a Foreign Currency (as defined on the
reverse hereof) or composite currency upon redemption or at maturity, a Holder
must make presentation and surrender of such Note not less than two Business
Days prior to the Redemption Date or Maturity Date, as applicable. Upon
presentation and surrender of a Note denominated in a Foreign Currency or
composite currency at any time after the date two Business Days prior to the
Redemption Date or Maturity Date, as applicable, the Operating Partnership will
pay the principal amount (and premium, if any) of such Note, and any interest
due upon redemption or at maturity (unless the Redemption Date or Maturity Date
is an Interest Payment Date), two Business Days after such presentation and
surrender.

     For procedures relating to the receipt of payment upon repayment, if
applicable, see the reverse hereof.

     The Operating Partnership will pay any administrative costs imposed by
banks in connection with sending payments by wire transfer, but any tax,
assessment or governmental charge imposed upon payments will be borne by the
Holders of the Notes in respect of which payments are made.

     Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof and, if so specified on the face hereof, in the Addendum
hereto, which further provisions shall for all purposes have the same force and
effect as though fully set forth on the face hereof.

     This Note shall not be entitled to any benefit under the Indenture
referred to on the reverse hereof, or become valid or obligatory for any
purpose, until the certificate of authentication hereon shall have been signed
by or on behalf of the Trustee under such Indenture.

     Notwithstanding the foregoing, if an Addendum is attached hereto or
“Other/Additional Provisions” apply to this Note as specified on the face
hereof, this Note shall be subject to the terms set forth in such Addendum or
such “Other/Additional Provisions.”

2

 

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

	 	 	 	 	 
	Dated:	 	AMB PROPERTY L.P.
	 	 	By: AMB PROPERTY CORPORATION,

as General Partner
	 	 	 	 	 
	 	 	
By:	 	/s/  Michael A. Coke
	 	 	 	 	

	 	 	 	 	Michael A. Coke

Executive Vice President and Chief Financial Officer

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

STATE STREET BANK AND TRUST

COMPANY OF CALIFORNIA, N.A., as Trustee

	 	 	 	 	 
	By:	 	/s/  State Street Bank
and Trust Company of California, N.A.	 	
	 	 	

	 	 
	 	 	
Authorized Signatory	 	 

 

 

(REVERSE OF NOTE)

AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES B

(FIXED RATE)

     This Note is one of a duly authorized issue of debt securities of the
Operating Partnership (hereinafter called the “Securities”) of the series
hereinafter specified, unlimited in aggregate principal amount, all issued or
to be issued under or pursuant to an Indenture dated as of June 30, 1998, as
supplemented by the First Supplemental Indenture dated as of June 30, 1998, the
Second Supplemental Indenture dated as of June 30, 1998, the Third Supplemental
Indenture dated as of June 30, 1998, the Fourth Supplemental Indenture dated as
of August 15, 2000 and the Fifth Supplemental Indenture dated as of May 7,
2002, among the Operating Partnership, AMB Property Corporation, a Maryland
corporation and general partner of the Operating Partnership (the “Guarantor”),
and U.S. Bank, N.A., as successor to State Street Bank and Trust Company of California, N.A., as Trustee; to
which Indenture and all indentures supplemental thereto (herein collectively
called the “Indenture”) reference is hereby made for a specification of the
rights and limitation of rights thereunder of the Holders of the Securities,
the rights and obligations thereunder of the Operating Partnership and the
rights, duties and immunities thereunder of the Trustee. The Securities may be
issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different redemption or
repayment provisions (if any), may be subject to different covenants and
defaults and may otherwise vary as provided in the Indenture. This Note is one
of a series designated as “Series B Medium-Term Notes” (hereinafter referred to
as the “Notes”) of the Operating Partnership, of up to $400,000,000 in
aggregate principal amount. All terms used in this Note which are defined in
the Indenture and which are not otherwise defined in this Note shall have the
meanings assigned to them in the Indenture. The terms of the Notes include
those stated in the Indenture and those made a part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended. The Notes are
subject to all such terms, and the Holders are referred to the Indenture and
such Act for a statement of such terms. To the extent any provision of this
Note conflicts with the provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.

     Unless stated to the contrary on the face hereof, this Note is issuable
only in registered form without coupons in Book-Entry form represented by one
or more global notes (each a “Global Note”) recorded in the book-entry system
maintained by the Depository. If specified on the face hereof, this Note is
issuable in certificated form issued to, and registered in the name of, the
beneficial owner or its nominee (a “Certificated Note”).

