Document:

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                                                                  EXHIBIT 10.207

                               SERVICING AGREEMENT

         THIS SERVICING AGREEMENT ("Agreement") is effective as of the 16th day
of June, of the year 2000, and is made and entered into by and among BLUEGREEN
CORPORATION, a Massachusetts corporation (hereafter "Servicer"), BLUEGREEN/BIG
CEDAR VACATIONS, LLC, a Delaware limited liability company (hereafter "Company")
and Big Cedar, L.L.C., a Missouri limited liability company (hereafter "Big
Cedar").

                                   WITNESSETH

         WHEREAS, Servicer is experienced in the servicing of timeshare
receivables, inclusive of promissory notes and related deeds of trust;

         WHEREAS, The Company is in the business of owning and operating a
timeshare resort known as the Big Cedar Timeshare Project (hereinafter the
"Project"), in which timeshare interests are marketed and sold, and in respect
thereto the Company may receive promissory notes and deeds of trust from
purchasers thereof;

         WHEREAS, It is desirable that the parties hereto enter into an
agreement respecting the servicing of promissory notes, purchase documents and
deeds of trust received by the Company from certain purchasers of timeshare
interests at the Project (such promissory notes, purchase documents and/or deeds
of trust collectively referred to herein as the "Contracts").

         NOW, THEREFORE, in consideration of the above recitals, and of the
representations, warranties and covenants hereafter contained and for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Servicer and Company agree as follows:

1.       APPLICATION. This Agreement shall apply to all Contracts received from
         purchasers of timeshare interests at the Project.

2.       APPOINTMENT OF SERVICER AS AN INDEPENDENT CONTRACTOR. The Company
         hereby appoints Servicer as an independent contractor to collect, for
         the account of Company, all periodic and other payments under the
         Contracts. Servicer hereby accepts such appointment and agrees to act
         in accordance with the terms hereof. Servicer shall have only the
         authority which is expressly conferred upon it by this Agreement.

3.       PAYMENTS.

         (a)      COLLECTION OF PAYMENTS. With respect to all Contracts serviced
                  under this Agreement, Servicer covenants and agrees that
                  during the entire term of this Agreement, Servicer will seek,
                  at its sole cost and expense, to collect promptly all payments
                  due under the Contracts.

         (b)      AUTHORIZATION TO ACCEPT PAYMENTS. Servicer is only authorized
                  to accept payments as provided in the Contracts or as required
                  by law.

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         (c)      DEFAULT UNDER CONTRACT. Subject to any reinstatement of the
                  defaulted Contracts as may take place, Servicer shall, in case
                  of default of any of the Contracts, forfeit or cancel the
                  rights of the obligor(s) under such Contracts, or institute or
                  assist in instituting, possessory, forfeiture, foreclosure or
                  other proceedings to acquire or terminate the rights of the
                  obligor(s) in and to the timeshare interest; the Servicer in
                  so proceeding at the total cost and expense of the Company.

         (d)      POST OFFICE BOX. Servicer agrees that it shall establish
                  through the lockbox bank (hereinafter referred to as "Lockbox
                  Bank") a post office box depository to which payments by
                  obligors under the Contracts may be made. Such post office box
                  shall be opened in the name of Company/Servicer (or if
                  required by hypothecation lender to Company, then Servicer may
                  open the lockbox in the name determined by such hypothecation
                  lender). Each obligor, as applicable, will be, as soon as
                  possible after the date of this Agreement, and thereafter
                  periodically as determined by Servicer, instructed to mail
                  their remittances under the Contracts to the above described
                  post office box. Company agrees to take all steps necessary
                  or, in Servicer's opinion, desirable to cause the obligors
                  under the Contracts to mail their remittances to the post
                  office box.

         (e)      RECEIPT OF PAYMENTS. On the day received, the Lockbox Bank
                  will open all mail addressed to the post office box referred
                  to hereinabove and remove and inspect enclosures. All Checks
                  and other collection remittances and all return items will be
                  processed by the Lockbox Bank according to the terms of the
                  Lockbox Agreement.

         (f)      PAC ARRANGEMENTS. If payors of Contracts are offered the
                  opportunity to pay such Contracts by electronic funds
                  transfer, PAC arrangements or credit card payments, then such
                  payments shall be processed through the appropriate accounts
                  as opposed to processing by check collection. Such payments
                  shall, otherwise, be subject to the terms hereof.

