Document:

exv10w58

 

Exhibit 10.58

PURCHASE AGREEMENT

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

July 17, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	1	 	Additional Definitions
	 	 	2	 
	 	 	“97-1Default (100%)”
	 	 	2	 
	 	 	“Adjusted Lease Balance”
	 	 	2	 
	 	 	“Applicable Purchaser”
	 	 	2	 
	 	 	“Balance of Unpaid Construction Period Losses”
	 	 	2	 
	 	 	“BNPPLC’s Actual Out of Pocket Costs”
	 	 	4	 
	 	 	“Break Even Price”
	 	 	4	 
	 	 	“Committed Price”
	 	 	4	 
	 	 	“Conditions to NAI’s Initial Remarketing Rights”
	 	 	4	 
	 	 	“Contingent Losses”
	 	 	4	 
	 	 	“Decision Not to Sell at a Loss”
	 	 	4	 
	 	 	“Deemed Sale”
	 	 	5	 
	 	 	“Extended Remarketing Period”
	 	 	5	 
	 	 	“Fair Market Value”
	 	 	5	 
	 	 	“Final Sale Date”
	 	 	5	 
	 	 	“Initial Remarketing Notice”
	 	 	5	 
	 	 	“Initial Remarketing Price”
	 	 	5	 
	 	 	“Lease Balance”
	 	 	6	 
	 	 	“Make Whole Amount”
	 	 	6	 
	 	 	“Maximum Remarketing Obligation”
	 	 	6	 
	 	 	“Must Sell Price”
	 	 	7	 
	 	 	“NAI’s Extended Remarketing Right”
	 	 	7	 
	 	 	“NAI’s Initial Remarketing Rights”
	 	 	7	 
	 	 	“NAI’s Target Price”
	 	 	7	 
	 	 	“Notice of Sale”
	 	 	7	 
	 	 	“Proposed Sale”
	 	 	7	 
	 	 	“Proposed Sale Date”
	 	 	7	 
	 	 	“Purchase Option”
	 	 	7	 
	 	 	“Put Option”
	 	 	7	 
	 	 	“Qualified Sale”
	 	 	7	 
	 	 	“Sale Closing Documents”
	 	 	8	 
	 	 	“Supplemental Payment”
	 	 	8	 
	 	 	“Supplemental Payment Obligation”
	 	 	9	 
	 	 	“Valuation Procedures”
	 	 	9	 
	2	 	NAI’s Options and Obligations on the Designated Sale Date
	 	 	9	 
	 	 	(A) Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation 
	 	 	9	 
	 	 	(B) Designation of the Purchaser
	 	 	11	 
	 	 	(C) Delivery of Property Related Documents If BNPPLC Retains the Property
	 	 	11	 
	 	 	(D) Effect of the Purchase Option and NAI’s Initial Remarketing Rights on Subsequent
Title Encumbrances
	 	 	11	 
	 	 	(E) Security for NAI’s Purchase Option
	 	 	11	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	3	 	NAI’s Rights, Options and Obligations After the Designated Sale Date
	 	 	12	 
	 	 	(A) NAI’s Right to Buy During the Thirty Days After the Designated Sale Date
	 	 	12	 
	 	 	(B) NAI’s Obligation to Buy if Certain Conditions are Satisfied
	 	 	12	 
	 	 	(C) NAI’s Extended Right to Remarket
	 	 	13	 
	 	 	(D) Deemed Sale On the Second Anniversary of the Designated Sale Date
	 	 	13	 
	 	 	(E) NAI’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale
	 	 	 	 
	4	 	Transfers By BNPPLC After the Designated Sale Date
	 	 	14	 
	 	 	(A) BNPPLC’s Right to Sell
	 	 	15	 
	 	 	(B) Survival of NAI’s Rights and the Supplemental Payment Obligation
	 	 	15	 
	 	 	(C) Easements and Other Transfers in the Ordinary Course of Business
	 	 	15	 
	5	 	Terms of Conveyance Upon Purchase
	 	 	15	 
	 	 	(A) Tender of Sale Closing Documents
	 	 	15	 
	 	 	(B) Delivery of Escrowed Proceeds
	 	 	16	 
	6	 	Survival and Termination of the Rights and Obligations of NAI and BNPPLC
	 	 	16	 
	 	 	(A) Status of this Agreement Generally
	 	 	16	 
	 	 	(B) Election by NAI to Terminate the Supplemental Payment Obligation Prior to the Completion
Date
	 	 	17	 
	 	 	(C)Automatic Termination of NAI’s Rights
	 	 	18	 
	 	 	(D)Payment Only to BNPPLC
	 	 	18	 
	 	 	(E)Preferences and Voidable Transfers
	 	 	18	 
	 	 	(F)Remedies Under the Other Operative Documents
	 	 	18	 
	7	 	Certain Remedies Cumulative
	 	 	19	 
	8	 	Attorneys’ Fees and Legal Expenses
	 	 	19	 
	9	 	Successors and Assigns
	 	 	19	 

(ii) 

 

TABLE OF CONTENTS

(Continued)

Exhibits and Schedules

	 	 	 	 	 
	Exhibit A
	 	Legal Description
	 
	 	 	 	 
	Exhibit B
	 	Valuation Procedures
	 
	 	 	 	 
	Exhibit C
	 	Requirements Re: Forms to Accomplish Assignment and Conveyance
	 
	 	 	 	 
	Exhibit C-1
	 	Agreement Concerning Ground Lease
	 
	 	 	 	 
	Exhibit C-2
	 	Form of Assignment of Ground Lease and Improvements
	 
	 	 	 	 
	Exhibit C-3
	 	Form of Bill of Sale and Assignment
	 
	 	 	 	 
	Exhibit C-4
	 	Form of Acknowledgment of Disclaimer of Representations and Warranties
	 