     Unless a different minimum Authorized Denomination is set forth on the
face hereof, this Note is issuable in minimum denominations of (i) if the
Specified Currency of this Note is U.S. dollars, U.S. $1,000 and in any larger
amount in integral multiples of $1,000 and (ii) if the Specified Currency of
this Note is a currency other than U.S. dollars (a “Foreign Currency”) or is a
composite currency, the equivalent in such Foreign Currency or composite
currency determined in accordance with the Market Exchange Rate (as defined
below) for such Foreign Currency or composite currency on the Business Day
immediately preceding the date on which the Operating Partnership accepts an
offer to purchase a Note, of U.S. $1,000 (rounded to an integral multiple of
1,000 units of the Foreign Currency or composite currency), and in any larger
amount in integral multiples of 1,000 units.

     If this is a Global Note representing Book-Entry Notes, this Note may be
transferred or exchanged only through DTC. In the manner and subject to the
limitations provided in the Indenture, if this is a Certificated Note, it may
be transferred or exchanged, without charge except for any tax or other
governmental charge imposed in relation thereto, for other Notes of authorized
denominations for a like aggregate principal amount, at the office or agency of
the Operating Partnership in the Borough of Manhattan of The City of New York,
or, at the option of the Holder, such office or agency, if any, maintained by
the Operating Partnership in the city in which the principal executive offices
of the Operating Partnership are located or the city in which the principal
corporate trust office of the Trustee is located.

     The principal (and premium, if any) and interest on, this Note is payable
by the Operating Partnership in the Specified Currency.

     If this Note is denominated in a Foreign Currency, in the event that the
Foreign Currency is not available for payment at a time at which any payment is
required hereunder due to the imposition of exchange controls or

2

 

other circumstances beyond the control of the Operating Partnership or is
no longer used by the government of the country issuing such currency or for
the settlement of transactions by public institutions within the international
banking community, the Operating Partnership may, in full satisfaction of its
obligation to make such payment, make instead a payment in an equivalent amount
of U.S. dollars, determined by the Exchange Rate Agent, as specified on the
face hereof, on the basis of the Market Exchange Rate for such Foreign Currency
on the second Business Day prior to such payment date or, if such Market
Exchange Rate is not then available, on the basis of the most recently
available Market Exchange Rate; provided, however, that if such Specified
Currency is replaced by a single European currency, the payment of principal of
(and premium, if any) or interest, if any, on this Note denominated in such
currency shall be effected in the new single European currency in conformity
with legally applicable measures taken pursuant to, or by virtue of, the treaty
establishing the European Community, as amended by the treaty on European
Unity. The “Market Exchange Rate” for the Specified Currency means the noon
dollar buying rate in The City of New York for cable transfers for the
Specified Currency as certified for customs purposes by (or if not so
certified, as otherwise determined by) the Federal Reserve Bank of New York.
Any payment made under such circumstances in U.S. dollars or a new single
European currency where the required payment is in a Specified Currency other
than U.S. dollars or such single European currency, respectively, will not
constitute an Event of Default (as defined in the Indenture).

     If the Specified Currency is a composite currency and if such composite
currency is unavailable due to the imposition of exchange controls or other
circumstances beyond the control of the Operating Partnership, then the
Operating Partnership will be entitled to satisfy its obligations to the Holder
of this Note by making such payment in U.S. dollars. The amount of each
payment in U.S. dollars shall be computed by the Exchange Rate Agent on the
basis of the equivalent of the composite currency in U.S. dollars. The
component currencies of the composite currency for this purpose (collectively,
the “Component Currencies” and each, a “Component Currency”) shall be the
currency amounts that were components of the composite currency as of the last
day on which the composite currency was used. The equivalent of the composite
currency in U.S. dollars shall be calculated by aggregating the U.S. dollar
equivalents of the Component Currencies. The U.S. dollar equivalent of each of
the Component Currencies shall be determined by the Exchange Rate Agent on the
basis of the most recently available Market Exchange Rate for each such
Component Currency, or as otherwise specified on the face hereof.

