<PAGE>   1

                                                                   EXHIBIT 10.50

================================================================================


                                 LEASE AGREEMENT
                                (PHASE IV - LAND)



                                     BETWEEN



                             BNP LEASING CORPORATION

                                    ("BNPLC")



                                       AND



                             NETWORK APPLIANCE, INC.

                                     ("NAI")



                               DECEMBER ___, 1999

                             (SUNNYVALE, CALIFORNIA)


================================================================================

<PAGE>   2


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----
<S>                                                                                       <C>
1.      TERM.................................................................................2
        (a)    Scheduled Term................................................................2
        (b)    Intentionally Deleted.........................................................2
        (c)    Intentionally Deleted.........................................................2
        (d)    Election by NAI to Terminate After Accelerating the Designated Sale Date......2
        (e)    Extension of the Term.........................................................3
2.      USE AND CONDITION OF THE PROPERTY....................................................3
        (a)    Use...........................................................................3
        (b)    Condition of the Property.....................................................3
        (c)    Consideration for and Scope of Waiver.........................................4
3.      RENT.................................................................................4
        (a)    Base Rent Generally...........................................................4
        (b)    Impact of Collateral Upon Formulas............................................4
        (c)    Calculation of and Due Dates for Base Rent....................................4
               (i)    Amount Payable On the Base Rent Commencement Date......................4
               (ii)   Determination of Payment Due Dates, Generally..........................5
               (iii)  Special Adjustments to Base Rent Payment Dates and Periods.............5
               (iv)   Base Rent Formula for Periods During Which The Collateral
                      Percentage is 100%.....................................................5
               (v)    Base Rent Formula for Periods During Which The Collateral Percentage is
                      Greater Than Zero and Less Than 100%...................................6
               (vi)   Base Rent Formula for Periods During Which The Collateral Percentage
                      is Zero................................................................7
        (d)    Additional Rent...............................................................7
        (e)    Intentionally Deleted.........................................................7
        (f)    Intentionally Deleted.........................................................7
        (g)    Intentionally Deleted.........................................................7
        (h)    Intentionally Deleted.........................................................7
        (i)    No Demand or Setoff...........................................................7
        (j)    Default Interest and Order of Application.....................................7
4.      NATURE OF THIS AGREEMENT.............................................................8
        (a)    Net Lease Generally...........................................................8
        (b)    No Termination................................................................8
        (c)    Tax Reporting.................................................................9
        (d)    Characterization of this Land Lease...........................................9
5.      PAYMENT OF EXECUTORY COSTS AND LOSSES RELATED TO THE PROPERTY........................9
        (a)    Impositions..................................................................10
        (b)    Increased Costs; Capital Adequacy Charges....................................10
        (c)    NAI's Payment of Other Losses; General Indemnification.......................11
        (d)    Exceptions and Qualifications to Indemnities.................................12
6.      INTENTIONALLY DELETED...............................................................13
7.      INTENTIONALLY DELETED...............................................................13
8.      ENVIRONMENTAL.......................................................................13
        (a)    Environmental Covenants by NAI...............................................13
        (b)    Right of BNPLC to do Remedial Work Not Performed by NAI......................13
</TABLE>


                                      -i-
<PAGE>   3

<TABLE>
<S>                                                                                       <C>
        (c)    Environmental Inspections and Reviews........................................14
        (d)    Communications Regarding Environmental Matters...............................14
9.      INSURANCE REQUIRED AND CONDEMNATION.................................................15
        (a)    Liability Insurance..........................................................15
        (b)    Intentionally Deleted........................................................15
        (c)    Failure to Obtain Insurance..................................................15
        (d)    Condemnation.................................................................15
        (e)    Waiver of Subrogation........................................................15
10.     APPLICATION OF INSURANCE AND CONDEMNATION PROCEEDS..................................16
        (a)    Collection and Application of Insurance and Condemnation Proceeds Generally..16
        (b)    Advances of Escrowed Proceeds to NAI.........................................16
        (c)    Application of Escrowed Proceeds as a Qualified Prepayment...................16
        (d)    Special Provisions Applicable After an Event of Default......................17
        (e)    NAI's Obligation to Restore..................................................17
        (f)    Takings of All or Substantially All of the Property on or after the Base Rent
               Commencement Date............................................................17
11.     ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF NAI CONCERNING THE PROPERTY.17
        (a)    Compliance with Covenants and Laws...........................................17
        (b)    Operation of the Property....................................................17
        (c)    Debts for Construction, Maintenance, Operation or Development................18
        (d)    Repair, Maintenance, Alterations and Additions...............................19
        (e)    Permitted Encumbrances and Development Documents.............................19
        (f)    Books and Records Concerning the Property....................................19
12.     FINANCIAL COVENANTS AND OTHER COVENANTS INCORPORATED BY REFERENCE TO SCHEDULE 1.....20
13.     FINANCIAL STATEMENTS AND OTHER REPORTS..............................................20
        (a)    Financial Statements; Required Notices; Certificates.........................20
14.     ASSIGNMENT AND SUBLETTING BY NAI....................................................21
        (a)    BNPLC's Consent Required.....................................................21
        (b)    Standard for BNPLC's Consent to Assignments and Certain Other Matters........21
        (c)    Consent Not a Waiver.........................................................22
15.     ASSIGNMENT BY BNPLC.................................................................22
        (a)    Restrictions on Transfers....................................................22
        (b)    Effect of Permitted Transfer or other Assignment by BNPLC....................22
16.     BNPLC'S RIGHT OF ACCESS.............................................................22
17.     EVENTS OF DEFAULT...................................................................23
18.     REMEDIES............................................................................24
        (a)    Basic Remedies...............................................................24
        (b)    Notice Required So Long As the Purchase Option and NAI's Initial Remarketing Rights
               and Obligations Continue Under the Purchase Agreement........................26
        (c)    Enforceability...............................................................26
        (d)    Remedies Cumulative..........................................................26
19.     DEFAULT BY BNPLC....................................................................27
20.     QUIET ENJOYMENT.....................................................................27
21.     SURRENDER UPON TERMINATION..........................................................27
22.     HOLDING OVER BY NAI.................................................................27
23.     INDEPENDENT OBLIGATIONS EVIDENCED BY THE OTHER OPERATIVE DOCUMENTS..................28
</TABLE>


                                      -ii-
<PAGE>   4

                             EXHIBITS AND SCHEDULES

<TABLE>
<S>                                                 <C>
Exhibit A....................................................................Legal Description

Exhibit B...............................................................Insurance Requirements

Exhibit C...........................................................LIBOR Period Election Form

Schedule 1..........................................Financial Covenants and Other Requirements
</TABLE>


                                      -iii-
<PAGE>   5

                                 LEASE AGREEMENT
                                (PHASE IV - LAND)


     This LEASE AGREEMENT (PHASE IV - LAND) (this "LAND LEASE"), by and between
BNP LEASING CORPORATION, a Delaware corporation ("BNPLC"), and NETWORK
APPLIANCE, INC., a California corporation ("NAI"), is made and dated as of
DECEMBER ___, 1999, the Effective Date. ("EFFECTIVE DATE" and other capitalized
terms used and not otherwise defined in this Land Lease are intended to have the
meanings assigned to them in the Common Definitions and Provisions Agreement
(Phase IV - Land) executed by BNPLC and NAI contemporaneously with this Land
Lease. By this reference, the Common Definitions and Provisions Agreement (Phase
IV - Land) is incorporated into and made a part of this Land Lease for all
purposes.)


                                    RECITALS

     Pursuant to the Existing Contract, which covers the Land described in
Exhibit A, BNPLC is acquiring the Land and any appurtenances thereto from Seller
contemporaneously with the execution of this Land Lease.

     In anticipation of BNPLC's acquisition of the Land under the Existing
Contract, BNPLC and NAI have reached agreement as to the terms and conditions
upon which BNPLC is willing to lease the Land to NAI, and by this Land Lease
BNPLC and NAI desire to evidence such agreement.

                                GRANTING CLAUSES

     BNPLC does hereby LEASE, DEMISE and LET unto NAI for the term hereinafter
set forth all right, title and interest of BNPLC, now owned or hereafter
acquired, in and to:

          (1) the Land;

          (2) all easements and other rights appurtenant to the Land, whether
     now owned or hereafter acquired by BNPLC; and

          (3) (A) any land lying within the right-of-way of any street, open or
     proposed, adjoining the Land, (B) any sidewalks and alleys adjacent to the
     Land and (C) any strips and gores between the Land and any abutting land
     not owned or leased by BNPLC.

BNPLC's interest in all property described in clauses (1) through (3) above are
hereinafter referred to collectively as the "REAL PROPERTY". The Real Property
does not include any Improvements (now existing or those to be constructed as
provided in the Other Lease Agreement) or BNPLC's rights appurtenant to the
Improvements, it being understood that the Other Lease Agreement constitutes a
separate lease of the Improvements and the appurtenances thereto, and only the
Improvements and the appurtenances thereto, from BNPLC to NAI.

     To the extent, but only to the extent, that assignable rights or interests
in, to or under the following have been or will be acquired by BNPLC under the
Existing Contract or acquired by BNPLC pursuant to Paragraph 7 below, BNPLC also
hereby grants and assigns to NAI for the term of this Land Lease the right to
use and enjoy (and, in the case of contract rights, to enforce) such rights or
interests of BNPLC:


                                      -1-
<PAGE>   6

          (a) the benefits, if any, conferred upon the owner of the Real
     Property by the Permitted Encumbrances (including the right to receive
     rents under and to otherwise enforce the Premises Leases) and Development
     Documents; and

          (b) any permits, licenses, franchises, certificates, and other rights
     and privileges against third parties related to the Real Property.

Such rights and interests of BNPLC, whether now existing or hereafter arising,
are hereinafter collectively called the "PERSONAL PROPERTY". The Real Property
and the Personal Property are hereinafter sometimes collectively called the
"PROPERTY."

     However, the leasehold estate conveyed hereby and NAI's rights hereunder
are expressly made subject and subordinate to the terms and conditions of this
Land Lease, to the Premises Leases and all other Permitted Encumbrances, and to
any other claims or encumbrances not constituting Liens Removable by BNPLC.

                          GENERAL TERMS AND CONDITIONS

     The Property is leased by BNPLC to NAI and is accepted and is to be used
and possessed by NAI upon and subject to the following terms and conditions:

     1. TERM.

          (a) Scheduled Term. The term of this Land Lease (the "TERM") shall
commence on and include the Effective Date, and end on the first Business Day of
January, 2005, unless sooner terminated as expressly herein provided.

          (b) Intentionally Deleted.

          (c) Intentionally Deleted.

          (d) Election by NAI to Terminate After Accelerating the Designated
Sale Date. NAI shall be entitled to accelerate the Designated Sale Date (and
thus accelerate the purchase of BNPLC's interest in the Property by NAI or by an
Applicable Purchaser pursuant to the Purchase Agreement) by sending a notice to
BNPLC as provided in clause (2) of the definition of "Designated Sale Date" in
the Common Definitions and Provisions Agreement (Phase IV - Land). In the event,
because of NAI's election to so accelerate the Designated Sale Date or for any
other reason, the Designated Sale Date occurs before the end of the scheduled
Term, NAI may terminate this Land Lease on or after the Designated Sale Date;
provided, however, as a condition to any such termination by NAI, NAI must have
done the following prior to the termination:

          (i) purchased or caused an Applicable Purchaser to purchase the
     Property pursuant to the Purchase Agreement and satisfied all of NAI's
     other obligations under the Purchase Agreement;

          (ii) paid to BNPLC all Base Rent and all other Rent due on or before
     or accrued through the Designated Sale Date; and

          (iii) paid any Breakage Costs caused by BNPLC's sale of the Property
     pursuant to the Purchase Agreement.


                                      -2-
<PAGE>   7

          (e) Extension of the Term. The Term may be extended at the option of
NAI for two successive periods of five years each; provided, however, that prior
to any such extension the following conditions must have been satisfied: (A) at
least ninety days prior to the commencement of any such extension, BNPLC and NAI
must have agreed in writing upon, and received the consent and approval of
BNPLC's Parent and all other Participants to (1) a corresponding extension not
only to the date for the expiration of the Term specified above in this Section,
but also to the date specified in clause (1) of the definition of Designated
Sale Date in the Common Definitions and Provisions Agreement (Phase IV - Land),
and (2) an adjustment to the Rent that NAI will be required to pay for the
extension, it being expected that the Rent for the extension may be different
than the Rent required for the original Term, and it being understood that the
Rent for any extension must in all events be satisfactory to both BNPLC and NAI,
each in its sole and absolute discretion; (B) no Event of Default shall have
occurred and be continuing at the time of NAI's exercise of its option to
extend; and (C) immediately prior to any such extension, this Land Lease must
remain in effect. With respect to the condition that BNPLC and NAI must have
agreed upon the Rent required for any extension of the Term, neither NAI nor
BNPLC is willing to submit itself to a risk of liability or loss of rights
hereunder for being judged unreasonable. Accordingly, both NAI and BNPLC hereby
disclaim any obligation express or implied to be reasonable in negotiating the
Rent for any such extension. Subject to the changes to the Rent payable during
any extension of the Term as provided in this Paragraph, if NAI exercises its
option to extend the Term as provided in this Paragraph, this Land Lease shall
continue in full force and effect, and the leasehold estate hereby granted to
NAI shall continue without interruption and without any loss of priority over
other interests in or claims against the Property that may be created or arise
after the date hereof and before the extension.

     2. USE AND CONDITION OF THE PROPERTY.

          (a) Use. Subject to the Permitted Encumbrances, the Development
Documents and the terms hereof, NAI may use and occupy the Property during the
Term, but only for the following purposes.

          (i) maintaining and using Improvements on the Land for purposes
     expressly permitted by and described in Paragraph 2(a) of the Other Lease
     Agreement; and

          (ii) other lawful purposes approved in advance and in writing by
     BNPLC, which approval will not be unreasonably withheld (but NAI
     acknowledges that BNPLC's withholding of such approval shall be reasonable
     if BNPLC determines in good faith that (1) giving the approval may
     materially increase BNPLC's risk of liability for any existing or future
     environmental problem, or (2) giving the approval is likely to
     substantially increase BNPLC's administrative burden of complying with or
     monitoring NAI's compliance with the requirements of this Land Lease or
     other Operative Documents).

          Nothing in this subparagraph will prevent a tenant under a Premises
     Lease executed by NAI, as Landlord, prior to or concurrently with the
     Effective Date, from using the space covered thereby for purposes expressly
     authorized by the terms and conditions of such Premises Lease.

          (b) Condition of the Property. NAI ACKNOWLEDGES THAT IT HAS CAREFULLY
AND FULLY INSPECTED THE PROPERTY AND ACCEPTS THE PROPERTY IN ITS PRESENT STATE,
AS IS, AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE
CONDITION OF SUCH PROPERTY OR AS TO THE USE WHICH MAY BE MADE THEREOF. NAI ALSO
ACCEPTS THE PROPERTY WITHOUT ANY COVENANT, REPRESENTATION OR WARRANTY, EXPRESS
OR IMPLIED, BY BNPLC OR ITS AFFILIATES REGARDING THE TITLE THERETO OR THE RIGHTS
OF ANY PARTIES IN POSSESSION OF ANY PART THEREOF, EXCEPT AS EXPRESSLY SET FORTH
IN PARAGRAPH 20. BNPLC SHALL NOT BE RESPONSIBLE FOR ANY LATENT OR OTHER DEFECT
OR CHANGE OF CONDITION IN THE PROPERTY OR FOR ANY VIOLATIONS WITH RESPECT
THERETO OF APPLICABLE LAWS. FURTHER, THOUGH NAI MAY OBTAIN FROM THIRD PARTIES
ANY FACILITIES OR SERVICES TO WHICH NAI


                                      -3-
<PAGE>   8

IS ENTITLED BY REASON OF THE ASSIGNMENT AND LEASE OF PERSONAL PROPERTY SET FORTH
ON PAGE 2 OF THIS LAND LEASE, BNPLC SHALL NOT BE REQUIRED TO FURNISH TO NAI ANY
FACILITIES OR SERVICES OF ANY KIND, INCLUDING WATER, STEAM, HEAT, GAS, AIR
CONDITIONING, ELECTRICITY, LIGHT OR POWER.

          (c) Consideration for and Scope of Waiver. The provisions of
subparagraph 2.(b) above have been negotiated by BNPLC and NAI after due
consideration for the Rent payable hereunder and are intended to be a complete
exclusion and negation of any representations or warranties of BNPLC or its
Affiliates, express or implied, with respect to the Property that may arise
pursuant to any law now or hereafter in effect or otherwise, except as expressly
set forth herein.

     However, such exclusion of representations and warranties by BNPLC is not
intended to impair any representations or warranties made by other parties, the
benefit of which may pass to NAI during the Term because of the definition of
Personal Property and Property above.

     3. RENT.

          (a) Base Rent Generally. On each Base Rent Date through the end of the
Term, NAI shall pay BNPLC rent ("BASE RENT"). Each payment of Base Rent must be
received by BNPLC no later than 10:00 a.m. (Pacific time) on the date it becomes
due; if received after 10:00 a.m. (Pacific time) it will be considered for
purposes of this Land Lease as received on the next following Business Day. At
least five days prior to any Base Rent Date upon which an installment of Base
Rent shall become due, BNPLC shall notify NAI in writing of the amount of each
installment, calculated as provided below. Any failure by BNPLC to so notify
NAI, however, shall not constitute a waiver of BNPLC's right to payment, but
absent such notice NAI shall not be in default hereunder for any underpayment
resulting therefrom if NAI, in good faith, reasonably estimates the payment
required, makes a timely payment of the amount so estimated and corrects any
underpayment within three Business Days after being notified by BNPLC of the
underpayment.

          (b) Impact of Collateral Upon Formulas. To ease the administrative
burden of this Land Lease and the Pledge Agreement, the formulas for calculating
Base Rent set out below in subparagraph 3.(c) reflect a reduction in the Base
Rent equal to the interest that would accrue on any Collateral provided in
accordance with the requirements of the Pledge Agreement from time to time if
the Accounts (as defined in the Pledge Agreement) bore interest at the Effective
Rate. BNPLC has agreed to such reduction to provide NAI with the economic
equivalent of interest on such Collateral, and in return NAI has agreed to the
provisions of the Pledge Agreement that excuse the actual payment of interest on
the Accounts. By incorporating such reduction of Base Rent into the formulas
below, and by providing for noninterest bearing Accounts in the Pledge
Agreement, the parties will avoid an unnecessary and cumbersome periodic
exchange of equal payments. It is not, however, the intent of BNPLC or NAI to
understate Base Rent or interest for financial reporting purposes. Accordingly,
for purposes of any financial reports that this Land Lease requires of NAI from
time to time, NAI may report Base Rent as if there had been no such reduction
and as if the Collateral from time to time provided in accordance with the
requirements of the Pledge Agreement had been maintained in Accounts bearing
interest at the Effective Rate.

          (c) Calculation of and Due Dates for Base Rent. Payments of Base Rent
shall be calculated and become due as follows:

          (i) Amount Payable On the Base Rent Commencement Date. The Base Rent
     payable for each day (including the Effective Date) prior to but not
     including the Base Rent Commencement Date shall be equal to (a) the sum of
     (1) the per annum interest rate, as determined by BNPLC, at which BNPLC can
     borrow funds overnight from BNPLC's Parent on that day, plus (2) the
     Unsecured Spread, multiplied by


                                      -4-
<PAGE>   9

     (b) the Initial Funding Advance, divided by (c) 360. All such Base Rent
shall become due on the Base Rent Commencment Date.

          (ii) Determination of Payment Due Dates, Generally. For all Base Rent
     Periods subject to a LIBOR Period Election of one month or three months,
     Base Rent shall be due in one installment on the Base Rent Date upon which
     the Base Rent Period ends. For Base Rent Periods subject to a LIBOR Period
     Election of six months, Base Rent shall be payable in two installments,
     with the first installment becoming due on the Base Rent Date that occurs
     on the first Business Day of the third calendar month following the
     commencement of such Base Rent Period, and with the second installment
     becoming due on the Base Rent Date upon which the Base Rent Period ends.

          (iii) Special Adjustments to Base Rent Payment Dates and Periods.
     Notwithstanding the foregoing:

               a) Any Base Rent Period that begins before, and does not
          otherwise end before, a Failed Collateral Test Date shall end upon but
          not include such Failed Collateral Test Date, and such Failed
          Collateral Test Date shall constitute a Base Rent Date, upon which NAI
          must pay all accrued, unpaid Base Rent for the Base Rent Period just
          ended.

               b) Consistent with clause (3) of the definition of LIBOR Period
          Election in the Common Definitions and Provisions Agreement (Phase IV
          - Land), each successive Base Rent Date after any such Failed
          Collateral Test Date shall be the first Business Day of the first
          calendar month following the calendar month which includes the
          preceding Base Rent Date, so long as any Mandatory Collateral Period
          shall continue.

               c) In addition to Base Rent due on a Failed Collateral Test Date,
          NAI must pay the Breakage Costs, if any, resulting from any early
          ending of a Base Rent Period on the Failed Collateral Test Date
          pursuant to the preceding clause 3.(c)(iii)a).

               d) If NAI or any Applicable Purchaser purchases BNPLC's interest
          in the Property pursuant to the Purchase Agreement, any accrued unpaid
          Base Rent and all outstanding Additional Rent shall be due on the date
          of purchase in addition to the purchase price and other sums due BNPLC
          under the Purchase Agreement.

          (iv) Base Rent Formula for Periods During Which The Collateral
     Percentage is 100%. Each installment of Base Rent payable for any Base Rent
     Period during which the Collateral Percentage is one hundred percent (100%)
     shall equal:

          - Stipulated Loss Value on the first day of such Base Rent Period,
            times

          - the Secured Spread for the period from and including the preceding
            Base Rent Date to but not including the Base Rent Date upon which
            the installment is due, times

          - the number of days in the period from and including the preceding
            Base Rent Date to but not including the Base Rent Date upon which
            the installment is due, divided by

          - three hundred sixty.


                                      -5-
<PAGE>   10

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is one hundred percent
     (100%); that prior to the first day of such Base Rent Period Qualified
     Prepayments have been received by BNPLC, leaving a Stipulated Loss Value of
     $20,000,000; that the Secured Spread is thirty basis points (30/100 of 1%);
     and that such Base Rent Period contains exactly thirty days. Under such
     assumptions, the Base Rent for the hypothetical Base Rent Period will
     equal:

                      $20,000,000 x .30% x 30/360 = $5,000

          (v) Base Rent Formula for Periods During Which The Collateral
     Percentage is Greater Than Zero and Less Than 100%. Each installment of
     Base Rent payable for any Base Rent Period during which the Collateral
     Percentage is greater than zero and less than one hundred percent (100%)
     shall equal:

          - Stipulated Loss Value on the first day of such Base Rent Period,
            times

          - the sum of:

               (A) the product of:

                    (1) the Collateral Percentage for such Base Rent Period,
                        times

                    (2) the Secured Spread for the period from and including the
                        preceding Base Rent Date to but not including the Base
                        Rent Date upon which the installment is due, plus

               (B) the product of:

                    (1) one minus the Collateral Percentage for such Base Rent
                        Period, times


                    (2) the sum of (a) the Effective Rate with respect to such
                        Base Rent Period, plus (b) the Unsecured Spread for the
                        period from and including the preceding Base Rent Date
                        to but not including the Base Rent Date upon which the
                        installment is due, times

          - the number of days in the period from and including the preceding
            Base Rent Date to but not including the Base Rent Date upon which
            the installment is due, divided by

          - three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is forty percent (40%); that
     prior to the first day of such Base Rent Period Qualified Prepayments have
     been received by BNPLC, leaving a Stipulated Loss Value of $20,000,000;
     that the Effective Rate for the Base Rent Period is 6%; that the Secured
     Spread is thirty basis points (30/100 of 1%); that upon the commencement of
     such Base Rent Period the Unsecured Spread is one hundred fifty


                                      -6-
<PAGE>   11
     basis points (150/100 of 1%); and that such Base Rent Period contains
     exactly thirty days. Under such assumptions, the Base Rent for the
     hypothetical Base Rent Period will equal:

                 $20,000,000 x {(40% x .30%) + ([1 - 40%] x [6% + 1.50%])}
                    x 30/360 = $77,000

          (vi) Base Rent Formula for Periods During Which The Collateral
     Percentage is Zero. Each installment of Base Rent payable for any Base Rent
     Period during which the Collateral Percentage is zero shall equal:

          - Stipulated Loss Value on the first day of such Base Rent Period,
            times

          - the sum of (a) the Effective Rate with respect to such Base Rent
            Period, plus (b) the Unsecured Spread for the period from and
            including the preceding Base Rent Date to but not including the Base
            Rent Date upon which the installment is due, times

          - the number of days in the period from and including the preceding
            Base Rent Date to but not including the Base Rent Date upon which
            the installment is due, divided by

          - three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is zero percent (0%); that
     prior to the first day of such Base Rent Period Qualified Prepayments have
     been received by BNPLC, leaving a Stipulated Loss Value of $20,000,000;
     that the Effective Rate for the Base Rent Period is 6%; that the Unsecured
     Spread is one hundred fifty basis points (150/100 of 1%) upon the
     commencement of such Base Rent Period; and that such Base Rent Period
     contains exactly thirty days. Under such assumptions, the Base Rent for the
     hypothetical Base Rent Period will equal:

                 $20,000,000 x (6% + 1.50%) x 30/360 = $125,000

          (d) Additional Rent. All amounts which NAI is required to pay to or on
behalf of BNPLC pursuant to this Land Lease, together with every charge,
premium, interest and cost set forth herein which may be added for nonpayment or
late payment thereof, shall constitute rent (all such amounts, other than Base
Rent, are herein called "ADDITIONAL RENT", and together Base Rent and Additional
Rent are herein sometimes called "RENT").

