Document:

exv10w2

 

Exhibit 10.2

INDEMNIFICATION
AGREEMENT

     THIS
INDEMNIFICATION AGREEMENT (this “Agreement”) is made as
of the [   ]
day of [MONTH], [YEAR], by and between ReGen Biologics, Inc., a Delaware
corporation (the “Corporation”), and [NAME OF INDEMNITEE] (“Indemnitee”), a
director and/or officer of the Corporation or of a subsidiary of the
Corporation.

RECITALS

     A. It is essential to the Corporation to retain and attract as directors
and officers of the Corporation and of every subsidiary the most capable
persons available.

     B. The substantial increase in corporate litigation subjects directors and
officers to expensive litigation risks at the same time that the availability
of directors’ and officers’ liability insurance has been severely limited.

     C. It is the express policy of the Corporation to indemnify directors and
certain officers of the Corporation and its subsidiaries so as to provide them
with the maximum possible protection permitted by law.

     D. Indemnitee does not regard the protection available under the Delaware
General Corporation Law or the Bylaws of the Corporation and its subsidiaries
as adequate in the present circumstances, and may not be willing to serve as a
director or officer without adequate protection, and the Corporation desires
Indemnitee to serve in such capacity.

AGREEMENTS

     NOW, THEREFORE, the Corporation and Indemnitee do hereby agree as follows:

     1. Agreement
to Serve. Indemnitee agrees to serve or continue to serve as
a director and/or an officer of the Corporation and/or its subsidiaries for so
long as he is duly elected or appointed or until such time as he tenders his
resignation in writing.

     2. Definitions. As used in this Agreement:

          (a) The term “Proceeding” shall include any threatened, pending or
completed action, suit, investigation or proceeding, and any appeal thereof,
whether brought by or in the right of the Corporation or its subsidiary or
otherwise and whether civil, criminal, administrative or investigative, and/or
any inquiry or investigation, in which Indemnitee may be or may have been
involved as a party or otherwise, or that Indemnitee in good faith believes
might lead to the institution of any such proceeding, by reason of the fact
that Indemnitee is or was a director or officer of the Corporation, by reason
of any action taken by him or of any inaction on his part while acting as such
a director or officer, or by reason of the fact that he is or was serving at
the request of the Corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise; in
each case whether or not he is acting or serving in any such capacity at the
time any liability or expense is incurred for which indemnification or
reimbursement can be provided under this Agreement.

 

 

          (b) The term “Expenses” shall include, without limitation, expenses, costs
and obligations, paid or incurred, of investigations, judicial or
administrative proceedings or appeals, amounts paid in settlement by or on
behalf of Indemnitee, attorneys’ fees and disbursements and any expenses
reasonably and actually incurred in establishing a right to indemnification
under Section 8 of this Agreement, including, without limitation, those
incurred in investigating, defending, being a witness in or participating in
(including on appeal), or preparing to defend with respect to any claim, issue
or matter relating thereto or in connection therewith, but shall not include
the amount of judgments, fines or penalties against Indemnitee.

          (c) A “Change in Control” shall be deemed to have occurred if, after the
date hereof, there is any transaction or series of transactions within any
twelve (12)-month period, including, without limitation, a merger,
consolidation or exchange of securities, in which the holders of all of the
Corporation’s outstanding voting securities immediately prior to the
consummation of such transaction or the first transaction of such series of
transactions do not own, directly or indirectly, a majority of the combined
voting power of the Corporation’s outstanding securities upon consummation of
such transaction or series of such transactions.

          (d) The term “Independent Legal Counsel” shall include any attorney or
firm of attorneys, selected in accordance with Section 5 hereof, who shall not
have otherwise performed services for the Corporation or Indemnitee within the
five years prior to the date of selection (other than with respect to matters
concerning the rights of Indemnitee under this Agreement, or of other
Indemnitees under similar indemnification agreements).