4.       BLUEGREEN/BIG CEDAR VACATIONS, LLC CONTRACTS ACCOUNT.

         (a)      DEPOSIT OF PAYMENTS. All money orders, checks, drafts and
                  other orders of payment ("Checks") respecting payment on
                  Contracts, and all money and other funds ("Monies") (including
                  electronic fund transfer, PACs, credit card payments or
                  similar arrangements) respecting payment on Contracts received
                  by Servicer or the Lockbox Bank, in accordance with its usual
                  and customary procedures, will be deposited by Servicer or the
                  Lockbox Bank into an account at the bank maintained in the
                  name of Bluegreen/Big Cedar Vacations, LLC (hereinafter the
                  "Account"). In addition to Servicer's or Lockbox Bank's
                  deposit of all Checks and Monies received by it or in the post
                  office box, respectively, to the Account, Company agrees that
                  it will make or cause the obligors under the respective
                  Contracts who are unable or unwilling to remit payments due to
                  the post office box or by electronic fund transfer, PAC
                  arrangements or credit card payments, to instead pay Company
                  directly or by way of transfers to an account of Company and
                  to make deposits into the Account of all such payments.
                  Charges respecting the Account or the post office box and any

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                  other charges, costs or fees incurred pursuant to this
                  Agreement will be billed to and paid directly by Company, and
                  Servicer will not be liable for any such charges, costs or
                  fees. Servicer may deduct from the foregoing payments its fees
                  pursuant to the preceding sentence or to paragraph 5
                  hereinbelow. The Account shall be opened as an
                  interest-bearing account, if possible, and all such interest
                  shall accrue to the benefit of the Company. If an
                  interest-bearing account is not possible, Servicer shall seek
                  to have a periodic sweep to an interest-bearing account or
                  sweep directly to an account as directed by any hypothecation
                  lender.

         (b)      MONIES TO BE HELD IN TRUST. All Checks and Monies received by
                  Servicer are to be held in trust for Company until deposited.
                  All Checks and Monies deposited into the Account will become
                  the property of Company upon deposit, and Servicer will have
                  no interest in or control over the Checks and Monies,
                  excepting for its rights of setoff set forth in paragraph 4(a)
                  hereinabove, as applicable.

         (c)      WITHDRAWALS. Withdrawals from the Account are restricted, and
                  may be made only by way of draft, wire transfer or electronic
                  funds transfer payable to Company or pursuant to paragraph
                  4(a). To the extent that a hypothecation lender does not
                  otherwise direct, Servicer will arrange to wire transfer to
                  Company all collected funds received in the Account each
                  Wednesday to the Company's account number __________ at
                  _______________, bank transit number ___________, reference
                  ______________, or as may otherwise be specifically directed
                  by Company. Company and Servicer understand and agree that
                  Servicer has exclusive control over transfers from the
                  account. The Servicer shall seek to set up an automated
                  repetitive wire agreement in respect to the foregoing
                  transfers.

         (d)      ACCEPTABLE PAYEE. Servicer or Lockbox Bank will deposit into
                  the Account all Checks on which the payee or endorsee is
                  Company or a reasonable variation of Company ("Acceptable
                  Payee"). Servicer or Lockbox Bank has the right, in its sole
                  discretion, to determine what is a reasonable variation of
                  Acceptable Payee. If the payee is not an Acceptable Payee,
                  Servicer or Lockbox Bank will not deposit the Check in the
                  aforereferenced account. Company agrees to indemnify and hold
                  Servicer or Lockbox Bank harmless from and against all losses,
                  costs, attorney's fees, claims or suits suffered by Servicer
                  or Lockbox Bank arising out of, or in connection with, its
                  depositing Checks payable to or endorsed in favor of
                  Acceptable Payees, except to the extent such damages and
                  losses are as a result of Servicer's or Lockbox Bank's gross
                  negligence or willful acts or omissions.

         (e)      PAYMENTS RECEIVED BY COMPANY. Company shall cause all payments
                  on Contracts to be made to the Account, and any payment on
                  Contracts which are received by Company shall be delivered by
                  Company to Servicer within two (2) business days after receipt
                  thereof.

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         (f)      ACCOUNTING. Within fifteen (15) days after the end of each
                  fiscal month of the Servicer during the term of this
                  Agreement, Servicer shall deliver to Company a statement
                  showing the then-current balance of the Account and all
                  deposits into and withdrawals from the Account during the
                  immediately preceding calendar month. After the end of each
                  fiscal month, during the term of this Agreement, Servicer
                  shall deliver to Company (a) a trial balance on each of the
                  Contracts including the payments received if any, delinquency
                  status, and a complete breakdown of the payment record as to
                  principal and interest and the outstanding principal balance
                  of each contract; (b) an aging report on each of the
                  Contracts; (c) a collection report on each of the Contracts;
                  and (d) a report on the status of the Contracts, including new
                  sales, forfeitures, foreclosures and cancellations. On or
                  before the fifteenth (15th) day of each fiscal month, Servicer
                  shall deliver to Company a true, correct and complete list of
                  all Contracts which Servicer received in the immediately
                  preceding month.

         (g)      CHECK DEPOSIT REQUIREMENTS. Subject to any lockbox agreement
                  and legal requirements, Servicer and Lockbox Bank will agree
                  to abide by the following requirements and limitations when
                  depositing Checks in the Account:

                  (i)      In the absence of a Check date, Lockbox Bank will
                           insert the current date with the date stamp and
                           process the check as provided in this Agreement.
                           Lockbox Bank will not deposit Checks postdated three
                           (3) or more days, or Checks with dates six (6) months
                           or older.

                  (ii)     If a Check's written and numerical amounts differ,
                           Lockbox Bank will credit the account respecting such
                           Contract for the written amount.

