Document:

exv4w2

 

Exhibit 4.2

SEVENTH SUPPLEMENTAL INDENTURE

     SEVENTH SUPPLEMENTAL INDENTURE, dated as of August 10, 2006 (this “Seventh Supplemental
Indenture”), by and among AMB PROPERTY, L.P., a Delaware limited partnership (the “Operating
Partnership”), AMB PROPERTY CORPORATION, a Maryland corporation and the sole general partner of the
Operating Partnership (the “Parent Guarantor”), and U.S. BANK NATIONAL ASSOCIATION, a national
association organized and existing under the laws of the United States of America, as
successor-in-interest to State Street Bank and Trust Company of California, N.A. (the “Predecessor
Trustee”), as trustee hereunder (the “Trustee”).

RECITALS

     WHEREAS, reference is hereby made to the Indenture dated as of June 30, 1998, by and among the
Operating Partnership, the Parent Guarantor and the Predecessor Trustee (the “Base Indenture”) (as
supplemented by this Seventh Supplemental Indenture, the “Indenture”).

     WHEREAS, pursuant to a Board Resolution or authority granted thereby, the Operating
Partnership has authorized the issuance of up to $500,000,000 in aggregate principal amount of its
Series C Medium Term Notes due nine months or more from the date of issuance, as a new series of
Securities under the Indenture (the “Notes”).

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

     WHEREAS, all things necessary to make this Seventh Supplemental Indenture a valid agreement of
the Operating Partnership and the Parent Guarantor in accordance with the terms of the Base
Indenture have been done.

     NOW THEREFORE, the Operating Partnership and the Trustee hereby deliver this Seventh
Supplemental Indenture as follows:

ARTICLE I.

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 Base Indenture), the terms of
which shall be as follows:

          (1) The Securities of the series shall be designated “Series C Medium-Term Notes.”

          (2) The limit upon 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 Section 304,
305, 306, 906 or 1107 of the Base Indenture) shall be up to $500,000,000 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 Base Indenture.

          (3) 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, to the Trustee in writing or by telephone (telephonic instructions to be
promptly confirmed in writing) and specified in the applicable prospectus supplement or pricing
supplement.

          (4) 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 the sole 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.

          (5) Unless stated to the contrary in the applicable prospectus supplement or pricing
supplement , the payment of principal (and premium, if any) and interest on the Notes on any day,
if the Holder of such Notes is The 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 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, at the place or places maintained by the Operating Partnership for that purpose, which
shall initially be U.S. Bank National Association, 100 Wall Street, Suite 1600, New York, New York
10005, unless the Holder 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 to an account maintained by the payee located in the United States. Unless the Holder is
notified otherwise, 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 U.S. Bank National Association, 100
Wall Street, Suite 1600, New York, New York 10005.

          (6) 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
prospectus supplement or pricing supplement. To receive payment of a Note denominated in a Foreign
Currency (as hereinafter defined) or composite 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 prospectus supplement or pricing supplement. 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

2

 

Maturity Date, if any, as specified on the
face of any Note and in the applicable prospectus
supplement or 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 prospectus supplement or pricing supplement), two Business Days after such
presentation and surrender.

          (7) Unless stated to the contrary on the face of any Note and in the applicable prospectus
supplement or 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 prospectus supplement or 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 Base Indenture and the terms set forth in
such Note and the applicable prospectus supplement or pricing supplement.

          (8) Unless stated to the contrary on the face of any Note and in the applicable prospectus
supplement or 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 prospectus supplement or 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
prospectus supplement or pricing supplement.

          (9) Unless stated to the contrary on the face of a Note and in the applicable prospectus
supplement or pricing supplement, Notes shall be issuable in minimum denominations of (i) if the
Notes are denominated in U.S. Dollars, $1,000 and in any larger amount in integral multiples of
$1,000 and (ii) if the Notes are denominated in a currency other than U.S. Dollars (a “Foreign
Currency”) or in a composite currency, the equivalent in such Foreign Currency or composite
currency determined in accordance with the Market Exchange Rate (as defined in the Notes) 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 the Note, of $1000 (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. The principal amount of any particular Note shall be determined
by an officer of the Parent Guarantor, as sole general partner of the Operating Partnership, and
specified to the Trustee in writing or by telephone (telephonic instructions to be promptly
confirmed in writing).

          (10) Initially, unless otherwise stated to the contrary on the face of any Note and in the
applicable prospectus supplement or 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.

          (11) Unless stated to the contrary on the face of a Note and in the applicable prospectus
supplement or 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.

3

 

          (12) 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.

          (13) 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
prospectus supplement or 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 Base Indenture.

          (14) The Notes will be unconditionally guaranteed on an unsecured basis by the Parent
Guarantor and, if required by Section 1013 of the Base 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 telephone (telephonic instructions to be promptly confirmed in
writing) and specified in the applicable prospectus supplement or 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 Base 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.

4

 

ARTICLE II.

MISCELLANEOUS PROVISIONS

     SECTION 201. DEFINITIONS. All capitalized terms used but not defined in this Seventh
Supplemental Indenture shall have the meanings ascribed thereto in the Indenture.

     SECTION 202. EFFECTIVENESS. Upon the execution of this Seventh Supplemental Indenture, the
Indenture shall be modified in accordance therewith and this Seventh Supplemental Indenture shall
form a part of the Indenture for all purposes; and every Holder of the Notes theretofore
authenticated and delivered under the Indenture shall be bound thereby.

     SECTION 203. CONFIRMATION. The Base Indenture, as heretofore supplemented and amended by this
Seventh Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture
and this Seventh Supplemental Indenture shall be read, taken and construed as one and the same
instrument. 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, the Fifth Supplemental Indenture
dated as of May 7, 2002 and the Sixth Supplemental Indenture dated as of July 11, 2005, by and
among the Operating Partnership, the Parent Guarantor and either the Predecessor Trustee or the
Trustee, shall not be binding on, and shall have no force and effect with respect to, the Notes (as
defined herein).

     SECTION 204. CONCERNING THE TRUSTEE. The Trustee assumes no duties, responsibilities or
liabilities by reason of this Seventh 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 205. GOVERNING LAW. This Seventh Supplemental Indenture, the Indenture and the Notes
shall be governed by and construed in accordance with the laws of the State of New York.

     SECTION 206. SEVERABILITY. In case any provision in this Seventh 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 207. COUNTERPARTS. This Seventh 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.

     SECTION 208. HEADINGS. The headings used for Articles and Sections herein are for convenience
only and shall not affect the construction hereof.