          (e) Intentionally Deleted.

          (f) Intentionally Deleted.

          (g) Intentionally Deleted.

          (h) Intentionally Deleted.

          (i) No Demand or Setoff. Except as expressly provided herein, NAI
shall pay all Rent without notice or demand and without counterclaim, deduction,
setoff or defense.

          (j) Default Interest and Order of Application. All Rent shall bear
interest, if not paid when first due, at the Default Rate in effect from time to
time from the date due until paid; provided, that nothing herein


                                      -7-
<PAGE>   12

contained will be construed as permitting the charging or collection of interest
at a rate exceeding the maximum rate permitted under Applicable Laws. BNPLC
shall be entitled to apply any amounts paid by or on behalf of NAI against any
Rent then past due in the order the same became due or in such other order as
BNPLC may elect.

     4. NATURE OF THIS AGREEMENT.

          (a) "Net" Lease Generally. Subject only to the exceptions listed in
subparagraph 5.(d) below, it is the intention of BNPLC and NAI that Base Rent
and other payments herein specified shall be absolutely net to BNPLC and that
NAI shall pay all costs, expenses and obligations of every kind relating to the
Property or this Land Lease which may arise or become due, including: (i) any
taxes payable by virtue of BNPLC's receipt of amounts paid to or on behalf of
BNPLC in accordance with Paragraph 5; (ii) any amount for which BNPLC is or
becomes liable with respect to the Permitted Encumbrances or the Development
Documents; and (iii) any costs incurred by BNPLC (including Attorneys' Fees)
because of BNPLC's acquisition or ownership of any interest in the Property or
because of this Land Lease or the transactions contemplated herein.

     However, neither this subparagraph 4.(a) nor the indemnity in this
subparagraph 5.(c)(i) shall be construed to make NAI liable for (I) an
allocation of general overhead or internal administrative expenses of BNPLC or
any other Interested Party or (II) any duplicate payment of the same Loss to
both BNPLC and another Interested Party. (If, for example, BNPLC were required
to make a $10 fine because of a failure of the Property to comply with
Applicable Laws, and a Participant were required by the Participation Agreement
to reimburse BNPLC for 20% of the $10, NAI would not be required by this
subparagraph 4.(a) or by subparagraph 5.(c)(i) to pay both $10 to BNPLC and $2
to the Participant on account of the fine.)

          (b) No Termination. Except as expressly provided in this Land Lease
itself, this Land Lease shall not terminate, nor shall NAI have any right to
terminate this Land Lease, nor shall NAI be entitled to any abatement of the
Rent, nor shall the obligations of NAI under this Land Lease be excused, for any
reason whatsoever, including any of the following: (i) any damage to or the
destruction of all or any part of the Property from whatever cause, (ii) the
taking of the Property or any portion thereof by eminent domain or otherwise for
any reason, (iii) the prohibition, limitation or restriction of NAI's use or
development of all or any portion of the Property or any interference with such
use by governmental action or otherwise, (iv) any eviction of NAI or of anyone
claiming through or under NAI, (v) any default on the part of BNPLC under this
Land Lease or under any other agreement to which BNPLC and NAI are parties, (vi)
the inadequacy in any way whatsoever of the Property (it being understood that
BNPLC has not made, does not make and will not make any representation express
or implied as to the adequacy thereof), (vii) any latent or other defect in the
Property or any change in the condition thereof or the existence with respect to
the Property of any violations of Applicable Laws, or (viii) any other cause
whether similar or dissimilar to the foregoing. It is the intention of the
parties hereto that the obligations of NAI hereunder shall be separate and
independent of the covenants and agreements of BNPLC, that Base Rent and all
other sums payable by NAI hereunder shall continue to be payable in all events
and that the obligations of NAI hereunder shall continue unaffected, unless the
requirement to pay or perform the same shall have been terminated or limited
pursuant to an express provision of this Land Lease. Without limiting the
foregoing, NAI waives to the extent permitted by Applicable Laws, except as
otherwise expressly provided herein, all rights to which NAI may now or
hereafter be entitled by law (including any such rights arising because of any
implied "warranty of suitability" or other warranty under Applicable Laws) (i)
to quit, terminate or surrender this Land Lease or the Property or any part
thereof or (ii) to any abatement, suspension, deferment or reduction of the
Rent.

     However, nothing in this subparagraph 4.(b) shall be construed as a waiver
by NAI of any right NAI may have at law or in equity to the following remedies,
whether because of BNPLC's failure to remove a Lien Removable by BNPLC or
because of any other default by BNPLC under this Land Lease that continues
beyond the


                                      -8-
<PAGE>   13

period for cure provided in Paragraph 19: (i) the recovery of monetary damages,
(ii) injunctive relief in case of the violation, or attempted or threatened
violation, by BNPLC of any of the express covenants, agreements, conditions or
provisions of this Land Lease which are binding upon BNPLC (including the
confidentiality provisions set forth in subparagraph 16.(c) below), or (iii) a
decree compelling performance by BNPLC of any of the express covenants,
agreements, conditions or provisions of this Land Lease which are binding upon
BNPLC.

          (c) Tax Reporting. BNPLC and NAI shall report this Land Lease and the
Purchase Agreement for federal income tax purposes as a conditional sale unless
prohibited from doing so by the Internal Revenue Service. If the Internal
Revenue Service shall challenge BNPLC's characterization of this Land Lease and
the Purchase Agreement as a conditional sale for federal income tax reporting
purposes, BNPLC shall notify NAI in writing of such challenge and consider in
good faith any reasonable suggestions by NAI about an appropriate response. In
any event, NAI shall (subject only to the limitations set forth in this
subparagraph) indemnify and hold harmless BNPLC from and against all
liabilities, costs, additional taxes (other than Excluded Taxes) and other
expenses that may arise or become due because of such challenge or because of
any resulting recharacterization required by the Internal Revenue Service,
including any additional taxes that may become due upon any sale under the
Purchase Agreement to the extent (if any) that such additional taxes are not
offset by tax savings resulting from additional depreciation deductions or other
tax benefits to BNPLC of the recharacterization. If BNPLC receives a written
notice of any challenge by the Internal Revenue Service that BNPLC believes will
be covered by this Paragraph, then BNPLC shall promptly furnish a copy of such
notice to NAI. The failure to so provide a copy of the notice to NAI shall not
excuse NAI from its obligations under this Paragraph; provided, that if none of
the officers of NAI and none of the employees of NAI responsible for tax matters
are aware of the challenge described in the notice and such failure by BNPLC
renders unavailable defenses that NAI might otherwise assert, or precludes
actions that NAI might otherwise take, to minimize its obligations hereunder,
then NAI shall be excused from its obligation to indemnify BNPLC against
liabilities, costs, additional taxes and other expenses, if any, which would not
have been incurred but for such failure. For example, if BNPLC fails to provide
NAI with a copy of a notice of a challenge by the Internal Revenue Service
covered by the indemnities set out in this Land Lease and NAI is not otherwise
already aware of such challenge, and if as a result of such failure BNPLC
becomes liable for penalties and interest covered by the indemnities in excess
of the penalties and interest that would have accrued if NAI had been promptly
provided with a copy of the notice, then NAI will be excused from any obligation
to BNPLC to pay the excess.

          (d) Characterization of this Land Lease. For purposes of determining
the appropriate financial accounting for this Land Lease and for purposes of
determining their respective rights and remedies under state law, BNPLC and NAI
believe and intend that (i) this Land Lease constitutes a true lease, not a mere
financing arrangement, enforceable in accordance with its express terms, and the
preceding subparagraph is not intended to affect the enforcement of any other
provisions of this Land Lease or the Purchase Agreement, and (ii) the Purchase
Agreement shall constitute a separate and independent contract, enforceable in
accordance with the express terms and conditions set forth therein. In this
regard, NAI acknowledges that NAI asked BNPLC to participate in the transactions
evidenced by this Land Lease and the Purchase Agreement as a landlord and owner
of the Property, not as a lender. Although other transactions might have been
used to accomplish similar results, NAI expects to receive certain material
accounting and other advantages through the use of a lease transaction.
Accordingly, and notwithstanding the reporting for income tax purposes described
in the preceding subparagraph, NAI cannot equitably deny that this Land Lease
and the Purchase Agreement should be construed and enforced in accordance with
their respective terms, rather than as a mortgage or other security device, in
any action brought by BNPLC to enforce this Land Lease or the Purchase
Agreement.

     5. PAYMENT OF EXECUTORY COSTS AND LOSSES RELATED TO THE PROPERTY.


                                      -9-
<PAGE>   14

          (a) Impositions. Subject only to the exceptions listed in subparagraph
5.(d) below, NAI shall pay or cause to be paid prior to delinquency all ad
valorem taxes assessed against the Property and other Impositions. If requested
by BNPLC from time to time, NAI shall furnish BNPLC with receipts showing
payment of all Impositions prior to the applicable delinquency date therefor.

     Notwithstanding the foregoing, NAI may in good faith, by appropriate
proceedings, contest the validity, applicability or amount of any asserted
Imposition, and pending such contest NAI shall not be deemed in default under
any of the provisions of this Land Lease because of the Imposition if (1) NAI
diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPLC, and (2) NAI promptly causes to be paid any amount
adjudged by a court of competent jurisdiction to be due, with all costs,
penalties and interest thereon, promptly after such judgment becomes final;
provided, however, in any event each such contest shall be concluded and the
contested Impositions must be paid by NAI prior to the earlier of (i) the date
that any criminal prosecution is instituted or overtly threatened against BNPLC
or its directors, officers or employees because of the nonpayment thereof or
(ii) the date any writ or order is issued under which any property owned or
leased by BNPLC (including the Property) may be seized or sold or any other
action is taken against BNPLC or against any property owned or leased by BNPLC
because of the nonpayment thereof, or (iii) any Designated Sale Date upon which,
for any reason, NAI or an Affiliate of NAI or any Applicable Purchaser shall not
purchase BNPLC's interest in the Property pursuant to the Purchase Agreement for
a price to BNPLC (when taken together with any additional payments made by NAI
pursuant to Paragraph 1(A)(2) of the Purchase Agreement, in the case of a
purchase by an Applicable Purchaser) equal to the Break Even Price.

          (b) Increased Costs; Capital Adequacy Charges. Subject only to the
exceptions listed in subparagraph 5.(d) below:

          (i) If after the Effective Date there shall be any increase in the
     cost to BNPLC's Parent or any other Participant agreeing to make or making,
     funding or maintaining advances to BNPLC in connection with the Property
     because of any Banking Rules Change, then NAI shall from time to time, pay
     to BNPLC for the account of BNPLC's Parent or such other Participant, as
     the case may be, additional amounts sufficient to compensate BNPLC's Parent
     or the Participant for such increased cost. An increase in costs resulting
     from any imposition or increase of reserve requirements applicable to
     Collateral held from time to time by BNPLC's Parent or other Participants
     pursuant to the Pledge Agreement would be an increase covered by the
     preceding sentence. A certificate as to the amount of such increased cost,
     submitted to BNPLC and NAI by BNPLC's Parent or the other Participant,
     shall be conclusive and binding upon NAI, absent clear and demonstrable
     error.

          (ii) BNPLC's Parent or any other Participant may demand additional
     payments ("CAPITAL ADEQUACY CHARGES") if BNPLC's Parent or the other
     Participant determines that any Banking Rules Change affects the amount of
     capital to be maintained by it and that the amount of such capital is
     increased by or based upon the existence of advances made or to be made to
     BNPLC to permit BNPLC to maintain BNPLC's investment in the Property. To
     the extent that BNPLC's Parent or another Participant demands Capital
     Adequacy Charges as compensation for the additional capital requirements
     reasonably allocable to such investment or advances, NAI shall pay to BNPLC
     for the account of BNPLC's Parent or the other Participant, as the case may
     be, the amount so demanded. Without limiting the foregoing, BNPLC and NAI
     hereby acknowledge and agree that the provisions for calculating Base Rent
     set forth herein reflect the assumption that the Pledge Agreement will
     cause a zero percent (0%) risk weight to be assigned to a percentage (equal
     to the Collateral Percentage) of the collective investment of BNPLC and the
     Participants in the Property pursuant to 12 Code of Federal Regulations,
     part 225, as from time to time supplemented or amended, or pursuant to any
     other similar or successor statute or regulation applicable to BNPLC and
     the


                                      -10-
<PAGE>   15

     Participants. If and so long as such risk weight is increased the assumed
     amount of zero percent (0%) because of a Banking Rules Change, Capital
     Adequacy Charges may be collected to yield the same rate of return to
     BNPLC, BNPLC's Parent and any other Participants (net of their costs of
     maintaining required capital) that they would have enjoyed from this Land
     Lease absent such increase.

          (iii) Any amount required to be paid by NAI under this subparagraph
     5.(b) shall be due ten days after a demand for such payment is received by
     NAI.

          (c) NAI's Payment of Other Losses; General Indemnification. Subject
only to the exceptions listed in subparagraph 5.(d) below:

          (i) All Losses (including Environmental Losses) asserted against or
     incurred or suffered by BNPLC or other Interested Parties at any time and
     from time to time by reason of, in connection with or arising out of (A)
     their ownership or alleged ownership of any interest in the Property or the
     Rents, (B) the use and operation of the Property, (C) the negotiation,
     administration or enforcement of the Operative Documents, (D) the making of
     the Initial Funding Advance, (E) the Premises Leases, (F) the breach by NAI
     of this Land Lease or any other document executed by NAI in connection
     herewith, (G) any failure of the Property or NAI itself to comply with
     Applicable Laws, (H) Permitted Encumbrances, (I) Hazardous Substance
     Activities, including those occurring prior to Effective Date, (J) any
     obligations under the Existing Contract related to the Property that
     survive the closing thereunder, or (K) any bodily or personal injury or
     death or property damage occurring in or upon or in the vicinity of the
     Property through any cause whatsoever, shall be paid by NAI, and NAI shall
     indemnify and defend BNPLC and other Interested Parties from and against
     all such Losses.

          (ii) THE INDEMNITIES AND RELEASES PROVIDED HEREIN FOR THE BENEFIT OF
     BNPLC AND OTHER INTERESTED PARTIES, INCLUDING THE INDEMNITY SET FORTH IN
     THE PRECEDING SUBPARAGRAPH 5.(c)(i), SHALL APPLY EVEN IF AND WHEN THE
     SUBJECT MATTERS OF THE INDEMNITIES AND RELEASES ARE CAUSED BY OR ARISE OUT
     OF THE NEGLIGENCE OR STRICT LIABILITY OF BNPLC OR ANOTHER INTERESTED PARTY.
     FURTHER, SUCH INDEMNITIES AND RELEASES WILL APPLY EVEN IF INSURANCE
     OBTAINED BY NAI OR REQUIRED OF NAI BY THIS LAND LEASE OR OTHER OPERATIVE
     DOCUMENTS IS NOT ADEQUATE TO COVER LOSSES AGAINST OR FOR WHICH THE
     INDEMNITIES AND RELEASES ARE PROVIDED. NAI'S LIABILITY, HOWEVER, FOR ANY
     FAILURE TO OBTAIN INSURANCE REQUIRED BY THIS LAND LEASE OR OTHER OPERATIVE
     DOCUMENTS WILL NOT BE LIMITED TO LOSSES AGAINST WHICH INDEMNITIES ARE
     PROVIDED HEREIN, IT BEING UNDERSTOOD THAT SUCH INSURANCE IS INTENDED TO DO
     MORE THAN PROVIDE A SOURCE OF PAYMENT FOR LOSSES AGAINST WHICH BNPLC AND
     OTHER INTERESTED PARTIES ARE ENTITLED TO INDEMNIFICATION BY THIS LAND
     LEASE.

          (iii) Costs and expenses for which NAI shall be responsible pursuant
     to this subparagraph 5.(c) will include appraisal fees, filing and
     recording fees, inspection fees, survey fees, taxes, brokerage fees and
     commissions, abstract fees, title policy fees, Uniform Commercial Code
     search fees, escrow fees and Attorneys' Fees incurred by BNPLC with respect
     to the Property, whether such costs and expenses are incurred at the time
     of execution of this Land Lease or at any time during the Term.


                                      -11-
<PAGE>   16

          (iv) NAI's obligations under this subparagraph 5.(c) shall survive the
     termination or expiration of this Land Lease. Any amount to be paid by NAI
     under this subparagraph 5.(c) shall be due ten days after a demand for such
     payment is received by NAI.

          (v) If an Interested Party notifies NAI of any claim or proceeding
     included in, or any investigation or allegation concerning, Losses for
     which NAI is responsible pursuant to this subparagraph 5.(c), NAI shall
     assume on behalf of the Interested Party and conduct with due diligence and
     in good faith the investigation and defense thereof and the response
     thereto with counsel selected by NAI, but satisfactory to the Interested
     Party; provided, that the Interested Party shall have the right to be
     represented by advisory counsel of its own selection and at its own
     expense; and provided further, that if any such claim, proceeding,
     investigation or allegation involves both NAI and the Interested Party and
     the Interested Party shall have reasonably concluded that there are legal
     defenses available to it which are inconsistent with or in addition to
     those available to NAI, then the Interested Party shall have the right to
     select separate counsel to participate in the investigation and defense of
     and response to such claim, proceeding, investigation or allegation on its
     own behalf, and NAI shall pay or reimburse the Interested Party for all
     Attorney's Fees incurred by the Interested Party because of the selection
     of such separate counsel. If NAI fails to assume promptly (and in any event
     within fifteen days after being notified of the applicable claim,
     proceeding, investigation or allegation) the defense of the Interested
     Party, then the Interested Party may contest (or settle, with the prior
     consent of NAI, which consent will not be unreasonably withheld) the claim,
     proceeding, investigation or allegation at NAI's expense using counsel
     selected by the Interested Party. Moreover, if any such failure by NAI
     continues for forty-five days or more after NAI is notified of any such
     claim, proceeding, investigation or allegation, the Interested Party may
     elect not to contest or continue contesting the same and instead, in
     accordance with the written advice of counsel, settle (or pay in full) all
     claims related thereto without NAI's consent and without releasing NAI from
     any obligations to the Interested Party under this subparagraph 5.(c).

          (d) Exceptions and Qualifications to Indemnities.

          (i) BNPLC acknowledges and agrees that nothing in subparagraph 4.(a)
     or the preceding subparagraphs of this Paragraph 5 shall be construed to
     require NAI to pay or reimburse an Interested Party for (w) any costs or
     expenses incurred by BNPLC or any transferee to accomplish any Permitted
     Transfers described in clauses (2), (3), (4), (6) or (7) of the definition
     thereof in the Common Definitions and Provisions Agreement (Phase IV -
     Land), (x) Excluded Taxes, (y) Losses incurred or suffered by such
     Interested Party that are proximately caused by (and attributed by any
     applicable principles of comparative fault to) the Established Misconduct
     of that Interested Party, or (z) Losses incurred or suffered by
     Participants in connection with their negotiation or execution of the
     Participation Agreement or Pledge Agreement (or supplements making them
     parties thereto) or in connection with any due diligence they may undertake
     before entering into the Participation Agreement or Pledge Agreement.
     Further, without limiting BNPLC's rights (as provided in other provisions
     of this Land Lease and other Operative Documents) to include the following
     in the calculation of Stipulated Loss Value or the Break Even Price or
     collect Base Rent, a Supplemental Payment and other amounts, the
     calculation of which depends upon the Stipulated Loss Value or the Break
     Even Price, BNPLC acknowledges and agrees that nothing in subparagraph
     4.(a) or the preceding subparagraphs of this Paragraph 5 shall be construed
     to require NAI to pay or reimburse an Interested Party for costs paid by
     BNPLC with the proceeds of the Initial Funding Advance as part of the
     Transaction Expenses.

     Further, if an Interested Party receives a written notice of Losses that
     such Interested Party believes are covered by the indemnity in subparagraph
     5.(c)(i), then such Interested Party will be expected to promptly


                                      -12-
<PAGE>   17

     furnish a copy of such notice to NAI. The failure to so provide a copy of
     the notice to NAI shall not excuse NAI from its obligations under
     subparagraph 5.(c)(i); provided, that if NAI is unaware of the matters
     described in the notice and such failure renders unavailable defenses that
     NAI might otherwise assert, or precludes actions that NAI might otherwise
     take, to minimize its obligations, then NAI shall be excused from its
     obligation to indemnify such Interested Party (and any Affiliate of such
     Interested Party) against the Losses, if any, which would not have been
     incurred or suffered but for such failure. For example, if BNPLC fails to
     provide NAI with a copy of a notice of an obligation covered by the
     indemnity set out in subparagraph 5.(c)(i) and NAI is not otherwise already
     aware of such obligation, and if as a result of such failure BNPLC becomes
     liable for penalties and interest covered by the indemnity in excess of the
     penalties and interest that would have accrued if NAI had been promptly
     provided with a copy of the notice, then NAI will be excused from any
     obligation to BNPLC (or any Affiliate of BNPLC) to pay the excess.

     6. INTENTIONALLY DELETED.

     7. INTENTIONALLY DELETED.

     8. ENVIRONMENTAL.

          (a) Environmental Covenants by NAI. NAI covenants that:

          (i) NAI shall not conduct or permit others to conduct Hazardous
     Substance Activities, except Permitted Hazardous Substance Use and Remedial
     Work.

          (ii) NAI shall not discharge or permit the discharge of anything on or
     from the Property that would require any permit under applicable
     Environmental Laws, other than (1) storm water runoff, (2) waste water
     discharges through a publicly owned treatment works, (3) discharges that
     are a necessary part of any Remedial Work, and (4) other similar discharges
     consistent with the definition herein of Permitted Hazardous Substance Use,
     in each case in strict compliance with Environmental Laws.

          (iii) Following any discovery that Remedial Work is required by
     Environmental Laws or otherwise believed by BNPLC to be reasonably
     required, and to the extent not inconsistent with the other provisions of
     this Land Lease, NAI shall promptly perform and diligently and continuously
     pursue such Remedial Work, in each case in strict compliance with
     Environmental Laws.

          (iv) If requested by BNPLC in connection with any Remedial Work
     required by this subparagraph, NAI shall retain independent environmental
     consultants acceptable to BNPLC to evaluate any significant new information
     generated during NAI's implementation of the Remedial Work and to discuss
     with NAI whether such new information indicates the need for any additional
     measures that NAI should take to protect the health and safety of persons
     (including employees, contractors and subcontractors and their employees)
     or to protect the environment. NAI shall implement any such additional
     measures to the extent required with respect to the Property by
     Environmental Laws or otherwise believed by BNPLC to be reasonably required
     and to the extent not inconsistent with the other provisions of this Land
     Lease.

          (b) Right of BNPLC to do Remedial Work Not Performed by NAI. If NAI's
failure to cure any breach of the covenants set forth in subparagraph 8.(a)
continues beyond the Environmental Cure Period (as defined below), BNPLC may, in
addition to any other remedies available to it, conduct all or any part of the


                                      -13-
<PAGE>   18

Remedial Work. To the extent that Remedial Work is done by BNPLC pursuant to the
preceding sentence (including any removal of Hazardous Substances), the cost
thereof shall be a demand obligation owing by NAI to BNPLC. As used in this
subparagraph, "ENVIRONMENTAL CURE PERIOD" means the period ending on the earlier
of: (1) one hundred eighty days after NAI is notified of the breach which must
be cured within such period, (2) the date that any writ or order is issued for
the levy or sale of any property owned by BNPLC (including the Property) because
of such breach, (3) the date that any criminal action is instituted or overtly
threatened against BNPLC or any of its directors, officers or employees because
of such breach, or (4) any Designated Sale Date upon which, for any reason, NAI
or an Affiliate of NAI or any Applicable Purchaser shall not purchase BNPLC's
interest in the Property pursuant to the Purchase Agreement for a net price to
BNPLC (when taken together with any Supplemental Payment made by NAI pursuant to
Paragraph 1(A)(2) of the Purchase Agreement, in the case of a purchase by an
Applicable Purchaser) equal to Stipulated Loss Value.

          (c) Environmental Inspections and Reviews. BNPLC reserves the right to
retain environmental consultants to review any report prepared by NAI or to
conduct BNPLC's own investigation to confirm whether NAI is complying with the
requirements of this Paragraph 8. NAI grants to BNPLC and to BNPLC's agents,
employees, consultants and contractors the right to enter upon the Property at
any time to inspect the Property and to perform such tests as BNPLC deems
necessary or appropriate to review or investigate Hazardous Substances in, on,
under or about the Property or any discharge or suspected discharge of Hazardous
Substances into groundwater or surface water from the Property. NAI shall
promptly reimburse BNPLC for the fees of its environmental consultants and the
costs of any such inspections and tests.

          (d) Communications Regarding Environmental Matters.