                  (iii)    If the drawer's signature is missing or the Check
                           contains no indication of drawer, Lockbox Bank will
                           not deposit the Check. Otherwise, Servicer will
                           deposit the Check and affix a stamp impression
                           requesting the drawee bank to contact drawer for
                           authority to pay.

                  (iv)     Lockbox Bank will attempt to identify and segregate
                           altered Checks and Checks bearing restrictive
                           notations, such as "payment in full," "balance on
                           account," or "final settlement." All Checks so
                           identified will not be deposited. However, Lockbox
                           Bank will have no liability to any person, including
                           Company, should it process and deposit an altered
                           Check or a Check bearing any such restrictive
                           notation.

                  (v)      Checks drawn in foreign currency will be referred to
                           Servicer.

                  (vi)     Prior to deposit, Lockbox Bank will endorse Checks
                           "Credited to the Account of Within Named Payee,
                           Absence of Endorsement Guaranteed."

                  (vii)    Checks deposited in the account which are returned
                           unpaid because of "insufficient funds," "uncollected
                           funds," or similar reasons, will be redeposited once
                           by Lockbox Bank. If redeposit is not warranted for
                           reasons such as "account closed," or "payment

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                           stopped" or if a Check is returned a second time or
                           there are any other charges or debits resulting from
                           returned or otherwise dishonored Checks, such amounts
                           will be debited from the account.

                  (viii)   All deposited Checks must be microfilmed by Lockbox
                           Bank. Lockbox Bank will retain such microfilmed
                           records for four (4) years as provided hereinabove.

                  (ix)     No services concerning the Account will be provided
                           on any bank holiday prescribed by the Federal Reserve
                           district in which the account is located.

5.       SERVICING FEE. Company shall be liable for the payment of a monthly
         servicing fee to Servicer in the amount of one-twelfth (1/12) of two
         percent (2%) of the outstanding principal balance at the beginning of
         the servicing period (the Servicer's fiscal month) of the Contracts.
         Except as provided in paragraphs 3(c) and 4(a), Company shall have no
         responsibility or liability for any payment of fees or expenses other
         than that aforesaid. Servicer shall be entitled to deduct from funds of
         Company in its possession any of the aforesaid fees which become due
         from time to time under or pursuant to this Agreement. Servicer shall
         have all rights, whether statutory, common law or contractual, to set
         off any indebtedness of Company to Servicer against any of the funds of
         Company it may have in its possession from time to time.

6.       OBLIGATION TO PROVIDE NOTICE.

         (a)      NOTICE UPON SALE, TRANSFER OR ASSIGNMENT. Servicer will notify
                  Company of any information received by Servicer of the sale,
                  transfer or assignment of any timeshare interest, together
                  with the date of the instrument or order transferring title to
                  the timeshare interest respecting any Contract serviced by
                  Servicer.

         (b)      NOTICE UPON CONDEMNATION OR EMINENT DOMAIN PROCEEDINGS.
                  Servicer will promptly report and forward to Company any
                  notices or pleadings received in connection with any
                  condemnation or eminent domain proceeding affecting any
                  timeshare interest. Servicer shall also advise Company as to
                  the extent of taking and its effect on such property and shall
                  give its recommendation as to action with respect to such
                  proceedings.

7.        UNAUTHORIZED ACTS OF SERVICER. Except as otherwise provided herein,
          Servicer is not authorized or empowered to waive or vary the terms of
          any of the Contracts in any material way, and will not at any time
          waive or consent to the postponement of strict compliance on the part
          of any obligor with respect to any material term, provision or
          covenant of any Contract, nor grant, in any other manner, indulgence
          with respect to any such material term, provision or covenant, without
          the express written approval of the Company, or an authorized
          representative of the Company.

8.        SERVICER AS MEMBER OF COMPANY. It is recognized and agreed that
          Servicer is a member of the Company and that to the extent Servicer,
          in its capacity as a member of the Company, acts as a member, then

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          Servicer, in its capacity as Servicer, may accept such action as that
          of the Company. The rights of the Servicer hereunder shall be
          independent from the rights of Servicer, as a member of the Company,
          and in no way shall the terms of this Agreement be deemed to limit or
          restrict the rights of Servicer as a member of the Company.

9.       INDEMNIFICATION. The Company, by execution hereof, waives any conflict
         of interest as may exist between Servicer, in its capacity as Servicer,
         and Servicer acting as a member of the Company, and agrees to save and
         hold harmless, to defend and to indemnify, Servicer against all
         actions, proceedings, claims, demands, losses, outlays, damages or
         expenses, including legal fees, of any nature and character as may
         arise or be made against Servicer as a result of Servicer acting in
         accordance with this Agreement, or which it may in any way incur in
         defending or prosecuting, settling or discontinuing any such
         proceeding, action, claim, damage, expense or outlay arising out of any
         act or omission of Servicer, including any claim arising from Servicer
         acting as Servicer while being a member of the Company. Company agrees
         to indemnify and hold Servicer harmless from any loss of any checks or
         other payments in its possession from whatever cause, except those
         losses resulting from acts or omissions not within reasonably prudent,
         common collection practices. Servicer, by execution hereof, agrees to
         save and hold harmless, Company and to indemnify Company against all
         actions, proceedings, claims, demands, losses, outlays, damages or
         expenses, including legal fees of any nature and character as may arise
         or be made against Company as a result of Servicer's gross negligence
         or willful acts or omissions in performance of its responsibilities
         hereunder.