[Intentionally Left Blank]

5

 

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

	 	 	 	 	 	 	 
	 	 	AMB PROPERTY, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	AMB Property Corporation,	 	 
	 

	 	 	 	its sole general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael P. Brown	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: Michael P. Brown	 	 
	 	 	Title: Vice President, Capital Markets	 	 
	 
	 	 	 	 	 	 
	 	 	AMB PROPERTY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael P. Brown	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: Michael P. Brown	 	 
	 	 	Title: Vice President, Capital Markets	 	 

U.S. BANK NATIONAL ASSOCIATION

	 	 	 	 	 
	By:
	 	/s/ Beverly A. Freeney	 	 
	 

	 	 

	 	 
	Name: Beverly A. Freeney	 	 
	Title: Vice President	 	 

 

 

EXHIBIT A

(FACE OF NOTE)

AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES C

	 	 	 	 	 
	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 -
	 	 
	 

	 	 

	 	 	 
	Original Issue Date:
	 	 
	 

	 	 

	 	 	 
	Maturity Date:
	 	 
	 

	 	 

	 	 	 
	Trade Date:
	 	 
	 

	 	 

	 	 	 
	Exchange Rate Agent:
	 	 
	 

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

	 	 	 
	 
	 	 
	 

	 	 

Redemption:

	o	 	The Note cannot be redeemed prior to
maturity
	 
	o	 	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:     o  Yes     o  No

	 	 	 
	CUSIP NO.:
	 	 
	 

	 	 

	 	 	 
	Registered Holder:
	 	 
	 

	 	 

	 	 	 
	Form:

	 	o Book-Entry
	 

	 	o Certificated

 

	 	 	 
	 
	 	 
	 

	 	 

Interest Rate:                               % per annum

Repayment:

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

Other/Additional Provisions:

	 	 	 
	Principal Amount:
	 	 
	 

	 	 

	 	 	 
	Specified Currency:
	 	 
	 

	 	 

	 	 	 
	Principal Financial Center:
	 	 
	 

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

	 	 	 
	
Authorized Denomination:
	 	 
	 

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

	 	 	 
	
Interest Payment Dates:
	 	 
	 

	 	 

	 	 	 
	Regular Record Dates:
	 	 
	 

	 	 

	 	 	 
	Discount Notes:

	 	o  Yes     o  No

	 	 	 
	Issue Price:
	 	 
	 

	 	 

	 	 	 
	Total Amount of OID:
	 	 
	 

	 	 

	 	 	 
	Yield to Maturity:
	 	 
	 

	 	 

	 	 	 
	Initial Accrual Period:
	 	 
	 

	 	 

 

     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

 

 

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
corporate trust 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.”

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dated:                     	 	 	 	AMB PROPERTY, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	AMB PROPERTY CORPORATION,	 	 
	 	 	 	 	 	 	 	 	its sole general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Name: Michael P. Brown	 	 
	 	 	 	 	 	 	 	 	Title: Vice President, Capital Markets	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	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 NATIONAL ASSOCIATION, as Trustee	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 	 	 	 	 	 	 

 

 

(REVERSE OF NOTE)

AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES C

(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 Seventh Supplemental Indenture dated as of August 10, 2006 (herein
collectively called the “Indenture”), among the Operating Partnership, AMB Property Corporation, a
Maryland corporation and sole general partner of the Operating Partnership (the “Guarantor”), and
U. S. Bank National Association, as successor-in-interest to State Street Bank and Trust Company of
California, N.A., as trustee (the “Trustee”); to which 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 C
Medium-Term Notes” (hereinafter referred to as the “Notes”) of the Operating Partnership, of up to
$500,000,000 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 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.

 

 

     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 its corporate trust office 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.

 

 

     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 LAWS OF THE STATE OF NEW
YORK.

 

 

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 C
Medium-Term Note (the “Note”) issued by AMB Property, L.P. (the “Operating Partnership”) under an
Indenture dated as of June 30, 1998, as supplemented by the Seventh Supplemental Indenture dated as
of August 10, 2006 (herein collectively called the “Indenture”), among the Operating Partnership,
AMB Property Corporation, a Maryland corporation and sole general partner of the Operating
Partnership (the “Guarantor”), and U.S. Bank National Association, as successor-in-interest 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 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:                     

	 	 	 	 	 
	 	AMB PROPERTY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

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 its
corporate trust office 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.

 

 

EXHIBIT B

(FACE OF NOTE)

AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES C

					
	REGISTERED
	 	(FLOATING 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: FLR -
	 	 
	 

	 	 

	 	 	 
	Original Issue Date:
	 	 
	 

	 	 

	 	 	 
	Maturity Date:
	 	 
	 

	 	 

	 	 	 
	Trade Date:
	 	 
	 

	 	 

	 	 	 
	Calculation Agent:
	 	 
	 

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

	 	 	 
	Exchange Rate Agent:
	 	 
	 

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

	 	 	 
	CUSIP NO.:
	 	 
	 

	 	 

	 	 	 
	Registered Holder:
	 	 
	 

	 	 

	 	 	 
	Form:

	 	o Book-Entry
	 

	 	o Certificated

 

	 	 	 
	 
	 	 
	 

	 	 

Initial Interest Rate:                     % per annum

	 	 	 
	Principal Amount:
	 	 
	 

	 	 

	 	 	 
	Specified Currency:
	 	 
	 

	 	 

	 	 	 
	Principal Financial Center:
	 	 
	 

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

	 	 	 
	Authorized Denomination:
	 	 
	 

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

	 	 	 
	
Interest Payment Dates:
	 	 
	 

	 	 

	 	 	 
	Regular Record Dates:
	 	 
	 

	 	 

Interest Rate Basis:

	 
	o CD Rate

	o Commercial Paper Rate

	o CMT Rate (Telerate Page 7052 unless otherwise
designated below)

	 	 	 	 	 
	o Designated CMT Telerate Page:
	 	 	 	 
	 
	 	 	 

	 	 	 	 	 
	o Designated CMT Maturity Index:
	 	 	 	 
	 
	 	 	 
	(if other than two years)
	 	 	 	 

	 
	o EURIBOR

	o Federal Funds Rate

	o LIBOR

	 	 	 	 	 
	Designated LIBOR Page:
	 	 	 	 
	o LIBOR Reuters Page:
	 	 	 	 
	 
	 	 	 

	 	 	 	 	 
	o LIBOR Telerate Page:
	 	 	 	 
	 
	 	 	 

	 	 	 	 	 
	Index Currency:
	 	 	 	 
	 
	 	 	 

	 
	o Prime Rate

	o Treasury Rate

	o Other (see attached)

	 	 	 
	Index Maturity:
	o Daily

	 	o 5 Year
	o 1 Month

	 	o 7 Year
	o 3 Months

	 	o 10 Year
	o 6 Months

	 	o 20 Year
	o 1 Year

	 	o 30 Year
	o 2 Year

	 	o Other
	o 3 Year
	 	 
	 
	 	 
	Spread:
	o +
	 	 
	o —                    

	 	Basis Points

	 	 	 
	and /or Spread Multiplier:
	 	 
	 

	 	 

Interest Reset Frequency:

	 	 	 
	o Daily

	 	o Monthly
	o Weekly

	 	o Quarterly

o Semi-annually during the months of:

                                   and                                   

	 	 	 
	o Annually during the month of
	 	 
	 

	 	 

	 	 	 
	

Maximum Interest Rate:
	 	%
	 

	 	 

	 	 	 
	Minimum Interest Rate:
	 	%
	 

	 	 

	 	 	 
	Initial Interest Reset Date:
	 	 
	 

	 	 

	 	 	 
	Interest Reset Date(s):
	 	 
	 

	 	 

	 	 	 
	Interest Determination Date(s):
	 	 
	 

	 	 