          (i) NAI shall immediately advise BNPLC of (1) any discovery of any
     event or circumstance which would render any of the representations of NAI
     herein or in the Closing Certificate concerning environmental matters
     materially inaccurate or misleading if made at the time of such discovery
     and assuming that NAI was aware of all relevant facts, (2) any Remedial
     Work (or change in Remedial Work) required or undertaken by NAI or its
     Affiliates in response to any (A) discovery of any Hazardous Substances on,
     under or about the Property other than Permitted Hazardous Substances or
     (B) any claim for damages resulting from Hazardous Substance Activities,
     (3) NAI's discovery of any occurrence or condition on any real property
     adjoining or in the vicinity of the Property which could cause the Property
     or any part thereof to be subject to any ownership, occupancy,
     transferability or use restrictions under Environmental Laws, or (4) any
     investigation or inquiry of any failure or alleged failure by NAI to comply
     with Environmental Laws affecting the Property by any governmental
     authority responsible for enforcing Environmental Laws. In such event, NAI
     shall deliver to BNPLC within thirty days after BNPLC's request, a
     preliminary written environmental plan setting forth a general description
     of the action that NAI proposes to take with respect thereto, if any, to
     bring the Property into compliance with Environmental Laws or to correct
     any breach by NAI of this Paragraph 8, including any proposed Remedial
     Work, the estimated cost and time of completion, the name of the contractor
     and a copy of the construction contract, if any, and such additional data,
     instruments, documents, agreements or other materials or information as
     BNPLC may request.

          (ii) NAI shall provide BNPLC with copies of all material written
     communications with federal, state and local governments, or agencies
     relating to the matters listed in the preceding clause (i). NAI shall also
     provide BNPLC with copies of any correspondence from third Persons which
     threaten litigation over any significant failure or alleged significant
     failure of NAI to maintain or operate the Property in accordance with
     Environmental Laws.


                                      -14-
<PAGE>   19

          (iii) Prior to NAI's submission of a Material Environmental
     Communication to any governmental or regulatory agency or third party, NAI
     shall, to the extent practicable, deliver to BNPLC a draft of the proposed
     submission (together with the proposed date of submission), and in good
     faith assess and consider any comments of BNPLC regarding the same.
     Promptly after BNPLC's request, NAI shall meet with BNPLC to discuss the
     submission, shall provide any additional information requested by BNPLC and
     shall provide a written explanation to BNPLC addressing the issues raised
     by comments (if any) of BNPLC regarding the submission, including a
     reasoned analysis supporting any decision by NAI not to modify the
     submission in accordance with comments of BNPLC.

     9. INSURANCE REQUIRED AND CONDEMNATION.

          (a) Liability Insurance. Throughout the Term NAI shall maintain
commercial general liability insurance against claims for bodily and personal
injury, death and property damage occurring in or upon or resulting from any
occurrence in or upon the Property under one or more insurance policies that
satisfy the requirements set forth in Exhibit B. NAI shall deliver and maintain
with BNPLC for each liability insurance policy required by this Land Lease
written confirmation of the policy and the scope of the coverage provided
thereby issued by the applicable insurer or its authorized agent, which
confirmation must also satisfy the requirements set forth in Exhibit B.

          (b) Intentionally Deleted.

          (c) Failure to Obtain Insurance. If NAI fails to obtain any insurance
or to provide confirmation of any such insurance as required by this Land Lease,
BNPLC shall be entitled (but not required) to obtain the insurance that NAI has
failed to obtain or for which NAI has not provided the required confirmation
and, without limiting BNPLC's other remedies under the circumstances, BNPLC may
require NAI to reimburse BNPLC for the cost of such insurance and to pay
interest thereon computed at the Default Rate from the date such cost was paid
by BNPLC until the date of reimbursement by NAI.

          (d) Condemnation. Immediately upon obtaining knowledge of the
institution of any proceedings for the condemnation of the Property or any
portion thereof, or any other similar governmental or quasi-governmental
proceedings arising out of injury or damage to the Property or any portion
thereof, each party shall notify the other (provided, however, BNPLC shall have
no liability for its failure to provide such notice) of the pendency of such
proceedings. NAI shall, at its expense, diligently prosecute any such
proceedings and shall consult with BNPLC, its attorneys and experts and
cooperate with them as requested in the carrying on or defense of any such
proceedings. All proceeds of condemnation awards or proceeds of sale in lieu of
condemnation with respect to the Property and all judgments, decrees and awards
for injury or damage to the Property shall be paid to BNPLC as Escrowed
Proceeds, and all such proceeds will be applied as provided in Paragraph 10.
BNPLC is hereby authorized, in the name of NAI, at any time when an Event of
Default shall have occurred and be continuing, or otherwise with NAI's prior
consent, to execute and deliver valid acquittances for, and to appeal from, any
such judgment, decree or award concerning condemnation of any of the Property.
BNPLC shall not be in any event or circumstances liable or responsible for
failure to collect, or to exercise diligence in the collection of, any such
proceeds, judgments, decrees or awards.

          (e) Waiver of Subrogation. NAI, for itself and for any Person claiming
through it (including any insurance company claiming by way of subrogation),
waives any and every claim which arises or may arise in its favor against BNPLC
or any other Interested Party and the officers, directors, and employees of the
Interested Parties for any and all Losses, to the extent that NAI is compensated
by insurance or would be compensated by the insurance policies contemplated in
this Land Lease, but for any deductible or self-insured retention maintained


                                      -15-
<PAGE>   20

under such insurance or but for a failure of NAI to maintain the insurance as
required by this Land Lease. NAI agrees to have such insurance policies properly
endorsed so as to make them valid notwithstanding this waiver, if such
endorsement is required to prevent a loss of insurance.

     10. APPLICATION OF INSURANCE AND CONDEMNATION PROCEEDS.

          (a) Collection and Application of Insurance and Condemnation Proceeds
Generally. This Paragraph 10 shall govern the application of proceeds received
by BNPLC or NAI during the Term from any third party (1) as compensation for any
restriction placed upon the use or development of the Property or for the
condemnation of the Property or any portion thereof, or (2) because of any
judgment, decree or award for injury or damage to the Property (e.g.,damage
resulting from a third party's release of Hazardous Materials onto the
Property); excluding, however, any funds paid to BNPLC by BNPLC's Parent, by an
Affiliate of BNPLC or by any Participant that is made to compensate BNPLC for
any Losses BNPLC may suffer or incur in connection with this Land Lease or the
Property. NAI will promptly pay over to BNPLC any insurance, condemnation or
other proceeds covered by this Paragraph 10 which NAI may receive from any
insurer, condemning authority or other third party. All proceeds covered by this
Paragraph 10, including those received by BNPLC from NAI or third parties, shall
be applied as follows:

          (i) First, proceeds covered by this Paragraph 10 will be used to
     reimburse BNPLC for any costs and expenses, including Attorneys' Fees, that
     BNPLC incurred to collect the proceeds.

          (ii) Second, the proceeds remaining after such reimbursement to BNPLC
     (hereinafter, the "REMAINING PROCEEDS") will be applied, as hereinafter
     more particularly provided, either as a Qualified Prepayment or to
     reimburse NAI or BNPLC for the actual out-of-pocket costs of repairing or
     restoring the Property. Until, however, any Remaining Proceeds received by
     BNPLC are applied by BNPLC as a Qualified Prepayment or applied by BNPLC to
     reimburse costs of repairs to or restoration of the Property pursuant to
     this Paragraph 10, BNPLC shall hold and maintain such Remaining Proceeds as
     Escrowed Proceeds in an interest bearing account, and all interest earned
     on such account shall be added to and made a part of such Escrowed
     Proceeds.

          (b) Advances of Escrowed Proceeds to NAI. Except as otherwise provided
below in this Paragraph 10, BNPLC shall advance all Remaining Proceeds held by
it as Escrowed Proceeds to reimburse NAI for the actual out-of-pocket cost to
NAI of repairing or restoring the Property in accordance with the requirements
of this Land Lease and the other Operative Documents as the applicable repair or
restoration progresses and upon compliance by NAI with such terms, conditions
and requirements as may be reasonably imposed by BNPLC. In no event, however,
shall BNPLC be required to pay Escrowed Proceeds to NAI in excess of the actual
out-of-pocket cost to NAI of the applicable repair or restoration, as evidenced
by invoices or other documentation satisfactory to BNPLC, it being understood
that BNPLC may retain and apply any such excess as a Qualified Prepayment.

          (c) Application of Escrowed Proceeds as a Qualified Prepayment.
Provided no Event of Default shall have occurred and be continuing, BNPLC shall
apply any Remaining Proceeds paid to it (or other amounts available for
application as a Qualified Prepayment) as a Qualified Prepayment on any date
that BNPLC is directed to do so by a notice from NAI; however, if such a notice
from NAI specifies an effective date for a Qualified Prepayment that is less
than five Business Days after BNPLC's actual receipt of the notice, BNPLC may
postpone the date of the Qualified Prepayment to any date not later than five
Business Days after BNPLC's receipt of the notice. In any event, except when
BNPLC is required by the preceding sentence to apply Remaining Proceeds or other
amounts as a Qualified Prepayment on a Base Rent Date, BNPLC may deduct Breakage
Costs incurred in connection with any Qualified Prepayment from the Remaining
Proceeds or other amounts available for


                                      -16-
<PAGE>   21

application as the Qualified Prepayment, and NAI will reimburse BNPLC upon
request for any such Breakage Costs that BNPLC incurs but does not deduct.

          (d) Special Provisions Applicable After an Event of Default.
Notwithstanding the foregoing, when any Event of Default shall have occurred and
be continuing, BNPLC shall be entitled to receive and collect all insurance,
condemnation or other proceeds governed by this Paragraph 10 and to apply all
Remaining Proceeds, when and to the extent deemed appropriate by BNPLC in its
sole discretion, either (A) to the reimbursement of NAI or BNPLC for the
out-of-pocket cost of repairing or restoring the Property, or (B) as Qualified
Prepayments.

          (e) NAI's Obligation to Restore. Regardless of the adequacy of any
Remaining Proceeds available to NAI hereunder, and notwithstanding other
provisions of this Land Lease to the contrary, if the Property is damaged by
fire or other casualty or less than all or substantially all of the Property is
taken by condemnation, NAI must:

          (i) increase the value of the Property or the remainder thereof by
     restoring the same (in a manner consistent with the requirements and
     limitations imposed by this Land Lease and the other Operative Documents or
     otherwise acceptable to BNPLC), or decrease Stipulated Loss Value by
     tendering a payment to BNPLC for application as a Qualified Prepayment, as
     necessary to cause Current AS IS Market Value to be not less than sixty
     percent (60%) of Stipulated Loss Value; and

          (ii) restore the Property or the remainder thereof to a reasonably
     safe and sightly condition.

          (f) Takings of All or Substantially All of the Property on or after
the Base Rent Commencement Date. In the event of any taking of all or
substantially all of the Property on or after the Base Rent Commencement Date,
BNPLC shall be entitled to apply all Remaining Proceeds as a Qualified
Prepayment. In addition, if Stipulated Loss Value immediately prior to any such
taking exceeds the sum of the Remaining Proceeds resulting from such
condemnation, then BNPLC shall be entitled to recover the excess from NAI upon
demand as an additional Qualified Prepayment, whereupon this Land Lease shall
terminate. Any taking of so much of the Real Property as, in BNPLC's reasonable
good faith judgment, makes it impracticable to restore or improve the remainder
thereof as required by part (2) of the preceding subparagraph shall be
considered a taking of substantially all the Property for purposes of this
Paragraph 10.

     11. ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF NAI CONCERNING
THE PROPERTY. NAI represents, warrants and covenants as follows:

          (a) Compliance with Covenants and Laws. The use of the Property
permitted by this Land Lease complies, or will comply after NAI obtains
available permits as the tenant under this Land Lease, in all material respects
with all Applicable Laws. NAI has obtained or will promptly obtain all utility,
building, health and operating permits as may be required by any governmental
authority or municipality having jurisdiction over the Property for any
construction upon or use of the Property permitted by this Land Lease.

          (b) Operation of the Property. During the Term, NAI shall operate the
Property in a good and workmanlike manner and substantially in compliance with
all Applicable Laws and will pay or cause to be paid all fees or charges of any
kind in connection therewith. (If NAI does not promptly correct any failure of
the Property to comply with Applicable Laws that is the subject of a written
notice given to NAI or BNPLC by any governmental authority, then for purposes of
the preceding sentence, NAI shall be considered not to have


                                      -17-
<PAGE>   22

maintained the Property "substantially in accordance with Applicable Laws"
whether or not the noncompliance would be substantial in the absence of the
notice.) During the Term, NAI shall not use or occupy, or allow the use or
occupancy of, the Property in any manner which violates any Applicable Law or
which constitutes a public or private nuisance or which makes void, voidable or
cancelable any insurance then in force with respect thereto. During the Term, to
the extent that any of the following would, individually or in the aggregate,
materially and adversely affect the value of the Property or NAI's use,
occupancy or operations on the Property, NAI shall not, without BNPLC's prior
consent: (i) initiate or permit any zoning reclassification of the Property;
(ii) seek any variance under existing zoning ordinances applicable to the
Property; (iii) use or permit the use of the Property in a manner that would
result in such use becoming a nonconforming use under applicable zoning
ordinances or similar laws, rules or regulations; (iv) execute or file any
subdivision plat affecting the Property; or (v) consent to the annexation of the
Property to any municipality. If (A) a change in the zoning or other Applicable
Laws affecting the permitted use or development of the Property shall occur
after the Base Rent Commencement Date that reduces the value of the Property, or
(B) conditions or circumstances on or about the Property are discovered after
the Base Rent Commencement Date (such as the presence of an endangered species)
which substantially impede development and thereby reduce the value of the
Property, and if after any such reduction under clause (A) or (B) preceding the
Current AS IS Market Value of the Property is less than sixty percent (60%) of
Stipulated Loss Value, then NAI shall pay BNPLC upon request the amount by which
Current AS IS Market Value is less than sixty percent (60%) of Stipulated Loss
Value, for application as a Qualified Prepayment. During the Term, NAI shall not
cause or permit any drilling or exploration for, or extraction, removal or
production of, minerals from the surface or subsurface of the Property, and NAI
shall not do any act whereby the market value of the Property may reasonably be
expected to be materially lessened. During the Term, if NAI receives a written
notice or claim from any federal, state or other governmental entity that the
Property is not in compliance in any material respect with any Applicable Law,
or that any action may be taken against the owner of the Property because the
Property does not comply with Applicable Law, NAI shall promptly furnish a copy
of such notice or claim to BNPLC.

     Notwithstanding the foregoing, NAI may in good faith, by appropriate
proceedings, contest the validity and applicability of any Applicable Law with
respect to the Property, and pending such contest NAI shall not be deemed in
default hereunder because of the violation of such Applicable Law, if NAI
diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPLC, and if NAI promptly causes the Property to comply with
any such Applicable Law upon a final determination by a court of competent
jurisdiction that the same is valid and applicable to the Property; provided,
however, in any event such contest shall be concluded and the violation of such
Applicable Law must be corrected by NAI and any claims asserted against BNPLC or
the Property because of such violation must be paid by NAI, all prior to the
earlier of (i) the date that any criminal prosecution is instituted or overtly
threatened against BNPLC or any of its directors, officers or employees because
of such violation, (ii) the date that any action is taken by any governmental
authority against BNPLC or any property owned by BNPLC (including the Property)
because of such violation, or (iii) a Designated Sale Date upon which, for any
reason, NAI or an Affiliate of NAI or any Applicable Purchaser shall not
purchase BNPLC's interest in the Property pursuant to the Purchase Agreement for
a price to BNPLC (when taken together with any additional payments made by NAI
pursuant to Paragraph 1(A)(2) of the Purchase Agreement, in the case of a
purchase by an Applicable Purchaser) equal to the Break Even Price.

          (c) Debts for Construction, Maintenance, Operation or Development. NAI
shall cause all debts and liabilities incurred in the construction, maintenance,
operation or development of the Property, including all debts and liabilities
for labor, material and equipment and all debts and charges for utilities
servicing the Property, to be promptly paid; provided, that nothing in this
subparagraph will be construed to require NAI to remove Liens Removable by
BNPLC.


                                      -18-
<PAGE>   23

     Notwithstanding the foregoing, NAI may in good faith, by appropriate
proceedings, contest the validity, applicability or amount of any asserted
mechanic's or materialmen's lien and pending such contest NAI shall not be
deemed in default under this subparagraph because of the contested lien if (1)
within sixty days after being asked to do so by BNPLC, NAI bonds over to BNPLC's
reasonable satisfaction all such contested liens against the Property alleged to
secure an amount in excess of $500,000 (individually or in the aggregate), (2)
NAI diligently prosecutes such contest to completion in a manner reasonably
satisfactory to BNPLC, and (3) NAI promptly causes to be paid any amount
adjudged by a court of competent jurisdiction to be due, with all costs and
interest thereon, promptly after such judgment becomes final; provided, however,
that in any event each such contest shall be concluded and the lien, interest
and costs must be paid by NAI prior to the earlier of (i) the date that any
criminal prosecution is instituted or overtly threatened against BNPLC or its
directors, officers or employees because of the nonpayment thereof, (ii) the
date that any writ or order is issued under which the Property or any other
property in which BNPLC has an interest may be seized or sold or any other
action is taken against BNPLC or any property in which BNPLC has an interest
because of the nonpayment thereof, or (iii) a Designated Sale Date upon which,
for any reason, NAI or an Affiliate of NAI or any Applicable Purchaser shall not
purchase BNPLC's interest in the Property pursuant to the Purchase Agreement for
a price to BNPLC (when taken together with any additional payments made by NAI
pursuant to Paragraph 1(A)(2) of the Purchase Agreement, in the case of a
purchase by an Applicable Purchaser) equal to the Break Even Price.

          (d) Repair, Maintenance, Alterations and Additions. NAI shall keep the
Property in good order, operating condition and appearance and shall cause all
necessary repairs, renewals and replacements to be promptly made. NAI will not
allow any of the Property to be materially misused, abused or wasted. NAI shall
not, without the prior consent of BNPLC, make material new Improvements or alter
Improvements in any material respect. Without limiting the foregoing, NAI will
notify BNPLC before making any significant alterations to the Improvements.

     The parties acknowledge that NAI has proposed to BNPLC that additional
Improvements be constructed on the Land in the future, and BNPLC has consented
thereto, provided that (1) no Event of Default has occurred and is continuing,
and (b) BNPLC is satisfied, in its sole discretion, that (i) the location,
configuration, architectural style, and manner and type of construction of such
additional Improvements shall not reduce the value of the Improvements taken as
a whole and will otherwise be constructed in accordance with the requirements of
this Lease, and (ii) such additional Improvements will comply with all
Applicable Laws.

          (e) Permitted Encumbrances and Development Documents. NAI shall during
the Term comply with and will cause to be performed all of the covenants,
agreements and obligations imposed upon the owner of any interest in the
Property by the Permitted Encumbrances (including the Premises Leases) or the
Development Documents. Without limiting the foregoing, NAI shall cause all
amounts to be paid when due, the payment of which is secured by any Lien against
the Property created by the Permitted Encumbrances. Without the prior consent of
BNPLC, NAI shall not enter into, initiate, approve or consent to any
modification of any Permitted Encumbrance or Development Document that would
create or expand or purport to create or expand obligations or restrictions
which would encumber BNPLC's interest in the Property. (Whether BNPLC must give
any such consent requested by NAI during the Term of this Land Lease shall be
governed by subparagraph 3(A) of the Closing Certificate and Agreement.)

          (f) Books and Records Concerning the Property. NAI shall keep books
and records that are accurate and complete in all material respects for the
Property and, subject to Paragraph 16.(c), will permit all such books and
records to be inspected and copied by BNPLC. This subparagraph shall not be
construed as requiring NAI to regularly maintain separate books and records
relating exclusively to the Property; provided, however, that


                                      -19-
<PAGE>   24

upon request, NAI shall construct or abstract from its regularly maintained
books and records information required by this subparagraph relating to the
Property.

     12. FINANCIAL COVENANTS AND OTHER COVENANTS INCORPORATED BY REFERENCE TO
SCHEDULE 1. Throughout the Term of this Land Lease, NAI shall comply with the
requirements of Schedule 1 attached hereto.

     13. FINANCIAL STATEMENTS AND OTHER REPORTS.

          (a) Financial Statements; Required Notices; Certificates. Throughout
the Term of this Land Lease, NAI shall deliver to BNPLC and to each Participant:

          (i) as soon as available and in any event within one hundred twenty
     days after the end of each fiscal year of NAI, a consolidated balance sheet
     of NAI and its Consolidated Subsidiaries as of the end of such fiscal year
     and a consolidated income statement and statement of cash flows of NAI and
     its Consolidated Subsidiaries for such fiscal year, all in reasonable
     detail and all prepared in accordance with GAAP and accompanied by a report
     and opinion of accountants of national standing selected by NAI, which
     report and opinion shall be prepared in accordance with generally accepted
     auditing standards and shall not be subject to any qualifications or
     exceptions as to the scope of the audit nor to any qualification or
     exception which BNPLC determines, in BNPLC's reasonable discretion, is
     unacceptable;

          (ii) as soon as available and in any event within sixty days after the
     end of each of the first three quarters of each fiscal year of NAI, the
     consolidated balance sheet of NAI and its Consolidated Subsidiaries as of
     the end of such quarter and the consolidated income statement and the
     consolidated statement of cash flows of NAI and its Consolidated
     Subsidiaries for the period commencing at the end of the previous fiscal
     year and ending with the end of such quarter, all in reasonable detail and
     all prepared in accordance with GAAP and certified by the chief financial
     officer or controller of NAI (subject to year-end adjustments);

          (iii) together with the financial statements furnished in accordance
     with subparagraph 13.(a)(i) and 13.(a)(ii), a certificate of the chief
     financial officer or controller of NAI: (i) certifying that to the
     knowledge of NAI no Default or Event of Default under this Land Lease has
     occurred and is continuing or, if a Default or Event of Default has
     occurred and is continuing, a brief statement as to the nature thereof and
     the action which is proposed to be taken with respect thereto, (ii)
     certifying that the representations of NAI set forth in the Operative
     Documents are true and correct in all material respects as of the date
     thereof as though made on and as of the date thereof or, if not then true
     and correct, a brief statement as to why such representations are no longer
     true and correct, and (iii) with computations demonstrating compliance with
     the financial covenants contained in Schedule 1;

          (iv) within five days after the end of each calendar month, a
     certificate of the chief financial officer or controller of NAI certifying
     that at the end of the preceding calendar month, NAI had sufficient cash
     and other assets described in Paragraph 1 of Part II of Schedule 1 to
     comply with the requirements of that paragraph;

          (v) promptly after the sending or filing thereof, copies of all proxy
     statements, financial statements and reports which NAI sends to NAI's
     stockholders, and copies of all regular, periodic and special reports, and
     all registration statements (other than registration statements on Form S-8
     or any form substituted


                                      -20-
<PAGE>   25

     therefor) which NAI files with the Securities and Exchange Commission or
     any governmental authority which may be substituted therefor, or with any
     national securities exchange;

          (vi) upon request by BNPLC, a statement in writing certifying that the
     Operative Documents are unmodified and in full effect (or, if there have
     been modifications, that the Operative Documents are in full effect as
     modified, and setting forth such modifications) and the dates to which the
     Base Rent has been paid and either stating that to the knowledge of NAI no
     Default or Event of Default under this Land Lease has occurred and is
     continuing or, if a Default or Event of Default under this Land Lease has
     occurred and is continuing, a brief statement as to the nature thereof; it
     being intended that any such statement by NAI may be relied upon by any
     prospective purchaser or mortgagee of the Property and by the Participants

          (vii) as soon as possible after, and in any event within ten days
     after NAI becomes aware that, any of the following has occurred, with
     respect to which the potential aggregate liability to NAI relating thereto
     is $500,000 or more, a notice signed by a senior financial officer of NAI
     setting forth details of the following and the response, if any, which NAI
     or its ERISA Affiliate proposes to take with respect thereto (and a copy of
     any report or notice required to be filed with or given to PBGC by NAI or
     an ERISA Affiliate with respect to any of the following or the events or
     conditions leading up to the following): (A) the assertion, to secure any
     Unfunded Benefit Liabilities, of any Lien against the assets of NAI,
     against the assets of any Plan or Multiemployer Plan or against any
     interest of BNPLC or NAI in the Property, or (B) the taking of any action
     by the PBGC or any other governmental authority against NAI to terminate
     any Plan of NAI or any ERISA Affiliate of NAI or to cause the appointment
     of a trustee or receiver to administer any such Plan; and

          (viii) such other information respecting the condition or operations,
     financial or otherwise, of NAI, of any of its Subsidiaries or of the
     Property as BNPLC or any Participant through BNPLC may from time to time
     reasonably request.

BNPLC is hereby authorized to deliver a copy of any information or certificate
delivered to it pursuant to this subparagraph 13.(a) to BNPLC's Parent, to the
Participants and to any regulatory body having jurisdiction over BNPLC or
BNPLC's Parent or any Participant that requires or requests it.

     14. ASSIGNMENT AND SUBLETTING BY NAI.

          (a) BNPLC's Consent Required. Without the prior consent of BNPLC, NAI
shall not assign, transfer, mortgage, pledge or hypothecate this Land Lease or
any interest of NAI hereunder and shall not sublet all or any part of the
Property, by operation of law or otherwise; provided, that this provision will
not be construed to prohibit (I) any sublease of space within Improvements
expressly permitted by the Other Lease Agreement and (II) subject to
subparagraph 14.(c) below, this provision shall not be construed to prohibit any
Premises Lease described in the Other Common Definitions and Provisions
Agreement or any transfer or sublease by a lessee thereunder which is authorized
by the Premises Lease.

          (b) Standard for BNPLC's Consent to Assignments and Certain Other
Matters. Consents and approvals of BNPLC which are required by this Paragraph 14
will not be unreasonably withheld or delayed, but NAI acknowledges that BNPLC's
withholding of such consent or approval shall be reasonable if BNPLC determines
in good faith that (1) giving the approval may materially increase BNPLC's risk
of liability for any existing or future environmental problem, or (2) giving the
approval is likely to increase BNPLC's administrative burden of complying with
or monitoring NAI's compliance with the requirements of this Land Lease.