10.      AUDIT OF SERVICER'S BOOKS AND RECORDS. Servicer agrees that, during and
         subsequent to the term of this Agreement, representatives or agents of
         the Company may, at any time during ordinary business hours, but not
         more than twice in any one calendar year, and without unreasonable
         interference with the day-to-day operations of Servicer, examine, audit
         and make copies of all books, records and documents maintained by
         Servicer relating to the Contracts. Servicer agrees to maintain all
         such books, records and documents, including computer tapes, disks and
         hard copies of all such computer data, in readable form necessary to
         access and process such data, where they are maintained at the
         inception of the terms hereof, for a period of four (4) years following
         termination of this Agreement.

11.      TERM. The term of this Agreement shall commence on the date it is
         executed and delivered by the parties, and shall continue until all
         Contracts are fully paid, provided, however, that this Agreement may be
         terminated at any time by Big Cedar, L.L.C. in the event of provable
         fraud or bad faith of Servicer or by mutual agreement by both Company
         and Servicer In the event Company and Servicer mutually agree to the
         termination of this Agreement, Company shall have the right to appoint
         a successor servicer which shall execute an agreement substantially
         similar to this Agreement. Fees, costs and expenses charged by any
         successor servicer shall be payable by Company. Servicer shall deliver
         to Company (or any subsequent servicer) all existing books, records and
         documents, including computer readable memory as may be maintained by

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         Servicer for the continued servicing of the Contracts after any
         termination of this Agreement. Servicer agrees that such books and
         records relating to any Contracts shall, following termination of this
         Agreement, be delivered to Company, provided, however, Company agrees
         that Servicer shall have the right to maintain copies of such books and
         records for its own account.

12.       CUSTODY OF CONTRACTS AND RELATED DOCUMENTS. Custody of the originals
          of all Contracts and executed instruments related thereto shall be
          delivered into the custody of Servicer to hold for and on behalf of
          the Company in accordance with the terms hereof; provided, however,
          that the same may be delivered to an acquiror or pledgee thereof,
          pursuant to the terms of any applicable sale, hypothecation or loan
          agreement or documents related thereto, including but not limited to
          any applicable custodial agreement. Servicer agrees to hold such
          instruments delivered to Servicer subject to the terms hereof, or
          otherwise subject to the terms of the aforereferenced documents.

13.       DUTY OF CARE. Servicer will exercise the same degree of care, and will
          give the same attention of performance of the obligations pursuant to
          this Agreement in a manner consistent with the level of skill and care
          as reasonably may be required in performance of services to be
          provided hereunder. Servicer shall not be liable for consequential or
          incidental damages resulting from the inaccuracy of any information
          furnished to Company or any errors or mistakes in reports prepared by
          Servicer, except for those caused by the gross negligence or willful
          misconduct of Servicer, its employees or independent contractors.

14.       SECURITY INTEREST. Company acknowledges that so long as any amounts
          are due by Company to Servicer, or any affiliate of Servicer, Servicer
          will have a security interest covering the Account and all proceeds
          thereof to the extent of such indebtedness.

15.       ASSIGNMENT. Servicer may assign its rights and delegate the
          performance of its duties under this Agreement, in part or in full, to
          any transferee of any of the Contracts, or to any other corporation or
          entity controlled by, controlling by or under the common control of
          Servicer, so long as such assignee is able to perform in the same
          manner as Servicer. The respective rights and duties of Company under
          this Agreement may not be assigned nor delegated.

16.       MODIFICATION. This Agreement represents the entire agreement with
          respect to the servicing of Contracts and supersedes all prior
          agreements related thereto. This Agreement may not be changed or
          terminated orally and no modification, termination or attempted waiver
          shall be valid unless in writing and signed by all parties or in the
          case of waiver, signed by the party against whom the same is sought to
          be enforced.

17.       COUNTERPARTS. This Agreement may be executed in one or more
          counterparts, each of which shall be deemed an original, and all of
          which taken together shall constitute one agreement.

18.      ATTORNEY'S FEES. If any attorney is engaged (a) to collect any sums due
         or enforce any obligations of Servicer under this Agreement, whether or
         not legal proceedings thereafter have been instituted; (b) to represent

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         Servicer in any bankruptcy, reorganization, receivership or other
         proceeding affecting creditor's rights and involving a claim under this
         Agreement or any Contract, except in the event of Servicer's
         bankruptcy, reorganization or receivership; or (c) to represent
         Servicer in any other proceedings whatsoever in connection with this
         Agreement, including post-judgment proceedings, to enforce any judgment
         related to this Agreement; or (d) in connection with seeking an
         out-of-court workout or settlement of any of the foregoing, then
         Company shall pay to Servicer all costs, reasonable attorneys fees and
         expenses in connection therewith, in addition to all other amounts due
         hereunder; provided, however, that the Company shall not be responsible
         for payment as aforesaid if the attorney's fees, costs and expenses are
         incurred as a result of Servicer's gross negligence or willful acts or
         omissions.