	 	 	 	 
	Exhibit D
	 	Secretary’s Certificate
	 
	 	 	 	 
	Exhibit E
	 	FIRPTA Statement
	 
	 	 	 	 
	Exhibit F
	 	Grant of Repurchase Option and Restrictive Covenants Agreement
	 
	 	 	 	 
	Exhibit G
	 	Notice of Election to Terminate the Supplemental Payment Obligation

(iii) 

 

PURCHASE AGREEMENT

     This PURCHASE AGREEMENT (this “Agreement”), dated as of July 17, 2007 (the “Effective
Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware corporation,
and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

     Contemporaneously with the execution of this Agreement, BNPPLC and NAI are executing a Common
Definitions and Provisions Agreement dated as of the Effective Date (the “Common Definitions and
Provisions Agreement”), which by this reference is incorporated into and made a part of this
Agreement for all purposes. As used in this Agreement, capitalized terms defined in the Common
Definitions and Provisions Agreement and not otherwise defined in this Agreement are intended to
have the respective meanings assigned to them in the Common Definitions and Provisions Agreement.

     Contemporaneously with this Agreement, BNPPLC is executing and accepting a Ground Lease dated
as of the Effective Date (the “Ground Lease”) from NAI, pursuant to which BNPPLC is acquiring a
leasehold estate in the Land described in Exhibit A and any existing Improvements on the
Land.

     Also contemporaneously with this Agreement, BNPPLC and NAI are executing a Construction
Agreement dated as of the Effective Date (the“Construction Agreement”) and a Lease Agreement dated
as of the Effective Date (the “Lease”). Pursuant to the Construction Agreement, BNPPLC is
agreeing to provide funding for the construction of new Improvements. When the term of the Lease
commences, the Lease will cover all Improvements on the Land described in Exhibit A. (As
used herein, “Property” means (i) all of BNPPLC’s interests, including those created by the Ground
Lease, in the Land and in the Improvements and in all other real and personal property from time to
time covered or to be covered by the Lease and included within the “Property” as defined therein,
and (ii) BNPPLC’s interest in any Escrowed Proceeds yet to be applied as a Qualified Prepayment or
to the cost of repairs to the Improvements or other property covered by the Lease; except that, for
purposes of this Agreement, the Property will not include any condemnation or insurance proceeds
included in Escrowed Proceeds as a result of any Pre-lease Force Majeure Event, nor will it include
any right to receive any such condemnation or insurance proceeds in the future, unless NAI itself
or one of its Affiliates purchases the Property from BNPPLC as provided in subparagraphs 2(A)(1),
3(A) or 3(B) below.)

     NAI and BNPPLC have agreed on the terms and conditions upon which NAI may purchase or arrange
for the purchase of the Property, and by this Agreement they desire to confirm all such terms and
conditions.

 

 

AGREEMENTS

1 Additional Definitions. As used in this Agreement, capitalized terms defined above have
the respective meanings assigned to them above; as indicated above, capitalized terms that are
defined in the Common Definitions and Provisions Agreement and that are used but not otherwise
defined have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement; and, the following terms have the following respective meanings:

“97-1/Default (100%)” means a Default that results from (A) a failure of NAI to make any
payment required by any Operative Document, including (i) any 97-10/Prepayment payable as
provided in Paragraph 9 of the Construction Agreement, (ii) any other amounts
payable under the Construction Agreement because of Covered Construction Period Losses,
(iii) any payment of Rent required by the Lease or (iv) any Supplemental Payment required by
this Agreement, or (B) any Hazardous Substance Activities occurring after the Completion
Date on or about the Land, or (C) any failure of NAI after the Completion Date to insure,
maintain, operate or repair the Property in accordance with all terms and conditions of the
Lease, or (D) any failure of NAI after the Completion Date to apply insurance or
condemnation proceeds as required by the Lease, or (E) any breach by NAI of the Ground
Lease, or (F) subject to the proviso at the end of Exhibit B, any breach by NAI of
the provisions set forth in Exhibit B. Except as provided in subparagraph 3(B), the
characterization of any Default as a 97-1/Default (100%) will not affect the rights or
remedies available to BNPPLC because of the Default.

“Adjusted Lease Balance” means a dollar amount equal to the following (but not less than
zero):

	 	•	 	the Lease Balance, less
	 
	 	•	 	Pre-lease Force Majeure Losses (if any).

“Applicable Purchaser” means (1) the third party designated by NAI to purchase the Property
at any sale arranged by NAI as provided in this Agreement, or (2) the third party designated
by BNPPLC as the purchaser at any Qualified Sale not arranged by NAI.

“Balance of Unpaid Construction Period Losses” means, subject to the qualifications set
forth below in this definition, an amount equal to the sum of:

	 	(1)	 	the total Losses (if any), including Contingent Losses, that have been incurred
or suffered by BNPPLC or other Interested Parties at any time and from time to time
prior to the Completion Date (or, if no Completion Date occurs prior to the Designated
Sale Date, then prior to the Designated Sale Date) by reason of, in connection with or
arising out of (A) their ownership or alleged ownership of any
interest in the Property or the payments required by the Operative Documents, (B)

 

 

	 	 	 	the use or operation of the Property, (C) the negotiation, administration or
enforcement of the Operative Documents, (D) the making of Funding Advances, (E) the
Construction Project, (F) the breach by NAI of this Agreement or any other Operative
Document 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 of BNPPLC under the Ground Lease or the Closing
Certificate, 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; plus
	 
	 	(2)	 	interest accruing at the Default Rate, compounded annually, on each payment of
any such Losses by BNPPLC or any other Interested Party from the date such payment was
made to the Designated Sale Date.