          (e) References to “other enterprise” shall include employee benefit plans;
references to “fines” shall include any excise tax assessed with respect to any
employee benefit plan; references to “serving at the request of the
Corporation” shall include any service as a director, officer, employee or
agent of the Corporation or its subsidiaries which imposes duties on, or
involves services by, such director, officer, employee, or agent with respect
to an employee benefit plan, its participants or beneficiaries; and a person
who acted in good faith and in a manner he reasonably believed to be in the
interests of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of
the Corporation” as referred to in this Agreement.

     3. Indemnity
in Third-Party Proceedings. The Corporation shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is
a party to or threatened to be made a party to any Proceeding (other than a
Proceeding by or in the right of the Corporation or any subsidiary of the
Corporation to procure a judgment in its favor) by reason of the fact that
Indemnitee is or was a director or officer of the Corporation, or is or was
serving at the request of the Corporation as a director, officer, employee, or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses, judgments, fines and penalties actually and
reasonably incurred by Indemnitee in connection with the defense or settlement
of such Proceeding, but only if he acted in good faith and in a manner which he
reasonably believed to be (in the case of conduct in his official capacity) in
the best interests of the Corporation or (in all other cases) not opposed to
the best interests of the Corporation, and, in the case of a criminal action or
proceeding, in addition, had no reasonable cause to believe that his conduct
was unlawful. The termination of any such Proceeding by judgment, order of
court, settlement, conviction, or upon a plea of nolo contendere, or its
equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the Corporation (or that Indemnitee did not meet any other
particular standard of conduct or have any other particular belief or that a
court has determined that indemnification is not permitted by applicable law),
and with respect to any criminal proceeding, that such person had reasonable
cause to believe that his conduct was unlawful.

 

 

     4. Indemnitee
in Proceedings by or in the Right of the Corporation. The
Corporation shall indemnify Indemnitee in accordance with the provisions of
this Section 4 if Indemnitee is a party to or threatened to be made a party to
any Proceeding by or in the right of the Corporation or any subsidiary of the
Corporation to procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director or officer of the Corporation or any subsidiary
of the Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee, or agent of another corporation, partnership,
joint venture, trust or other enterprise, against all Expenses actually and
reasonably incurred by Indemnitee in connection with the defense or settlement
of such Proceeding, but only if he acted in good faith and in a manner which he
reasonably believed to be (in the case of conduct in his official capacity) in
the best interests of the Corporation or (in all other cases) not opposed to
the best interests of the Corporation, except that no indemnification for
Expenses shall be made under this Section 4, in respect of any Proceeding as to
which Indemnitee shall have been adjudged to be liable to the Corporation,
unless and only to the extent that any court in which such Proceeding was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for such expenses as such court
shall deem proper. Notwithstanding the foregoing, Indemnitee shall have no
right to indemnification for Expenses and the payment of profits arising from
the purchase and sale by Indemnitee of securities in violation of Section 16(b)
of the Securities Exchange Act of 1934, as amended.

     5. Change
in Control. The Corporation agrees that in the event of a
Change in Control, and with respect to all matters thereafter arising
concerning the rights of Indemnitee to indemnification and payment of Expenses
under this Agreement or any other agreement to which the Corporation and
Indemnitee are parties or the Bylaws of the Corporation or its subsidiary as
hereafter in effect relating to indemnification of directors and/or officers of
the Corporation or such subsidiary, the Corporation shall seek legal advice
only from the Independent Legal Counsel selected by Indemnitee and approved by
the Corporation (which approval shall not be unreasonably withheld). Such
counsel, among other things, shall render its written opinion to the
Corporation and Indemnitee as to whether and to what extent Indemnitee would be
permitted to be indemnified under applicable law. The Corporation agrees to
pay the reasonable fees of the Independent Legal Counsel referred to above and
to indemnify fully such counsel against any and all expenses (including
attorney’s fees), claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

     6. Indemnification
Prohibited. Notwithstanding the provisions of Sections
3 and 4, no indemnification shall be made in connection with any Proceeding
charging improper personal benefit to Indemnitee, whether or not involving
action in his official capacity, in which he was adjudged liable on the basis
that personal benefit was improperly received by him.