19.       EXECUTION OF ADDITIONAL DOCUMENTS. Company and Servicer agree to
          execute and deliver to each other, from time to time, any additional
          instruments and documents necessary or desirable to effectuate,
          finalize, record or perfect the transactions contemplated under this
          Agreement.

20.       PERFORMANCE BY LOCKBOX BANK. Any performances by Servicer hereunder
          may be performed by the Lockbox Bank.

21.      NOTICES. Any notice or communication required or permitted to be given
         hereunder shall be in writing, addressed to the respective party as set
         forth below, or such different address as any party may, from time to
         time, give notice of, in accordance with the provisions of this
         section, and may be personally served, telecopied or sent by overnight
         courier or U.S. mail, and shall be deemed given: (a) if served in
         person, when served; (b) if telecopied, on the date of transmission if
         before 3:00 p.m. Boca Raton, Florida time (any notice received after
         such time shall be deemed received on the next business day), provided
         that a hard copy of such notice is also sent pursuant to clause (c) or
         (d); (c) if by overnight courier, on the first business day after
         delivery by the courier; or (d) if by U.S. mail, on the fourth day
         after deposit in the mail, postage prepaid, certified mail, return
         receipt requested.

                  If to Servicer:           Bluegreen Corp.
                                            4960 Blue Lake Drive
                                            Boca Raton, Florida 33431
                                            Attn: Mr. Patrick Rondeau

                  If to Company:            Bluegreen/Big Cedar Vacations, LLC
                                            C/o Bluegreen Corp.
                                            4960 Blue Lake Drive
                                            Boca Raton, Florida 33431

                  With copy to:             Big Cedar, L.L.C.
                                            2500 East Kearney Street
                                            Ridgedale, Missouri 65898
                                            Attn:    Toni Miller

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22.       BENEFIT. This Agreement shall bind and inure to the benefit of
          Servicer and Company, and to their respective successors and permitted
          assignees.

23.       INTERPRETATION. This Agreement shall be governed by, interpreted and
          enforced in accordance with the laws of the State of Missouri.

24.      FORCE MAJEURE. Servicer shall not be liable to Company nor be deemed to
         have defaulted under or breached this Agreement for failure or delay in
         fulfilling or performing any term of the Agreement, provided such
         failure or delay is caused by or results from a Force Majeure. As used
         herein, "Force Majeure" shall mean any event that is beyond the
         reasonable control of and not the fault of Servicer, including without
         limitation, acts of God or nature, acts of public enemy, civil or
         military conflicts, labor disturbances, communications line failure and
         acts or inactions of a governmental authority or a third party.
         Notwithstanding the foregoing, this paragraph does not limit a party's
         right to terminate this Agreement under paragraph 11 hereinabove.

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

                                        SERVICER:

                                        BLUEGREEN CORPORATION, a Massachusetts
                                        corporation

                                        By: /s/ George F. Donovan
                                           ------------------------------------
                                        Print Name: George F. Donovan
                                        Title: President / CEO

                                        COMPANY:

                                        BLUEGREEN/BIG CEDAR VACATIONS, LLC, a
                                        Delaware limited liability company

                                        By: /s/ Patrick E. Rondeau
                                           ------------------------------------
                                        Print Name: Patrick E. Rondeau
                                        Title: President

                                        BIG CEDAR, L.L.C., a Missouri limited
                                        liability company

                                        By: Three Johns Company, its sole member

                                        By: /s/ Toni M. Miller
                                           ------------------------------------
                                        Print Name: Toni M. Miller
                                        Title: Vice President Finance

                                       9<PAGE>   1
                                                                     EXHIBIT 4.1

                          FOURTH SUPPLEMENTAL INDENTURE

         FOURTH SUPPLEMENTAL INDENTURE, dated as of August 15, 2000 (this
"Fourth Supplemental Indenture"), among AMB PROPERTY, L.P., a Delaware limited
partnership (the "Operating Partnership"), AMB PROPERTY CORPORATION (the "Parent
Guarantor") and STATE STREET BANK AND TRUST COMPANY OF CALIFORNIA, N.A., as
Trustee hereunder (the "Trustee").

                              W I T N E S S E T H:

         WHEREAS, the Operating Partnership, the Parent Guarantor and the
Trustee executed and delivered an Indenture, dated as of June 30, 1998, as
supplemented by the First Supplemental Indenture, the Second Supplemental
Indenture and the Third Supplemental Indenture, each dated as of June 30, 1998
(as further supplemented hereby, the "Indenture"), to provide for the issuance
by the Operating Partnership of notes evidencing its unsecured indebtedness;

         WHEREAS, pursuant to Board Resolution, the Operating Partnership has
authorized the issuance of up to $400,000,000 of its Medium Term Notes due nine
months or more from the date of issuance (the "Medium Term Notes");

         WHEREAS, the Operating Partnership desires to establish the terms of
the Medium Term Notes in accordance with Section 301 of the Indenture and to
establish the form of the Medium Term Notes in accordance with Section 201 of
the Indenture.