For purposes of computing the Balance of Unpaid Construction Period Losses, Losses as
described in clause (1) of this definition will include each reduction (if any) (i) in the
Carrying Costs added to the Outstanding Construction Allowance as provided in the
Construction Agreement, or (ii) in the Base Rent payable to BNPPLC as provided in the Lease,
that results from Pre-lease Force Majeure Losses. In other words, the Losses described in
clause (1) will include the additional (if any) Carrying Costs and Base Rent that would have
accrued if Pre-lease Force Majeure Losses were set at zero dollars ($0.00) in the formulas
set forth in the Construction Agreement and in the Lease for calculating Carrying Costs and
Base Rent, respectively.

Notwithstanding the foregoing, however, none of the following will be included in the
Balance of Unpaid Construction Period Losses: (i) amounts included in or paid by BNPPLC with
the proceeds of the Initial Advance (including Transaction Expenses); (ii) Losses paid or
reimbursed from Construction Advances (including Local Impositions, insurance premiums and
amounts paid by NAI prior to the Completion Date and reimbursed to it through Construction
Advances made pursuant to the Construction Agreement, and also including costs and
expenditures incurred or paid by or on behalf of BNPPLC after any Owner’s Election to
Continue Construction, to the extent that such costs and expenditures are considered to be
Construction Advances as provided in the Construction Agreement); (iii) any other Losses
which NAI has paid prior to the Designated Sale Date or for which NAI remains fully
obligated to pay pursuant to the other Operative Documents (including Covered Construction
Period Losses paid or payable by NAI pursuant to the Construction Agreement); and (iv) any
decline in the value of the Property, including any such decline that is attributable solely
to a Pre-lease Force
Majeure Event and thus constitutes a Pre-lease Force Majeure Loss.

Purchase Agreement - Page 3

 

“BNPPLC’s Actual Out of Pocket Costs” means the out-of-pocket costs and expenses, if any,
incurred by BNPPLC in connection with a sale of the Property under this Agreement or in
connection with the collection of payments due to it under this Agreement (including any
Breakage Costs; Attorneys’ Fees; appraisal costs; and income, transfer, withholding or other
taxes which do not constitute Excluded Taxes; but not including Excluded Taxes or costs of
removing any Lien Removable by BNPPLC).

“Break Even Price” means an amount equal to:

	 	•	 	the Lease Balance, plus
	 
	 	•	 	BNPPLC’s Actual Out of Pocket Costs, and plus
	 
	 	•	 	an amount equal to the Balance of Unpaid Construction Period Losses (if any).

If, however, the Balance of Unpaid Construction Period Losses includes Contingent Losses,
then for purposes of computing the Break Even Price applicable to any proposed sale on the
Designated Sale Date, NAI may elect to exclude such Contingent Losses from the Break Even
Price by providing to BNPPLC, for the benefit of BNPPLC and other Interested Parties, a
written agreement to indemnify and defend BNPPLC and other Interested Parties against the
excluded Losses. However, to be effective for purposes of reducing the Break Even Price,
any such written indemnity must be fully executed and delivered by NAI on or prior to the
Designated Sale Date, must include provisions comparable to subparagraphs 5(C)(1), (2),
(3), (4) and (5) of the Lease and otherwise must be in form and substance reasonably
satisfactory to BNPPLC.

“Committed Price” has the meaning indicated in subparagraph 3(C)(4).

“Conditions to NAI’s Initial Remarketing Rights” has the meaning indicated in subparagraph
2(A)(2)(a).

“Contingent Losses” means any Losses that consist of claims asserted against BNPPLC or
another Interested Party prior to the Designated Sale Date, but that are not liquidated or
paid on or prior to the Designated Sale Date. Any Contingent Losses included in the Unpaid
Balance of Construction Period Losses, and thus which are relevant to the computation of the
Break Even Price, will equal the sum as reasonably estimated by BNPPLC of (i) all Attorneys’
Fees and other costs that will be incurred to defend against such claims, and (ii) the
amount for which BNPPLC or the other Interested Party can
settle or satisfy such claims.

“Decision Not to Sell at a Loss” means a decision by BNPPLC not to sell the Property
on the Designated Sale Date to an Applicable Purchaser as provided in

Purchase Agreement - Page 4

 

subparagraph 2(A)(2),
despite NAI’s satisfaction of the Conditions to NAI’s Initial Remarketing Rights.

“Deemed Sale” has the meaning indicated in subparagraph 3(D).

“Extended Remarketing Period” means a period beginning on the Designated Sale Date and
ending on the Final Sale Date.

“Fair Market Value” has the meaning indicated in Exhibit B.

“Final Sale Date” means the earlier of:

	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property
to consummate a sale of the Property to NAI because of BNPPLC’s exercise of the Put
Option as provided in subparagraph 3(B); or
	 
	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property
to consummate a sale of the Property to NAI or to any Affiliate of NAI, including any
such sale resulting from NAI’s exercise of its rights under subparagraph 3(A); or
	 
	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property
to consummate a Qualified Sale, or would have done so but for a material breach of this
Agreement by NAI (including any breach of its obligation to make any Supplemental
Payment required in connection with such Qualified Sale); or
	 
	 	•	 	the second anniversary of the Designated Sale Date, which will be the date of a
Deemed Sale as provided in subparagraph 3(D) if no earlier date qualifies as the Final
Sale Date and the entire Property is not sold by BNPPLC to NAI or an Applicable
Purchaser prior to the second anniversary of the Designated Sale Date.

“Initial Remarketing Notice” means a notice delivered to BNPPLC by NAI prior to the
Designated Sale Date in which NAI confirms NAI’s decision to exercise NAI’s Initial
Remarketing Rights and the amount of the Initial Remarketing Price. (Once given, any such
notice may not be rescinded or modified without BNPPLC’s consent.)

“Initial Remarketing Price” means the cash price set forth in an Initial Remarketing
Notice delivered by NAI to BNPPLC as the price for which NAI has arranged a sale of
the Property on the Designated Sale Date to an Applicable Purchaser which is not an
Affiliate of NAI. Such price may be any price negotiated by the Applicable Purchaser in

Purchase
Agreement - Page 5 

 

good faith and on an arms length basis with NAI.