     7. Indemnification
of Expenses of Successful Party. Notwithstanding any
other provision of this Agreement whatsoever, to the extent that Indemnitee has
been successful on the merits or otherwise (including a settlement) in defense
of any Proceeding or in defense of any claim, issue or matter therein,
including dismissal without prejudice, Indemnitee shall be indemnified against
all Expenses reasonably and actually incurred in connection therewith.

 

 

     8. Advances
of Expenses. Expenses incurred by Indemnitee pursuant to
Sections 3 and 4 in any Proceeding shall be paid by the Corporation in advance
as soon as practicable but not later than five (5) business days after receipt
of the written request of Indemnitee, provided that Indemnitee shall (i) affirm
in such written request that he acted in good faith and in a manner which he
reasonably believed to be (in the case of conduct in his official capacity) in
the best interests of the Corporation or (in all other cases) not opposed to
the best interests of the Corporation and (ii) undertake to repay such amount
to the extent that it is ultimately determined that Indemnitee is not entitled
to indemnification, and further provided that a determination has been made
that the facts then known would not preclude indemnification pursuant to the
terms of this Agreement.

     9. Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application.

          (a) Any indemnification under Sections 3 and 4 shall be made as soon as
practicable but in any event no later than five (5) business days after receipt
by the Corporation of the written request of Indemnitee.

          (b) The right to indemnification or advances as provided by this Agreement
shall be enforceable by Indemnitee in any court of competent jurisdiction. The
burden of proving that indemnification or advances are not appropriate shall be
on the Corporation. Neither the failure of the Corporation (including its
Board of Directors, independent legal counsel, or stockholders) to have made a
determination prior to the commencement of such action that indemnification or
advances are proper in the circumstances because Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Corporation
(including its Board of Directors, independent legal counsel, or stockholders)
that Indemnitee has not met such applicable standard conduct, shall be a
defense to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct. Indemnitee’s expenses reasonably incurred in
connection with successfully establishing Indemnitee’s right to indemnification
or advances, in whole or in part, in any such Proceeding shall also be
indemnified by the Corporation.

          (c) The Corporation shall not be liable under this Agreement to make any
payment in connection with any claim made against Indemnitee to the extent
Indemnitee has otherwise actually received payment (under any insurance policy,
Bylaw or otherwise) of the amounts otherwise indemnifiable.

     10.
Indemnification Hereunder Not Exclusive.

          (a) Notwithstanding any other provision of this Agreement, the Corporation
hereby agrees to indemnify Indemnitee to the full extent permitted by law,
whether or not such indemnification is specifically authorized by the other provisions of this
Agreement, the Corporation’s Certificate of Incorporation, the Bylaws, or by
statute. In the event of any changes, after the date of this Agreement, in any
applicable law, statute, or rule which expand the right of a Delaware
corporation to indemnify a member of its board of directors or any officer,
such changes shall be, ipso facto, within the purview of Indemnitee’s rights,
and Corporation’s obligations, under this Agreement. In the event of any
changes in any applicable law, statute, or rule which narrow the right of a
Delaware corporation to indemnify a member of its board of directors or any
officer, such changes, to the extent not otherwise required by such law,
statute or rule to be applied to this Agreement, shall have no effect on this
Agreement or the parties’ rights and obligations hereunder.

 

 

          (b) The indemnification provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may be entitled under the
Certificate of Incorporation, the Bylaws, any agreement, any vote of
shareholders or disinterested directors, the laws of the State of Delaware, or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office.

     11. Partial
Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of the Expenses, judgments, fines or penalties actually and reasonably
incurred by him in the investigation, defense, appeal or settlement of any
Proceeding but not, however, for the total amount thereof, the Corporation
shall nevertheless indemnify Indemnitee for the portion of such Expenses,
judgments, fines or penalties to which Indemnitee is entitled. Moreover,
notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or
all claims, issues or matters relating in whole or in part to an indemnifiable
event, occurrence or matter hereunder, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
with such defenses.