                                      -21-
<PAGE>   26

          (c) Consent Not a Waiver. No consent by BNPLC to a sale, assignment,
transfer, mortgage, pledge or hypothecation of this Land Lease or NAI's interest
hereunder, and no assignment or subletting of the Property or any part thereof
in accordance with this Land Lease or otherwise with BNPLC's consent, shall
release NAI from liability hereunder; and any such consent shall apply only to
the specific transaction thereby authorized and shall not relieve NAI from any
requirement of obtaining the prior consent of BNPLC to any further sale,
assignment, transfer, mortgage, pledge or hypothecation of this Land Lease or
any interest of NAI hereunder.

     15. ASSIGNMENT BY BNPLC.

          (a) Restrictions on Transfers. Except by a Permitted Transfer, BNPLC
shall not assign, transfer, mortgage, pledge, encumber or hypothecate this Land
Lease or the other Operative Documents or any interest of BNPLC in and to the
Property during the Term without the prior consent of NAI, which consent NAI may
withhold in its sole discretion. Further, notwithstanding anything to the
contrary herein contained, if withholding taxes are imposed on the rents and
other amounts payable to BNPLC hereunder because of BNPLC's assignment of this
Land Lease to any citizen of, or any corporation or other entity formed under
the laws of, a country other than the United States, NAI shall not be required
to compensate BNPLC or any such assignee for the withholding tax. If, in breach
of this subparagraph, BNPLC transfer the Property or any part thereof by a
conveyance or that does not constitute a Permitted Transfer, with the result
that additional transfer taxes or other Impositions are assessed against the
Property or the owner thereof, BNPLC shall be required to pay such additional
transfer taxes or other Impositions.

          (b) Effect of Permitted Transfer or other Assignment by BNPLC. If,
without breaching subparagraph 15.(a), BNPLC sells or otherwise transfers the
Property and assigns all of its rights under this Land Lease and the other
Operative Documents, then BNPLC shall thereby be released from any obligations
arising after such assumption under this Land Lease or the other Operative
Documents, and NAI shall look solely to each successor in interest of BNPLC for
performance of such obligations.

     16. BNPLC'S RIGHT OF ACCESS.

          (a) During the Term, BNPLC and BNPLC's representatives may (subject to
subparagraph 16.(c)) enter the Property at any reasonable time after five
Business Days advance written notice to NAI for the purpose of making
inspections or performing any work BNPLC is authorized to undertake by the next
subparagraph or for the purpose confirming whether NAI has complied with the
requirements of this Land Lease or the other Operative Documents.

          (b) If NAI fails to perform any act or to take any action required of
it by this Land Lease or the Closing Certificate, or to pay any money which NAI
is required by this Land Lease or the Closing Certificate to pay, and if such
failure or action constitutes an Event of Default or renders BNPLC or any
director, officer, employee or Affiliate of BNPLC at risk of criminal
prosecution or renders BNPLC's interest in the Property or any part thereof at
risk of forfeiture by forced sale or otherwise, then in addition to any other
remedies specified herein or otherwise available, BNPLC may, perform or cause to
be performed such act or take such action or pay such money. Any expenses so
incurred by BNPLC, and any money so paid by BNPLC, shall be a demand obligation
owing by NAI to BNPLC. Further, BNPLC, upon making such payment, shall be
subrogated to all of the rights of the person, corporation or body politic
receiving such payment. But nothing herein shall imply any duty upon the part of
BNPLC to do any work which under any provision of this Land Lease NAI may be
required to perform, and the performance thereof by BNPLC shall not constitute a
waiver of NAI's default. BNPLC may during the progress of any such work
permitted by BNPLC hereunder on or in the Property keep and store upon the
Property all necessary materials, tools, and equipment. BNPLC shall not in any
event be liable for inconvenience, annoyance,


                                      -22-
<PAGE>   27

disturbance, loss of business, or other damage to NAI or the subtenants or
invitees of NAI by reason of making such repairs or the performance of any such
work on or in the Property, or on account of bringing materials, supplies and
equipment into or through the Property during the course of such work (except
for any liability in excess of the liability insurance limits established in
Exhibit B resulting from death or injury or damage to the property of third
parties caused by the Established Misconduct of BNPLC or its officers,
employees, or agents in connection therewith), and the obligations of NAI under
this Land Lease shall not thereby be excused in any manner.

          (c) NAI shall have no obligation to provide proprietary information
(as defined in the next sentence) to BNPLC, except and to the extent that (1)
BNPLC reasonably determines that BNPLC cannot accomplish the purposes of BNPLC's
inspection of the Property or exercise of other rights granted pursuant to the
various express provisions of this Land Lease and the other Operative Documents
without evaluating such information. For purposes of this Land Lease
"PROPRIETARY INFORMATION" includes NAI's intellectual property, trade secrets
and other confidential information of value to NAI about, among other things,
NAI's manufacturing processes, products, marketing and corporate strategies, but
in no event will "proprietary information" include any disclosure of substances
and materials (and their chemical composition) which are or previously have been
present in, on or under the Property at the time of any inspections by BNPLC,
nor will "proprietary information" include any additional disclosures reasonably
required to permit BNPLC to determine whether the presence of such substances
and materials has constituted a violation of Environmental Laws. In addition,
under no circumstances shall NAI have any obligation to disclose to BNPLC or any
other party any proprietary information of NAI (including, without limitation,
any pending applications for patents or trademarks, any research and design and
any trade secrets) except if and to the limited extent reasonably necessary to
comply with the express provisions of this Land Lease or the other Operative
Documents.

     17. EVENTS OF DEFAULT. Each of the following events shall be an "EVENT OF
DEFAULT" by NAI under this Land Lease:

          (a) NAI shall fail to pay when due any installment of Rent due
hereunder and such failure shall continue for three (3) Business Days after NAI
is notified in writing thereof.

          (b) NAI shall fail to cause any representation or warranty of NAI
contained herein or in the Closing Certificate that was false or misleading in
any material respect when made to be made true and not misleading (other than as
described in the other clauses of this Paragraph 17), or NAI shall fail to
comply with any term, provision or covenant of this Land Lease or the Closing
Certificate (other than as described in the other clauses of this Paragraph 17),
and in either case shall not cure such failure prior to the earlier of (A)
thirty days after written notice thereof is sent to NAI or (B) the date any writ
or order is issued for the levy or sale of any property owned by BNPLC
(including the Property) or any criminal prosecution is instituted or overtly
threatened against BNPLC or any of its directors, officers or employees because
of such failure; provided, however, that so long as no such writ or order is
issued and no such criminal prosecution is instituted or overtly threatened, the
period within which such failure may be cured by NAI shall be extended for a
further period (not to exceed an additional sixty days) as shall be necessary
for the curing thereof with diligence, if (but only if) (x) such failure is
susceptible of cure but cannot with reasonable diligence be cured within such
thirty day period, (y) NAI shall promptly have commenced to cure such failure
and shall thereafter continuously prosecute the curing thereof with reasonable
diligence and (z) the extension of the period for cure will not, in any event,
cause the period for cure to extend beyond five days prior to the expiration of
this Land Lease.

          (c) NAI shall abandon the Property.


                                      -23-
<PAGE>   28

          (d) NAI or any Subsidiary shall fail to make any payment or payments
of principal, premium or interest, of Debt of NAI described in the next sentence
when due (taking into consideration the time NAI may have to cure such failure,
if any, under the documents governing such Debt). As used in this clause
14(a)(v), "DEBT" shall include only Debt (as defined in the Common Definitions
and Provisions Agreement (Phase IV - Land)) of NAI or any of its Subsidiaries
now existing or arising in the future (a) payable to BNPLC or any Affiliate of
BNPLC, or (B) payable to any other Person and with respect to which $3,000,000
or more is actually due and payable because of acceleration or otherwise.

          (e) NAI: (a) shall generally not, or be unable to, or shall admit in
writing its inability to, pay its debts as such debts become due; or (b) shall
make an assignment for the benefit of creditors, petition or apply to any
tribunal for the appointment of a custodian, receiver or trustee for it or a
substantial part of its assets; or (c) shall file any petition or application to
commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect; or (d) shall have had any such
petition or application filed against it; or (e) by any act or omission shall
indicate its consent to, approval of or acquiescence in any such petition,
application or proceeding or order for relief or the appointment of a custodian,
receiver or trustee for all or any substantial part of its property; or (f)
shall suffer any such custodianship, receivership or trusteeship to continue
undischarged for a period of sixty days or more.

          (f) One or more final judgments, decrees or orders for the payment of
money in excess of $3,000,000 in the aggregate shall be rendered against NAI and
such judgments, decrees or orders shall continue unsatisfied and in effect for a
period of thirty consecutive days without NAI's having obtained an agreement (or
after the expiration or termination of an agreement) of the Persons entitled to
enforce such judgment, decrees or orders not to enforce the same pending
negotiations with NAI concerning the satisfaction or other discharge of the
same.

          (g) NAI shall breach the requirements of Paragraph 12, which by
reference to Schedule 1 establishes certain financial covenants and other
requirements.

          (h) as of the effective date of this Land Lease, any of the
representations or warranties of NAI contained in subparagraphs 2(A) - (J) of
the Closing Certificate shall be false or misleading in any material respect.

          (i) NAI shall fail to pay the full amount of any Supplemental Payment
required by the Purchase Agreement on the Designated Sale Date or shall fail to
provide Collateral as and when due pursuant to the Pledge Agreement Documents.

          (j) NAI shall fail to comply with any term, provision or condition of
the Pledge Agreements after the expiration of any applicable notice and cure
period set forth in the Pledge Agreement.

     18. REMEDIES.

          (a) Basic Remedies. At any time after an Event of Default and after
BNPLC has given any notice required by subparagraph 18.(b), BNPLC shall be
entitled at BNPLC's option (and without limiting BNPLC in the exercise of any
other right or remedy BNPLC may have, and without any further demand or notice
except as expressly described in this subparagraph 18.(a)), to exercise any one
or more of the following remedies:

          (i) By notice to NAI, BNPLC may terminate NAI's right to possession of
     the Property. A notice given in connection with unlawful detainer
     proceedings specifying a time within which to cure a


                                      -24-
<PAGE>   29

default shall terminate NAI's right to possession if NAI fails to cure the
default within the time specified in the notice.

          (ii) Upon termination of NAI's right to possession and without further
     demand or notice, BNPLC may re-enter the Property in any manner not
     prohibited by Applicable Law and take possession of all improvements,
     additions, alterations, equipment and fixtures thereon and remove any
     persons in possession thereof. Any property on the Land may be removed and
     stored in a warehouse or elsewhere at the expense and risk of and for the
     account of NAI.

          (iii) Upon termination of NAI's right to possession, this Land Lease
     shall terminate and BNPLC may recover from NAI:

               a) The worth at the time of award of the unpaid Rent which had
          been earned at the time of termination;

               b) The worth at the time of award of the amount by which the
          unpaid Rent which would have been earned after termination until the
          time of award exceeds the amount of such rental loss that NAI proves
          could have been reasonably avoided;

               c) The worth at the time of award of the amount by which the
          unpaid Rent for the balance of the scheduled Term after the time of
          award exceeds the amount of such rental loss that NAI proves could be
          reasonably avoided; and

               d) Any other amount necessary to compensate BNPLC for all the
          detriment proximately caused by NAI's failure to perform NAI's
          obligations under this Land Lease or which in the ordinary course of
          things would be likely to result therefrom, including the costs and
          expenses (including Attorneys' Fees, advertising costs and brokers'
          commissions) of recovering possession of the Property, removing
          persons or property therefrom, placing the Property in good order,
          condition, and repair, preparing and altering the Property for
          reletting, all other costs and expenses of reletting, and any loss
          incurred by BNPLC as a result of NAI's failure to perform NAI's
          obligations under the other Operative Documents.

          The "WORTH AT THE TIME OF AWARD" of the amounts referred to in
          subparagraph 18.(a)(iii)a) and subparagraph 18.(a)(iii)b) shall be
          computed by allowing interest at the Default Rate. The "WORTH AT THE
          TIME OF AWARD" of the amount referred to in subparagraph 18.(a)(iii)c)
          shall be computed by discounting such amount at the discount rate of
          the Federal Reserve Bank of San Francisco at the time of award plus
          one percent (1%).

               e) Such other amounts in addition to or in lieu of the foregoing
          as may be permitted from time to time by applicable California law.

          (iv) BNPLC shall have the remedy described in California Civil Code
     Section 1951.4 (lessor may continue lease in force even after lessee's
     breach and abandonment and recover rent as it becomes due, if lessee has
     right to sublet or assign, subject only to reasonable limitations).
     Accordingly, even if NAI has breached this Land Lease and abandoned the
     Property, this Land Lease shall continue in effect for so long as BNPLC
     does not terminate NAI's right to possession, and BNPLC may enforce all of
     BNPLC's rights and remedies under this Land Lease, including the right to
     recover the Rent as it becomes due under this Land Lease. NAI's right to
     possession shall not be deemed to have been terminated by


                                      -25-
<PAGE>   30

               BNPLC except pursuant to subparagraph 18.(a)(i) hereof. The
        following shall not constitute a termination of NAI's right to
        possession:

               a) Acts of maintenance or preservation or efforts to relet the
          Property;

               b) The appointment of a receiver upon the initiative of BNPLC to
          protect BNPLC's interest under this Land Lease; or

               c) Reasonable withholding of consent to an assignment or
          subletting, or terminating a subletting or assignment by NAI.

          (b) Notice Required So Long As the Purchase Option and NAI's Initial
Remarketing Rights and Obligations Continue Under the Purchase Agreement. So
long as NAI remains in possession of the Property and there has been no
termination of the Purchase Option and NAI's Initial Remarketing Rights and
Obligations as provided Paragraph 4 of the Purchase Agreement, BNPLC's right to
exercise remedies provided in subparagraph 18.(a) will be subject to the
condition precedent that BNPLC shall have notified NAI, at a time when an Event
of Default shall have occurred and be continuing, of BNPLC's intent to exercise
remedies provided in subparagraph 18.(a) at least sixty days prior to exercising
the remedies. The condition precedent is intended to provide NAI with an
opportunity to exercise the Purchase Option or NAI's Initial Remarketing Rights
and Obligations before losing possession of the Property pursuant to
subparagraph 18.(a). The condition precedent is not, however, intended to extend
any period for curing an Event of Default. Accordingly, if an Event of Default
has occurred, and regardless of whether any Event of Default is then continuing,
BNPLC may proceed immediately to exercise remedies provided in subparagraph
18.(a) at any time after the earlier of (i) sixty days after BNPLC has given
such a notice to NAI, (ii) any date upon which NAI relinquishes possession of
the Property, or (iii) any termination of the Purchase Option and NAI's Initial
Remarketing Rights and Obligations.

          (c) Enforceability. This Paragraph 18 shall be enforceable to the
maximum extent not prohibited by Applicable Law, and the unenforceability of any
provision in this Paragraph shall not render any other provision unenforceable.

          (d) Remedies Cumulative. No right or remedy herein conferred upon or
reserved to BNPLC is intended to be exclusive of any other right or remedy, and
each and every such right and remedy shall be cumulative and in addition to any
other right or remedy given to BNPLC hereunder or now or hereafter existing in
favor of BNPLC under Applicable Law or in equity. In addition to other remedies
provided in this Land Lease, BNPLC shall be entitled, to the extent permitted by
Applicable Law or in equity, to injunctive relief in case of the violation, or
attempted or threatened violation, of any of the covenants, agreements,
conditions or provisions of this Land Lease, or to a decree compelling
performance of any of the other covenants, agreements, conditions or provisions
of this Land Lease to be performed by NAI, or to any other remedy allowed to
BNPLC at law or in equity. Nothing contained in this Land Lease shall limit or
prejudice the right of BNPLC to prove for and obtain in proceedings for
bankruptcy or insolvency of NAI by reason of the termination of this Land Lease,
an amount equal to the maximum allowed by any statute or rule of law in effect
at the time when, and governing the proceedings in which, the damages are to be
proved, whether or not the amount be greater, equal to, or less than the amount
of the loss or damages referred to above. Without limiting the generality of the
foregoing, nothing contained herein shall modify, limit or impair any of the
rights and remedies of BNPLC under the Purchase Documents, and BNPLC shall not
be required to give the sixty day notice described in subparagraph 18.(b) as a
condition precedent to any acceleration of the Designated Sale Date or to taking
any action to enforce the Purchase Documents.


                                      -26-
<PAGE>   31

     19. DEFAULT BY BNPLC. If BNPLC should default in the performance of any of
its obligations under this Land Lease, BNPLC shall have the time reasonably
required, but in no event less than thirty days, to cure such default after
receipt of notice from NAI specifying such default and specifying what action
NAI believes is necessary to cure the default. If NAI prevails in any litigation
brought against BNPLC because of BNPLC's failure to cure a default within the
time required by the preceding sentence, then NAI shall be entitled to an award
against BNPLC for the monetary damages proximately caused to NAI by such
default.

     Notwithstanding the foregoing, BNPLC's right to cure as provided in this
Paragraph 19 will not in any event extend the time within which BNPLC must
remove Liens Removable by BNPLC as required by Paragraph 20 beyond the
Designated Sale Date.

     20. QUIET ENJOYMENT. Provided NAI pays the Base Rent and all Additional
Rent payable hereunder as and when due and payable and keeps and fulfills all of
the terms, covenants, agreements and conditions to be performed by NAI
hereunder, BNPLC shall not during the Term disturb NAI's peaceable and quiet
enjoyment of the Property; however, such enjoyment shall be subject to the
terms, provisions, covenants, agreements and conditions of this Land Lease, to
Permitted Encumbrances, to Development Documents and to any other claims not
constituting Liens Removable by BNPLC. If any Lien Removable by BNPLC is claimed
against the Property, BNPLC will remove the Lien Removable by BNPLC promptly.
Any breach by BNPLC of this Paragraph shall render BNPLC liable to NAI for any
monetary damages proximately caused thereby, but as more specifically provided
in subparagraph 4.(b) above, no such breach shall entitle NAI to terminate this
Land Lease or excuse NAI from its obligation to pay Rent.

     21. SURRENDER UPON TERMINATION. Unless NAI or an Applicable Purchaser
purchases or has purchased BNPLC's entire interest in the Property pursuant to
the terms of the Purchase Agreement and BNPLC's entire interest in the
Improvements and other "Property" under (and as defined in) the Other Purchase
Agreement, NAI shall, upon the termination of NAI's right to occupancy,
surrender to BNPLC the Property, including Improvements constructed by NAI and
fixtures and furnishings included in the Property, free of all Hazardous
Substances (including Permitted Hazardous Substances) and tenancies and with all
Improvements in substantially the same condition as of the date the same were
initially completed, excepting only (i) ordinary wear and tear that occurs
between the maintenance, repairs and replacements required by other provisions
of this Land Lease or the Other Lease Agreement, and (ii) demolition,
alterations and additions which are expressly permitted by the terms of this
Land Lease or the Other Lease Agreement and which have been completed by NAI in
a good and workmanlike manner in accordance with all Applicable Laws. Any
movable furniture or movable personal property belonging to NAI or any party
claiming under NAI, if not removed at the time of such termination and if BNPLC
shall so elect, shall be deemed abandoned and become the property of BNPLC
without any payment or offset therefor. If BNPLC shall not so elect, BNPLC may
remove such property from the Property and store it at NAI's risk and expense.

     22. HOLDING OVER BY NAI. Should NAI not purchase BNPLC's right, title and
interest in the Property as provided in the Purchase Agreement, but nonetheless
continue to hold the Property after the termination of this Land Lease without
BNPLC's consent, whether such termination occurs by lapse of time or otherwise,
such holding over shall constitute and be construed as a tenancy from day to day
only, at a daily Base Rent equal to: (i) Stipulated Loss Value on the day in
question, times (ii) the Default Rate for such day; divided by (iii) three
hundred and sixty; subject, however, to all of the terms, provisions, covenants
and agreements on the part of NAI hereunder. No payments of money by NAI to
BNPLC after the termination of this Land Lease shall reinstate, continue or
extend the Term of this Land Lease and no extension of this Land Lease after the
termination thereof shall be valid unless and until the same shall be reduced to
writing and signed by both BNPLC and NAI.


                                      -27-
<PAGE>   32

     23. INDEPENDENT OBLIGATIONS EVIDENCED BY THE OTHER OPERATIVE DOCUMENTS. NAI
acknowledges and agrees that nothing contained in this Land Lease shall limit,
modify or otherwise affect any of NAI's obligations under the other Operative
Documents, which obligations are intended to be separate, independent and in
addition to, and not in lieu of, the obligations set forth herein. In the event
of any inconsistency between the express terms and provisions of the Purchase
Documents and the express terms and provisions of this Land Lease, the express
terms and provisions of the Purchase Documents shall control. In the event of
any inconsistency between the express terms and provisions of the Closing
Certificate and the express terms and provisions of this Land Lease, the express
terms and provisions of this Land Lease shall control; provided, nothing herein
will limit or impair NAI's obligations under the Closing Certificate following
any expiration of termination of this Land Lease.


                          [The signature pages follow.]




                                      -28-
<PAGE>   33

     IN WITNESS WHEREOF, NAI and BNPLC have caused this Land Lease Agreement to
be executed as of December ___, 1999.



                                            "NAI"

                                            NETWORK APPLIANCE, INC.


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

                                               Name:
                                                    ----------------------------

                                               Title:
                                                     ---------------------------




<PAGE>   34

[Continuation of signature pages to Lease Agreement dated to be effective
December ___, 1999]



                                            "BNPLC"

                                            BNP LEASING CORPORATION


                                            By:
                                               ---------------------------------
                                               Lloyd G. Cox, Vice President


<PAGE>   35


                                    Exhibit A

                                LEGAL DESCRIPTION

The real property located in the City of Sunnyvale, County of Santa Clara, State
of California, described as follows:

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:


Commencing at the Northeast corner of said Parcel A; thence North 75 [Degrees]
8'27" West 500.00 feet along the Northeasterly line of said Parcel A; thence
South 14 [Degrees] 51'33" West 7.00 feet; thence parallel to Northeasterly line
of said Parcel A, South 75 [Degrees] 08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14 [Degrees] 51'33" East 7.00 feet to the point of
beginning.

APN:  110-32-002
ARB:  110-3-65.02


TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN:  110-32-6
ARB:  110-3-x65

TRACT 4:

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN:  110-32-7
ARB:  110-3-x65

<PAGE>   36

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN:  110-32-12
ARB:  110-03-65.11



                               Exhibit A - Page 2

<PAGE>   37


                                    Exhibit B

                             INSURANCE REQUIREMENTS


I.  LIABILITY INSURANCE:

     A. NAI must maintain commercial general liability ("CGL") insurance on an
occurrence basis, affording immediate protection to the limit of not less than
$20,000,000 combined single limit for bodily and personal injury, death and
property damage in respect of any one occurrence. The CGL insurance must be
primary to, and shall receive no contribution from, any insurance policies or
self-insurance programs otherwise afforded to or available to the Interested
Parties, collectively or individually. Further, the CGL insurance must include
blanket contractual liability coverage which insures contractual liability under
the indemnifications set forth in this Land Lease (though such coverage or the
amount thereof shall in no way limit such indemnifications).

     B. Any deductible or self-insured retention applicable to the CGL insurance
shall not exceed $500,000.

     C. The forms of insurance policies (including endorsements) used to provide
the CGL insurance required by this Land Lease, and the insurance company or
companies providing the CGL insurance, must be acceptable to BNPLC. BNPLC shall
have the right from time to time and at any time to review and approve such
policy forms (including endorsements) and the insurance company or companies
providing the insurance. Without limiting the generality of the foregoing, BNPLC
may reasonably require (and unless and until NAI is otherwise notified by BNPLC,
BNPLC does require) that such insurance be provided under forms and by companies
consistent with the following:

          (1) Forms: CGL Insurance must be provided on Insurance Services Office
              ("ISO") forms CG 0001 1093 or CG 0001 0196 or equivalent
              substitute forms providing the same or greater coverage.

          (2) Rating Requirements: Insurance must be provided through insurance
              or reinsurance companies rated by the A.M. Best Company of
              Oldwick, New Jersey as having a policyholder's rating of A or
              better and a reported financial information rating of VI or
              better.

          (3) Required Endorsements: CGL Insurance must be endorsed to provide
              or include:

              (a) in any policy containing a general aggregate limit, ISO form
              amendment "Aggregate Limits of Insurance Per Location" CG 2504
              1185 or equivalent substitute form;

              (c) a waiver of subrogation, using ISO form CG 2404 1093 or
              equivalent substitute form (and under the commercial umbrella, if
              any), in favor of "BNP Leasing Corporation and other Interested
              Parties (as defined in the Common Definitions and Provisions
              Agreement (Phase IV - Land) between Network Appliance, Inc. and
              BNP Leasing Corporation dated December ___, 1999)";

              (c) ISO additional insured form CG 2026 1185 or equivalent
              substitute form, without modification (and under the commercial
              umbrella, if any), designating as additional insureds "BNPLC and
              other Interested Parties, as defined in the Common Definitions and
              Provisions

<PAGE>   38

              Agreement (Phase IV - Land) between Network Appliance, Inc. and
              BNP Leasing Corporation dated December ___, 1999)"; and

              (d) provisions entitling BNPLC to 30 days' notice from the insurer
              prior to any cancellation, nonrenewal or material modification to
              the CGL coverage.

          (4) Other Insurance: Each policy to contain standard CGL "other
              insurance" wording, unmodified in any way that would make it
              excess over or contributory with the additional insured's own
              commercial general liability coverage.