“Lease Balance” means the Lease Balance (as defined in the Common Definitions and Provisions
Agreement) on the Designated Sale Date, but computed without deduction for any Supplemental
Payment or other amount paid to BNPPLC pursuant to this Agreement on the Designated Sale
Date.

“Make Whole Amount” means the sum of the following:

     (1) the amount (if any) by which the Lease Balance exceeds any Supplemental Payment
which was actually paid to BNPPLC on the Designated Sale Date, together with interest on
such excess computed at the Default Rate for the period commencing on the Designated Sale
Date and ending on the Final Sale Date; plus

     (2) any unpaid Base Rent or other amounts due to BNPPLC pursuant to the other Operative
Documents; plus

     (3) BNPPLC’s Actual Out of Pocket Costs; plus

     (4) an amount equal to the Balance of Unpaid Construction Period Losses (if any),
together with interest on thereon computed at the Default Rate for the period commencing on
the Designated Sale Date and ending on the Final Sale Date; plus

     (5) the amount, but not less than zero, by which (i) all Local Impositions, insurance
premiums and other Losses of every kind suffered or incurred by BNPPLC (whether or not
reimbursed in whole or in part by another Interested Party) with respect to the ownership,
operation or maintenance of the Property during the Extended Remarketing Period, exceeds
(ii) any rents or other sums collected by BNPPLC during such period from third parties as
consideration for any lease or other contracts made by BNPPLC that authorize the use and
enjoyment of the Property by such parties; together with interest on such excess computed at
the Default Rate for each day prior to the Final Sale Date.

“Maximum Remarketing Obligation” means a dollar amount equal to the following (but not less
than zero):

	 	•	 	85% of the Adjusted Lease Balance; less
	 
	 	•	 	any Fixed Rate Settlement Amount that NAI is required to pay pursuant to the Lease
because of any acceleration of the Designated Sale Date which causes it to occur
prior to the date upon which the Term of the Lease is scheduled to expire

Purchase
Agreement - Page 6 

 

	 	 	 	(as such
date is specified in clause (1) of the definition of Designated Sale Date in the
Common Definitions and Provisions Agreement).

“Must Sell Price” means, with respect to any Proposed Sale arranged by NAI pursuant to
subparagraph 3(C), a cash price to BNPPLC equal to the Make Whole Amount, computed as of the
Proposed Sale Date applicable to such Proposed Sale, plus all reimbursements or payments by
BNPPLC to NAI that will be required by clause (4) of subparagraph 3(E) in connection with
the Proposed Sale.

“NAI’s Extended Remarketing Right” has the meaning indicated in subparagraph 3(C).

“NAI’s Initial Remarketing Rights” has the meaning indicated in subparagraph 2(A)(2).

“NAI’s Target Price” means the cash purchase price that, according to NAI, should reasonably
be expected for the Property during the Extended Remarketing Period if the parties make a
reasonable marketing effort to sell the Property, as such price is set forth in a notice
given by NAI to BNPPLC after the Designated Sale Date. Once established by any such notice,
the amount of NAI’s Target Price will not be increased, although nothing in this definition
will be construed to prevent NAI from arranging a sale of the Property pursuant to this
Agreement at a price higher than NAI’s Target Price. After providing a notice of NAI’s
Target Price to BNPPLC, NAI may later decrease NAI’s Target Price by another notice to
BNPPLC, but only if the decrease is justified by a material adverse change in the physical
condition of the Property (e.g., significant damage to the Property by fire or other
casualty).

“Notice of Sale” has the meaning indicated in subparagraph 3(C)(4).

“Proposed Sale” has the meaning indicated in subparagraph 3(C).

“Proposed Sale Date” has the meaning indicated in subparagraph 3(C)(4).

“Purchase Option” has the meaning indicated in subparagraph 2(A)(1).

“Put Option” has the meaning indicated in subparagraph 3(B).

“Qualified Sale” means any (1) Deemed Sale as described in subparagraph 3(D), or (2) actual
sale (prior to any such Deemed Sale) of all or substantially all of the Property to an
Applicable Purchaser that occurs after the thirty day period specified in subparagraph 3(A)
and that:

	 	•	 	results from NAI’s exercise of NAI’s Extended Remarketing Right as described in
subparagraph 3(C); or

Purchase
Agreement - Page 7 

 

	 	•	 	is approved in advance as a Qualified Sale by NAI; or
	 
	 	•	 	is to a third party which is not an Affiliate of BNPPLC and, if it is completed
by a conveyance from BNPPLC prior to eighteen months after the Designated Sale Date, is
for a price not less than the least of the following amounts:

	 	(a)	 	the lowest price at which BNPPLC will be obligated, pursuant to
clause (4) of subparagraph 3(E), to reimburse to NAI (i) the entire amount of
any Supplemental Payment theretofore made by NAI to BNPPLC, or (ii) if no such
Supplemental Payment has been made, but NAI has theretofore made one or more
97-1/Prepayments to BNPPLC, all such 97-10/Prepayments; or
	 
	 	(b)	 	(i) if NAI notified BNPPLC of NAI’s Target Price prior to the
date BNPPLC and the third party agreed to a price for the sale, NAI’s Target
Price, or (ii) if NAI did not notify BNPPLC of NAI’s Target Price prior to the
date BNPPLC and the third party agreed to a price for the sale, any price
satisfactory to BNPPLC in its sole good faith business judgment; or
	 
	 	(c)	 	90% of the Fair Market Value of the Property.

NAI acknowledges that BNPPLC’s own marketing efforts after the Designated Sale Date will
depend upon the minimum price required for a Qualified Sale, and such efforts could be
hampered if NAI’s Target Price is too high. Thus, after receipt of any notice of NAI’s
Target Price from NAI, BNPPLC may (but will not be obligated to) invoke the Valuation
Procedures in order to determine the minimum price permitted under clause (c) preceding.