	 
	Redemption:

	o The Note cannot be redeemed prior to
maturity

	o 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: 
	 	%
	 

	 	 

	 
	Repayment:

	o The Note cannot be repaid prior to maturity

	o The Note may be repaid prior to maturity at the option of the Holder of the Note

	 	 	 
	Optional Repayment Date(s):
	 	 
	 

	 	 

	 	 	 
	Repayment Price: 
	 	%
	 

	 	 

	 
	Interest Category:

	o Regular Floating Rate Note

	o Floating Rate/Fixed Rate Note

	 	 	 
	o Fixed Rate Commencement Date:
	 	 
	 

	 	 

	 	 	 
	o Fixed Interest Rate: 
	 	%
	 

	 	 

	 	 	 
	o Inverse Floating Rate Note
	 	 
	 

	 	 

	 	 	 
	o Fixed Interest Rate:
	 	%
	 

	 	 

Discount Notes:     o Yes     o No

	 	 	 
	Issue Price:
	 	 
	 

	 	 

	 	 	 
	Total Amount of OID:
	 	 
	 

	 	 

	 	 	 
	Yield to Maturity:
	 	 
	 

	 	 

	 	 	 
	Initial Accrual Period:
	 	 
	 

	 	 

Addendum Attached:     o Yes     o No

Other/Additional Provisions:

 

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

     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. Unless otherwise specified on the face
hereof, the “Regular Record Date” with respect to this Note shall be the fifteenth calendar day
immediately preceding the related Interest Payment Date or Dates, whether or not such date shall be
a Business Day (as defined below).

     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. However, in case the interest rate on this Note is reset daily or weekly, unless
otherwise specified on the face hereof, the interest payments will include interest accrued only
from, but excluding, the Regular Record Date through which interest has been paid (or from and
including the Original Issue Date, if no interest has been paid with respect to this Note) through
and including the Regular Record Date next preceding the applicable Interest Payment Date, except
that the interest payment on the Maturity Date, Redemption Date or Repayment Date, as applicable,
will include interest accrued to, but excluding, the Maturity Date, Redemption Date or Repayment
Date, as the case may be.

     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
corporate trust 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 Calculation Agent (which shall be U.S. Bank National Association unless otherwise
specified on the face hereof, and which may be changed by the Operating Partnership from time to
time) will generally determine the Initial Interest Rate as if the Original Issue Date of the Note
were an Interest Reset Date. The Interest Reset Dates and Interest Payment Dates, each specified
on the face hereof, are determined by the frequency with which the interest rate resents (the
“Interest Reset Frequency”). Interest will be payable, in the case of Notes which reset daily,
weekly or monthly, on the third Wednesday of each month or on the third Wednesday of each March,
June, September and December of each year, as specified on the face hereof; in the case of Notes
which reset quarterly, on the third Wednesday of March, June, September and December of each year;
in the case of Notes which reset semi-annually, on the third Wednesday of the two months of each
year specified on the face hereof; and in the case of Notes which reset annually, on the third
Wednesday of the month specified on the face hereof (each an “Interest Payment Date”), and in each
case, on the Maturity Date.

     The Calculation Agent will compute the interest for each day in the applicable interest period
by dividing the interest rate applicable to each such day by (i) 360 in the case of CD Rate Notes,
Commercial Paper Rate Notes, EURIBOR Notes, Federal Funds Rate Notes, LIBOR Notes or Prime Rate
Notes, or (ii) by the actual number of days in the year in the case of CMT Rate Notes or Treasury
Rate Notes. The interest factor for Notes for which the interest rate is calculated with reference
to two or more Interest Rate Bases (as described below) will be calculated in each period in the
same manner as if only the lowest of the applicable Interest Rates Bases applied.

     Except as specified on the face hereof, the Interest Reset Frequency on this Note will be
daily, weekly, monthly, quarterly, semi-annually or annually, as specified on the face hereof.
Except as specified on the face hereof, if this Note resets daily, the Interest Reset Date will be
each Business Day; if this Note resets weekly, the Interest Reset Date will be the Wednesday of
each week (with the exception of weekly reset Treasury Rate Notes, which reset Tuesday of each week
except as provided below); if this Note resets monthly, the Interest Reset Date will be the third
Wednesday of each month; if this Note resets quarterly, the Interest Reset Date will be the third
Wednesday of each March, June, September and December of each year; if this Note resets
semi-annually, the Interest Reset Date will be the third Wednesday of each of the two months of
each year specified on the face hereof; and if this Note resets annually, the Interest Reset Date
will be the third Wednesday of the month of each year as specified on the face hereof.

     The interest rate in effect on each day that is not an Interest Reset Date will be the
interest rate determined as of the Interest Determination Date (as specified on the face hereof)
pertaining to the immediately preceding Interest Reset Date and the interest rate in effect on any
day that is an Interest Reset Date will be the interest rate determined as of the Interest
Determination Date pertaining to such Interest Reset Date; provided, however, that the interest
rate in effect for the period, if any, from the Original Issue Date to the Initial Interest Reset
Date will be the Initial Interest Rate; provided, further, that if this Note is a Floating
Rate/Fixed Rate Note the interest rate in effect for the period commencing on the Fixed Rate
Commencement Date specified on the face hereof to the Maturity Date shall be the Fixed Interest
Rate specified on the face hereof or, if no interest rate is specified, the interest rate in effect
on the day immediately preceding the Fixed Rate Commencement Date.

 

 

     If any Interest Reset Date would otherwise be a day that is not a Business Day, the Interest
Reset Date shall be postponed to the next succeeding day that is a Business Day, except that in the
case of a LIBOR Note or a Note for which LIBOR is an applicable Interest Rate Basis and such
Business Day falls in the next succeeding calendar month, such Interest Reset Date will be the
immediately preceding Business Day. In addition, if the Treasury Rate is an applicable Interest
Rate Basis and an auction falls on the day that would be an Interest Reset Date, then the Interest
Reset Date will be postponed to the first Business Day after the auction.

     If an Interest Payment Date (other than the Maturity Date, Redemption Date or Repayment Date)
for this Note falls on a day that is not a Business Day, the Interest Payment Date will be
postponed to the next Business Day. However, if the postponement would cause the Interest Payment
Date for a LIBOR-based or a EURIBOR-based Note to be in the next calendar month, the Interest
Payment Date will be moved to the immediately preceding Business Day. If the Maturity Date or
Redemption Date or Repayment Date, if any, for a Note falls on a day that is not a Business Day,
principal and interest 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 or Redemption
Date or Repayment Date, as the case may be, to the date of such payment on the next Business Day.

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

     The Calculation Agent shall calculate the interest rate on this Note on or before each
Calculation Date (as defined below) and, upon request, provide the Holder of this Note the interest
rate (the “Floating Interest Rate”) then in effect and, if different, the Floating Interest Rate
which will become effective as a result of a determination made for the next Interest Reset Date
with respect to this Note. The Calculation Agent’s determination of any Floating Interest Rate
will be final and binding in the absence of manifest error. Unless otherwise specified on the face
hereof or in an Addendum hereto, the “Calculation Date”, where applicable, pertaining to any
Interest Determination Date will be the earlier of (a) the tenth calendar day after such
Determination Date, or if any such day is not a Business Day, the next succeeding Business Day, or
(b) the Business Day immediately preceding the applicable Interest Payment Date or Maturity Date,
as the case may be.