II. INTENTIONALLY DELETED.


III.  OTHER INSURANCE RELATED REQUIREMENTS:

     A. BNPLC must be notified in writing immediately by NAI of claims against
NAI that might cause a reduction below seventy-five percent (75%) of any
aggregate limit of any policy.

     B. Intentionally Deleted.

     C. NAI's CGL insurance must be evidenced by ACORD form 25 "Certificate of
Insurance" completed and interlineated in a manner satisfactory to BNPLC to show
compliance with the requirements of this Exhibit. Copies of endorsements to the
CGL insurance must be attached to such form.

     D. Such evidence of required insurance must be delivered upon execution of
this Land Lease and new certificate or evidence of insurance must be delivered
no later than 10 days prior to expiration of existing policy.

     E. NAI shall not cancel, fail to renew, or make or permit any material
reduction in any of the policies or certificates described in this Exhibit
without the prior written consent of BNPLC. The certificates (ACORD forms 25)
described in this Exhibit must contain the following express provision:

     "This is to certify that the policies of insurance described herein have
     been issued to the insured Network Appliance, Inc. for whom this
     certificate is executed and are in force at this time. In the event of
     cancellation, non-renewal, or material reduction in coverage affecting the
     certificate holder, at least sixty days prior notice shall be given to the
     certificate holder."

     F. The limits of liability under the liability insurance required by this
Land Lease may be provided by a single policy of insurance or by a combination
of primary and umbrella policies, but in no event shall the total limits of
liability available for any one occurrence or accident be less than those
required by this Exhibit.

     G. NAI shall provide copies, certified as complete and correct by an
authorized agent of the applicable insurer, of all insurance policies required
by this Exhibit within ten days after receipt of a request for such copies from
BNPLC.


                               Exhibit B - Page 2
<PAGE>   39

                                    Exhibit C


                         NOTICE OF LIBOR PERIOD ELECTION


BNP Leasing Corporation
12201 Merit Drive
Suite 860
Dallas, Texas 75251
Attention: Lloyd G. Cox

Banque Nationale de Paris, San Francisco
180 Montgomery Street
San Francisco, California 94104
Attention: George Fung

     Re: Lease Agreement (Phase IV - Improvements) and Lease Agreement (Phase IV
- Land), both dated as of December ___, 1999, and both between Network
Appliance, Inc., as tenant, and BNP Leasing Corporation, as landlord

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings
assigned to them in the two Lease Agreements referenced above. This letter
constitutes notice to you that the LIBOR Period Election under both of the Lease
Agreements shall be:

                           ________________ month(s),

beginning with the first Base Rent Period that commences on or after:

                              --------------, ----.


NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE NUMBER OF MONTHS
SPECIFIED ABOVE IS NOT A PERMITTED NUMBER UNDER THE DEFINITION OF "LIBOR PERIOD
ELECTION" IN THE COMMON DEFINITIONS AND PROVISIONS AGREEMENTS REFERENCED IN THE
LEASE AGREEMENTS, OR IF THE DATE SPECIFIED ABOVE CONCERNING THE COMMENCEMENT OF
THE LIBOR PERIOD ELECTION IS LESS THAN TEN BUSINESS DAYS AFTER YOUR RECEIPT OF
THIS NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON
YOU BELIEVE THIS NOTICE IS DEFECTIVE.

     Executed this _____ day of ______________, 19___.


                                            Network Appliance, Inc.


                                            Name:
                                                 -------------------------------

                                            Title:
                                                  ------------------------------

<PAGE>   40


[cc all Participants]




                               Exhibit C - Page 2


<PAGE>   41




                                   Schedule 1

                               FINANCIAL COVENANTS


     This Schedule 1 is attached to and made a part of (a) the Lease Agreement
(Phase IV - Improvements) (the "IMPROVEMENTS LEASE") dated to be effective as of
December ___, 1999 (the "EFFECTIVE DATE"), between BNP Leasing Corporation, a
Delaware corporation ("BNPLC") and Network Appliance, Inc., a California
corporation ("NAI"), (b) the Lease Agreement (Phase IV - Land) (the "LAND LEASE"
and, together with the Improvements Lease, the "LEASES") dated to be effective
as of the Effective Date, between BNPLC and NAI, (c) the Pledge Agreement (Phase
IV - Improvements) (the "PLEDGE AGREEMENT (IMPROVEMENTS)") dated to be effective
as of the Effective Date, among BNPLC, NAI, and Banque Nationale de Paris, as a
Participant and as agent for any financial institutions that become Participants
thereunder from time to time, and (d) the Pledge Agreement (Phase IV - Land)
(collectively with the Pledge Agreement (Improvements), the "PLEDGE AGREEMENTS")
dated to be effective as of the Effective Date, among BNPLC, NAI, and Banque
Nationale de Paris, as a Participant and as agent for any financial institutions
that become Participants thereunder from time to time.

                             PART I - DEFINED TERMS

     In this Schedule 1, capitalized terms used but not defined herein shall
have the meaning assigned to them in the Leases or the Common Definitions and
Provisions Agreements referenced in the Leases; and the following capitalized
terms shall have the following meanings:

     "ADJUSTED NET INCOME" means, for any fiscal period of NAI, the aggregate
     net income earned (or net losses incurred) during such period by NAI and
     its Subsidiaries (determined on a consolidated basis), plus any Permitted
     Non-Cash Charges deducted in determining such net income (or net loss).

     "ADJUSTED EBIT" means, for any accounting period, net income (or net loss)
     of NAI and its Subsidiaries (determined on a consolidated basis), plus the
     amounts (if any) which, in the determination of net income (or net loss)
     for such period, have been deducted for (a) interest expense, (b) income
     tax expense (c) rent expense under leases of property, and (d) Permitted
     Non-Cash Charges.

     "COLLATERAL TEST DATES" mean the Base Rent Commencement Date and the
     earlier of the following dates after each fiscal quarter of NAI that ends
     after the Base Rent Commencement Date : (1) the seventh Business Day after
     the release by NAI of its financial statements for the fiscal quarter; or
     (2) the first Business Day of the third calendar month following the end of
     the fiscal quarter.

     "CONSOLIDATED TANGIBLE NET WORTH" means the excess of (1) the total assets,
     other than Intangible Assets, of NAI and its Subsidiaries (determined on a
     consolidated basis) over (2) the total liabilities of NAI and its
     Subsidiaries (determined on a consolidated basis).

     "DEBT" as used in this Exhibit shall have the meaning assigned to it in the
     Common Definitions and Provisions Agreements, where "Debt" of any Person is
     defined to mean (without duplication of any item): (a) indebtedness of such
     Person for borrowed money; (b) indebtedness of such Person for the deferred
     purchase price of property or services (except trade payables and accrued
     expenses constituting current liabilities in the ordinary course of
     business); (c) the face amount of any outstanding letters of credit issued
     for the account of such Person; (d) obligations of such Person arising
     under acceptance facilities; (e) guaranties, endorsements (other than for
     collection in the ordinary course of business) and other contingent
     obligations of such Person to purchase, to provide funds for payment, to
     provide funds to invest in any Person, or otherwise to assure a


<PAGE>   42

     creditor against loss; (f) obligations of others secured by any Lien on
     property of such Person; (g) obligations of such Person as lessee under
     Capital Leases; and (h) the obligations of such Person, contingent or
     otherwise, under any lease of property or related documents (including a
     separate purchase agreement) which provide that such Person or any of its
     Affiliates must purchase or cause another Person to purchase any interest
     in the leased property and thereby guarantee a minimum residual value of
     the leased property to the lessor. For purposes of this definition, the
     amount of the obligations described in clause (h) of the preceding sentence
     with respect to any lease classified according to GAAP as an "operating
     lease," shall equal the sum of (1) the present value of rentals and other
     minimum lease payments required in connection with such lease [calculated
     in accordance with SFAS 13 and other GAAP relevant to the determination of
     the whether such lease must be accounted for as an operating lease or
     capital lease], plus (2) the fair value of the property covered by the
     lease; provided, however, that such amount shall not exceed the price, as
     of the date a determination of Debt is required hereunder, for which the
     lessee can purchase the leased property pursuant to any valid ongoing
     purchase option if, upon such a purchase, the lessee shall be excused from
     paying rentals or other minimum lease payments that would otherwise accrue
     after the purchase.

     "FIXED CHARGES" means, for any accounting period, the sum (without
     duplication of any item) of the following charges or costs incurred or paid
     by NAI and its Subsidiaries (determined on a consolidated basis): (a) gross
     interest expense, plus (b) amortization of principal or debt discount in
     respect of all Debt during such period, plus (c) rent payable under all
     leases of property during such period, plus (d) taxes payable during such
     period.

     "INTANGIBLE ASSETS" means assets of NAI and its Subsidiaries (determined on
     a consolidated basis) that are properly classified as "INTANGIBLE ASSETS"
     in accordance with GAAP and, in any event, shall include goodwill, patents,
     trade names, trademarks, copyrights, franchises, experimental expense,
     organization expense, unamortized debt discount and expense, and deferred
     charges (other than prepaid insurance, prepaid taxes and current deferred
     taxes to the extent any such prepaid or deferred items are classified on
     the balance sheet of NAI and its consolidated Subsidiaries as current
     assets in accordance with GAAP and with the concurrence of NAI's
     independent public accountants).

     "MANDATORY COLLATERAL PERIOD" means any period during which,
     notwithstanding any contrary designation of a Collateral Percentage by NAI
     under the Pledge Agreements, the Collateral Percentage for purposes of the
     Pledge Agreements shall be one hundred percent (100%), determined as set
     forth in Part III of this Schedule 1.

     "PERMITTED NON-CASH CHARGES" means the amounts (if any) which, in the
     determination of net income (or net loss) for any relevant fiscal period,
     have been deducted by NAI or its Subsidiaries for non-cash charges made to
     write down goodwill or research and development costs in connection with
     acquisitions permitted by this Schedule 1.

     "QUICK RATIO" means the ratio of:

               (A) the sum (without duplication of any item) of the following
          assets of NAI and its Subsidiaries (determined on a consolidated
          basis): Collateral delivered and pledged under the Pledge Agreements
          in accordance with the requirements thereof (if any); plus
          unencumbered cash; plus unencumbered short term cash investments; plus
          other unencumbered marketable securities which are classified as short
          term investments in accordance with GAAP; plus unencumbered accounts
          receivable, computed net of reserves for uncollectible amounts as
          determined in accordance with GAAP, to

               (B) the sum (without duplication of any item) of (1) all
          liabilities of NAI and its Subsidiaries (determined on a consolidated
          basis) treated as current liabilities in accordance with GAAP, plus
          (2)


                              Schedule 1 - Page 2
<PAGE>   43

          other obligations included in total Debt of NAI and its Subsidiaries
          (determined on a consolidated basis), the payment of which is due on
          demand or will become due within one year after the date on which the
          applicable determination of Quick Ratio is required hereunder.

     "ROLLING FOUR QUARTER PERIOD" means a period of four consecutive fiscal
     quarters of NAI, the last of which quarters ends after December 31, 1999.


                PART II - FINANCIAL COVENANTS FOR LEASE AGREEMENT

NAI covenants that it shall not at any time suffer or permit:

1.  Minimum Unencumbered Cash and Cash Equivalents. The sum (without duplication
    of any item) of the unrestricted cash, Collateral delivered and pledged
    under the Pledge Agreements in accordance with the requirements thereof (if
    any), unencumbered short term cash investments and unencumbered marketable
    securities classified as short term investments according to GAAP of NAI and
    its Subsidiaries (determined on a consolidated basis) to be less than total
    Debt of NAI and its Subsidiaries (determined on a consolidated basis).

2.  Minimum Tangible Net Worth. Consolidated Tangible Net Worth to be less than
    the sum of: (a) ninety percent of the Consolidated Tangible Net Worth as of
    October 30, 1998; plus (b) seventy-five percent of NAI's net income
    (computed without deduction for net losses in any fiscal quarter) earned in
    each fiscal quarter since October 30, 1998; plus (c) one-hundred percent of
    the net proceeds of sales of stock in NAI or its Subsidiaries (other than
    sales to NAI or its Subsidiaries) after October 30, 1998; less (d) Permitted
    Non-Cash Charges for any period after October 30, 1998.

3.  Minimum Quick Ratio. The Quick Ratio to be less than 1.50 to 1.00.

4.  Minimum Fixed Charge Coverage. The ratio of (a) Adjusted EBIT for any
    Rolling Four Quarter Period to (b) Fixed Charges for the same Rolling Four
    Quarter Period, to be less than 1.50 to 1.00.

5.  Minimum Profitability. Adjusted Net Income to be less than $1.00 in more
    than one fiscal quarter of any Rolling Four Quarter Period.

6.  Maximum Leverage Ratio. the ratio of (a) total Debt of NAI and its
    Subsidiaries (determined on a consolidated basis) at the end of any Rolling
    Four Quarter Period to (b) the Adjusted EBIT for the same Four Quarter
    Rolling Period, to exceed 3.00 to 1.00.


                PART III - TESTS FOR MANDATORY COLLATERAL PERIODS

     If, as of the end of the latest fiscal quarter of NAI ending before any
Collateral Test Date, NAI shall have both:

          (A) failed to maintain a ratio of (1) the sum (without duplication of
     any item) of Collateral delivered and pledged under the Pledge Agreements
     in accordance with the requirements thereof (if any), unencumbered cash,
     unencumbered short term cash investments and unencumbered marketable
     securities classified as short term investments according to GAAP of NAI
     and its Subsidiaries (determined on a consolidated basis) to (2) all Debt
     of NAI and its Subsidiaries (determined on a consolidated basis), of at
     least 1.5 to 1.00; and


                              Schedule 1 - Page 3
<PAGE>   44

          (B) failed to maintain a ratio of (i) all Debt of NAI and its
     Subsidiaries (determined on a consolidated basis) to (ii) Consolidated
     Tangible Net Worth of NAI, of no more than 0.45 to 1.00;

such Collateral Test Date shall constitute a "FAILED COLLATERAL TEST DATE" for
purposes of the determination of Mandatory Collateral Periods. A Mandatory
Collateral Period shall commence on each Failed Collateral Test, and such
Mandatory Collateral Period shall continue until the second of any two
subsequent CONSECUTIVE Collateral Test Dates, neither of which constitutes a
Failed Collateral Test Date.

For purposes of illustration only, assume that the following dates are
consecutive Collateral Test Dates, some of which are Failed Collateral Test
Dates and some of which are not, as indicated opposite each date:

<TABLE>
<CAPTION>
           Date                      Failed Collateral Test Date?
           ----                      ----------------------------
<S>                                  <C>
           February 15, 2001                    Yes
           May 12, 2001                         No
           August 16, 2001                      Yes
           November 11, 2001                    No
           February 18, 2002                    No
           May 14, 2002                         Yes
           August 18, 2002                      Yes
           November 18, 2002                    No
           February 15, 2003                    No
</TABLE>

Under these assumptions, the entire period from February 15, 2001 to February
18, 2002 falls within one or more Mandatory Collateral Periods. Also, the entire
period commencing May 14, 2002 and ending February 15, 2003 falls within one or
more Mandatory Collateral Periods. The period from February 18, 2002 to May 14,
2002 does not constitute Mandatory Collateral Period.


                            PART IV - OTHER COVENANTS

Without limiting NAI's obligations under the other provisions of the Operative
Documents, during the Term, NAI shall not, without the prior written consent of
BNPLC in each case:

     A. Liens. Create, incur, assume or suffer to exist, or permit any of its
Consolidated Subsidiaries to create, incur, assume or suffer to exist, any Lien,
upon or with respect to any of its properties, now owned or hereafter acquired,
provided that the following shall be permitted except to the extent that they
would encumber any interest in the Property in violation of other provisions of
the Operative Documents:

          1. Liens for taxes or assessments or other government charges or
     levies if not yet due and payable or if they are being contested in good
     faith by appropriate proceedings and for which appropriate reserves are
     maintained;

          2. Liens imposed by law, such as mechanic's, materialmen's,
     landlord's, warehousemen's and carrier's Liens, and other similar Liens,
     securing obligations incurred in the ordinary course of business which are
     not past due for more than thirty (30) days, or which are being contested
     in good faith by appropriate proceedings and for which appropriate reserves
     have been established;


                              Schedule 1 - Page 4
<PAGE>   45

          3. Liens under workmen's compensation, unemployment insurance, social
     security or similar laws (other than ERISA);

          4. Liens, deposits or pledges to secure the performance of bids,
     tenders, contracts (other than contracts for the payment of money), leases,
     public or statutory obligations, surety, stay, appeal, indemnity,
     performance or other similar bonds, or other similar obligations arising in
     the ordinary course of business;

          5. judgment and other similar Liens against assets other than the
     Property or any part thereof in an aggregate amount not in excess of
     $3,000,000 arising in connection with court proceedings; provided that the
     execution or other enforcement of such Liens is effectively stayed and the
     claims secured thereby are being actively contested in good faith by
     appropriate proceedings;

          6. easements, rights-of-way, restrictions and other similar
     encumbrances which, in the aggregate, do not materially interfere with the
     occupation, use and enjoyment by NAI or any such Consolidated Subsidiary of
     the property or assets encumbered thereby in the normal course of its
     business or materially impair the value of the property subject thereto;

          7. Liens securing obligations of such a Consolidated Subsidiary to NAI
     or to another such Consolidated Subsidiary;

          8. Liens not otherwise permitted by this subparagraph A (and not
     encumbering the Property or any Collateral) incurred in connection with the
     incurrence of additional Debt or asserted to secure Unfunded Benefit
     Liabilities, provided that (a) the sum of the aggregate principal amount of
     all outstanding obligations secured by Liens incurred pursuant to this
     clause shall not at any time exceed five percent (5%) of Consolidated
     Tangible Net Worth at such time; and (b) such Liens do not constitute Liens
     against NAI's interest in any material Subsidiary or blanket Liens against
     all or substantially all of the inventory, receivables, general intangibles
     or equipment of NAI or of any material Subsidiary of NAI (for purposes of
     this clause, a "material Subsidiary" means any subsidiary whose assets
     represent a substantial part of the total assets of NAI and its
     Subsidiaries, determined on a consolidated basis in accordance with GAAP);
     and

     9. Liens incurred in connection with any renewals, extensions or refundings
of any Debt secured by Liens described in the preceding clauses of this
subparagraph A, provided that there is no increase in the aggregate principal
amount of Debt secured thereby from that which was outstanding as of the date of
such renewal, extension or refunding and no additional property is encumbered.

     B. Transactions with Affiliates. Enter into or permit any Subsidiary of NAI
to enter into any material transactions (including, without limitation, the
purchase, sale or exchange of property or the rendering of any service) with any
Affiliates of NAI except on terms (1) that would not cause or result in a
Default by NAI under the financial covenants set forth in Part II of this
Schedule, and (2) that are no less favorable to NAI or the relevant Subsidiary
than those that would have been obtained in a comparable transaction on an arm's
length basis from an unrelated Person.

     C. Compliance. Fail to preserve and maintain all licenses, permits,
governmental approvals, rights, privileges and franchises necessary for the
conduct of its business; or fail to comply with the provisions of all documents
pursuant to which NAI is organized and/or which govern NAI's continued existence
and with the requirements of all laws, rules, regulations and orders of a
governmental agency applicable to NAI and/or its business.


                              Schedule 1 - Page 5
<PAGE>   46

     D. Insurance. Fail to maintain and keep in force insurance of the types and
in amounts customarily carried in lines of business similar to that of NAI,
including but not limited to fire, extended coverage, public liability, flood,
property damage and workers' compensation, with all such insurance carried with
companies and in amounts satisfactory to BNPLC, or fail to deliver to BNPLC from
time to time at BNPLC's request schedules setting forth all insurance then in
effect.

     E. Facilities. fail to keep all properties useful or necessary to NAI's
business in good repair and condition, or to from time to time make necessary
repairs, renewals and replacements thereto so that such properties shall be
fully and efficiently preserved and maintained.

     F. Taxes and Other Liabilities. Fail to pay and discharge when due any and
all indebtedness, obligations, assessments and taxes, both real or personal,
including without limitation federal and state income taxes and state and local
property taxes and assessments, except (a) such as NAI may in good faith contest
or as to which a bona fide dispute may arise, and (b) for which NAI has made
provisions, to BNPLC's satisfaction, for eventual payment thereof in the event
that NAI is obligated to make such payment.

     G. Capital Expenditures. Make any additional investment in fixed assets in
any fiscal year in excess of an aggregate of twenty percent (20%) of NAI's total
assets as of the end of the prior fiscal year.

     H. Merger, Consolidation, Transfer of Assets. Merge into or consolidate
with any other entity (unless NAI is the surviving entity and remains in
compliance of all provisions of the Operative Documents); or make any
substantial change in the nature of NAI's business as conducted as of the date
hereof; or sell, lease, transfer or otherwise dispose of all or a substantial or
material portion of NAI's assets except in the ordinary course of its business.

     I. Loans, Advances, Investments. Make any loans or advances to or
investments in any person or entity, except (a) any of the foregoing existing as
of, and disclosed to BNPLC prior to, the date hereof, (b) loans to employees for
travel advances, relocation loans and other loans in the ordinary course of
business, (c) investments in accordance with NAI's investment policy, as in
effect from time to time, (d) existing investments in subsidiaries and joint
ventures which have been disclosed to BNPLC in writing prior to the date hereof,
and new investments in subsidiaries and joint ventures in amounts up to an
aggregated of $10,000,000.00, (e) loans to employees, officers, directors to
finance or refinance the purchase of equity securities of NAI.

     J. Dividends, Distributions. Declare or pay any dividend or distribution
either in cash, stock or any other property on NAI's stock now or hereafter
outstanding, nor redeem, retire, repurchase or otherwise acquire any shares of
any class of NAI's stock now or hereafter outstanding.


                              Schedule 1 - Page 6
<PAGE>   47

                   COMMON DEFINITIONS AND PROVISIONS AGREEMENT
                                (PHASE IV - LAND)



                                     BETWEEN



                             BNP LEASING CORPORATION


                                       AND


                             NETWORK APPLIANCE, INC.