“Sale Closing Documents” means the following documents, which BNPPLC must tender pursuant to
Paragraph 5(A) to consummate any sale of the Property pursuant to this Agreement: (1)
documents in the forms required by Exhibit C, including either a termination of or
an assignment of the Ground Lease and other rights and interests of BNPPLC in the Property,
(2) a Secretary’s Certificate in the form attached as Exhibit D (3) a certificate
concerning tax withholding in the form attached as Exhibit E, and (4) if the
condition specified in subparagraph 3(C)(6) is applicable, a Grant of Repurchase Option and
Restrictive Covenants Agreement executed by both NAI and the Applicable
Purchaser in the form attached as Exhibit F.

“Supplemental Payment” has the meaning indicated in subparagraph 2(A)(3).

Purchase
Agreement - Page 8 

 

“Supplemental Payment Obligation” has the meaning indicated in subparagraph 2(A)(3).

“Valuation Procedures” means procedures set forth in Exhibit B, which are to be
followed in the event a determination of the Fair Market Value of the Property or any
portion thereof is required by this Agreement.

2 NAI’s Options and Obligations on the Designated Sale Date.

     (A) Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation.
Whether or not an Event of Default has occurred and is continuing, but subject to Paragraph 6
below:

     (1) NAI will have the right (the “Purchase Option”) to purchase or cause an Affiliate
of NAI, as the Applicable Purchaser, to purchase the Property on the Designated Sale Date
for a cash price equal to the Break Even Price.

     (2) If NAI does not exercise the Purchase Option, NAI will have the following rights
(collectively, “NAI’s Initial Remarketing Rights”):

     (a) First, NAI will have the right to designate a third party, other than an
Affiliate of NAI, as the Applicable Purchaser and to cause such Applicable Purchaser
to purchase the Property on the Designated Sale Date for a cash price equal to the
Initial Remarketing Price. Such right, however, will be subject to the conditions
(the “Conditions to NAI’s Initial Remarketing Rights”) that (i) NAI deliver an
Initial Remarketing Notice to BNPPLC within the thirty days prior to the Designated
Sale Date, (ii) on the Designated Sale Date the Applicable Purchaser tenders to
BNPPLC a payment equal to the Initial Remarketing Price, and (iii) NAI itself
tenders to BNPPLC the Supplemental Payment, if any, which will be required by
subparagraph 2(A)(3) in the event BNPPLC completes the sale to the Applicable
Purchaser. Further, notwithstanding the satisfaction of the Conditions to NAI’s
Initial Remarketing Rights on the Designated Sale Date, if the sum of the price to
be paid by the Applicable Purchaser for the Property (i.e., the Initial Remarketing
Price) and any Supplemental Payment required by subparagraph 2(A)(3) is less than
the Break Even Price, then BNPPLC may affirmatively elect not to complete the sale
of the Property to the Applicable
Purchaser on the Designated Sale Date (and thereby defer the sale of the
Property pursuant to this Agreement) by making a Decision Not to Sell at a Loss.

     (b) Second, if BNPPLC completes a sale of the Property to an Applicable
Purchaser on the Designated Sale Date pursuant to

Purchase
Agreement - Page 9 

 

subparagraph 2(A)(2)(a) and the
price paid by the Applicable Purchaser for the Property (i.e., the Initial
Remarketing Price) is greater than the Break Even Price, then BNPPLC will pay the
excess to NAI or as otherwise required by Applicable Law.

     (3) If for any reason whatsoever BNPPLC does not receive a cash price for the Property
on the Designated Sale Date equal to or in excess of the Break Even Price in connection with
a sale made pursuant to subparagraph 2(A)(1) or subparagraph 2(A)(2)(a), then NAI will have
the obligation (the “Supplemental Payment Obligation”) to pay to BNPPLC on the Designated
Sale Date a supplemental payment (the “Supplemental Payment”) equal to the lesser of:

     (a) the amount by which the Break Even Price exceeds any such cash price
actually received by BNPPLC on the Designated Sale Date; or

     (b) the Maximum Remarketing Obligation.

Without limiting the generality of the foregoing, NAI must (unless excused by subparagraph
6(B) below) make the Supplemental Payment even if BNPPLC does not sell the Property to NAI
or an Applicable Purchaser on the Designated Sale Date because of (A) a Decision Not to Sell
at a Loss, or (B) a failure of NAI to exercise, or a decision by NAI not to exercise, the
Purchase Option or NAI’s Initial Remarketing Rights, or (C) a failure of NAI or any
Applicable Purchaser to tender the price required by the forgoing provisions on the
Designated Sale Date following any exercise of or attempt by NAI to exercise the Purchase
Option or NAI’s Initial Remarketing Rights.

NAI acknowledges that it is undertaking the Supplemental Payment Obligation in consideration
of the rights afforded to it by this Agreement, but that such obligation is not contingent
upon any exercise by NAI of such rights or upon any purchase of the Property by NAI or an
Applicable Purchaser. If any Supplemental Payment due according to this subparagraph
2(A)(3) is not actually paid to BNPPLC on the Designated Sale Date, then NAI must pay
interest on the past due amount computed at the Default Rate. However, NAI will be entitled
to a credit against the interest required by the preceding sentence equal to the Base Rent,
if any, actually paid by NAI pursuant to the Lease for any period after the Designated Sale
Date.

     (4) For the avoidance of doubt, BNPPLC acknowledges that NAI may elect not to
exercise the Purchase Option or NAI’s Initial Remarketing Rights and instead pay to BNPPLC a
Supplemental Payment equal to the Maximum Remarketing Obligation on the Designated Sale Date
in full satisfaction of its obligations under this subparagraph 2(A).