     12. Effect
of Federal Law. Both the Corporation and Indemnitee
acknowledge that in certain instances, federal law will override Delaware law
and prohibit the Corporation from indemnifying its officers and directors. For
example, the Corporation and Indemnitee acknowledge that the Securities and
Exchange Commission has taken the position that indemnification is not
permissible for liabilities arising under certain federal securities laws, and
federal law prohibits indemnification for certain violations of the Employee
Retirement Income Security Act.

     13. Liability
Insurance.

          (a) The Corporation shall use its best efforts to obtain and maintain a
directors’ and officers’ liability insurance policy with a reputable insurance
company with substantially the same policy limit and deductible, and on
substantially the same terms and conditions, as [INSURANCE COMPANY] Policy No.
[POLICY NUMBER] maintained by the Corporation as of the date hereof (the
“Current Policy”); provided that, if the annual premium for such a policy
exceeds $[           ] (the “Maximum Premium”), the Corporation shall use its best
efforts to obtain and maintain a directors’ and officers’ liability insurance
policy with a reputable insurance company with the highest policy limit
available for the Maximum Premium and with substantially the same deductible and otherwise on substantially
the same terms and conditions as the Current Policy.

 

 

          (b) Indemnitee hereby releases the Corporation and its respective
authorized representatives from any claims for indemnification hereunder if and
to the extent that Indemnitee receives proceeds from any liability insurance
policy or other third-party source in payment or reimbursement for such claims.
Indemnitee hereby agrees to assign all proceeds Indemnitee receives under any
such insurance policy or third-party agreement to the extent of the amount of
indemnification made to Indemnitee under the terms of this Agreement. Finally,
to the extent that Indemnitee is responsible, directly or indirectly, for
obtaining and maintaining any such insurance policy or third-party agreement,
or otherwise is in a position to establish the terms of such insurance policy
or third-party agreement, Indemnitee shall cause each such insurance policy or
other third-party agreement by which Indemnitee may be entitled to payment or
reimbursement to provide that the insurance company or the third-party
agreement by which Indemnitee may be entitled to payment or reimbursement to
provide that the insurance company or the third party waives all right of
recovery by way of subrogation against the Corporation in connection with any
claim for indemnification under this Agreement. If such waiver of subrogation
cannot be obtained except with the payment of additional sums in premiums or
otherwise, Indemnitee shall notify the Corporation of this fact. The
Corporation shall then have five (5) business days after receiving such notice
to agree to pay such additional sums. If a waiver of subrogation rights is not
obtainable at any price or if the Corporation shall fail to agree to pay such
additional sums, Indemnitee shall be relieved of the obligation to obtain the
waiver of subrogation rights with respect to any particular insurance policy or
third-party agreement.

     14. Saving
Clause. Nothing in this Agreement is intended to require or
shall be construed as requiring the Corporation to do or fail to do any act in
violation of applicable law. The provisions of this Agreement (including any
provision within a single section, paragraph or sentence) shall be severable in
accordance with this Section 14. If this Agreement or any portion thereof
shall be invalidated on any ground by any court of competent jurisdiction, the
Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments,
fines and penalties with respect to any Proceeding to the full extent permitted
by any applicable portion of this Agreement that shall not have been invalidated
or by any other applicable law, and this Agreement shall remain enforceable to
the fullest extent permitted by law.

     15. Notice. Indemnitee shall, as a condition precedent to his right to be
indemnified under this Agreement, give to the Corporation notice in writing as
soon as practicable of any claim made against him for which indemnity will or
could be sought under this Agreement. Notice to the Corporation shall be
directed to Regen Biologics, Inc., 509 Commerce Street, East Wing, Franklin
Lakes, NJ 07417, Attention: President (or such other address as the
Corporation shall designate in writing to Indemnitee), together with a copy
thereof to Shaw Pittman LLP, 1650 Tysons Blvd., McLean, VA 22102, Attention:
David C. Main, Esq. All notices, requests, demands and other communications
shall be deemed received (i) upon delivery if delivered by hand and receipted
for by the party to whom such notice or other communication shall have been
directed, or (ii) three (3) business days after the date postmarked if sent by
prepaid mail, properly addressed. In addition, Indemnitee shall give the
Corporation such information and cooperation as it may reasonably require and
shall be within Indemnitee’s power.