                                    ARTICLE 1
                                      TERMS

         SECTION 101. TERMS OF SECURITIES. There is hereby established and
authorized for issuance by the Operating Partnership a series of Securities (as
defined in the Indenture), the terms of which shall be as follows:

                  (a) The Securities of the series shall be designated
         "Medium-Term Notes" (the "Notes").

                  (b) The aggregate principal amount of the Notes that may be
         authenticated and delivered under the Indenture from time to time
         (except for Notes authenticated and delivered upon registration of
         transfer of, or in exchange for, or in lieu of, other Notes pursuant to
         Sections 304, 305, 306, 906, or 1107 of the Indenture) shall be up to
         $400,000,000 or the equivalent thereof in other currencies, which
         amount may be increased from time to time by a Board Resolution or a
         supplemental indenture to the Indenture or an Officers' Certificate, in
         either case, pursuant to authority granted under a Board Resolution,
         and in accordance with Section 301 of the Indenture, and which amount
         is subject to decrease by the amount of any other debt securities
         issued after the date hereof pursuant to the Registration Statement No.
         333-68283, filed by the Operating Partnership and the Parent Guarantor
         with the Securities and Exchange Commission.

                  (c) Each Note shall mature on a date which shall be nine
         months or more from the date of issue of such Note and shall be
         specified by an officer of the Parent Guarantor, as general partner of
         the Operating Partnership, such officer to the Trustee in writing or by
         telephone

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         (telephonic instructions to be promptly confirmed in writing) and
         specified in the applicable pricing supplement.

                  (d) The interest rate or rates or the method of determination
         thereof, if any, the date or dates or the method of determination
         thereof from which such interest shall accrue, the date or dates on
         which such interest shall be payable, and the regular record date for
         the interest payable on any interest payment date, in each case for a
         particular Note, shall each be as specified by an officer of the Parent
         Guarantor, as general partner of the Operating Partnership, to the
         Trustee in writing or by telephone (telephonic instructions to be
         promptly confirmed in writing); provided, however, the interest rate or
         rates shall in no event be higher than the maximum rate permitted by
         New York law, as the same may be modified by United States law of
         general application.

                  (e) Unless stated to the contrary in the applicable pricing
         supplement, the payment of principal (and premium, if any) and interest
         on, a Note on any day, if the Holder of this Note is Depository Trust
         Company, a New York Corporation (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 the Notes shall be payable and Notes may be surrendered
         for the registration of transfer or exchange shall be at the office of
         the Trustee's affiliate, State Street Bank and Trust Company, at 61
         Broadway, 15th Floor, New York, New York 10006; 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 to an account maintained by the payee located in
         the United States. The place where notices or demands to or upon the
         Operating Partnership in respect of the Notes and the Indenture may be
         served shall be the Corporate Trust Office of the Trustee at 633 West
         Fifth Street, 12th Floor, Los Angeles, California 90071.

                  (f) 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, if any, as specified on the face of any Note and
         in the applicable pricing supplement. To receive payment of a Note
         denominated in a foreign currency upon redemption or at maturity, a
         Holder must make presentation and surrender of such Note not less than
         two Business Days (as defined in the Notes) prior to the Redemption
         Date or Maturity Date, if any, as specified on the face of any Note and
         in the applicable pricing supplement. Upon presentation and surrender
         of a Note denominated in a foreign currency at any time after the date
         two Business Days prior to the Redemption Date or Maturity Date, if
         any, as specified on the face of any Note and in the applicable pricing
         supplement, 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, as specified on the face of the Note and
         in the applicable pricing supplement), two Business Days after such
         presentation and surrender.

                  (g) Unless stated to the contrary on the face of any Note and
         in the applicable pricing supplement, a Note will not be subject to
         redemption prior to its Maturity Date. If stated on the face of a Note
         and in the applicable pricing supplement, such Note will be redeemable
         in whole or in part at the option of the Operating Partnership, in
         accordance with Article Eleven of the Indenture and the terms set forth
         in such Note and the applicable pricing supplement.

                                       2
<PAGE>   3

                  (h) Unless stated to the contrary on the face of any Note and
         in the applicable pricing supplement, such Note will not be subject to
         repayment prior to its Maturity Date. If stated on the face of a Note
         and in the applicable pricing supplement, such Note will be repayable
         by the Operating Partnership in whole or in part at the option of the
         Holder in accordance with the terms set forth in such Note and the
         applicable pricing supplement.

                  (i) Unless stated to the contrary on the face of a Note and in
         the applicable pricing supplement, Notes shall be issuable in
         denominations of (i) $1,000 and any amount in excess thereof which is
         an integral multiple of $1,000, if the Notes are denominated in U.S.
         Dollars, and (ii) if the Notes are denominated in a currency other than
         U.S. Dollars, the Notes will be issuable in a minimum denomination
         equivalent to U.S. $1,000, rounded to an integral multiple of 1,000
         units of the currency in which the Notes are denominated, and in any
         larger amount in integral multiples of 1,000 units of that currency.
         The principal amount of any particular Note shall be determined by an
         officer of the Parent Guarantor, as general partner of the Operating
         Partnership, and specified to the Trustee in writing or by telephone
         (telephonic instructions to be promptly confirmed in writing).