Purchase Agreement - Page 10

 

     (B) Designation of the Purchaser. To give BNPPLC the opportunity before the Designated
Sale Date to prepare the Sale Closing Documents, NAI must, by a notice to BNPPLC given at least ten
days prior to the Designated Sale Date, specify irrevocably, unequivocally and with particularity
any party who will purchase the Property because of NAI’s exercise of its Purchase Option or of
NAI’s Initial Remarketing Rights. If NAI fails to do so, BNPPLC may postpone the delivery of the
Sale Closing Documents until a date after the Designated Sale Date and not more than ten days after
NAI finally does so specify a party, but such postponement will not relieve or postpone the
obligation of NAI to make a Supplemental Payment on the Designated Sale Date as provided in
subparagraph 2(A)(3).

     (C) Delivery of Property Related Documents If BNPPLC Retains the Property. Unless NAI
or its Affiliate or another Applicable Purchaser purchases the Property pursuant to subparagraph
2(A), promptly after the Designated Sale Date NAI must deliver and assign to BNPPLC all plans and
specifications for the Property previously prepared for NAI or otherwise available to NAI
(including those prepared in connection with the construction contemplated by the Construction
Agreement), together with all other files, documents and permits of NAI (including any subleases
then in force) which may be necessary or useful to any future owner’s or occupant’s use of the
Property. Without limiting the foregoing, NAI will transfer or arrange the transfer to BNPPLC of
all utility, building, health and other operating permits required by any municipality or other
governmental authority having jurisdiction over the Property for uses of the Property permitted by
the Lease or for any remaining construction required to complete the Improvements contemplated by
the Construction Agreement if neither NAI nor any Affiliate or other Applicable Purchaser purchases
the Property pursuant to subparagraph 2(A).

     (D) Effect of the Purchase Option and NAI’s Initial Remarketing Rights on Subsequent Title
Encumbrances. Any conveyance made to consummate a sale of the Property to NAI or any
Applicable Purchaser pursuant to subparagraph 2(A) will cut off and terminate all interests in the
Property claimed by, through or under BNPPLC, including Liens Removable by BNPPLC (including any
leasehold estate or other interests conveyed by BNPPLC to third parties, even if conveyed in the
ordinary course of BNPPLC’s business, and including any judgment liens established against the
Property because of a judgment rendered against BNPPLC), but not personal obligations of NAI to
BNPPLC under the Lease or other Operative Documents (including obligations of NAI arising under the
indemnities in the Construction Agreement or the
Lease, which indemnities will survive any such sale). Anyone accepting or taking any interest
in the Property through or under BNPPLC on or after the Effective Date will acquire such interest
subject to the Purchase Option.

     (E) Security for NAI’s Purchase Option. If (contrary to the intent of the
parties as expressed in subparagraph 4(C) of the Lease) it is determined that NAI is not,
under applicable state law as applied to the Operative Documents, the equitable owner of the
Property and the

Purchase Agreement - Page 11

 

borrower from BNPPLC in a financing arrangement, but rather is a tenant under the
Lease with an option to purchase from BNPPLC as provided in subparagraph 2(A)(1), then the parties
intend that the Purchase Option be secured by a lien and security interest against the Property.
Accordingly, BNPPLC does hereby grant to NAI a lien and security interest against the Property,
including all rights, title and interests of BNPPLC from time to time in and to the Land and
Improvements, in order to secure (1) BNPPLC’s obligation to convey the Property to NAI or an
Affiliate designated by it if NAI exercises the Purchase Option and tenders payment of the Break
Even Price to BNPPLC on the Designated Sale Date as provided herein, and (2) NAI’s right to recover
any damages from BNPPLC caused by a breach of such obligation, including any such breach caused by
a rejection or termination of this Agreement in any bankruptcy or insolvency proceeding instituted
by or against BNPPLC, as debtor. NAI may enforce such lien and security interest judicially after
any such breach by BNPPLC, but not otherwise.

3 NAI’s Rights, Options and Obligations After the Designated Sale Date.

     (A) NAI’s Right to Buy During the Thirty Days After the Designated Sale Date. Even
after a failure to pay any required Supplemental Payment on the Designated Sale Date, NAI may
tender (or cause an Applicable Purchaser to tender) to BNPPLC the full Make Whole Amount (including
all amounts then due under the other Operative Documents) on any Business Day within thirty days
after the Designated Sale Date. If presented with such a tender within thirty days after the
Designated Sale Date, BNPPLC must accept it and promptly thereafter deliver to NAI (or the
Applicable Purchaser) the Sale Closing Documents and any Escrowed Proceeds then constituting
Property held by BNPPLC. Otherwise, BNPPLC will have no further obligation to sell the Property
to NAI or to any Affiliate of NAI pursuant to this Agreement, although BNPPLC will continue to have
the option to require NAI to buy the Property after the Completion Date if the conditions listed in
the next subparagraph are satisfied.

     (B) NAI’s Obligation to Buy if Certain Conditions are Satisfied. Regardless of any
prior Decision Not to Sell at a Loss, BNPPLC will have the option (the “Put Option”) to require NAI
to purchase the Property upon demand at any time after both the Completion Date and the Designated
Sale Date for a cash price equal to the Make Whole Amount if:

     (1) BNPPLC has not already conveyed the Property to consummate a sale of the Property
to NAI or an Applicable Purchaser pursuant to other provisions of this Agreement; and

     (2) a 97-1/Default (100%) occurs or is continuing on or after the Designated
Sale Date; and

     (3) BNPPLC notifies NAI of BNPPLC’s exercise of the Put Option within two
years
following the Designated Sale Date.

Purchase Agreement - Page 12

 

     (C) NAI’s Extended Right to Remarket. If the Property is not sold to NAI or an
Applicable Purchaser on the Designated Sale Date pursuant to this Agreement, NAI will have the
right (“NAI’s Extended Remarketing Right”) during the Extended Remarketing Period to arrange a sale
of the Property to an Applicable Purchaser, other than an Affiliate of NAI, for a price equal to or
in excess of the Must Sell Price (a “Proposed Sale”). NAI’s Extended Remarketing Right will,
however, be subject to all of the following conditions:

     (1) BNPPLC has not exercised the Put Option as provided in subparagraph 3(B) or already
contracted with another Applicable Purchaser to convey the Property in connection with a
Qualified Sale.