 

 

     16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute the original.

     17. Applicable
Law. This Agreement shall be governed by and construed in
accordance with the substantive laws of the State of Delaware without giving
effect to its rules of conflicts of laws.

     18. Successors
and Assigns. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties and their respective
successors and assigns (including any direct or indirect successors by
purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of the Corporation), spouses, heirs, and personal and
legal representatives. The Corporation shall require and cause any successor
(whether direct or indirect by purchase, merger, consolidation or otherwise) to
all, substantially all or a substantial part, of the business and/or assets of
the Corporation, by written agreement in form and substance satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Corporation would be required to perform
if no such succession had taken place. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as a director and/or
officer of the Corporation or of any other enterprise.

     19. Attorneys’
Fees. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms
hereof, Indemnitee shall be entitled to be paid all court costs and expenses,
including reasonable attorneys’ fees and disbursements, incurred by Indemnitee
with respect to such action, unless as a part of such action, the court of
competent jurisdiction determines that each of the material assertions made by
Indemnitee as a basis for such action were not made in good faith or were
frivolous. In the event of an action instituted by or in the name of the
Corporation under this Agreement or to enforce or interpret any of the terms of
this Agreement, Indemnitee shall be entitled to be paid all court costs and
expenses, including attorneys’ fees and disbursements, incurred by Indemnitee
in defense of such action (including with respect to Indemnitee’s counterclaims
and crossclaims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made
in bad faith or were frivolous.

     20. Subsequent
Instruments and Acts. The parties hereto agree that they
will execute any further instrument and perform any acts that may become
necessary from time to time to carry out the terms of this Agreement.

     21. Limitations
Period. No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Corporation or any affiliate
of the Corporation against Indemnitee, Indemnitee’s spouse, heirs, executors or
personal or legal representatives after the expiration of two years from the
date of accrual of such cause of action, and any claim or cause of action of
the Corporation or its affiliates shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such two-year
period; provided, however, that if any shorter period of limitations is
otherwise applicable to any such cause of action such shorter period shall
govern.

 

 

     IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be
duly executed and signed as of the day and year first above written.

REGEN BIOLOGICS, INC.,

a Delaware corporation:

By:                                        
                                        

Name:                                        
                                   

Title:                                        
                                     

INDEMNITEE:                                        
                    

                                                                        
               

Name:exv4w1

 

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-2

Original Issue Date:
March 16, 2004

Maturity Date: March 1,
2009

Trade Date: March 11, 2004

Exchange Rate Agent: Not
applicable

(if other than U.S. Bank Trust National Association)

Price
to Public: 99.970%

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 AK6

Registered Holder: CEDE & CO.

	 	 	 	 	 	 	 
	Form:	 	
[x]
	 	Book-Entry
	 	 
	 	 	
[ ]
	 	Certificated	 	 

Agent’s Discount or
Commission: 0.500%

Net Proceeds To Issuer:
$99,470,000

Interest
Rate: 3.500% 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: $100,000,000

Specified Currency: U.S. DOLLARS

Principal Financial Center: Not
applicable

(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:
March 1 and September 1, commencing September 1, 2004

Regular Record Dates:
15 calendar days before the Interest Payment Date, commencing
August 17, 2004

	 	 	 	 	 	 	 	 	 	 	 	 
	Discount Notes:	 	[ ]	 	Yes	 	[x]	 	No

Issue Price:

Total Amount of OID:

Yield to Maturity:

Initial Accrual Period:

	 	 	 
	Other/Additional

Provisions:
Not applicable	 	

 

 

     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: March 16, 2004	 	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.

U.S. Bank, N.A., as Trustee

	 	 	 	 	 
	By:	 	/s/ JAMES E. JONES	 	 
	 	 	

	 	 
	 	 	
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: 	March 16, 2004	 	 	 
	 	

	 	 	 
	 	 	 	 	 
	 	 	 	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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]