     Interest on this Note will be calculated by reference to the Interest Rate Basis or Bases,
specified on the face hereof, (a) plus or minus the Spread, if any, specified on the face hereof,
and/or (b) multiplied by the Spread Multiplier, if any, specified on the face hereof. The Interest
Rate Basis may be one or more of: (1) the CD Rate, (2) the CMT Rate, (3) the Commercial Paper
Rate, (4) EURIBOR, (5) the Federal Funds Rate, (6) LIBOR, (7) the Treasury Rate, (8) the Prime Rate
or (9) such other Interest Rate Basis or interest rate formula as is specified on the face hereof.
The “Index Maturity” is the period to maturity of the instrument or obligation with respect to
which the related Interest Rate Basis or Bases are calculated. Except as otherwise provided
herein, all percentages resulting from any interest rate calculation will be rounded, if necessary,
to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upwards (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or
        .0987655)), and all U.S. dollar amounts used in or resulting from such calculation with be rounded
to the nearest cent or, in the case of a foreign currency or composite currency, to the nearest
unit (with one-half cent being rounded upward).

     Notwithstanding the other provisions herein, the Floating Interest Rate hereon which may
accrue during any interest period shall not be greater than the Maximum Interest Rate, if any, or
less than the Minimum Interest Rate, if any, each as set forth on the face hereof, and, in
addition, the Floating Interest Rate 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.

     The interest rate borne by this Note will be determined as follows:

     (i) Unless the Interest Category of this Note is specified on the face hereof as a
“Floating Rate/Fixed Rate Note” or an “Inverse Floating Rate Note”, this Note shall be
designated as a “Regular Floating Rate Note” and, except as set forth below or on the face
hereof, shall bear interest at the rate determined by

 

 

reference to the applicable Interest Rate Basis or Bases (a) plus or minus the Spread,
if any, and/or (b) multiplied by the Spread Multiplier, if any, in each case as specified on
the face hereof. Commencing on the Initial Interest Reset Date, the rate at which interest
on this Note shall be payable shall be reset as of each Interest Rate Date specified on the
face hereof; provided, however, that the interest rate in effect for the period, if any,
from the Original Issue Date to the Initial Interest Reset Date shall be the Initial
Interest Rate.

     (ii) If the Interest Category of this Note is specified on the face hereof as a
“Floating Rate/Fixed Rate Note”, then, except as set forth below or on the face hereof, this
Note shall bear interest at the rate determined by reference to the applicable Interest Rate
Basis or Bases (a) plus or minus the Spread, if any, and/or (b) multiplied by the Spread
Multiplier, if any. Commencing on the Initial Interest Reset Date, the rate at which
interest on this Note shall be payable shall be reset as of each Interest Reset Date;
provided, however, that (y) the interest rate in effect for the period, if any, from the
Original Issue Date to the Initial Interest Reset Date shall be the Initial Interest Rate
and (z) the interest rate in effect for the period commencing on the Fixed Rate Commencement
Date specified on the face hereof to the Maturity Date shall be the Fixed Interest Rate
specified on the face hereof or, if no such Fixed Interest Rate is specified, the interest
rate in effect hereon on the day immediately preceding the Fixed Rate Commencement Date.

     (iii) If the Interest Category of this Note is specified on the face hereof as an
“Inverse Floating Rate Note”, then, except as set forth below or on the face hereof, this
Note shall bear interest at the Fixed Interest Rate minus the rate determined by reference
to the applicable Interest Rate Basis or Bases (a) plus or minus the Spread, if any, and/or
(b) multiplied by the Spread Multiplier, if any; provided, however, that, unless otherwise
specified on the face hereof, the interest rate hereon shall not be less than zero.
Commencing on the Initial Reset Date, the rate at which interest on this Note shall be
payable shall be reset as of each Interest Reset Date; provided, however, that the interest
rate in effect for the period, if any, from the Original Issue Date to the Initial Interest
Reset Date shall be the Initial Interest Rate.

Determination of CD Rate.

     “CD rate” means, for any Interest Determination Date, the rate on that date for negotiable
certificates of deposit having the Index Maturity specified on the face hereof as published by the
Board of Governors of the Federal Reserve System in “Statistical Release H.15(519), Selected
Interest Rates,” or any successor publication of the Board of Governors of the Federal Reserve
System (“H.15(519)”) under the heading “CDs (Secondary Market).”

     The following procedures will be followed if the CD rate cannot be determined as described
above:

	 	•	 	If the above rate is not published in H.15(519) by 9:00 a.m., New York City time, on
the Calculation Date, the CD rate will be the rate on that Interest Determination Date
set forth in the daily update of H.15(519), available through the world wide website of
the Board of Governors of the Federal Reserve System at
http://www.bog.frb.fed.us/releases/h15/update, or any successor site or publication,
which is commonly referred to as the “H.15 Daily Update,” for the Interest
Determination Date for certificates of deposit having the Index Maturity specified on
the face hereof, under the caption “CDs (Secondary Market).”
	 
	 	•	 	If the above rate is not yet published in either H.15(519) or the H.15 Daily Update
by 3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent will
determine the CD rate to be the arithmetic mean of the secondary market offered rates
as of 10:00 a.m., New York City time, on that Interest Determination Date of three
leading nonbank dealers in negotiable U.S. dollar certificates of deposit in The City
of New York selected by the Calculation Agent, after consultation with the Operating
Partnership, for negotiable certificates of deposit of major United States money center
banks of the highest credit standing in the market for negotiable certificates of
deposit with a remaining maturity closest to the Index Maturity specified on the face
hereof in an amount that is representative for a single transaction in that market at
that time.
	 
	 	•	 	If the dealers selected by the Calculation Agent are not quoting as set forth above,
the CD rate will remain the CD rate for the immediately preceding Interest Reset
Period, or, if there was no Interest Reset Period, the rate of interest payable will be
the Initial Interest Rate.

 

 

Determination of CMT Rate.

     The “CMT rate” means, for any Interest Determination Date, the rate displayed on the
Designated CMT Telerate Page, as defined below, under the caption “... Treasury Constant Maturities
        ... Federal Reserve Board Release H.15(519)... Mondays Approximately 3:00 p.m.,” under the column
for the Designated CMT Maturity Index, as defined below, for:

     (1) the rate on that Interest Determination Date, if the Designated CMT Telerate Page
is 7051; and

     (2) the week or the month, as applicable, ended immediately preceding the week in which
the related Interest Determination Date occurs, if the Designated CMT Telerate Page is 7052.

     The following procedures will be followed if the CMT rate cannot be determined as described
above:

	 	•	 	If that rate is no longer displayed on the relevant page, or if not displayed by
3:00 p.m., New York City time, on the related Calculation Date, then the CMT rate will
be the Treasury Constant Maturity rate for the Designated CMT Maturity Index as
published in the relevant H.15(519).
	 