     (2) NAI’s Extended Remarketing Right is not terminated pursuant to subparagraph 6(C)
because of NAI’s failure to pay any required Supplemental Payment.

     (3) NAI’s Extended Remarketing Right is not terminated pursuant to subparagraph 6(C)
because of NAI’s failure to pay any required 97-10 Prepayment .

     (4) NAI must have provided a notice to BNPPLC (a “Notice of Sale”) setting forth (i)
the date proposed by NAI as the Final Sale Date (the “Proposed Sale Date”), which must be no
sooner than thirty days after BNPPLC’s receipt of the Notice of Sale and no later than the
last Business Day of the Extended Remarketing Period, (ii) the full legal name of the
Applicable Purchaser and such other information as is needed to prepare the Sale Closing
Documents, and (iii) the cash price that will be tendered to BNPPLC for the Property (the
“Committed Price”).

     (5) The Committed Price must be no less than the Must Sell Price, computed as of the
Proposed Sale Date. Also, if NAI has notified BNPPLC of NAI’s Target Price, the Committed
Price must be no less than NAI’s Target Price.

     (6) If requested by BNPPLC, both NAI and the Applicable Purchaser must
execute and acknowledge a Grant of Repurchase Option and Restrictive Covenants
Agreement in the form attached as Exhibit F for delivery with the other Sale Closing
Documents upon the consummation of the sale.

     (D) Deemed Sale On the Second Anniversary of the Designated Sale Date. If no date
prior to the second anniversary of the Designated Sale Date qualifies as the Final Sale Date, then
on second anniversary of the Designated Sale Date BNPPLC will, for purposes of the next
subparagraph, be deemed to have sold the Property (a “Deemed Sale”) to an Applicable Purchaser at a
Qualified Sale for a net cash price equal to its Fair Market Value.

Purchase Agreement - Page 13

 

     (E) NAI’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale.
BNPPLC must apply the cash proceeds received by BNPPLC from any Qualified Sale (regardless of
whether the sale is arranged by NAI as provided in subparagraph 3(C) or by BNPPLC itself), or
deemed to be received in connection with any Deemed Sale, in the following order of priority:

     (1) first, to pay or reimburse to BNPPLC BNPPLC’s Actual Out of Pocket Costs incurred
in connection with the Qualified Sale;

     (2) second, to pay or reimburse to BNPPLC the Local Impositions, insurance premiums and
other Losses suffered or incurred by BNPPLC with respect to the ownership, operation or
maintenance of the Property after the Designated Sale Date, together with interest on such
Local Impositions, insurance premiums and other Losses computed at the Default Rate from the
date paid or incurred to the date reimbursed from sales proceeds;

     (3) third, to pay to BNPPLC an amount equal to the difference, if any, computed by
subtracting (i) the aggregate payments, if any, previously paid by NAI to BNPPLC as a
Supplemental Payment or as a 97-10/Prepayment, from (ii) the Adjusted Lease Balance;

     (4) fourth, to reimburse NAI for the aggregate payments, if any, previously made by NAI
to BNPPLC as a Supplemental Payment or as 97-10/Prepayments;

     (5) fifth, to pay to BNPPLC an amount that, when added to all payments or
reimbursements to BNPPLC described in the preceding clauses (1), (2) and (3), will equal the
Make Whole Amount;

     (6) sixth, to pay to BNPPLC any other amounts then due from NAI to BNPPLC under any of
the Operative Documents; and

     (7) last, if any such cash proceeds exceed all the payments and reimbursements that are
required or may be required as described in the preceding clauses of this subparagraph,
BNPPLC may retain the excess.

If, however, BNPPLC completes any sale and conveyance of the Property after the Extended
Remarketing Period expires or is terminated, BNPPLC will not be required by this subparagraph to
share any proceeds of the sale or conveyance with NAI or any other party claiming through or under
NAI.

4 Transfers By BNPPLC After the Designated Sale Date.

Purchase Agreement - Page 14

 

     (A) BNPPLC’s Right to Sell. At any time more than thirty days after the Designated
Sale Date, if the Property has not already been sold and conveyed by BNPPLC pursuant to Paragraph 2
or Paragraph 3, BNPPLC will have the right to sell the Property or offer the Property for sale to
any third party on any terms believed to be appropriate by BNPPLC in its sole good faith business
judgment.

     (B) Survival of NAI’s Rights and the Supplemental Payment Obligation. If the Property
is not sold on the Designated Sale Date, and if BNPPLC completes a sale or other transfer of the
Property after the Designated Sale Date, other than a Qualified Sale, the Supplemental Payment
Obligation will survive in favor of BNPPLC’s successors and assigns with respect to the Property,
and BNPPLC’s successors and assigns will take the Property subject to NAI’s rights under Paragraph
3, all on the same terms and conditions as would have applied to BNPPLC itself if BNPPLC had not
transferred or sold the Property. Without limiting the foregoing, any purchaser that acquires the
Property from BNPPLC during the Extended Remarketing Period, other than at a Qualified Sale, will
be obligated to distribute proceeds of a subsequent Qualified Sale of the Property as described in
the subparagraph 3(E) in the same manner and to the same extent that BNPPLC itself would have been
obligated if not for the sale by BNPPLC to the purchaser.