                  (j) Initially, unless otherwise stated to the contrary on the
         face of any Note and in the applicable pricing supplement, the Trustee
         shall be the registrar, transfer agent, authenticating agent, exchange
         rate agent, calculation agent and paying agent for the Notes. The
         Operating Partnership may from time to time name other or additional
         registrars, paying agents, authenticating agents, exchange rate agents,
         calculation agents or transfer agents..

                  (k) Unless stated to the contrary on the face of a Note and in
         the applicable pricing supplement, such Note shall be issuable only in
         registered form without coupons in book-entry form, represented by one
         or more global notes recorded in the book-entry system maintained by
         The Depository Trust Company. If specified on the face thereof, Notes
         may be issued in certificated form issued to, and registered in the
         name of, the beneficial owner or its nominee.

                  (l) The Notes are not convertible into any other security of
         the Operating Partnership or the Parent Guarantor. The Notes shall
         constitute senior unsecured and unsubordinated obligations of the
         Operating Partnership and will rank equally with all other unsecured
         and unsubordinated indebtedness of the Operating Partnership from time
         to time outstanding.

                  (m) There are no restrictive covenants pertaining to the Notes
         other than those contained in the Indenture. Unless stated to the
         contrary on the face of any Note and in the applicable pricing
         supplement, the holders of the Notes shall have no special rights in
         addition to those provided in the Indenture upon the occurrence of any
         particular events. The Notes shall have no additional Events of Default
         in addition to the Events of Default set forth in Article Five of the
         Indenture.

                  (n) The Notes will be unconditionally guaranteed on an
         unsecured basis by the Parent Guarantor and, if required by Section
         1013 of the Indenture, the Subsidiary Guarantors.

         SECTION 102. FORM OF NOTES. The Notes shall be in the form of, and
shall have the terms set forth in, the specimens thereof attached hereto as
Exhibits A and B in fully registered fixed rate and floating rate form,
respectively, with applicable blank terms completed and additional terms added
to reflect settlement and other specific information, which terms shall be
specified by an officer of the Parent Guarantor, as general partner of the
Operating Partnership to the Trustee in writing or by

                                       3
<PAGE>   4

telephone (telephonic instructions to be promptly confirmed in writing) and
specified in the applicable pricing supplement.

         SECTION 103. FORM OF SUBSIDIARY GUARANTEE. The form of the Subsidiary
Guarantee which shall be executed if required pursuant to Section 1013 of the
Indenture is attached hereto as Exhibit C.

         SECTION 104. FORM OF GUARANTEES. There are hereby authorized for
issuance by the Parent Guarantor Guarantees (as defined in the Indenture) of the
Notes, which Guarantees shall be in the form of, and shall have the terms set
forth in, the specimen of "Parent Guarantee" endorsed on the specimen Notes
attached hereto as Exhibits A and B.

         SECTION 105. PROCEDURES. The Trustee is hereby instructed to
authenticate and deliver from time to time the Notes, with Guarantees endorsed
thereon, pursuant to the following procedures:

                  (a) the procedures set forth in the Administrative Procedures
attached as Exhibit B to the Distribution Agreement, as amended from time to
time; and

                  (b) each advice of settlement information with respect to any
of the Notes issued pursuant to (a) above will be deemed an instruction by the
Operating Partnership and the Parent Guarantor to authenticate and deliver such
Notes and Guarantees.

                                   ARTICLE II
                                  MISCELLANEOUS

         SECTION 201. DEFINITIONS. Capitalized terms used but not defined in
this Fourth Supplemental Indenture shall have the meanings ascribed thereto in
the Indenture.

         SECTION 202. CONFIRMATION OF INDENTURE. The Indenture, as heretofore
supplemented and amended by this Fourth Supplemental Indenture, is in all
respects ratified and confirmed, and the Indenture, this Fourth Supplemental
Indenture and all indentures supplemental thereto shall be read, taken and
construed as one and the same instrument.

         SECTION 203. CONCERNING THE TRUSTEE. The Trustee assumes no duties,
responsibilities or liabilities by reason of this Fourth Supplemental Indenture
other than as set forth in the Indenture and, in carrying out its
responsibilities hereunder, shall have all of the rights, protections and
immunities which it possesses under the Indenture.

         SECTION 204. GOVERNING LAW. This Fourth Supplemental Indenture, the
Indenture and the Medium Term Notes shall be governed by and construed in
accordance with the internal laws of the State of New York.

         SECTION 205. SEPARABILITY. In case any provision in this Fourth
Supplemental Indenture shall for any reason be held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

         SECTION 206. COUNTERPARTS. This Fourth Supplemental Indenture may be
executed in any number of counterparts each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.

                                       4
<PAGE>   5

         IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Supplemental Indenture to be duly executed as of the day and year first above
written.

                                       AMB PROPERTY, L.P.