	 	•	 	If the rate described in the immediately preceding sentence is no longer published,
or if not published by 3:00 p.m., New York City time, on the related Calculation Date,
then the CMT rate will be the Treasury Constant Maturity rate for the Designated CMT
Maturity Index or other United States Treasury rate for the Designated CMT Maturity
Index on the Interest Determination Date as may then be published by either the Board
of Governors of the Federal Reserve System or the United States Department of the
Treasury that the Calculation Agent determines to be comparable to the rate formerly
displayed on the Designated CMT Telerate Page and published in the relevant H.15(519).
	 
	 	•	 	If the information described in the immediately preceding sentence is not provided
by 3:00 p.m., New York City time, on the related Calculation Date, then the Calculation
Agent will determine the CMT rate to be a yield to maturity, based on the arithmetic
mean of the secondary market closing offer side prices as of approximately 3:30 p.m.,
New York City time, on the Interest Determination Date, reported, according to their
written records, by three leading primary United States government securities dealers,
which is referred to as a “reference dealer,” in The City of New York, which may
include an agent or other affiliates of ours, selected by the Calculation Agent as
described in the following sentence. The Calculation Agent will select five reference
dealers, after consultation with the Operating Partnership, and will eliminate the
highest quotation or, in the event of equality, one of the highest, and the lowest
quotation or, in the event of equality, one of the lowest, for the most recently issued
direct noncallable fixed rate obligations of the United States, which are commonly
referred to as “Treasury notes,” with an original maturity of approximately the
Designated CMT Maturity Index and a remaining term to maturity of not less than that
Designated CMT Maturity Index minus one year. If two Treasury notes with an original
maturity as described above have remaining terms to maturity equally close to the
Designated CMT Maturity Index, the quotes for the Treasury note with the shorter
remaining term to maturity will be used.
	 
	 	•	 	If the Calculation Agent cannot obtain three Treasury notes quotations as described
in the immediately preceding sentence, the Calculation Agent will determine the CMT
rate to be a yield to maturity based on the arithmetic mean of the secondary market
offer side prices as of approximately 3:30 p.m., New York City time, on the Interest
Determination Date of three reference dealers in The City of New York, selected using
the same method described in the immediately preceding sentence, for Treasury notes
with an original maturity equal to the number of years closest to but not less than the
Designated CMT Maturity Index and a remaining term to maturity closest to the
Designated CMT Maturity Index and in an amount of at least $100,000,000.
	 
	 	•	 	If three or four (and not five) of the reference dealers are quoting as described
above, then the CMT rate will be based on the arithmetic mean of the offer prices
obtained and neither the highest nor the lowest of those quotes will be eliminated.

 

 

	 	•	 	If fewer than three reference dealers selected by the Calculation Agent are quoting
as described above, the CMT rate will be the CMT rate for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest
payable will be the Initial Interest Rate.

     “Designated CMT Telerate Page” means the display on Bridge Telerate, Inc., or any successor
service, on the page designated on the face hereof or any other page as may replace that page on
that service for the purpose of displaying Treasury Constant Maturities as reported in H.15(519).
If no page is specified on the face hereof, the Designated CMT Telerate Page will be 7052, or its
successor, for the most recent week.

     “Designated CMT Maturity Index” means the original period to maturity of the U.S. Treasury
securities, which is either one, two, three, five, seven, ten, 20 or 30 years, specified on the
face hereof for which the CMT rate will be calculated. If no maturity is specified on the face
hereof, the Designated CMT Maturity Index will be two years.

Determination of Commercial Paper Rate.

     The “commercial paper rate” means, for any Interest Determination Date, the money market
yield, calculated as described below, of the rate on that date for commercial paper having the
Index Maturity specified on the face hereof, as that rate is published in H.15(519), under the
heading “Commercial Paper — Nonfinancial.”

     The following procedures will be followed if the commercial paper rate cannot be determined as
described above:

	 	•	 	If the above rate is not published by 9:00 a.m., New York City time, on the
Calculation Date, then the commercial paper rate will be the money market yield of the
rate on that Interest Determination Date for commercial paper of the Index Maturity
specified on the face hereof as published in the H.15 Daily Update under the heading
“Commercial Paper — Nonfinancial.”
	 
	 	•	 	If by 3:00 p.m., New York City time, on that Calculation Date the rate is not yet
published in either H.15(519) or the H.15 Daily Update, then the Calculation Agent will
determine the commercial paper rate to be the money market yield of the arithmetic mean
of the offered rates as of 11:00 a.m., New York City time, on that Interest
Determination Date of three leading dealers of commercial paper in The City of New York
selected by the Calculation Agent, after consultation with the Operating Partnership,
for commercial paper of the Index Maturity specified on the face hereof, placed for an
industrial issuer whose bond rating is “AA,” or the equivalent, from a nationally
recognized statistical rating agency.
	 
	 	•	 	If the dealers selected by the Calculation Agent are not quoting as mentioned above,
the commercial paper rate for that Interest Determination Date will remain the
commercial paper rate for the immediately preceding Interest Reset Period, or, if there
was no Interest Reset Period, the rate of interest payable will be the Initial Interest
Rate.

     The “money market yield” will be a yield calculated in accordance with the following formula
and expressed as a percentage:

	 	 	 	 	 	 	 	 	 
	 

	 	Money Market Yield =
	 	D x 360
	 	* 100	 	 
	 

	 	 	 	 

360 — (D * M)
	 	 	 	 

where “D” refers to the applicable per year rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in the interest period
for which interest is being calculated.

EURIBOR Notes

     “EURIBOR” means, for any Interest Determination Date, the rate for deposits in euros as
sponsored, calculated and published jointly by the European Banking Federation and ACI — The
Financial Market Association, or any company established by the joint sponsors for purposes of
compiling and publishing those rates, for the Index Maturity specified on the face hereof as that
rate appears on the display on Bridge Telerate, Inc., or any successor

 

 

service, on page 248 or any other page as may replace page 248 on that service, which is
commonly referred to as “Telerate Page 248,” as of 11:00 a.m. (Brussels time).

     The following procedures will be followed if the rate cannot be determined as described above:

	 	•	 	If the above rate does not appear, the Calculation Agent will request the principal
Euro-zone office of each of four major banks in the Euro-zone interbank market, as
selected by the Calculation Agent, after consultation with the Operating Partnership,
to provide the Calculation Agent with its offered rate for deposits in euros, at
approximately 11:00 a.m. (Brussels time) on the interest determination date, to prime
banks in the Euro-zone interbank market for the Index Maturity specified on the face
hereof on the applicable Interest Reset Date, and in a principal amount not less than
the equivalent of U.S.$1 million in euro that is representative of a single transaction
in euro, in that market at that time. If at least two quotations are provided, EURIBOR
will be the arithmetic mean of those quotations.
	 
	 	•	 	If fewer than two quotations are provided, EURIBOR will be the arithmetic mean of
the rates quoted by four major banks in the Euro-zone, as selected by the Calculation
Agent, after consultation with the Operating Partnership, at approximately 11:00 a.m.
(Brussels time), on the applicable Interest Reset Date for loans in euro to leading
European banks for a period of time equivalent to the Index Maturity specified on the
face hereof commencing on that Interest Reset Date in a principal amount not less than
the equivalent of U.S.$1 million in euro.
	 