     If the official unit of any Component Currency is altered by way of
combination or subdivision, the number of units of the currency as a Component
Currency shall be divided or multiplied in the same proportion. If two or more
Component Currencies are consolidated into a single currency, the amounts of
those currencies as Component Currencies shall be replaced by an amount in such
single currency equal to the sum of the amounts of the consolidated Component
Currencies expressed in such single currency. If any Component Currency is
divided into two or more currencies, the amount of the original Component
Currency shall be replaced by the amounts of such two or more currencies, the
sum of which shall be equal to the amount of the original Component Currency.

     All determinations referred to above made by the Exchange Rate Agent shall
be at its sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and binding on the Holder of this Note.

     If a Redemption Commencement Date is specified on the face hereof, this
Note may be redeemed, whether or not any other Note is concurrently redeemed,
at the option of the Operating Partnership, in whole, or from time to time in
part, on any Business Day on or after such Redemption Commencement Date and
prior to the Maturity Date, upon mailing by first-class mail, postage prepaid,
a notice of such redemption not less than 30 nor more than 60 days prior to the
actual date of redemption (“Redemption Date”), to the Holder of this Note at
such Holder’s address appearing in the Security Register, as provided in the
Indenture (provided that, if the Holder of this Note is a Depository or a
nominee of a Depository, notice of such redemption shall be given in accordance
with any applicable provisions of such written agreement between the Operating
Partnership, the Trustee and such Depository (or its nominee) as may be in
effect from time to time), at the Redemption Price (as defined below), together
in each case with interest accrued to the Redemption Date (subject to the right
of the Holder of record on a Regular Record Date to receive interest due on an
Interest Payment Date). The “Redemption Price” shall be equal to (i) the
Initial Redemption Percentage specified on the face of this Note, as adjusted
downward on each anniversary of the Redemption Commencement Date by the Annual
Redemption Price Reduction, if any, specified on the face hereof, multiplied by
(ii) the unpaid Principal Amount of this Note to be redeemed. In the event of
redemption of this Note in part only, a new Note or Notes of this series, and
of like tenor, for the unredeemed portion hereof will be issued in the name of
the Holder hereof upon the cancellation hereof.

3

 

     If an Optional Repayment Date(s) is specified on the face hereof, this
Note will be subject to repayment by the Operating Partnership at the option of
the Holder hereof on such Optional Repayment Date(s), in whole or in part in
increments of U.S. $1,000 or other increments specified on the face hereof (as
long as any remaining principal is at least $1,000 or another specified minimum
denomination), at the Repayment Price specified on the face hereof, together
with unpaid interest accrued hereon to the date of repayment (“Repayment
Date”). For this Note to be repaid, this Note must be received, together with
the form hereon entitled “Option to Elect Repayment” duly completed, by the
Trustee at the corporate trust office of the Trustee at 100 Wall
Street, Suite 1600 New York, New York 10005 (or at such
other address of which the Operating Partnership shall from time to time
designate and notify Holders of the Notes) at least 30 but not more than 60
days prior to the Repayment Date. Exercise of such repayment option by the
Holder hereof will be irrevocable. In the event of repayment of this Note in
part only, a new Note of like tenor for the unrepaid portion hereof and
otherwise having the same terms as this Note shall be issued in the name of the
Holder hereof upon the presentation and surrender hereof.

     If this is a Global Note representing Book-Entry Notes, only the
Depository may exercise the repayment option in respect of this Note.
Accordingly, if this is a Global Security representing Book-Entry Notes and the
beneficial owner desires to have all or any portion of the Book-Entry Note
represented by this Global Security repaid, the beneficial owner must instruct
the participant through which he owns his interest to direct the Depository to
exercise the repayment option on his behalf by delivering this Note and duly
completed election form to the Trustee as aforesaid.

     If this Note is an Original Issue Discount Note, as specified on the face
hereof, the amount payable to the Holder of this Note in the event of
redemption, repayment or acceleration of maturity will be equal to the sum of
(i) the Issue Price specified on the face hereof (increased by any accruals of
the Discount, as defined below) multiplied, in the event of any redemption or
repayment of this Note (if applicable), by the Redemption Price or Repayment
Price, as the case may be, and (ii) any unpaid interest on this Note accrued
from the Original Issue Date to the Redemption Date, Repayment Date or date of
acceleration of maturity, as the case may be. The difference between the Issue
Price, as specified on the face hereof, and 100% of the principal amount of
this Note is referred to herein as the “Discount”.