                         DATED AS OF DECEMBER ___, 1999

<PAGE>   48

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I - LIST OF DEFINED TERMS:

ACTIVE NEGLIGENCE.............................................................1
ADDITIONAL RENT...............................................................1
ADJUSTED EBIT.................................................................1
AFFILIATE.....................................................................2
APPLICABLE LAWS...............................................................2
APPLICABLE PURCHASER..........................................................2
ATTORNEYS' FEES...............................................................2
BANKING RULES CHANGE..........................................................2
BASE RATE.....................................................................2
BASE RENT.....................................................................2
BASE RENT COMMENCEMENT DATE...................................................2
BASE RENT DATE................................................................3
BASE RENT PERIOD..............................................................3
BNPLC.........................................................................4
BNPLC'S PARENT................................................................4
BREAKAGE COSTS................................................................4
BREAK EVEN PRICE..............................................................4
BUSINESS DAY..................................................................4
CAPITAL ADEQUACY CHARGES......................................................4
CAPITAL LEASE.................................................................5
CLOSING CERTIFICATE...........................................................5
CODE..........................................................................5
COLLATERAL....................................................................5
COLLATERAL PERCENTAGE.........................................................5
COMMON DEFINITIONS AND PROVISIONS AGREEMENT (PHASE IV - LAND).................5
CURRENT AS IS MARKET VALUE....................................................5
DEBT..........................................................................6
DEFAULT.......................................................................6
DEFAULT RATE..................................................................6
DEPOSIT TAKER.................................................................7
DEPOSIT TAKER LOSSES..........................................................7
DESIGNATED SALE DATE..........................................................7
DEVELOPMENT DOCUMENTS.........................................................7
DIRECT PAYMENTS TO PARTICIPANTS...............................................7
EFFECTIVE DATE................................................................7
EFFECTIVE RATE................................................................8
ENVIRONMENTAL LAWS............................................................8
ENVIRONMENTAL CUTOFF DATE.....................................................8
ENVIRONMENTAL LOSSES..........................................................8
ENVIRONMENTAL REPORTS.........................................................9
ERISA.........................................................................9
</TABLE>

                                      (i)

<PAGE>   49

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
ERISA AFFILIATE...............................................................9
ESCROWED PROCEEDS.............................................................9
ESTABLISHED MISCONDUCT........................................................9
EUROCURRENCY LIABILITIES.....................................................10
EURODOLLAR RATE RESERVE PERCENTAGE...........................................10
EVENT OF DEFAULT.............................................................10
EXCLUDED TAXES...............................................................10
EXISTING CONTRACT............................................................10
FAILED COLLATERAL TEST DATE..................................................10
FED FUNDS RATE...............................................................10
GAAP.........................................................................11
HAZARDOUS SUBSTANCE..........................................................11
HAZARDOUS SUBSTANCE ACTIVITY.................................................11
IMPOSITIONS..................................................................11
IMPROVEMENTS.................................................................12
INITIAL FUNDING ADVANCE......................................................12
INTERESTED PARTY.............................................................12
ISSUE 97-1 NON-PERFORMANCE-RELATED SUBJECTIVE EVENT OF DEFAULT...............12
LAND.........................................................................12
LAND LEASE...................................................................13
LIBOR........................................................................13
LIBOR PERIOD ELECTION........................................................13
LIEN.........................................................................13
LIENS REMOVABLE BY BNPLC.....................................................14
LOSSES.......................................................................14
MANDATORY COLLATERAL PERIOD..................................................14
MATERIAL ENVIRONMENTAL COMMUNICATION.........................................14
MAXIMUM REMARKETING OBLIGATION...............................................14
MINIMUM EXTENDED REMARKETING PRICE...........................................15
MULTIEMPLOYER PLAN...........................................................15
NAI..........................................................................15
NAI'S EXTENDED REMARKETING PERIOD............................................15
NAI'S EXTENDED REMARKETING RIGHT.............................................15
NAI'S INITIAL REMARKETING RIGHTS AND OBLIGATIONS.............................15
OPERATIVE DOCUMENTS..........................................................15
OTHER COMMON DEFINITIONS AND PROVISIONS AGREEMENT............................15
OTHER LEASE AGREEMENT........................................................15
OTHER PURCHASE AGREEMENT.....................................................15
PARTICIPANT..................................................................15
PARTICIPATION AGREEMENT......................................................16
PBGC.........................................................................16
PERMITTED ENCUMBRANCES.......................................................16
PERMITTED HAZARDOUS SUBSTANCE USE............................................16
PERMITTED HAZARDOUS SUBSTANCES...............................................16
</TABLE>

                                      (ii)

<PAGE>   50


<TABLE>
                                                                           Page
<S>                                                                         <C>
PERMITTED TRANSFER...........................................................17
PERSON.......................................................................17
PERSONAL PROPERTY............................................................17
PLAN.........................................................................17
PLEDGE AGREEMENT.............................................................17
PREMISES LEASES..............................................................17
PRIME RATE...................................................................17
PROPERTY.....................................................................18
PURCHASE AGREEMENT...........................................................18
PURCHASE DOCUMENTS...........................................................18
PURCHASE OPTION..............................................................18
QUALIFIED AFFILIATE..........................................................18
QUALIFIED PREPAYMENTS........................................................18
REAL PROPERTY................................................................19
REMEDIAL WORK................................................................19
RENT.........................................................................19
RESIDUAL RISK PERCENTAGE.....................................................19
RESPONSIBLE FINANCIAL OFFICER................................................19
SALE CLOSING DOCUMENTS.......................................................19
SECURED SPREAD...............................................................19
SELLER.......................................................................19
STIPULATED LOSS VALUE........................................................19
SUBSIDIARY...................................................................19
SUPPLEMENTAL PAYMENT.........................................................19
TERM.........................................................................19
THIRD PARTY PRICE............................................................19
THIRD PARTY SALE NOTICE......................................................20
THIRD PARTY SALE PROPOSAL....................................................20
THIRD PARTY TARGET PRICE.....................................................20
TRANSACTION EXPENSES.........................................................20
UNFUNDED BENEFIT LIABILITIES.................................................20
UNSECURED SPREAD.............................................................20
VOLUNTARY RETENTION OF THE PROPERTY..........................................21
</TABLE>

ARTICLE II - PROVISIONS USED IN COMMON:


<TABLE>
<S>                                                                         <C>
1   NOTICES..................................................................21
2   SEVERABILITY.............................................................23
3   NO MERGER................................................................23
4   NO IMPLIED WAIVER........................................................23
5   ENTIRE AND ONLY AGREEMENTS...............................................24
6   BINDING EFFECT...........................................................24
7   TIME IS OF THE ESSENCE...................................................24
8   GOVERNING LAW............................................................24
</TABLE>

                                     (iii)

<PAGE>   51

<TABLE>
                                                                           Page
<S>                                                                         <C>
9   PARAGRAPH HEADINGS.......................................................24
10  NEGOTIATED DOCUMENTS.....................................................24
11  TERMS NOT EXPRESSLY DEFINED IN AN OPERATIVE DOCUMENT.....................24
12  OTHER TERMS AND REFERENCES...............................................24
13  EXECUTION IN COUNTERPARTS................................................25
14  NOT A PARTNERSHIP, ETC...................................................25
</TABLE>

                                      (iv)

<PAGE>   52


                   COMMON DEFINITIONS AND PROVISIONS AGREEMENT
                                (PHASE IV - LAND)


     This Common Definitions and Provisions Agreement (Phase IV - Land), by and
between BNP LEASING CORPORATION, a Delaware corporation ("BNPLC"), and NETWORK
APPLIANCE, INC., a California corporation ("NAI"), is dated as of December ___,
1999, the Effective Date.


                                    RECITALS

     Contemporaneously with the execution of this Common Definitions and
Provisions Agreement (Phase IV - Improvements), NAI is executing the Closing
Certificate (as defined below) in favor of BNPLC, and BNPLC and NAI are
executing the Land Lease (as defined below) and the Purchase Agreement (as
defined below), both of which concern the Property (as defined below). Each of
the Closing Certificate, the Land Lease and the Purchase Agreement (together
with this Common Definitions and Provisions Agreement (Phase IV - Land) and the
Pledge Agreement [as defined below], the "OPERATIVE DOCUMENTS") are intended to
create separate and independent obligations upon the parties thereto. However,
NAI and BNPLC intend that all of the Operative Documents share certain
consistent definitions and other miscellaneous provisions. To that end, the
parties are executing this Common Definitions and Provisions Agreement (Phase II
- Land) and incorporating it by reference into each of the other Operative
Documents.

                                   AGREEMENTS


                        ARTICLE I - LIST OF DEFINED TERMS

     UNLESS A CLEAR CONTRARY INTENTION APPEARS, THE FOLLOWING TERMS SHALL HAVE
THE RESPECTIVE INDICATED MEANINGS AS USED HEREIN AND IN THE OTHER OPERATIVE
DOCUMENTS:

     "ACTIVE NEGLIGENCE" of any Person (including BNPLC) means, and is limited
to, the negligent conduct on the Property (and not mere omissions) by such
Person or by others acting and authorized to act on such Person's behalf in a
manner that proximately causes actual bodily injury or property damage for which
NAI does not carry (and is not obligated by the Land Lease to carry) insurance.
"ACTIVE NEGLIGENCE" shall not include (1) any negligent failure of BNPLC to act
when the duty to act would not have been imposed but for BNPLC's status as owner
of the Land, the Improvements or any interest in any other Property or as a
party to the transactions described in the Land Lease or the other Operative
Documents or in the Other Lease Agreement or the Other Purchase Agreement, (2)
any negligent failure of any other Interested Party to act when the duty to act
would not have been imposed but for such party's contractual or other
relationship to BNPLC or participation or facilitation in any manner, directly
or indirectly, of the transactions described in the Land Lease or other
Operative Documents or in the Other Lease Agreement or Other Purchase Agreement,
or (3) the exercise in a lawful manner by BNPLC (or any party lawfully claiming
through or under BNPLC) of any right or remedy provided in or under the Land
Lease or the other Operative Documents or in the Other Lease Agreement or Other
Purchase Agreement.

     "ADDITIONAL RENT" shall have the meaning assigned to it in subparagraph
3.(d) of the Land Lease.

     "ADJUSTED EBIT" shall have the meaning assigned to it in Part I of Schedule
1 attached to the Land Lease and to the Pledge Agreement.


<PAGE>   53


     "AFFILIATE" of any Person means any other Person controlling, controlled by
or under common control with such Person. For purposes of this definition, the
term "control" when used with respect to any Person means the power to direct
the management of policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise, and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

     "APPLICABLE LAWS" means any or all of the following, to the extent
applicable to NAI or the Property or the Land Lease or the other Operative
Documents: restrictive covenants; zoning ordinances and building codes; flood
disaster laws; health, safety and environmental laws and regulations; the
Americans with Disabilities Act and other laws pertaining to disabled persons;
and other laws, statutes, ordinances, rules, permits, regulations, orders,
determinations and court decisions.

     "APPLICABLE PURCHASER" means any third party designated by NAI to purchase
BNPLC's interest in the Property and in any Escrowed Proceeds as provided in the
Purchase Agreement.

     "ATTORNEYS' FEES" means the expenses and reasonable fees of counsel to the
parties incurring the same, excluding costs or expenses of in-house counsel
(whether or not accounted for as general overhead or administrative expenses),
but otherwise including printing, photostating, duplicating and other expenses,
air freight charges, and fees billed for law clerks, paralegals, librarians and
others not admitted to the bar but performing services under the supervision of
an attorney. Such terms shall also include all such fees and expenses incurred
with respect to appeals, arbitrations and bankruptcy proceedings, and whether or
not any manner of proceeding is brought with respect to the matter for which
such fees and expenses were incurred.

     "BANKING RULES CHANGE" means either: (1) the introduction of or any change
in any law or regulation applicable to BNPLC, BNPLC's Parent or any other
Participant, or in the generally accepted interpretation by the institutional
lending community of any such law or regulation, or in the interpretation of any
such law or regulation asserted by any regulator, court or other governmental
authority (other than any change by way of imposition or increase of reserve
requirements included in the Eurodollar Rate Reserve Percentage) or (2) the
compliance by BNPLC, BNPLC's Parent or any other Participant with any new
guideline or new request from any central bank or other governmental authority
(whether or not having the force of law).

     "BASE RATE" for any Base Rent Period means a rate equal to the higher of
(1) the Prime Rate in effect on the first day of such period, or (2) the rate
which is fifty basis points (50/100 of 1%) above the Fed Funds Rate for that
period.

     "BASE RENT" means the rent payable by NAI pursuant to subparagraph 3.(a) of
the Land Lease.

     "BASE RENT COMMENCEMENT DATE" shall mean the earlier of (1) the first
Business Day of January, 2000, or (2) the "Base Rent Commencement Date" under
and as defined in the Other Common Definitions and Provisions Agreement.

     "BASE RENT DATE" means a date upon which Base Rent must be paid under the
Land Lease, all of which dates shall be the first Business Day of a calendar
month. The first Base Rent Date shall be determined as follows:

               a) If a LIBOR Period Election of one month is in effect on the
          Base Rent Commencement Date, then the first Business Day of the first
          calendar month following the Base Rent Commencement Date shall be the
          first Base Rent Date.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 2

<PAGE>   54

               b) If the LIBOR Period Election in effect on the Base Rent
          Commencement Date is three months or six months, then the first
          Business Day of the third calendar month following the Base Rent
          Commencement Date shall be the first Base Rent Date.

Each successive Base Rent Date after the first Base Rent Date shall be the first
Business Day of the first or third calendar month following the calendar month
which includes the preceding Base Rent Date, determined as follows:

               (1) If a LIBOR Period Election of one month is in effect on a
          Base Rent Date, then the first Business Day of the first calendar
          month following such Base Rent Date shall be the next following Base
          Rent Date.

               (2) If a LIBOR Period Election of three months or six months is
          in effect on a Base Rent Date, then the first Business Day of the
          third calendar month following such Base Rent Date shall be the next
          following Base Rent Date.

Thus, for example, if the Base Rent Commencement Date falls on the first
Business Day of January, 2000 and a LIBOR Period Election of two months
commences on the Base Rent Commencement Date, then the first Base Rent Date
shall be the first Business Day of March, 2000.

     "BASE RENT PERIOD" means a period for which Base Rent must be paid under
the Land Lease, each of which periods shall correspond to the LIBOR Period
Election for such period. The first Base Rent Period shall begin on and include
the Base Rent Commencement Date, and each successive Base Rent Period shall
begin on and include the Base Rent Date upon which the preceding Base Rent
Period ends. Each Base Rent Period, including the first Base Rent Period, shall
end on but not include the first or second Base Rent Date after the Base Rent
Date upon which such period began, determined as follows:

               (1) If the LIBOR Period Election for a Base Rent Period is one
          month or three months, then such Base Rent Period shall end on the
          first Base Rent Date after the Base Rent Date upon which such period
          began.

               (2) If the LIBOR Period Election for a Base Rent Period is six
          months, then such Base Rent Period shall end on the second Base Rent
          Date after the Base Rent Date upon which such period began.

The determination of Base Rent Periods can be illustrated by two examples:

               1) If NAI makes a LIBOR Period Election of three months for a
          hypothetical Base Rent Period beginning on the first Business Day in
          January, 2001, then such Base Rent Period will end on but not include
          the first Base Rent Date after it begins; that is, such Base Rent
          Period will end on the first Business Day in April, 2001, the third
          calendar month after January, 2001.

               2) If, however, NAI makes a LIBOR Period Election of six months
          for the hypothetical Base Rent Period beginning the first Business Day
          in January, 2001, then such Base Rent Period will end on but not
          include the second Base Rent Date after it begins; that is, the first
          Business Day in July, 2001.

     "BNPLC" means BNP Leasing Corporation, a Delaware corporation.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 3

<PAGE>   55

     "BNPLC'S PARENT" means BNPLC's Affiliate, Banque Nationale de Paris, a bank
organized and existing under the laws of France and any successors of such bank.

     "BREAKAGE COSTS" means any and all costs, losses or expenses incurred or
sustained by BNPLC's Parent (as a Participant or otherwise) or any other
Participant, for which BNPLC's Parent or the Participant shall request
reimbursement from BNPLC, because of the resulting liquidation or redeployment
of deposits or other funds:

               (1) used to make or maintain the Initial Funding Advance upon
          application of a Qualified Prepayment or upon any sale of the Property
          pursuant to the Purchase Agreement, if such application or sale occurs
          on any day other than an Advance Date or the last day of a Base Rent
          Period; or

               (2) used to make or maintain the Initial Funding Advance upon the
          acceleration of the end of any Base Rent Period pursuant subparagraph
          3.(c)(ii) of the Land Lease.

Breakage Costs will include, for example, losses attributable to any decline in
LIBOR as of the effective date of any application described in the clause (1)
preceding, as compared to LIBOR used to determine the Effective Rate then in
effect. Each determination by BNPLC's Parent or the applicable Participant of
Breakage Costs shall, in the absence of clear and demonstrable error, be
conclusive and binding upon NAI.

     "BREAK EVEN PRICE" shall have the meaning assigned to it in subparagraph
1(B)(1) of the Purchase Agreement.

     "BUSINESS DAY" means any day that is (1) not a Saturday, Sunday or day on
which commercial banks are generally closed or required to be closed in New York
City, New York or San Francisco, California, and (2) a day on which dealings in
deposits of dollars are transacted in the London interbank market; provided that
if such dealings are suspended indefinitely for any reason, "Business Day" shall
mean any day described in clause (1).

     "CAPITAL ADEQUACY CHARGES" means any additional amounts BNPLC's Parent or
any other Participant requests BNPLC to pay as compensation for an increase in
required capital as provided in subparagraph 5.(b)(ii) of the Land Lease.

     "CAPITAL LEASE" means any lease which has been or should be capitalized on
the books of the lessee in accordance with GAAP or for federal income tax
purposes.

     "CLOSING CERTIFICATE" means the Closing Certificate and Agreement dated as
of December ___, 1999 executed by NAI in favor of BNPLC, as such Closing
Certificate may be extended, supplemented, amended, restated or otherwise
modified from time to time in accordance with its terms.

     "CODE" means the Internal Revenue Code of 1986, as amended.

     "COLLATERAL" shall have the meaning assigned to it in the Pledge Agreement.

     "COLLATERAL PERCENTAGE" for each Base Rent Period means the Collateral
Percentage for such period determined under (and as defined in) the Pledge
Agreement; provided, however, for purposes of the Land Lease, the Collateral
Percentage for any Base Rent Period shall not exceed a fraction; the numerator
of which fraction shall equal the value (determined as provided in the Pledge
Agreement) of all Collateral (a) that is, on the first day of such period, held
by the Deposit Takers under (and as defined in) the Pledge Agreement subject to
a Qualifying


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 4

<PAGE>   56

Security Interest (as defined below), (b) that is free from claims or security
interests held or asserted by any third party, and (c) that is not in excess of
Stipulated Loss Value; and the denominator of which fraction shall equal the
Stipulated Loss Value on the first day of such period. "QUALIFYING SECURITY
INTEREST" means a first priority perfected security interest under the Pledge
Agreement.

     "COMMON DEFINITIONS AND PROVISIONS AGREEMENT (PHASE IV - LAND)" means this
Agreement, which is incorporated by reference into each of the other Operative
Documents.

     "CURRENT AS IS MARKET VALUE" means an amount equal to the fair market value
of BNPLC's interest in the Property (or any applicable portion thereof), AS IS,
WHERE IS AND WITH ALL FAULTS on the date in question. Whenever a determination
of Current AS IS Market Value is required by the express terms of any Operative
Document, it will be determined accordance with the following procedure unless
BNPLC and NAI have otherwise agreed in writing upon a Current AS IS Market Value
at that time:

     (A) BNPLC and NAI shall each, within ten days after written notice from
         either to the other, select an appraiser. If either BNPLC or NAI fails
         to select an appraiser within the required period, then the appraiser
         who has been timely selected shall conclusively determine the fair
         market value of the Property (or applicable portion thereof) in
         accordance with this definition within forty-five days after his or her
         selection.

     (B) Upon the selection of the two appraisers as provided above, such
         appraisers shall proceed to determine the fair market value of BNPLC's
         interest in the Property (or applicable portion thereof) in accordance
         with this clause (v). Such appraisals shall be submitted in writing no
         later than forty-five days after selection of the second appraiser. If
         the fair market value as determined by such appraisers is identical,
         such sum shall be Current AS IS Market Value. If the fair market value
         indicated by the lower appraisal differs from the fair market value
         indicated by the higher appraisal by less than five percent (5%) of the
         fair market value indicated by the higher appraisal, then Current AS IS
         Market Value shall be the sum of the two appraisal figures divided by
         two (2). If either appraiser fails to timely submit his or her
         appraisal, the timely submitted appraisal shall be determinative of
         Current AS IS Market Value.

     (C) If the fair market value indicated by the lower appraisal differs from
         the fair market value indicated by the higher appraisal by more than
         five percent (5%) of the fair market value indicated by the higher
         appraisal, then the two appraisers previously selected shall select a
         third appraiser. The name of such appraiser shall be submitted at the
         same time the written appraisals are due. Such third appraiser shall
         then review the previously submitted appraisals and select the one
         that, in his professional opinion, more closely reflects the fair
         market value of BNPLC's interest in the Property (or applicable portion
         thereof), such selection to be submitted in writing no later than ten
         days after selection of the third appraiser. Such selection shall be
         determinative of Current AS IS Market Value.

     (D) In making any such determination of fair market value, the appraisers
         shall assume that any improvements then located on the Property (or
         applicable portion thereof) or under construction thereon constitute
         the highest and best use, and that neither the Land Lease nor the
         Purchase Agreement add any value to the Property. Each appraiser
         selected hereunder shall be an independent MAI-designated appraiser
         with not less than ten years' experience in commercial real estate
         appraisal in Sunnyvale, California and surrounding areas.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 5

<PAGE>   57

     "DEBT" of any Person means (without duplication of any item): (a)
indebtedness of such Person for borrowed money; (b) indebtedness of such Person
for the deferred purchase price of property or services (except trade payables
and accrued expenses constituting current liabilities in the ordinary course of
business); (c) the face amount of any outstanding letters of credit issued for
the account of such Person; (d) obligations of such Person arising under
acceptance facilities; (e) guaranties, endorsements (other than for collection
in the ordinary course of business) and other contingent obligations of such
Person to purchase, to provide funds for payment, to provide funds to invest in
any Person, or otherwise to assure a creditor against loss; (f) obligations of
others secured by any Lien on property of such Person; (g) obligations of such
Person as lessee under Capital Leases; and (h) the obligations of such Person,
contingent or otherwise, under any lease of property or related documents
(including a separate purchase agreement) which provide that such Person or any
of its Affiliates must purchase or cause another Person to purchase any interest
in the leased property and thereby guarantee a minimum residual value of the
leased property to the lessor. For purposes of this definition, the amount of
the obligations described in clause (h) of the preceding sentence with respect
to any lease classified according to GAAP as an "operating lease," shall equal
the sum of (1) the present value of rentals and other minimum lease payments
required in connection with such lease [calculated in accordance with SFAS 13
and other GAAP relevant to the determination of the whether such lease must be
accounted for as an operating lease or capital lease], plus (2) the fair value
of the property covered by the lease; provided, however, that such amount shall
not exceed the price, as of the date a determination of Debt is required
hereunder, for which the lessee can purchase the leased property pursuant to any
valid ongoing purchase option if, upon such a purchase, the lessee shall be
excused from paying rentals or other minimum lease payments that would otherwise
accrue after the purchase.

     "DEFAULT" means any event which, with the passage of time or the giving of
notice or both, would (if not cured within any applicable cure period)
constitute an Event of Default.

     "DEFAULT RATE" means, for any period prior to the Designated Sale Date, a
floating per annum rate equal to two percent (2%) above the Prime Rate, and for
any period commencing on or after the Designated Sale Date, Default Rate shall
mean a floating per annum rate equal to five percent (5%) above the Prime Rate.
However, in no event will the "Default Rate" at any time exceed the maximum
interest rate permitted by law.

     "DEPOSIT TAKER" shall have the meaning assigned to it in the Pledge
Agreement.

     "DEPOSIT TAKER LOSSES" shall have the meaning assigned to it in the Pledge
Agreement.

     "DESIGNATED SALE DATE" means the earlier of:

               (1) the first Business Day of January, 2005; or

               (2) any Business Day designated as such in an irrevocable,
          unconditional notice given by NAI to BNPLC; provided, that to be
          effective for purposes of this definition, any such notice from NAI to
          BNPLC must designate a Business Day that is more than thirty days
          after the date of such notice; and provided, further, to be effective
          for purposes of this definition, the notice must include an express,
          unconditional, unequivocal and irrevocable acknowledgment by NAI that
          because of NAI's election to accelerate the Designated Sale Date, the
          Maximum Remarketing Obligation will equal the Break Even Price under
          the Purchase Agreement; or

               (3) [intentionally deleted]


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 6

<PAGE>   58

               (4) [intentionally deleted]; or

               (5) any Business Day designated as such in a notice given by
          BNPLC to NAI when any Event of Default has occurred and is continuing;
          provided, that to be effective for purposes of this definition, any
          such notice from BNPLC to NAI must designate a Business Day that is
          more than thirty days after the date of such notice.

     "DEVELOPMENT DOCUMENTS" means the contracts, ordinances and other documents
described in Exhibit C attached to the Closing Certificate, as the same may be
modified from time to time in accordance with the Land Lease and the Closing
Certificate, and any applications, permits or certificates concerning or
affecting the use or development of the Property that may be submitted, issued
or executed from time to time as contemplated in such contracts, ordinances and
other documents or that BNPLC may hereafter execute, approve or consent to at
the request of NAI.

     "DIRECT PAYMENTS TO PARTICIPANTS" means the amounts paid or required to be
paid directly to Participants on the Designated Sale Date as provided in Section
6.2 of the Pledge Agreement at the direction of and for NAI by the collateral
agent appointed pursuant to the Pledge Agreement from all or any part of the
Collateral described therein.

     "EFFECTIVE DATE" means December ___, 1999.

     "EFFECTIVE RATE" means for each Base Rent Period, the per annum rate
determined by dividing (A) LIBOR for such Base Rent Period, as the case may be,
by (B) one hundred percent (100%) minus the Eurodollar Rate Reserve Percentage
for such Base Rent Period. If LIBOR or the Eurodollar Rate Reserve Percentage
changes from Base Rent Period to Base Rent Period, then the Effective Rate shall
be automatically increased or decreased as of the date of such change, as the
case may be, without prior notice to NAI. If for any reason BNPLC determines
that it is impossible or unreasonably difficult to determine the Effective Rate
with respect to a given Base Rent Period in accordance with the foregoing, then
the "EFFECTIVE RATE" for that Base Rent Period shall equal any published index
or per annum interest rate determined in good faith by BNPLC's Parent to be
comparable to LIBOR at the beginning of the first day of that period. A
comparable interest rate might be, for example, the then existing yield on short
term United States Treasury obligations (as compiled by and published in the
then most recently published United States Federal Reserve Statistical Release
H.15(519) or its successor publication), plus or minus a fixed adjustment based
on BNPLC's Parent's comparison of past eurodollar market rates to past yields on
such Treasury obligations. Any determination by BNPLC of the Effective Rate
under this definition shall, in the absence of clear and demonstrable error, be
conclusive and binding upon NAI.

     "ENVIRONMENTAL LAWS" means any and all existing and future Applicable Laws
pertaining to safety, health or the environment, or to Hazardous Substances or
Hazardous Substance Activities, including the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended by the Superfund
Amendments and Reauthorization Act of 1986 (as amended, "CERCLA"), and the
Resource Conservation and Recovery Act of 1976, as amended by the Used Oil
Recycling Act of 1980, the Solid Waste Disposal Act Amendments of 1980, and the
Hazardous and Solid Waste Amendments of 1984 (as amended, "RCRA").

     "ENVIRONMENTAL CUTOFF DATE" means the later of the dates upon which (i) the
Land Lease terminates, or (ii) NAI surrenders possession and control of the
Property and ceases to have interest in the Land or Improvements or rights with
respect thereto under any of the Operative Documents.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 7

<PAGE>   59

     "ENVIRONMENTAL LOSSES" means Losses suffered or incurred by BNPLC or any
other Interested Party, directly or indirectly, relating to or arising out of,
based on or as a result of any of the following: (i) any Hazardous Substance
Activity on or prior to the Environmental Cutoff Date; (ii) any violation on or
prior to the Environmental Cutoff Date of any applicable Environmental Laws
relating to the Property or to the ownership, use, occupancy or operation
thereof; (iii) any investigation, inquiry, order, hearing, action, or other
proceeding by or before any governmental or quasi-governmental agency or
authority in connection with any Hazardous Substance Activity that occurs or is
alleged to have occurred on or prior to the Environmental Cutoff Date; or (iv)
any claim, demand, cause of action or investigation, or any action or other
proceeding, whether meritorious or not, brought or asserted against any
Interested Party which directly or indirectly relates to, arises from, is based
on, or results from any of the matters described in clauses (i), (ii), or (iii)
of this definition or any allegation of any such matters. For purposes of
determining whether Losses constitute "Environmental Losses," as the term is
used in the Land Lease, any actual or alleged Hazardous Substance Activity or
violation of Environmental Laws relating to the Property will be presumed to
have occurred prior to the Environmental Cutoff Date unless NAI establishes by
clear and convincing evidence to the contrary that the relevant Hazardous
Substance Activity or violation of Environmental Laws did not occur or commence
prior to the Environmental Cutoff Date.