	 	•	 	If the banks so selected by the Calculation Agent are not quoting as mentioned in
the previous bullet point, the EURIBOR rate in effect for the applicable period will be
the same as EURIBOR for the immediately preceding Interest Reset Period, or, if there
was no Interest Reset Period, the rate of interest will be the Initial Interest Rate.

     “Euro-zone” means the region comprised of member states of the European Union that adopt the
single currency in accordance with the treaty establishing the European Community, as amended by
the treaty on European Union.

Determination of Federal Funds Rate.

     The “federal funds rate” means, for any Interest Determination Date, the rate on that date for
federal funds as published in H.15(519) under the heading “Federal Funds (Effective)” as displayed
on Bridge Telerate, Inc., or any successor service, on page 120 or any other page as may replace
the applicable page on that service, which is commonly referred to as “Telerate Page 120.”

     The following procedures will be followed if the federal funds rate cannot be determined as
described above:

	 	•	 	If the above rate is not published by 9:00 a.m., New York City time, on the
Calculation Date, the federal funds rate will be the rate on that Interest
Determination Date as published in the H.15 Daily Update under the heading “Federal
Funds/Effective Rate.”
	 
	 	•	 	If that rate is not yet published in either H.15(519) or the H.15 Daily Update by
3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent will
determine the federal funds rate to be the arithmetic mean of the rates for the last
transaction in overnight federal funds by each of three leading brokers of federal
funds transactions in The City of New York selected by the Calculation Agent, after
consultation with the Operating Partnership, prior to 9:00 a.m., New York City time,
on that Interest Determination Date.
	 
	 	•	 	If the brokers selected by the Calculation Agent are not quoting as mentioned above,
the federal funds rate relating to that Interest Determination Date will remain the
federal funds rate for the immediately preceding Interest Reset Period, or, if there
was no Interest Reset Period, the rate of interest payable will be the Initial Interest
Rate.

 

 

Determination of LIBOR.

     The Calculation Agent will determine “LIBOR” for each Interest Determination Date as follows:

	 	•	 	As of the Interest Determination Date, LIBOR will be either:
	 
	 	•	 	if “LIBOR Reuters” is specified on the face hereof, the arithmetic mean of the
offered rates for deposits in the index currency having the Index Maturity designated
on the face hereof, commencing on the second London banking day immediately following
that Interest Determination Date, that appear on the Designated LIBOR Page, as defined
below, as of 11:00 a.m., London time, on that Interest Determination Date, if at least
two offered rates appear on the Designated LIBOR Page; except that if the specified
Designated LIBOR Page, by its terms provides only for a single rate, that single rate
will be used; or
	 
	 	•	 	if “LIBOR Telerate” is specified on the face hereof, the rate for deposits in the
index currency having the Index Maturity designated on the face hereof, commencing on
the second London banking day immediately following that Interest Determination Date
or, if pounds sterling is the index currency, commencing on that Interest Determination
Date, that appears on the Designated LIBOR Page at approximately 11:00 a.m., London
time, on that Interest Determination Date.
	 
	 	•	 	If (1) fewer than two offered rates appear and “LIBOR Reuters” is specified on the
face hereof, or (2) no rate appears and the face hereof specifies either (x) “LIBOR
Telerate” or (y) “LIBOR Reuters” and the Designated LIBOR Page by its terms provides
only for a single rate, then the Calculation Agent will request the principal London
offices of each of four major reference banks in the London interbank market, as
selected by the Calculation Agent after consultation with the Operating Partnership, to
provide the Calculation Agent with its offered quotation for deposits in the index
currency for the period of the Index Maturity specified on the face hereof commencing
on the second London banking day immediately following the Interest Determination Date
or, if pounds sterling is the index currency, commencing on that Interest Determination
Date, to prime banks in the London interbank market at approximately 11:00 a.m., London
time, on that Interest Determination Date and in a principal amount that is
representative of a single transaction in that index currency in that market at that
time.
	 
	 	•	 	If at least two quotations are provided, LIBOR determined on that Interest
Determination Date will be the arithmetic mean of those quotations. If fewer than two
quotations are provided, LIBOR will be determined for the applicable interest reset
date as the arithmetic mean of the rates quoted at approximately 11:00 a.m., London
time, or some other time specified on the face hereof, in the applicable principal
financial center for the country of the index currency on that interest reset date, by
three major banks in that principal financial center selected by the Calculation Agent,
after consultation with the Operating Partnership, for loans in the index currency to
leading European banks, having the Index Maturity specified on the face hereof and in a
principal amount that is representative of a single transaction in that index currency
in that market at that time.
	 
	 	•	 	If the banks so selected by the Calculation Agent are not quoting as mentioned in
the previous bullet point, LIBOR in effect for the applicable period will be the same
as LIBOR for the immediately preceding Interest Reset Period, or, if there was no
Interest Reset Period, the rate of interest payable will be the Initial Interest Rate.

     The “index currency” means the currency specified on the face hereof as the currency for which
LIBOR will be calculated, or, if the euro is substituted for that currency, the index currency will
be the euro. If that currency is not specified on the face hereof, the index currency will be U.S.
dollars.

     “Designated LIBOR Page” means either (a) if “LIBOR Reuters” is designated on the face hereof,
the display on the Reuters Monitor Money Rates Service, or any successor service, on the page
specified on the face hereof (or any other page as may replace the page on the service) for the
purpose of displaying the London interbank rates of major banks for the applicable index currency,
or (b) if “LIBOR Telerate” is designated on the face hereof or neither “LIBOR Reuters” nor “LIBOR
Telerate” is designated on the face hereof, the display on Bridge Telerate Inc., or any successor

 

 

service, on the page specified on the face hereof, or any other page as may replace that page
on that service, for the purpose of displaying the London interbank rates of major banks for the
applicable index currency.

Determination of Prime Rate.

     The “prime rate” means, for any Interest Determination Date, the rate on that date as
published in H.15(519) under the heading “Bank Prime Loan.”

     The following procedures will be followed if the prime rate cannot be determined as described
above:

	 	•	 	If the rate is not published prior to 9:00 a.m., New York City time, on the
Calculation Date, then the prime rate will be the rate on that Interest Determination
Date as published in H.15 Daily Update under the heading “Bank Prime Loan.”
	 
	 	•	 	If the rate is not published prior to 3:00 p.m., New York City time, on the
Calculation Date in either H.15(519) or the H.15 Daily Update, then the Calculation
Agent will determine the prime rate to be the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Screen USPRIME 1 Page, as
defined below, as that bank’s prime rate or base lending rate as in effect for that
Interest Determination Date.
	 
	 	•	 	If fewer than four rates appear on the Reuters Screen USPRIME 1 Page for that
Interest Determination Date, the Calculation Agent will determine the prime rate to be
the arithmetic mean of the prime rates quoted on the basis of the actual number of days
in the year divided by 360 as of the close of business on that Interest Determination
Date by at least three major banks in The City of New York selected by the Calculation
Agent, after consultation with the Operating Partnership.
	 