     For purposes of determining the amount of Discount that has accrued as of
any Redemption Date, Repayment Date or date of acceleration of maturity of this
Note, such Discount will be accrued so as to cause the yield on the Note to be
constant. The constant yield will be calculated using a 30-day month, 360-day
year convention, a compounding period that, except for the Initial Period (as
defined below), corresponds to the shortest period between Interest Payment
Dates (with ratable accruals within a compounding period) and an assumption
that the maturity of this Note will not be accelerated. If the period from the
Original Issue Date to the initial Interest Payment Date (the “Initial Period”)
is shorter than the compounding period for this Note, a proportionate amount of
the yield for an entire compounding period will be accrued. If the Initial
Period is longer than the compounding period, then such period will be divided
into a regular compounding period and a short period, with the short period
being treated as provided in the preceding sentence.

     In case a default, as defined in the Indenture, shall occur and be
continuing with respect to the Notes, the principal amount of all Notes then
outstanding under the Indenture may be declared or may become due and payable
upon the conditions and in the manner and with the effect provided in the
Indenture. The Indenture provides that such declaration may in certain events
be annulled by the Holders of a majority in principal amount of the Notes
outstanding.

     To the extent permitted by, and as provided in, the Indenture, the
Operating Partnership may enter into one or more supplements to the Indenture
for the purpose of modifying or altering the Indenture, without the consent of
any Holders of Notes, for the limited purposes described in the Indenture.

     To the extent permitted by, and as provided in, the Indenture, the
Operating Partnership may enter into one or more supplements to the Indenture
for the purpose of modifying or altering the rights and obligations of the
Operating Partnership and the Holders of the Securities (as defined in the
Indenture) with the consent of the Holders of not less than a majority in
principal amount of all Outstanding Securities (as defined in the Indenture) of
any series affected, evidenced as provided in the Indenture.

4

 

     The Indenture contains provisions for legal defeasance and covenant
defeasance with respect to the Notes, in each case, upon compliance with
certain conditions set forth therein, which provisions apply to the Notes.

     The Operating Partnership, the Trustee, any Authenticating Agent, any
paying agent and any Security registrar may deem and treat the registered
Holder hereof as the absolute owner hereof (whether or not this Note shall be
overdue and notwithstanding any notice of ownership or other writing hereon by
anyone other than the Operating Partnership or any Security registrar) for the
purpose of receiving payment of or on account of the principal hereof (and
premium, if any), and interest hereon, and for all other purposes, and none of
the Operating Partnership, the Trustee, an Authenticating Agent, a paying agent
nor the Security registrar shall be affected by any notice to the contrary. All
such payments shall be valid and effectual to satisfy and discharge the
liability upon this Note to the extent of the sum or sums so paid.

     No recourse under or upon any obligation, covenant or agreement of the
Indenture or of this Note, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, partner, stockholder,
officer or director, as such, past, present or future, of the Operating
Partnership or the Guarantor or of any successor entity, either directly or
through the Operating Partnership or the Guarantor, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment
or penalty or otherwise; it being expressly understood that the Indenture and
this Note are solely corporate obligations, and that no such personal liability
whatever shall attach to, or is or shall be incurred by the incorporators,
partners, stockholders, officers or directors, as such, of the Operating
Partnership or the Guarantor or of any successor entity, or any of them,
because of the creation of the indebtedness authorized by the Indenture, or
under or by reason of the obligations, covenants or agreements contained in the
Indenture or this Note or implied therefrom; and that any and all such personal
liability, either at common law or in equity or by constitution or statute, or
any and all such rights and claims against, every such incorporator, partner,
stockholder, officer or director, as such, because of the creation of the
indebtedness authorized by the Indenture, or under or by reason of the
obligations, covenants or agreements contained in the Indenture or this Note or
implied therefrom, are, by acceptance of this Note, hereby expressly waived and
released as a condition of, and as consideration for, the issue of this Note.
In the event of any sale or transfer of its assets and liabilities
substantially as an entirety to a successor entity, the predecessor entity may
be dissolved and liquidated as more fully set forth in the Indenture.

     All U.S. dollar amounts used in or resulting from calculations referred to
in this Note shall be rounded to the nearest cent (with one half cent being
rounded upwards).