     "ENVIRONMENTAL REPORTS" means collectively the following reports (whether
one or more), which were provided by NAI to BNPLC prior to the Effective Date:
Phase I Environmental Site Assessment for 1330-1350 Geneva and 1345-1347
Crossman Avenue, Sunnyvale, California, dated November 1999 by Romig Consulting
Engineers.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, together with all rules and regulations promulgated
with respect thereto.

     "ERISA AFFILIATE" means any Person who for purposes of Title IV of ERISA is
a member of NAI's controlled group, or under common control with NAI, within the
meaning of Section 414 of the Internal Revenue Code, and the regulations
promulgated and rulings issued thereunder.

     "ESCROWED PROCEEDS" means, subject to the exclusions specified in the next
sentence, any money that is received by BNPLC from time to time during the Term
(and any interest earned thereon) from any party (1) under any property
insurance policy as a result of damage to the Property, (2) as compensation for
any restriction imposed by any governmental authority upon the use or
development of the Property or for the condemnation of the Property or any
portion thereof, (3) because of any judgment, decree or award for physical
damage to the Property or (4) as compensation under any title insurance policy
or otherwise as a result of any title defect or claimed title defect with
respect to the Property; provided, however, in determining the amount of
"Escrowed Proceeds" there shall be deducted all expenses and costs of every
type, kind and nature (including Attorneys' Fees) incurred by BNPLC to collect
such proceeds. Notwithstanding the foregoing, "Escrowed Proceeds" will not
include (A) any payment to BNPLC by a Participant or an Affiliate of BNPLC that
is made to compensate BNPLC for the Participant's or Affiliate's share of any
Losses BNPLC may incur as a result of any of the events described in the
preceding clauses (1) through (4), (B) any money or proceeds that have been
applied as a Qualified Prepayment or to pay any Breakage Costs or other costs
incurred in connection with a Qualified Prepayment, (C) any money or proceeds
that, after no less than ten days notice to NAI, BNPLC returns or pays to a
third party because of BNPLC's good faith belief that such return or payment is
required by law, (D) any money or proceeds paid by BNPLC to NAI or offset
against any amount owed by NAI, or (E) any money or proceeds used by BNPLC in
accordance with the Land Lease for repairs or the restoration of the Property or
to obtain development rights or the release of restrictions that will inure to
the benefit of future owners or occupants of the Property. Until Escrowed


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 8

<PAGE>   60

Proceeds are paid to NAI pursuant to Paragraph 10 of the Land Lease, transferred
to a purchaser under the Purchase Agreement as therein provided or applied as a
Qualified Prepayment or as otherwise described in the preceding sentence, BNPLC
shall keep the same deposited in one or more interest bearing accounts, and all
interest earned on such account shall be added to and made a part of Escrowed
Proceeds.

     "ESTABLISHED MISCONDUCT" of a Person means, and is limited to: (1) if the
Person is bound by the Operative Documents or the Participation Agreement, a
breach by such Person of the express provisions of the Operative Documents or
the Participation Agreement, as applicable, that continues beyond any period for
cure provided therein, and (2) conduct of such Person or its Affiliates that has
been determined to constitute wilful misconduct or Active Negligence in or as a
necessary element of a final judgment rendered against such Person by a court
with jurisdiction to make such determination. Established Misconduct of one
Interested Party shall not be attributed to a second Interested Party unless the
second Interested Party is an Affiliate of the first. Negligence which does not
constitute Active Negligence shall not in any event constitute Established
Misconduct. For purposes of this definition, "conduct of a Person" will include
(1) the conduct of an employee of that Person, but only to the extent that the
employee is acting within the scope of his employment by that Person, as
determined in or as a necessary element of a final judgment rendered against
such Person by a court with jurisdiction to make such determination, and (2) the
conduct of an agent of that Person (such as an independent environmental
consultant engaged by that Person), but only to the extent that the agent is, as
determined in or as a necessary element of a final judgment rendered against
such Person by a court with jurisdiction to make such determination, (x) acting
within the scope of the authority granted to him by such Person, (y) not acting
with the consent or approval of or under the direction of NAI or NAI's
Affiliates, employees or agents, and (z) not acting in good faith to mitigate
Losses that such Person may suffer because of a breach or repudiation by NAI of
the Land Lease or the Purchase Documents.

     "EUROCURRENCY LIABILITIES" shall have the meaning assigned to it in
Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

     "EURODOLLAR RATE RESERVE PERCENTAGE" means, for purposes of determining the
Effective Rate for any Base Rent Period, the reserve percentage applicable two
Business Days before the first day of such period under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) for BNPLC's
Parent with respect to liabilities or deposits consisting of or including
Eurocurrency Liabilities (or with respect to any other category or liabilities
by reference to which LIBOR is determined) having a term comparable to such
period.

     "EVENT OF DEFAULT" shall have the meaning assigned to it in subparagraph 17
of the Land Lease.

     "EXCLUDED TAXES" means (1) all federal, state and local income taxes upon
Base Rent, any interest paid to BNPLC or any Participant pursuant to
subparagraph 3.(j) of the Land Lease, and any additional compensation claimed by
BNPLC pursuant to subparagraph 5.(b)(ii) of the Land Lease; (2) any transfer or
change of ownership taxes assessed because of BNPLC's transfer or conveyance to
any third party of any rights or interest in the Land Lease, the Purchase
Agreement or the Property (other than any such taxes assessed because of any
Permitted Transfer under clauses (1), (3), (4), (5), (6) or (7) of the
definition of Permitted Transfer in this Agreement), (3) all federal, state and
local income taxes upon any amounts paid as reimbursement for or to satisfy
Losses incurred by BNPLC or any Participant to the extent such taxes are offset
by a corresponding reduction of BNPLC's or the applicable Participant's income
taxes because of BNPLC's or such Participant's deduction of the reimbursed
Losses from its taxable income or because of any tax credits attributable
thereto. If, however, a change in Applicable Laws after the Effective Date
results in an increase in such taxes for any reason other than an increase in
the


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 9

<PAGE>   61

applicable tax rates (e.g., a disallowance of deductions that would otherwise be
available against payments described in clause (A) of this definition), then for
purposes of the Operative Documents, the term "Excluded Taxes" will not include
the increase in such taxes attributable to the change.

     "EXISTING CONTRACT" means the Agreement of Sale covering the Land between
NAI and Seller, dated November 16, 1999.

     "FAILED COLLATERAL TEST DATE" means any date upon which commences a
Mandatory Collateral Period as described in Part III of Schedule 1 attached to
the Land Lease.

     "FED FUNDS RATE" means, for any period, a fluctuating interest rate
(expressed as a per annum rate and rounded upwards, if necessary, to the next
1/16 of 1%) equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rates are not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by BNPLC's Parent from three Federal funds brokers of
recognized standing selected by BNPLC's Parent. All determinations of the Fed
Funds Rate by BNPLC's Parent shall, in the absence of clear and demonstrable
error, be binding and conclusive upon NAI.

     "GAAP" means generally accepted accounting principles in the United States
of America as in effect from time to time, applied on a basis consistent with
those used in the preparation of the financial statements referred to in
subparagraph 13.(a) of the Land Lease (except for changes with which NAI's
independent public accountants concur).

     "HAZARDOUS SUBSTANCE" means (i) any chemical, compound, material, mixture
or substance that is now or hereafter defined or listed in, regulated under, or
otherwise classified pursuant to, any Environmental Laws as a "hazardous
substance," "hazardous material," "hazardous waste," "extremely hazardous waste
or substance," "infectious waste," "toxic substance," "toxic pollutant," or any
other formulation intended to define, list or classify substances by reason of
deleterious properties, including ignitability, corrosiveness, reactivity,
carcinogenicity, toxicity or reproductive toxicity; (ii) petroleum, any fraction
of petroleum, natural gas, natural gas liquids, liquified natural gas, synthetic
gas usable for fuel (or mixtures of natural gas and such synthetic gas), and ash
produced by a resource recovery facility utilizing a municipal solid waste
stream, and drilling fluids, produced waters and other wastes associated with
the exploration, development or production of crude oil, natural gas or
geothermal resources; (iii) asbestos and any asbestos containing material; and
(v) any other material that, because of its quantity, concentration or physical
or chemical characteristics, poses a significant present or potential hazard to
human health or safety or to the environment if released into the workplace or
the environment.

     "HAZARDOUS SUBSTANCE ACTIVITY" means any actual, proposed or threatened
use, storage, holding, release (including any spilling, leaking, leaching,
pumping, pouring, emitting, emptying, dumping, disposing into the environment,
and the continuing migration into or through soil, surface water, groundwater or
any body of water), discharge, deposit, placement, generation, processing,
construction, treatment, abatement, removal, disposal, disposition, handling or
transportation of any Hazardous Substance from, under, in, into or on the
Property, including the movement or migration of any Hazardous Substance from
surrounding property, surface water, groundwater or any body of water under, in,
into or onto the Property and any resulting residual Hazardous Substance
contamination in, on or under the Property. "HAZARDOUS SUBSTANCE ACTIVITY" also
means any existence of Hazardous Substances on the Property that would cause the
Property or the owner or operator thereof to be in


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<PAGE>   62

violation of, or that would subject the Property to any remedial obligations
under, any Environmental Laws, including CERCLA and RCRA, assuming disclosure to
the applicable governmental authorities of all relevant facts, conditions and
circumstances pertaining to the Property.

     "IMPOSITIONS" means all sales, excise, ad valorem, gross receipts,
business, transfer, stamp, occupancy, rental and other taxes, levies, fees,
charges, surcharges, assessments or penalties which arise out of or are
attributable to the Land Lease or which are imposed upon BNPLC or the Property
because of the ownership, leasing, occupancy, sale or operation of the Property,
or any part thereof or interest therein, or relating to or required to be paid
by any of the Permitted Encumbrances or the Development Documents, excluding
only Excluded Taxes. "IMPOSITIONS" shall include real estate taxes imposed
because of a change of use or ownership of the Property on or prior to the date
of any sale by BNPLC pursuant to the Purchase Agreement.

     "IMPROVEMENTS" means any and all (1) buildings and other real property
improvements now or hereafter erected on the Land, and (2) equipment (e.g., HVAC
systems, elevators and plumbing fixtures) attached to the buildings or other
real property improvements, the removal of which would cause structural or other
material damage to the buildings or other real property improvements or would
materially and adversely affect the value or use of the buildings or other real
property improvements.

     "INITIAL FUNDING ADVANCE" means the advance made by BNPLC's Parent
(directly or through one or more of its Affiliates) to or on behalf of BNPLC on
or prior to the Effective Date to cover the cost of BNPLC's acquisition of the
Property and certain Transaction Expenses and other amounts described in this
definition. The amount of the Initial Funding Advance may be confirmed by a
separate closing certificate executed by NAI as of the Effective Date. To the
extent that BNPLC does not itself use the entire Initial Funding Advance to pay
Transaction Expenses incurred by BNPLC, the remainder thereof will be advanced
to NAI, with the understanding that NAI shall use any such amount advanced for
one or more of the following purposes: (1) the payment or reimbursement of
Transaction Expenses incurred by NAI; (2) the maintenance of the Property; or
(3) the payment of Rents next due.

     "INTERESTED PARTY" means each of (1) BNPLC, its Affiliates and its
successors and assigns as to the Property or any part thereof or any interest
therein, (2) BNPLC's Parent, and (3) any other Participants and their permitted
successors and assigns under the Participation Agreement; provided, however,
none of the following shall constitute an Interested Party: (a) any Person to
whom BNPLC may transfer an interest in the Property by a conveyance that is not
a Permitted Transfer and others that cannot lawfully claim an interest in the
Property except through or under such a transfer by BNPLC, (b) NAI or any Person
that cannot lawfully claim an interest in the Property except through or under a
conveyance from NAI, or (c) any Applicable Purchaser under the Purchase
Agreement and any Person that cannot lawfully claim an interest in the Property
except through or under a conveyance from such Applicable Purchaser.

     "ISSUE 97-1 NON-PERFORMANCE-RELATED SUBJECTIVE EVENT OF DEFAULT" means an
Event of Default that is unrelated to the Property or the use or maintenance
thereof and that results solely from (A) a breach by NAI of a provision in any
Operative Document, the occurrence of which breach cannot be objectively
determined, or (B) any other event described in subparagraph 17.(e) of the Land
Lease, the occurrence of which event cannot be objectively determined. For
example, an Event of Default under subparagraph 17.(e) of the Land Lease
resulting solely from a failure of NAI to "generally" pay its debts as such
debts become due (in contrast to a failure of NAI to pay Rent to BNPLC as it
becomes due under the Land Lease) would constitute an Issue 97-1
Non-performance-related Subjective Event of Default. In no event, however, will
the term "Issue 97-1 Non-performance-related Subjective Event of Default"
include an Event of Default resulting from (1) a failure of NAI to make any
payment required to BNPLC under the Operative Documents, (2) a breach by NAI of
the provisions set forth in Schedule 1


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 11

<PAGE>   63

attached to the Land Lease (which set forth financial covenants), (3) any
failure of NAI to use, maintain and insure the Property in accordance with the
requirements of the Land Lease, or (4) any failure of NAI to pay the full amount
of any Supplemental Payment on the Designated Sale Date as required by the
Purchase Agreement. Except as provided in subparagraph 1(A)(2)(c)(i) of the
Purchase Agreement, the characterization of any Event of Default as an Issue
97-1 Non-performance-related Subjective Event of Default will not affect the
rights or remedies available to BNPLC because of the Event of Default.

     "LAND" means the land covered by the land described in Exhibit A attached
to the Closing Certificate, the Land Lease and the Purchase Agreement.

     "LAND LEASE" means the Lease Agreement (Phase IV - Land") dated as of
DECEMBER ___, 1999 between BNPLC, as landlord, and NAI, as tenant, pursuant to
which NAI has agreed to lease BNPLC's interest in the Property, as such Lease
Agreement may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.

     "LIBOR" means, for purposes of determining the Effective Rate for each Base
Rent Period, the rate determined by BNPLC's Parent to be the average rate of
interest per annum (rounded upwards, if necessary, to the next 1/16 of 1%) of
the rates at which deposits of dollars are offered or available to BNPLC's
Parent in the London interbank market at approximately 11:00 a.m. (London time)
on the second Business Day preceding the first day of such period. BNPLC shall
instruct BNPLC's Parent to consider deposits, for purposes of making the
determination described in the preceding sentence, that are offered: (i) for
delivery on the first day of such Base Rent Period, as the case may be, (ii) in
an amount equal or comparable to the total (projected on the applicable date of
determination by BNPLC's Parent) Stipulated Loss Value on the first day of such
period, and (iii) for a time equal or comparable to the length of such period.
If BNPLC's Parent so chooses, it may determine LIBOR for any period by reference
to the rate reported by the British Banker's Association on Page 3750 of the
Telerate Service at approximately 11:00 a.m. (London time) on the second
Business Day preceding the first day of such period. If for any reason BNPLC's
Parent determines that it is impossible or unreasonably difficult to determine
LIBOR with respect to a given Base Rent Period in accordance with the foregoing,
or if BNPLC's Parent shall determine that it is unlawful (or any central bank or
governmental authority shall assert that it is unlawful) for BNPLC, BNPLC's
Parent or any Participant to provide or maintain the Initial Funding Advance
during any Base Rent Period for which Base Rent is computed by reference to
LIBOR, then "LIBOR" for that period shall equal the Base Rate for that period.
All determinations of LIBOR by BNPLC's Parent shall, in the absence of clear and
demonstrable error, be binding and conclusive upon NAI.

     "LIBOR PERIOD ELECTION" for any Base Rent Period means a period of one
month, three months or six months as designated by NAI at least five Business
Days prior to the commencement of such Base Rent Period by a notice given to
BNPLC in the form of Exhibit C attached to the Land Lease. (For purposes of the
Land Lease a LIBOR Period Election for any Base Rent Period shall also be
considered the LIBOR Period Election in effect on the Base Rent Commencement
Date or Base Rent Date upon which such Base Rent Period begins.) Any LIBOR
Period Election so designated by NAI shall remain in effect for the entire Base
Rent Period specified in NAI's notice to BNPLC (provided such Base Rent Period
commences at least ten Business Days after BNPLC's receipt of the notice) and
for all subsequent Base Rent Periods until a new designation becomes effective
in accordance with the provisions set forth in this definition. Notwithstanding
the foregoing, however: (1) NAI shall not be entitled to designate a LIBOR
Period Election that would cause a Base Rent Period to extend beyond the end of
the scheduled Term; (2) changes in the LIBOR Period Election shall become
effective only upon the commencement of a new Base Rent Period; (3) for each
Base Rent Period that occurs within any Mandatory Collateral Period, the LIBOR
Period Election shall be one month; (4) no LIBOR Period Election designated by
NAI hereunder shall be different


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 12

<PAGE>   64

than the LIBOR Period Election specified under (and as defined in) the Other
Common Definitions and Provisions Agreement; and (5) if NAI fails to make a
LIBOR Period Election consistent with the foregoing requirements for any Base
Rent Period, or if an Event of Default shall have occurred and be continuing on
the third Business Day preceding the commencement of any Base Rent Period, the
LIBOR Period Election for such Base Rent Period shall be deemed to be one month.

     "LIEN" means any mortgage, pledge, security interest, encumbrance, lien or
charge of any kind (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any lease in the nature
thereof, any agreement to sell receivables with recourse, and the filing of or
agreement to give any financing statement under the Uniform Commercial Code of
any jurisdiction). In addition, for purposes of subparagraph A.(8) of Part IV of
Schedule 1 attached to the Land Lease, "Lien" includes any Liens under ERISA
relating to Unfunded Benefit Liabilities of which NAI is required to notify
BNPLC under subparagraph 13.(a)(vii) of the Land Lease (irrespective of whether
NAI actually notifies BNPLC as required thereunder).

     "LIENS REMOVABLE BY BNPLC" means, and is limited to, Liens encumbering the
Property that are asserted (1) other than as contemplated in the Operative
Documents, by BNPLC itself, (2) by third parties lawfully claiming through or
under BNPLC (which for purposes of the Land Lease shall include any judgment
liens established against the Property because of a judgment rendered against
BNPLC and shall also include any liens established against the Property to
secure past due Excluded Taxes), or (3) by third parties lawfully claiming under
a deed or other instrument duly executed by BNPLC; provided, however, Liens
Removable by BNPLC shall not include (A) any Permitted Encumbrances or
Development Documents (regardless of whether claimed through or under BNPLC),
(B) the Operative Documents or any other document executed by BNPLC with the
knowledge of (and without objection by) NAI's counsel contemporaneously with the
execution and delivery of the Operative Documents, (C) Liens which are neither
lawfully claimed through or under BNPLC (as described above) nor claimed under a
deed or other instrument duly executed by BNPLC, (D) Liens claimed by NAI or
claimed through or under a conveyance made by NAI, (E) Liens arising because of
BNPLC's compliance with Applicable Law, the Operative Documents, Permitted
Encumbrances, the Development Documents or any written request made by NAI, (F)
Liens securing the payment of property taxes or other amounts assessed against
the Property by any governmental authority, other than to secure the payment of
past due Excluded Taxes or to secure damages caused by (and attributed by any
applicable principles of comparative fault to) BNPLC's own Established
Misconduct, (G) Liens resulting from or arising in connection with any breach by
NAI of the Operative Documents; or (H) Liens resulting from or arising in
connection with any Permitted Transfer that occurs more than thirty days after
any Designated Sale Date upon which, for any reason, NAI or an Affiliate of NAI
or any Applicable Purchaser shall not purchase BNPLC's interest in the Property
pursuant to the Purchase Agreement for a cash price to BNPLC (when taken
together with any Supplemental Payment made by NAI pursuant to Paragraph 1(A)(2)
of the Purchase Agreement, in the case of a purchase by an Applicable Purchaser)
equal to the Break Even Price.

     "LOSSES" means the following: any and all losses, liabilities, damages
(whether actual, consequential, punitive or otherwise denominated), demands,
claims, administrative or legal proceedings, actions, judgments, causes of
action, assessments, fines, penalties, costs and expenses (including Attorneys'
Fees and the fees of outside accountants and environmental consultants), of any
and every kind or character, foreseeable and unforeseeable, liquidated and
contingent, proximate and remote.

     "MANDATORY COLLATERAL PERIOD" shall have the meaning assigned to it in Part
I of Schedule 1 attached to the Land Lease and to the Pledge Agreement.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 13

<PAGE>   65

     "MATERIAL ENVIRONMENTAL COMMUNICATION" means a communication between NAI or
its agents and a regulatory agency or third party, which causes, or potentially
could cause (whether by implementation of or response to said communication), a
material change in the scope, duration, or nature of any Remedial Work.

     "MAXIMUM REMARKETING OBLIGATION" shall have the meaning indicated in
subparagraph 1(A)(2)(c) of the Purchase Agreement.

     "MINIMUM EXTENDED REMARKETING PRICE" shall have the meaning assigned to it
in subparagraph 2(B) of the Purchase Agreement.

     "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in Section 3(37)
of ERISA to which contributions have been made by NAI or any ERISA Affiliate
during the preceding six years and which is covered by Title IV of ERISA.

     "NAI" means Network Appliance, Inc., a California corporation.

     "NAI'S EXTENDED REMARKETING PERIOD" shall have the meaning assigned to it
in subparagraph 2(A) of the Purchase Agreement.

     "NAI'S EXTENDED REMARKETING RIGHT" shall have the meaning assigned to it in
subparagraph 2(A) of the Purchase Agreement.

     "NAI'S INITIAL REMARKETING RIGHTS AND OBLIGATIONS" shall have the meaning
assigned to it in subparagraph 1(A)(2) of the Purchase Agreement.

     "OPERATIVE DOCUMENTS" means the Closing Certificate, the Land Lease, the
Purchase Agreement, the Pledge Agreement and this Common Definitions and
Provisions Agreement (Phase IV - Land).

     "OTHER COMMON DEFINITIONS AND PROVISIONS AGREEMENT" means the Common
Definitions and Provisions Agreement (Phase IV - Improvements), dated as of the
June 16, 1999, between BNPLC and NAI, as such Common Definitions and Provisions
Agreement may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.

     "OTHER LEASE AGREEMENT" means the Lease Agreement (Phase IV -
Improvements), dated as of June 16, 1999, between BNPLC and NAI, as such Lease
Agreement may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.

     "OTHER PURCHASE AGREEMENT" means the Purchase Agreement (Phase IV -
Improvements), dated as of June 16, 1999, between BNPLC and NAI, as such
Purchase Agreement may be extended, supplemented, amended, restated or otherwise
modified from time to time in accordance with its terms.

     "PARTICIPANT" means BNPLC's Parent and any other Person that, upon becoming
a party to the Participation Agreement and the Pledge Agreement by executing
supplements as contemplated therein, agrees from time to time to participate in
all or some of the risks and rewards to BNPLC of the Land Lease and the Purchase
Documents. As of the Effective Date, the only Participant is BNPLC's Parent, but
BNPLC may agree after the Effective Date to share in risks and rewards of the
Land Lease and the Purchase Documents with other Participants. However, no
Person other than BNPLC's Parent and its Affiliates shall qualify as a
Participant for


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 14

<PAGE>   66

purposes of the Operative Documents or other agreements concerning the Property
to which NAI is a party unless such Person, during the continuance of an Event
of Default or otherwise with NAI's prior written approval (which approval will
not be unreasonably withheld), became a party to the Pledge Agreement and to the
Participation Agreement by executing supplements to those agreements as
contemplated therein.

     "PARTICIPATION AGREEMENT" means the Participation Agreement between BNPLC
and BNPLC's Parent dated as of the June 16, 1999, pursuant to which BNPLC's
Parent has agreed to participate in the risks and rewards to BNPLC of the Land
Lease and the other Operative Documents, as such Participation Agreement may be
extended, supplemented, amended, restated or otherwise modified from time to
time in accordance with its terms.

     "PBGC" means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

     "PERMITTED ENCUMBRANCES" means (i) the encumbrances and other matters
affecting the Property that are set forth in Exhibit B attached to the Closing
Certificate, (ii) any easement agreement or other document affecting title to
the Property executed by BNPLC at the request of or with the consent of NAI
(including the Other Lease Agreement, the Other Purchase Agreement and all
documents executed by BNPLC pursuant to the Other Purchase Agreement), (iii) the
Premises Leases, (iv) any Liens securing the payment of Impositions which are
not delinquent or claimed to be delinquent or which are being contested in
accordance with subparagraph 5.(a) of the Land Lease, and (iv) mechanics' and
materialmen's liens for amounts not past due or claimed to be past due or which
are being contested in accordance with subparagraph 11.(c) of the Land Lease.

     "PERMITTED HAZARDOUS SUBSTANCE USE" means the use, generation, storage and
offsite disposal of Permitted Hazardous Substances in strict accordance with
applicable Environmental Laws and with due care given the nature of the
Hazardous Substances involved; provided, the scope and nature of such use,
generation, storage and disposal shall not:

               (1) exceed that reasonably required for the operation of the
          Property for the purposes expressly permitted under subparagraph 2.(a)
          of the Land Lease; or

               (2) include any disposal, discharge or other release of Hazardous
          Substances from the Property in any manner that might allow such
          substances to reach surface water or groundwater, except (i) through a
          lawful and properly authorized discharge (A) to a publicly owned
          treatment works or (B) with rainwater or storm water runoff in
          accordance with Applicable Laws and any permits obtained by NAI that
          govern such runoff; or (ii) any such disposal, discharge or other
          release of Hazardous Substances for which no permits are required and
          which are not otherwise regulated under applicable Environmental Laws.