	 	•	 	If the banks selected are not quoting as mentioned above, the prime rate will remain
the prime rate for the immediately preceding Interest Reset Period, or, if there was no
Interest Reset Period, the rate of interest payable will be the Initial Interest Rate.

     “Reuters Screen USPRIME 1 Page” means the display designated as page “USPRIME 1” on the
Reuters Monitor Money Rates Service, or any successor service, or any other page as may replace the
USPRIME 1 Page on that service for the purpose of displaying prime rates or base lending rates of
major United States banks.

Determination of Treasury Rate.

     “Treasury rate” means:

	 	•	 	the rate from the auction held on the applicable Interest Determination Date, which
is referred to as the “auction,” of direct obligations of the United States, which are
commonly referred to as “Treasury Bills,” having the Index Maturity specified on the
face hereof as that rate appears under the caption “INVESTMENT RATE” on the display on
Bridge Telerate, Inc., or any successor service, on page 56 or any other page as may
replace page 56 on that service, which is referred to as “Telerate Page 56,” or page 57
or any other page as may replace page 57 on that service, which is referred to as
“Telerate Page 57,” or
	 
	 	•	 	if the rate described in the first bullet point is not published by 3:00 p.m., New
York City time, on the Calculation Date, the bond equivalent yield of the rate for the
applicable Treasury Bills as published in the H.15 Daily Update, or other recognized
electronic source used for the purpose of displaying the applicable rate, under the
caption “U.S. Government Securities/Treasury Bills/Auction High,” or
	 
	 	•	 	if the rate described in the second bullet point is not published by 3:00 p.m., New
York City time, on the related Calculation Date, the bond equivalent yield of the
auction rate of the applicable Treasury Bills, announced by the United States
Department of the Treasury, or

 

 

	 	•	 	in the event that the rate referred to in the third bullet point is not announced by
the United States Department of the Treasury, or if the auction is not held, the bond
equivalent yield of the rate on the applicable Interest Determination Date of Treasury
Bills having the Index Maturity specified on the face hereof published in H.15(519)
under the caption “U.S. Government Securities/Treasury Bills/Secondary Market,” or
	 
	 	•	 	if the rate referred to in the fourth bullet point is not so published by 3:00 p.m.,
New York City time, on the related Calculation Date, the rate on the applicable
Interest Determination Date of the applicable Treasury Bills as published in H.15 Daily
Update, or other recognized electronic source used for the purpose of displaying the
applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Secondary
Market,” or
	 
	 	•	 	if the rate referred to in the fifth bullet point is not so published by 3:00 p.m.,
New York City time, on the related Calculation Date, the rate on the applicable
Interest Determination Date calculated by the Calculation Agent as the bond equivalent
yield of the arithmetic mean of the secondary market bid rates, as of approximately
3:30 p.m., New York City time, on the applicable Interest Determination Date, of three
primary United States government securities dealers, which may include the agent or its
affiliates, selected by the Calculation Agent, for the issue of Treasury Bills with a
remaining maturity closest to the Index Maturity specified on the face hereof, or
	 
	 	•	 	if the dealers selected by the Calculation Agent are not quoting as mentioned in the
sixth bullet point, the Treasury rate for the immediately preceding Interest Reset
Period, or, if there was no Interest Reset Period, the rate of interest payable will be
the Initial Interest Rate.

     The “bond equivalent yield” means a yield calculated in accordance with the following formula
and expressed as a percentage:

	 	 	 	 	 	 	 	 	 
	 

	 	Bond Equivalent Yield =
	 	D x 360
	 	* 100	 	 
	 

	 	 	 	 

360 — (D * M)
	 	 	 	 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis, “N” refers to 365 or 366, as the case may be, and “M” refers to the actual number of days in
the interest period for which interest is being calculated.

     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.”

 

 

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

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

as Sole General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 

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 NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	          Authorized Signatory	 	 

 

 

(REVERSE)

AMB PROPERTY L.P.

MEDIUM-TERM NOTE, SERIES C

(FLOATING 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 Seventh Supplemental Indenture dated as of August 10, 2006 (herein
collectively called the “Indenture”), among the Operating Partnership, AMB Property Corporation, a
Maryland corporation and sole general partner of the Operating Partnership (the “Guarantor”), and
U.S. Bank National Association, as successor-in-interest to State Street Bank and Trust Company of
California, N.A., as trustee (the “Trustee”); to which 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 C
Medium-Term Notes” (hereinafter referred to as the “Notes”) of the Operating Partnership, of up to
$500,000,000 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

 

 

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.

     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 its corporate trust office 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.

     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 LAWS OF THE STATE OF NEW
YORK.

 

 

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 C
Medium-Term Note (the “Note”) issued by AMB Property, L.P. (the “Operating Partnership”) under an
Indenture dated as of June 30, 1998, as supplemented by the Seventh Supplemental Indenture dated as
of August 10, 2006 (herein collectively called the “Indenture”), among the Operating Partnership,
AMB Property Corporation, a Maryland corporation and sole general partner of the Operating
Partnership (the “Guarantor”), and U.S. Bank National Association, as successor-in-interest 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 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:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AMB PROPERTY CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 

 

 

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 its
corporate trust office 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.

 

 

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 Series C Medium
Term Note (the “Note”), issued by AMB Property, L.P. (the “Operating Partnership”) under an
Indenture dated as of June 30, 1998, by and among the Operating Partnership, the Parent Guarantor
and the Predecessor Trustee (as supplemented by the Seventh Supplemental Indenture dated as of
August 10, 2006, the “Indenture”), (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 Subsidiary 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 Subsidiary 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 Subsidiary 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 Subsidiary 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

E-1

 

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 Subsidiary Guarantor or the Operating Partnership, any right to
require a proceeding first against any other Subsidiary 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.

     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 Subsidiary 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 Subsidiary 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 Subsidiary 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

E-2

 

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 Subsidiary
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 Subsidiary 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
Subsidiary 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 Subsidiary 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 Subsidiary Guarantors, to subrogation and any other rights the
undersigned may have, contractual or otherwise, shall be taken into account.

     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.

E-3

 

     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:	 	 	 	 
	 

	 	 	 	 

	 	 

E-4exv10w1

 

Exhibit 10.1

Guarantee Agreement

June 20, 2006

SanDisk Corporation

IBJ Leasing Co., Ltd.

Sumisho Lease Co., Ltd.

Toshiba Finance Corporation

 

 

Guarantee Agreement

     SanDisk Corporation (the “Guarantor”) and IBJ Leasing Co., Ltd., Sumisho Lease Co., Ltd., and
Toshiba Finance Corporation as SD Lessor (in such capacity, collectively, the “SD Lessors”) hereby
enter into this guarantee agreement (the “Agreement”) with respect to the Master Lease Agreement
dated June 20, 2006 and the related individual agreements entered into thereunder (collectively,
the “Lease Agreement”), in each case entered into by and between the SD Lessors and IBJ Leasing
Co., Ltd. and Sumisho Lease Co., Ltd. as Toshiba Lessor thereunder (in such capacity, collectively,
the “Toshiba Lessors”) and Flash Partners Yugen Kaisha (the “Lessee”).

     Unless as otherwise specified in this Agreement, the words defined in the Lease Agreement shall
have the same meaning in this Agreement.