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

5

 

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 Series B Medium-Term Note (the “Note”) issued by AMB Property,
L.P. (the “Operating Partnership”) under an Indenture dated as of June 30, 1998
(together with the First Supplemental Indenture, the Second Supplemental
Indenture and the Third Supplemental Indenture, each dated as of June 30, 1998,
the Fourth Supplemental Indenture dated as of August 15, 2000 and the Fifth
Supplemental Indenture dated as of May 7, 2002, the “Indenture”) among the
Operating Partnership, AMB Property Corporation and U.S. Bank, N.A.,
as successor 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 Note when and
as the same shall become due and payable, whether at the Maturity Date (as
defined in the Note), by acceleration, by redemption, repurchase or otherwise,
and (b) the full and prompt payment of the interest on such Note when and as
the same shall become due and payable, according to the terms of such Note 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 at the Maturity Date, upon
acceleration, by redemption or 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 any Note; (c) the acceleration, extension or any other changes in
the time for payment of any principal of or interest or any premium on any Note
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 any Note; (d) the modification or amendment (whether material or
otherwise) of any obligation, covenant or agreement set forth in the Indenture
or any Note; (e) the taking or the omission of any of the actions referred to
in the Indenture and in any of the actions under any Note; (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 any Note; (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 this 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 any Note; (k) the
invalidity, irregularity or unenforceability of the Indenture or any Note or
any part of any thereof; (l) any judicial or governmental action affecting the
Operating Partnership or any Note or consent or indulgence granted to 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 any Guarantor or the Operating Partnership, any
right to require a proceeding first against any other Guarantor or the
Operating Partnership, protest or notice with respect to such Note 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 Note 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 Note.

 

 

     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 Note 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 Note.

     An Event of Default under the Indenture or any Note shall constitute an
event of default under this Parent Guarantee, and shall entitle the Holder of
the Note 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 such 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 any Guarantor, 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 Holder of the Note 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.

 

 

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

	 	 	 	 	 
	Dated:	November 10, 2003	 	 	 
	 	

	 	 	 
	 	 	 	 	 
	 	 	 	AMB PROPERTY CORPORATION
	 
	 
	 	 	 	By:	/s/  Michael A. Coke
	 	 	 	 	

	 	 	 	 	Name:  Michael A. Coke
	 	 	 	 	Title:  Executive
Vice President and Chief Financial Officer

 

 

ASSIGNMENT

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

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR	 	 
	OTHER IDENTIFYING NUMBER OF ASSIGNEE:	 	 
	 	 	

	 
	

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

this Note and all rights thereunder, hereby irrevocably constituting and appointing:

 

Attorney, to transfer this Note on the books of the Trustee, with full power of substitution in the premises.

	 	 	 	 	 	 
	Dated:	 	 	 	 	 
	 	
	 	

	 	 	 	Notice:
	 	The signature(s) on this
Assignment must correspond with the
name(s) as written upon the face of
this Note in every particular,
without alteration or enlargement
or any change whatsoever.

 

 

OPTION TO ELECT REPAYMENT

     The undersigned hereby requests and irrevocably instructs the Operating
Partnership to repay the within Note on the Optional Repayment Date specified
on the face hereof occurring at least 30 but not more than 60 days after the
date of receipt of the within Note by the Trustee at the corporate trust office
of the Trustee at 100 Wall Street, Suite 1600, New York,
New York 10005 (or at such other addresses of which the Operating
Partnership shall notify the registered holders of the Note of this series).

	 	 	 	 
	 	(          )	 	
In whole
	 
	 	(          )	 	
In part equal to $     (must be a whole
multiple of $1,000 and the remaining principal amount must be at
least $1,000; or if the Note is denominated in a Foreign Currency or
composite currency, rounded integrals of 1,000 units of the Foreign
Currency or composite currency and the remaining principal amount
must be at least 1,000 units of the Foreign Currency or composite
currency)

at a price equal to the Repayment Price, determined in accordance with the terms of the Note.

	 	 	 	 
	Signature:	 	
Please print or type name and address:
	 
	 
	
	 	

	Notice:	The signature on this
Option to Elect Repayment must
correspond with the name as written
upon the face of the within
instrument 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—	as tenants in common	 	
UNIF GIFT MIN ACT—
	 	Custodian	 
	 	 	 	 	
	 	 	

	 	 	 	 	(Cust)	 	 	(Minor)
	TEN ENT—as tenants by the entireties	 	
Under Uniform Gifts to Minors Act	 	 
	 	 	 	 	 	 	
(State)
	JT TEN—as joint tenants with right
of survivorship and not as
tenants in common	 	 	 	 	 	 

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

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