Further, notwithstanding anything to the contrary herein contained, Permitted
Hazardous Substance Use shall not include any use of the Property in a manner
that requires a RCRA treatment, storage or disposal permit, including a
landfill, incinerator or other waste disposal facility.

     "PERMITTED HAZARDOUS SUBSTANCES" means Hazardous Substances used and
reasonably required for the use of the Property by NAI and its permitted
subtenants and assigns for the purposes expressly permitted by subparagraph
2.(a) of the Land Lease, in either case in strict compliance with all
Environmental Laws and with due care given the nature of the Hazardous
Substances involved. Without limiting the generality of the foregoing, Permitted
Hazardous Substances shall include usual and customary office, laboratory and
janitorial products.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 15

<PAGE>   67

     "PERMITTED TRANSFER" means any one or more of the following: (1) the
creation or conveyance by BNPLC of rights and interests in favor of any
Participant pursuant to the Participation Agreement; (2) the creation or
conveyance of rights and interests in favor of or to Banque Nationale de Paris
(through its San Francisco Branch or otherwise), as BNPLC's Parent, or any other
Qualified Affiliate of BNPLC, provided that NAI must be notified before any such
conveyance to Banque Nationale de Paris or another Qualified Affiliate of (A)
any interest in the Property or any portion thereof by an assignment or other
document which will be recorded in the real property records of San Mateo
County, California or (B) BNPLC's entire interest in the Land and the Property;
(3) any assignment or conveyance by BNPLC or its permitted successors or assigns
to any present or future Participant of any lien or security interest against
the Property (in contrast to a conveyance of BNPLC's fee estate in the Land and
Improvements) or of any interest in Rent, payments required by or under the
Purchase Documents or payments to be generated from the Property after the Term,
provided that such assignment or conveyance is made expressly subject to the
rights of NAI under the Operative Documents; (4) any agreement to exercise or
refrain from exercising rights or remedies under the Operative Documents made by
BNPLC with any present or future Participant; (5) any assignment or conveyance
by BNPLC requested by NAI or required by any Permitted Encumbrance, by the
Purchase Agreement, by the Existing Contract, by any other Development Contract
or by Applicable Laws; or (6) any assignment or conveyance after a Designated
Sale Date on which NAI shall not have purchased or caused an Applicable
Purchaser to purchase BNPLC's interest in the Property and, if applicable, after
the expiration of the thirty day cure period specified in Paragraph 4(D) of the
Purchase Agreement.

     "PERSON" means an individual, a corporation, a partnership, an
unincorporated organization, an association, a joint stock company, a joint
venture, a trust, an estate, a government or agency or political subdivision
thereof or other entity, whether acting in an individual, fiduciary or other
capacity.

     "PERSONAL PROPERTY" shall have the meaning assigned to it on page 2 of the
Land Lease.

     "PLAN" means any employee benefit or other plan established or maintained,
or to which contributions have been made, by NAI or any ERISA Affiliate of NAI
during the preceding six years and which is covered by Title IV of ERISA, other
than a Multiemployer Plan.

     "PLEDGE AGREEMENT" means the Pledge Agreement (Phase IV - Land) dated as of
the date hereof between BNPLC and NAI, pursuant to which NAI may pledge
certificates of deposit as security for NAI's obligations under the Purchase
Agreement (and for the corresponding obligations of BNPLC to the Participants
under the Participation Agreement), as such Pledge Agreement may be extended,
supplemented, amended, restated or otherwise modified from time to time in
accordance with its terms.

     "PREMISES LEASES" means the four subleases of space within the
Improvements, each between NAI, as landlord, and TRW Inc., as tenant, executed
of even date herewith, and any subleases or other transfers under and permitted
by the terms of any such leases.

     "PRIME RATE" means the prime interest rate or equivalent charged by BNPLC's
Parent in the United States of America as announced or published by BNPLC's
Parent from time to time, which need not be the lowest interest rate charged by
BNPLC's Parent. If for any reason BNPLC's Parent does not announce or publish a
prime rate or equivalent, the prime rate or equivalent announced or published by
either CitiBank, N.A. or any New York branch or office of Credit Commercial de
France as selected by BNPLC shall be used to compute the rate described in the
preceding sentence. The prime rate or equivalent announced or published by such
bank need not be the lowest rate charged by it. The Prime Rate may change from
time to time after the Effective Date without notice to NAI as of the effective
time of each change in rates described in this definition.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 16

<PAGE>   68

     "PROPERTY" means the Personal Property and the Real Property, collectively.
Any rights, titles and interests acquired by BNPLC under the Existing Contract,
to the extent not covered by the Land Lease and thus not encompassed within this
definition of Property, are intended to be covered by the Other Lease Agreement
and encompassed within the term "Property" as defined in the Other Common
Definitions and Provisions Agreement.

     "PURCHASE AGREEMENT" means the Purchase Agreement (Phase IV - Land) dated
as of December ___, 1999 between BNPLC and NAI, as such Purchase Agreement may
be extended, supplemented, amended, restated or otherwise modified from time to
time in accordance with its terms.

     "PURCHASE DOCUMENTS" means collectively (1) the Purchase Agreement, (2) the
Memorandum of Purchase Agreement executed by BNPLC and NAI as of the Effective
Date and recorded to provide notice of the Purchase Agreement; and (3) the
Pledge Agreement and all financing statements, notices, acknowledgments and
certificates of deposit executed or delivered from time to time by NAI, BNPLC or
the other parties to the Pledge Agreement pursuant to and as expressly provided
therein.

     "PURCHASE OPTION" shall have the meaning assigned to it in subparagraph
1(A)(1) of the Purchase Agreement.

     "QUALIFIED AFFILIATE" means any Person that is one hundred percent (100%)
owned, directly or indirectly, by Banque Nationale de Paris or any successor of
such bank; provided, that such Person can make (and has in writing made) the
same representations to NAI that BNPLC has made in Paragraphs 3(D) and 3(E) of
the Closing Certificate; and, provided, further, that such Person is not
insolvent.

     "QUALIFIED PREPAYMENTS" means any payments received by BNPLC from time to
time during the Term (1) under any property insurance policy as a result of
damage to the Property, (2) as compensation for any restriction placed upon the
use or development of the Property or for the condemnation of the Property or
any portion thereof, (3) because of any judgment, decree or award for injury or
damage to the Property or (4) under any title insurance policy or otherwise as a
result of any title defect or claimed title defect with respect to the Property;
provided, however, that (x) in determining the amount of "Qualified
Prepayments", there shall be deducted all expenses and costs of every kind, type
and nature (including taxes, Breakage Costs and Attorneys' Fees) incurred by
BNPLC with respect to the collection or application of such payments, (y)
"Qualified Prepayments" shall not include any payment to BNPLC by a Participant
or an Affiliate of BNPLC that is made to compensate BNPLC for the Participant's
or Affiliate's share of any Losses BNPLC may incur as a result of any of the
events described in the preceding clauses (1) through (4) and (z) "Qualified
Prepayments" shall not include any payments received by BNPLC that BNPLC has
paid or is obligated to pay to NAI for the restoration or repair of the Property
or that BNPLC is holding as Escrowed Proceeds pursuant to Paragraph 10 of the
Land Lease or any other provision of the Land Lease. For purposes of computing
the total Qualified Prepayments (and other amounts dependent upon Qualified
Prepayments, such as Stipulated Loss Value) paid to or received by BNPLC as of
any date, payments described in the preceding clauses (1) through (4) will be
considered as Escrowed Proceeds, not Qualified Prepayments, until they are
actually applied as Qualified Prepayments by BNPLC as provided in the Paragraph
10 of the Land Lease.

     "REAL PROPERTY" shall have the meaning assigned to it on page 1 of the Land
Lease.

     "REMEDIAL WORK" means any investigation, monitoring, clean-up, containment,
remediation, removal, payment of response costs, or restoration work and the
preparation and implementation of any closure or other


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 17

<PAGE>   69

required remedial plans that any governmental agency or political subdivision
requires or approves (or could reasonably be expected to require if it was aware
of all relevant circumstances concerning the Property), whether by judicial
order or otherwise, because of the presence of or suspected presence of
Hazardous Substances in, on, under or about the Property or because of any prior
Hazardous Substance Activity. Without limiting the generality of the foregoing,
Remedial Work also means any obligations imposed upon or undertaken by NAI
pursuant to Development Documents or any recommendations or proposals made
therein.

     "RENT" means the Base Rent and all Additional Rent.

     "RESIDUAL RISK PERCENTAGE" means seventeen percent (17%).

     "RESPONSIBLE FINANCIAL OFFICER" means the chief financial officer, the
controller, the treasurer or the assistant treasurer of NAI.

     "SALE CLOSING DOCUMENTS" shall have the meaning assigned to it in
subparagraph 1(C) of the Purchase Agreement.

     "SECURED SPREAD" means thirty basis points (30/100 of 1%); provided,
however, that for purposes of calculating the Base Rent for any Mandatory
Collateral Period, the Secured Spread shall equal one-half of the Unsecured
Spread for the same period.

     "SELLER" means, collectively, TRW Inc., an Ohio corporation, and ESL
Incorporated, a California corporation.

     "STIPULATED LOSS VALUE" as of any date means the amount equal to the sum of
the Initial Funding Advance, minus all funds actually received by BNPLC and
applied as Qualified Prepayments on or prior to such date. Under no
circumstances will any payment of Base Rent reduce Stipulated Loss Value.

     "SUBSIDIARY" means, with respect to any Person, any Affiliate of which at
least a majority of the securities or other ownership interests having ordinary
voting power then exercisable for the election of directors or other persons
performing similar functions are at the time owned directly or indirectly by
such Person.

     "SUPPLEMENTAL PAYMENT" shall have the meaning assigned to it in
subparagraph 1(A)(2)(c) of the Purchase Agreement.

     "TERM" shall have the meaning assigned to it in subparagraph 1.(a) of the
Land Lease.

     "THIRD PARTY PRICE" shall have the meaning assigned to it in subparagraph
1(A)(2) of the Purchase Agreement.

     "THIRD PARTY SALE NOTICE" shall have the meaning assigned to it in
subparagraph 2(C) of the Purchase Agreement.

     "THIRD PARTY SALE PROPOSAL" shall have the meaning assigned to it in
subparagraph 2(C) of the Purchase Agreement.


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 18

<PAGE>   70

     "THIRD PARTY TARGET PRICE" shall have the meaning assigned to it in
subparagraph 2(C) of the Purchase Agreement.

     "TRANSACTION EXPENSES" means costs incurred in connection with the
preparation and negotiation of the Operative Documents and related documents and
the consummation of the transactions contemplated therein.

     "UNFUNDED BENEFIT LIABILITIES" means, with respect to any Plan or
Multiemployer Plan, the amount (if any) by which the present value of all
benefit liabilities (within the meaning of Section 4001(a)(16) of ERISA) under
the Plan or Multiemployer Plan exceeds the market value of all Plan or
Multiemployer assets allocable to such benefit liabilities, as determined on the
most recent valuation date of the Plan or Multiemployer Plan and in accordance
with the provisions of ERISA for calculating the potential liability of NAI or
any ERISA Affiliate of NAI under Title IV of ERISA.

     "UNSECURED SPREAD" means, for each period beginning on and including the
Base Rent Commencement Date or a Base Rent Date and ending on but not including
the next Base Rent Date, the amount established as described below in this
definition on the date (in this definition, the "SPREAD TEST DATE") that is two
Business Days prior to such period by reference to the ratio calculated by
dividing (1) Adjusted EBIT for the then latest Rolling Four Quarters Period that
ended prior to (and for which NAI has reported earnings as necessary to compute
Adjusted EBIT) into (2) the total Debt of NAI and its Subsidiaries (determined
on a consolidated basis) as of the end of such Rolling Four Quarters Period. The
Unsecured Spread shall be established at the Level in the pricing grid below
which corresponds to such ratio; provided, that:

               (a) for any period commencing on or prior to the first Business
          Day of February, 2000, the Unsecured Spread will be the amount
          indicated for Level III in the pricing grid below plus basis points;

               (b) promptly after earnings are reported by NAI for the latest
          quarter in any Rolling Four Quarters Period, NAI must notify BNPLC of
          any resulting change in the Unsecured Spread under this definition,
          and no reduction in the Unsecured Spread from one period to the next
          will be effective for purposes of the Operative Documents unless,
          prior to the Spread Test Date for the next period, NAI shall have
          provided BNPLC with a written notice setting forth and certifying the
          calculation under this definition that justifies the reduction; and

               (c) notwithstanding anything to the contrary in this definition,
          on any date when an Event of Default has occurred and is continuing,
          the Unsecured Spread shall equal the Default Rate less the Effective
          Rate.


<TABLE>
<CAPTION>
         LEVELS           RATIO OF TOTAL DEBT TO ADJUSTED EBIT            UNSECURED SPREAD
         ------           ------------------------------------            ----------------
<S>                       <C>                                            <C>
        Level I                      less than 0.5                       125.0 basis points

        Level II           greater than or equal to 0.5, but             137.5 basis points
                                     less than 1.0

        Level III          greater than or equal to 1.0, but             150.0 basis points
                                        less
                                      than 1.5
</TABLE>


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 19

<PAGE>   71

<TABLE>
<S>                       <C>                                            <C>

        Level IV           greater than or equal to 1.5, but             175.0 basis points
                                     less than 2.0

        Level V               greater than or equal to 2.0               200.0 basis points
</TABLE>

All determinations of the Unsecured Spread by BNPLC shall, in the absence of
clear and demonstrable error, be binding and conclusive for purposes of the Land
Lease. Further BNPLC may, but shall not be required, to rely on the
determination of the Unsecured Spread set forth in any notice delivered by NAI
as described above in clause (b) of this definition.

     "VOLUNTARY RETENTION OF THE PROPERTY" means an affirmative election made by
BNPLC to keep the Property pursuant to, and under the circumstances described
in, the second sentence of subparagraph 1(A)(2)(a) of the Purchase Agreement.



                      ARTICLE II - RULES OF INTERPRETATION

     THE FOLLOWING PROVISIONS WILL APPLY TO AND GOVERN THE INTERPRETATION OF
EACH OF THE OPERATIVE DOCUMENTS:

     1      NOTICES. The provision of any Operative Document, or of any
Applicable Laws with reference to the sending, mailing or delivery of any notice
or demand under any Operative Document or with reference to the making of any
payment required under any Operative Document, shall be deemed to be complied
with when and if the following steps are taken:

               (i) All Rent and other amounts required to be paid by NAI to
          BNPLC shall be paid to BNPLC in immediately available funds by wire
          transfer to:

                    Federal Reserve Bank of New York
                    ABA  026007689 Banque Nationale de Paris
                    /BNP/ BNP San Francisco
                    /AC/ 14334000176
                    /Ref/ NAI Sunnyvale Synthetic Land Lease (Phase IV)

          or at such other place and in such other manner as BNPLC may designate
          in a notice to NAI.

               (ii) All Collateral required to be paid by NAI to the Agent shall
          be paid in immediately available funds by wire transfer to:

                        Federal Reserve Bank of New York


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 20

<PAGE>   72

                    ABA  026007689 Banque Nationale de Paris
                    /BNP/ BNP San Francisco
                    /AC/ 14334000176
                    /Ref/ NAI Collateral Payment

          or at such other place and in such other manner as Agent may designate
          in a notice to NAI.

               (iii) All notices, demands, approvals, consents and other
          communications to be made under any Operative Document to or by the
          parties thereto must, to be effective for purpose of such Operative
          Document, be in writing. Notices, demands and other communications
          required or permitted under any Operative Document are to be sent to
          the addresses set forth below (or in the case of communications to
          Participants, at the addresses set forth in Schedule 1 to the
          Participation Agreement) and shall be given by any of the following
          means: (A) personal service, with proof of delivery or attempted
          delivery retained; (B) electronic communication, whether by telex,
          telegram or telecopying (if confirmed in writing sent by United States
          first class mail, return receipt requested); or (C) registered or
          certified first class mail, return receipt requested. Such addresses
          may be changed by notice to the other parties given in the same manner
          as provided above. Any notice or other communication sent pursuant to
          clause (A) or (B) hereof shall be deemed received upon such personal
          service or upon dispatch by electronic means, and, if sent pursuant to
          clause (C) shall be deemed received five days following deposit in the
          mail.

                    Address of BNPLC:

                    BNP Leasing Corporation
                    12201 Merit Drive
                    Suite 860
                    Dallas, Texas 75251
                    Attention: Lloyd G. Cox
                    Telecopy: (972) 788-9191

                    With a copy to:

                    Banque Nationale de Paris, San Francisco
                    180 Montgomery Street
                    San Francisco, California 94104
                    Attention: Gavin Holles
                    Telecopy: (415) 296-8954

                    And for draw requests and funding notices, with a copy to:

                    Banque Nationale de Paris, San Francisco
                    180 Montgomery Street
                    San Francisco, California 94104
                    Attention: George Fung
                    Telecopy: (415) 956-4230


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 21

<PAGE>   73

                    Address of NAI:

                    Network Appliance, Inc.
                    Attn: Leslie Paulides
                    2770 San Thomas Expressway
                    Santa Clara, CA 95051
                    Telecopy: (408) 367-3452


     2      SEVERABILITY. If any term or provision of any Operative Document or
the application thereof shall to any extent be held by a court of competent
jurisdiction to be invalid and unenforceable, the remainder of such document, or
the application of such term or provision other than to the extent to which it
is invalid or unenforceable, shall not be affected thereby.

     3      NO MERGER. There shall be no merger of the Land Lease or of the
leasehold estate created by the Land Lease with any other interest in the
Property by reason of the fact that the same person may acquire or hold,
directly or indirectly, the Land Lease or the leasehold estate created hereby
and any other interest in the Property, unless all Persons with an interest in
the Property that would be adversely affected by any such merger specifically
agree in writing that such a merger shall occur. There shall be no merger of the
Purchase Agreement or of the purchase options or obligations created by the
Purchase Agreement with any other interest in the Property by reason of the fact
that the same person may acquire or hold, directly or indirectly, the Land Lease
or the leasehold estate created hereby and any other interest in the Property,
unless all Persons with an interest in the Property that would be adversely
affected by any such merger specifically agree in writing that such a merger
shall occur.

     4      NO IMPLIED WAIVER. The failure of BNPLC or NAI to insist at any time
upon the strict performance of any covenant or agreement or to exercise any
option, right, power or remedy contained in any Operative Document shall not be
construed as a waiver or a relinquishment thereof for the future. The failure of
Agent to insist at any time upon the strict performance of any covenant or
agreement or to exercise any option, right, power or remedy contained in the
Pledge Agreement shall not be construed as a waiver or a relinquishment thereof
for the future. The waiver of or redress for any breach of any Operative
Document by any party thereto shall not prevent a similar subsequent act from
constituting a violation. Any express waiver of any provision of any Operative
Document shall affect only the term or condition specified in such waiver and
only for the time and in the manner specifically stated therein. No waiver by
any party to any Operative Document of any provision therein shall be deemed to
have been made unless expressed in writing and signed by the party to be bound
by the waiver. A receipt by BNPLC of any Rent with knowledge of the breach by
NAI of any covenant or agreement contained in the Land Lease or any other
Operative Document shall not be deemed a waiver of such breach. A receipt by
Agent of any Collateral or other payment under the Pledge Agreement with
knowledge of the breach by NAI of any covenant or agreement contained in the
Pledge Agreement shall not be deemed a waiver of such breach.

     5      ENTIRE AND ONLY AGREEMENTS. The Operative Documents supersede any
prior negotiations and agreements between BNPLC, Agent and NAI concerning the
Property or the Collateral, and no amendment or modification of any Operative
Document shall be binding or valid unless expressed in a writing executed by all
parties to such Operative Document.

     6      BINDING EFFECT. Except to the extent, if any, expressly provided to
the contrary in any Operative Document with respect to assignments thereof, all
of the covenants, agreements, terms and conditions to


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 22

<PAGE>   74

be observed and performed by the parties to the Operative Documents shall be
applicable to and binding upon their respective successors and, to the extent
assignment is permitted thereunder, their respective assigns.

     7      TIME IS OF THE ESSENCE. Time is of the essence as to all obligations
of NAI and BNPLC and all notices required of NAI and BNPLC under the Operative
Documents.

     8      GOVERNING LAW. Each Operative Document shall be governed by and
construed in accordance with the laws of the State of California without regard
to conflict or choice of laws (subject, however, in the case of the Pledge
Agreement to any contrary provisions of the "UCC," as defined in the Pledge
Agreement).

     9      PARAGRAPH HEADINGS. The paragraph and section headings contained in
the Operative Documents are for convenience only and shall in no way enlarge or
limit the scope or meaning of the various and several provisions thereof.

     10     NEGOTIATED DOCUMENTS. All the parties to each Operative Document
and their counsel have reviewed and revised or requested revisions to such
Operative Document, and the usual rule of construction that any ambiguities are
to be resolved against the drafting party shall not apply to the construction or
interpretation of any Operative Documents or any amendments thereof.

     11     TERMS NOT EXPRESSLY DEFINED IN AN OPERATIVE DOCUMENT. As used in
any Operative Document, a capitalized term that is not defined therein or in
this Common Definitions and Provisions Agreement (Phase IV - Land), but is
defined in another Operative Document, shall have the meaning ascribed to it in
the other Operative Document.

     12     OTHER TERMS AND REFERENCES. Words of any gender used in each
Operative Document shall be held and construed to include any other gender, and
words in the singular number shall be held to include the plural and vice versa,
unless the context otherwise requires. References in any Operative Document to
Paragraphs, subparagraphs, Sections, subsections or other subdivisions shall
refer to the corresponding Paragraphs, subparagraphs, Sections, subsections or
subdivisions of that Operative Document, unless specific reference is made to
another document or instrument. References in any Operative Document to any
Schedule or Exhibit shall refer to the corresponding Schedule or Exhibit
attached to that Operative Document, which shall be made a part thereof by such
reference. All capitalized terms used in each Operative Document which refer to
other documents shall be deemed to refer to such other documents as they may be
renewed, extended, supplemented, amended or otherwise modified from time to
time, provided such documents are not renewed, extended or modified in breach of
any provision contained in the Operative Documents or, in the case of any other
document to which BNPLC is a party or of which BNPLC is an intended beneficiary,
without the consent of BNPLC. All accounting terms used but not specifically
defined in any Operative Document shall be construed in accordance with GAAP.
The words "this [Agreement]", "herein", "hereof", "hereby", "hereunder" and
words of similar import when used in each Operative Document refer to that
Operative Document as a whole and not to any particular subdivision unless
expressly so limited. The phrases "this Paragraph", "this subparagraph", "this
Section", "this subsection" and similar phrases used in any operative document
refer only to the Paragraph, subparagraph, Section, subsection or other
subdivision described in which the phrase occurs. As used in the Operative
Documents the word "or" is not exclusive. As used in the Operative Documents,
the words "include", "including" and similar terms shall be construed as if
followed by "without limitation to".

     13     EXECUTION IN COUNTERPARTS. To facilitate execution, each Operative
Document may be executed in as many identical counterparts as may be required.
It shall not be necessary that the signature of, or


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 23

<PAGE>   75

on behalf of, each party, or that the signature of all persons required to bind
any party, appear on each counterpart. All counterparts, taken together, shall
collectively constitute a single instrument. It shall not be necessary in making
proof of any Operative Document to produce or account for more than a single
counterpart containing the respective signatures of, or on behalf of, each of
the parties hereto. Any signature page to any counterpart may be detached from
such counterpart without impairing the legal effect of the signatures thereon
and thereafter attached to another counterpart identical thereto except having
attached to it additional signature pages.

     14     NOT A PARTNERSHIP, ETC. NOTHING IN ANY OPERATIVE DOCUMENT IS
INTENDED TO CREATE ANY PARTNERSHIP, JOINT VENTURE, OR OTHER JOINT ENTERPRISE
BETWEEN BNPLC AND NAI. NEITHER THE EXECUTION OF ANY OPERATIVE DOCUMENT NOR THE
ADMINISTRATION THEREOF OR OTHER DOCUMENTS REFERENCED HEREIN BY BNPLC, NOR ANY
OTHER RIGHT, DUTY OR OBLIGATION OF BNPLC UNDER OR PURSUANT TO ANY OPERATIVE
DOCUMENT IS INTENDED TO BE OR TO CREATE ANY FIDUCIARY OBLIGATIONS OF BNPLC TO
NAI.

                         [The signature pages follows.]


     Common Definitions and Provisions Agreement (Phase IV - Land) - Page 24

<PAGE>   76

     IN WITNESS WHEREOF, NAI and BNPLC have caused this Common Definitions and
Provisions Agreement (Phase IV - Land) to be executed as of December ___, 1999.



                                            "NAI"

                                            NETWORK APPLIANCE, INC.


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

                                            Name:
                                                 -------------------------------

                                            Title:
                                                  ------------------------------


<PAGE>   77


[Continuation of signature pages to Common Definitions and Provisions Agreement
(Phase IV - Land) dated to be effective December ___, 1999]



                                            "BNPLC"

                                            BNP LEASING CORPORATION


                                            By:
                                               ---------------------------------
                                               Lloyd G. Cox, Vice President