Article 1. (Guarantee)

     The Guarantor shall guarantee the performance, from time to time, of the obligations subject to the
guarantee below (the “Guaranteed Obligation”) to the SD Lessors, jointly and severally
(rentai-hosho) with the Lessee (the “Guarantee”).

(Guaranteed Obligation)

     Guaranteed Obligation shall mean payment obligations of lease rental (lease-ryo), stipulated loss
payment (kitei-songaikin), purchase option exercise price (konyu-sentakuken-koshikagaku), terminal
return adjustment amount (henkanji-choseikin), break funding cost, late charges (chien-songaikin),
and any and all payment obligations of other amounts concerning SD Tranche I and SD Tranche II in
individual transactions pursuant to the Lease Agreement; provided that the Guarantor and the SD
Lessors may consult in the event of any doubt concerning “other amounts” as mentioned above.

     In any event, the Guarantor shall not pay any obligation concerning Toshiba Tranche 1 and Toshiba
Tranche 2, and all amounts owing from Lessee to the Toshiba Lessors in relation to Toshiba Tranche
1 or Toshiba Tranche 2 or otherwise are expressly excluded from the Guaranteed Obligations.

Article 2. (Period of Request for the Performance of Guarantee Obligation)

     In the event the SD Lessors demand performance of the Guarantee to the Guarantor, the SD Lessors
must make a written demand to the Guarantor for performance of the Guaranteed Obligation which the
Lessee has failed to duly and punctually perform. The SD Lessors may, upon each failure of due and
punctual performance of the Guaranteed Obligation, make demand pursuant to this Article; any delay
in making such demand will not exempt the Guarantor from the obligations under this Guarantee.

Article 3. (Performance of Guaranteed Obligation)

	3.1	 	The Guarantor shall, in the event the Lessee fails to perform all or any part of its
obligations under the Guaranteed Obligation within 10 business days from each due date, perform the
Guarantee in favor of the SD Lessors within 20 business days from the receipt of the written demand
from the SD Lessors.

 

 

	3.2	 	If there is any Guaranteed Obligation upon the occurrence of any termination event (kaijo-jiyu)
under the Lease Agreement, the Guarantor shall perform the Guarantee within 20 business days from
the receipt of the written demand from the SD Lessors.
	 
	3.3	 	If any termination event under the Lease Agreement occurs, the Guarantor may, pursuant to
Article 26, Paragraph 8 or Article 26, Paragraph 9 of the Lease Agreement, succeed the rights,
obligations and legal title of the Lessee under the Lease Agreement or the rights, obligations and
legal title of Other Guarantor (defined below) under the guarantee agreement dated the same date
hereof by and between Toshiba Corporation (the “Other Guarantor”) and the Toshiba Lessors,
whereupon such termination event shall be deemed cured.
	 
	3.4	 	The Guarantor may not exercise the right of subrogation, prior indemnity and post indemnity
with respect to the Guarantee against the Lessee until any and all receivables of the SD Lessors
and Toshiba Lessors against the Lessee in respect of this Agreement and the Lease Agreement have
been paid in full.

Article 4. (Relationship with Other Security Rights)

	4.1	 	The guarantee under this Agreement shall be granted in addition to other security interests or
guarantees held by the SD Lessors in connection with the Guaranteed Obligation, and the
effectiveness of such other securities or guarantees shall not be affected by the security
interests pursuant to this Agreement.
	 
	4.2	 	The Guarantor shall not claim exemption even if the SD Lessors, in their reasonable discretion,
alter or terminate other security interests or guarantees securing the Guaranteed Obligations,
provided, however, that the SD Lessors shall give at least fifteen (15) days prior notice to the
Guarantor in case of such alteration or termination unless the same is contemplated by the Related
Agreements (honken-kanren-keiyaku).

Article 5. (Transfer of Rights and Obligations)

     The SD Lessors and the Guarantor shall not, without obtaining prior written consent of the other
party, transfer or pledge the rights and obligations under this Agreement to any third party,
provided, however, this Article shall not prohibit any assignment by the Guarantor to persons who
acquire all or substantial part of the assets, business and shares of or in the Guarantor by means
of sale, merger, acquisition or other change in management control. In addition, in each individual
transaction, (i) pursuant to the SD Receivables Sale and Purchase Agreement
(Honken-SD-Saiken-Baibai-Keiyaku), the SD Lessors may transfer the right to demand the performance
of the Guaranteed Obligation with respect to SD Tranche I hereunder to the SD Borrower
(Honken-SD-Kariirenin) and (ii) pursuant to the SD Receivables Security Assignment Agreement

(Honken-SD-Saiken-Joto-Tampo-Keiyaku), the SD Borrower may transfer the right to demand performance
of the Guaranteed Obligation with respect to SD Tranche I hereunder to the SD Lenders
(Honken-SD-Kashitsukenin). The Guarantor hereby grants prior consent to such transfers and agrees
to cooperate with the SD Lessors in preparing and delivering the documents requested by the SD
Lessors.

 

 

Article 6. (Limited Recourse)

     The limitation of liability by the limited recourse provision pursuant to Article 29, Paragraph 1
of the Lease Agreement shall not prevent the exercise of the rights of the SD Lessors against the
Guarantor pursuant to this Agreement, nor shall the provisions thereof affect the performance of
the guarantee obligations pursuant to this Agreement.

Article 7. (Modification of the Agreement)

     This Agreement may not be modified except with the written consent of the Guarantor, the SD Lessors
and the Toshiba Lessors.

Article 8. (Governing Law)

     This Agreement shall be governed by, and construed in accordance with, the laws of Japan in every
respect.

Article 9. (Jurisdiction)

     Any and all disputes arising out of or in connection with this Agreement shall be subject to the
exclusive jurisdiction of the Tokyo District Court.

 

 

     This Guarantee Agreement shall be prepared in four counterparts and the Guarantor and the SD
Lessors shall each retain one copy hereof.

June 20, 2006

	 	 	 	 	 
	 

	 	 	 	[Guarantee Agreement]

	 

	 	Guarantor:
	 	SanDisk Corporation
	 
	 	 	 	/s/ Eli Harari 
	 

	 	 	 	By: Eli Harari
	 

	 	 	 	Title: Chief Executive Officer

 

 

	 	 	 	 	 
	 

	 	 	 	[Guarantee Agreement]

	 

	 	SD Lessor:
	 	IBJ Leasing Co., Ltd.
	 
	 	 	 	/s/ IBJ Leasing Co., Ltd.
	 

	 	 	 	By:
	 

	 	 	 	Title:

 

 

	 	 	 	 	 
	 

	 	 	 	[Guarantee Agreement]

	 

	 	SD Lessor:
	 	Sumisho Lease Co., Ltd.
	 
	 	 	 	/s/ Sumisho Lease Co., Ltd.
	 

	 	 	 	By:
	 

	 	 	 	Title:

 

 

	 	 	 	 	 
	 

	 	 	 	[Guarantee Agreement]

	 

	 	SD Lessor:
	 	Toshiba Finance Corporation
	 
	 	 	 	/s/ Toshiba Finance Corporation
	 

	 	 	 	By:
	 

	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]