                                       By: AMB PROPERTY CORPORATION,
                                           as General Partner

                                           By: /s/ W. BLAKE BAIRD
                                              ---------------------------------
                                              Name: W. Blake Baird
                                                   ----------------------------
                                              Title: President
                                                    ---------------------------

                                       AMB PROPERTY CORPORATION

                                       By: /s/ W. BLAKE BAIRD
                                          -------------------------------------
                                           Name:  W. Blake Baird
                                                -------------------------------
                                           Title:  President
                                                 ------------------------------

                                       STATE STREET BANK AND TRUST
                                       COMPANY OF CALIFORNIA, N.A., AS TRUSTEE

                                       By: /s/ STEPHEN RIVERO
                                          -------------------------------------
                                           Name: Stephen Rivero
                                                -------------------------------
                                           Title: Vice President
                                                 ------------------------------

<PAGE>   6
                                                                       EXHIBIT A

                      FORM OF FIXED RATE MEDIUM TERM NOTES

                                       A-1

<PAGE>   7

                                                                       EXHIBIT B

                     FORM OF FLOATING RATE MEDIUM TERM NOTES

                                     B-1

<PAGE>   8

                                                                       EXHIBIT C

                         FORM OF SUBSIDIARY GUARANTEE

         FOR VALUE RECEIVED, the undersigned hereby jointly and severally with
the Parent Guarantor pursuant to the Parent Guarantee and any other Subsidiary
Guarantors under their respective Subsidiary Guarantees, unconditionally
guarantees to the Holder of the accompanying 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 and the Fourth Supplemental Indenture dated as of August 15,
2000, the "Indenture") among the Operating Partnership, AMB Property
Corporation, and 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 Parent Guarantor pursuant to the
Parent Guarantee and any other Subsidiary Guarantors under their respective
Subsidiary Guarantees, 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 any 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
Subsidiary 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 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 Subsidiary Guarantee
will not be discharged except by complete performance of the obligations
contained in such Note and in this Subsidiary Guarantee.

         No reference herein to such Indenture and no provision of this
Subsidiary 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 SUBSIDIARY GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                      C-1
<PAGE>   9

         The validity and enforceability of this Subsidiary 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 Subsidiary Guarantee, and shall entitle the Holder
of any 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 Subsidiary Guarantee to the
contrary, the undersigned hereby waives any claims or other rights which it may
now have or hereafter acquire against any Guarantor or the Operating Partnership
that arise from the existence or performance of its obligations under this
Subsidiary 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 Subsidiary
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 party on account of any such 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 the undersigned, 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 the Holders
and shall forthwith be paid such Holder to be credited and applied upon the
indebtedness, whether matured or unmatured. Any such payment is herein referred
to as a "Preferential Payment" to the extent any Guarantor or the Operating
Partnership makes any payment to Holder in connection with the Note, and any or
all of such payment is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid or paid over to a trustee,
receiver or any other entity, whether under any bankruptcy act or otherwise.

         To the extent that any of the provisions of the immediately preceding
paragraph shall not be enforceable, the undersigned agrees that until such time
as the indebtedness has been paid and performed in full and the period of time
has expired during which any payment made by any Guarantor or 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 its respective
portion of the Guarantors' 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 or the Operating
Partnership or the undersigned to Holders may be determined to be a Preferential
Payment.

         The undersigned's liability (the "Base Guaranty Liability") shall be
that amount from time to time equal to the aggregate liability of the
undersigned hereunder, but shall be limited to the lesser of (A) the aggregate
amount of the obligation as stated in the second sentence of Section 1401 of the
Indenture, and (B) the amount, if any, which would not have (i) rendered the
undersigned "insolvent" (as such term is defined in Section 101(29) of the
Federal Bankruptcy Code and in Section 271 of the Debtor and Creditor Law of the
State of New York, as each is in effect at the date of the Indenture) or (ii)
left the undersigned with unreasonably small capital at the time this Subsidiary
Guarantee was entered into, after giving effect to the incurrence of existing
Debt (as defined in the Indenture) immediately prior to such time, provided
that, it shall be a presumption in any lawsuit or other proceeding in which the
undersigned is a party that the amount guaranteed is the amount set forth in (A)
above unless a creditor, or representative of creditors of the undersigned or a
trustee in bankruptcy of the undersigned, as debtor in possession, otherwise
proves in such a lawsuit that the aggregate liability of the undersigned is
limited to the amount set forth in (B). In making any determination as to the
solvency or sufficiency of capital of the undersigned in accordance with the
previous sentence, the right of the undersigned to contribution from the other
Guarantors, to subrogation and any other rights the undersigned may have,
contractual or otherwise, shall be taken into account.

                                      C-2
<PAGE>   10

         The obligations of the undersigned to the Holder of any Note and to the
Trustee pursuant to this Subsidiary 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 the Subsidiary Guarantee and all of the other
provisions of the Indenture to which this Subsidiary Guarantee relates.

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

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

Dated:
       ------------------

                                       [NAME OF SUBSIDIARY]

                                       By:
                                           -------------------------------

                                      C-3

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