     (C) Easements and Other Transfers in the Ordinary Course of Business. No
“Permitted Transfer” described in clause (5) (the last clause) of the definition thereof in
the Common Definitions and Provisions Agreement will constitute a Qualified Sale if it covers less
than all or substantially all of BNPPLC’s then existing interests in the Property. Any such
Permitted Transfer of less than all or substantially all of BNPPLC’s then existing interests in the
Property will not be prohibited by this Agreement during the Extended Remarketing Period or
otherwise; provided, however, any such Permitted Transfer made before the end of one hundred eighty
days after the Designated Sale Date, or made to an Affiliate of BNPPLC before the end of the
Extended Remarketing Period, or otherwise not made in the ordinary course of business, will be made
subject to NAI’s rights under Paragraph 3. Thus, for example, if the Property is not sold
by BNPPLC to an Applicable Purchaser on the Designated Sale Date, then at any time more than
one hundred eight days after the Designated Sale Date BNPPLC may in the ordinary course of business
convey a utility easement or a lease of space in the Improvements to a Person not an Affiliate of
BNPPLC free from NAI’s rights under Paragraph 3, although following such conveyance of the lesser
estate, NAI’s rights under Paragraph 3 will continue during the Extended Remarketing Period as to
BNPPLC’s remaining interest in the Land and the Improvements.

5 Terms of Conveyance Upon Purchase.

     (A) Tender of Sale Closing Documents. As necessary to consummate any sale of the

Purchase Agreement - Page 15

 

Property to NAI or an Applicable Purchaser pursuant to this Agreement, BNPPLC must, subject to any
postponement permitted by subparagraph 2(B), promptly after the tender of the purchase price and
any other payments to BNPPLC required pursuant to Paragraph 2 or Paragraph 3, as applicable, convey
the Property to NAI or the Applicable Purchaser, as the case may be, by BNPPLC’s execution,
acknowledgment (where appropriate) and delivery of the Sale Closing Documents. Such conveyance by
BNPPLC will be subject to the Permitted Encumbrances and any other encumbrances that do not
constitute Liens Removable by BNPPLC, and such conveyance will not include the rights of BNPPLC or
other Interested Parties under the indemnities provided in the Operative Documents, including
rights to any payments then due from NAI under the indemnities or that may become due thereafter
because of any Loss incurred by BNPPLC or another Interested Party resulting in whole or in part
from events or circumstances occurring or alleged to have occurred before such conveyance. The
costs, both foreseen and unforeseen, of any purchase by NAI or an Applicable Purchaser will be the
responsibility of the purchaser to the extent (if any) not included in any Break Even Price or Make
Whole Amount actually paid to BNPPLC. If for any reason BNPPLC fails to tender the Sale Closing
Documents as required by this Paragraph 5(A), BNPPLC will have the right and obligation to cure
such failure at any time before thirty days after receipt of a demand for such cure from NAI.
Prior to the end of such cure period, NAI may initiate appropriate legal action to specifically
enforce BNPPLC’s obligation to deliver the Sale Closing Documents or to foreclose NAI’s liens or
security interests against the Property which secure such obligation, but if BNPPLC does cure
within such thirty day period, BNPPLC will not be liable for monetary damages because of its prior
failure to deliver the Sale Closing Documents.

     (B) Delivery of Escrowed Proceeds. BNPPLC may deliver any Escrowed Proceeds
constituting Property directly to NAI or to any Applicable Purchaser purchasing the Property
pursuant to this Agreement notwithstanding any prior actual or attempted conveyance or assignment
by NAI, voluntary or otherwise, of any right to receive the same; BNPPLC will not be responsible
for the proper distribution or application by NAI or any Applicable Purchaser of any such Escrowed
Proceeds; and any such payment of Escrowed Proceeds to NAI or an Applicable Purchaser will
discharge any obligation of BNPPLC to deliver the same to all Persons claiming an
interest therein.

6 Survival and Termination of the Rights and Obligations of NAI and BNPPLC.

     (A) Status of this Agreement Generally. Except as expressly provided in the
next subparagraph or other provisions of this Agreement, this Agreement will not terminate; nor
will NAI have any right to terminate this Agreement; nor will NAI be entitled to any reduction (by
setoff or otherwise) of the Break Even Price, the Make Whole Amount or any payment required under
this Agreement; nor will any of the obligations of NAI to BNPPLC under Paragraph 2 or Paragraph 3
be excused by reason of (i) any damage to or the destruction of all or any part of the

Purchase Agreement - Page 16

 

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 BNPPLC under this Agreement or any other Operative Document or any other
agreement to which BNPPLC and NAI are parties, (vi) the inadequacy in any way whatsoever of the
design, construction, assembly or installation of any improvements, fixtures or tangible personal
property included in the Property (it being understood that BNPPLC 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) NAI’s prior acquisition or
ownership of any interest in the Property, or (ix) any other cause, whether similar or dissimilar
to the foregoing, any existing or future law to the contrary notwithstanding. It is the intention
of the parties hereto that the obligations of NAI under this Agreement (including the obligation to
make any Supplemental Payment as provided in Paragraph 2) be separate from and independent of
BNPPLC’s obligations under this Agreement or any other agreement between BNPPLC and NAI; however,
nothing in this subparagraph will 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 BNPPLC’s failure to remove a Lien
Removable by BNPPLC or because of any other default by BNPPLC under this Agreement: (A) the
recovery of monetary damages, (B) injunctive relief in case of the violation, or attempted or
threatened violation, by BNPPLC of any of the express covenants, agreements, conditions or
provisions of this Agreement which are binding upon BNPPLC, or (C) a decree compelling performance
by BNPPLC of any of the express covenants, agreements, conditions or provisions of this Agreement
which are binding upon BNPPLC.

     (B) Election by NAI to Terminate the Supplemental Payment Obligation Prior to the
Completion Date. By delivery of a notice to BNPPLC in the form attached as Exhibit G,
NAI may terminate its Supplemental Payment Obligation, but only prior to the Completion Date and
only if
at the time of such exercise (1) NAI has given (and not rescinded) a Notice of NAI’s Intent to
Terminate as provided in the Construction Agreement, or (2) BNPPLC has given any FOCB Notice as
provided in the Construction Agreement. (If for any reason BNPPLC does not receive a notice
terminating the Supplemental Payment Obligation as described in the preceding sentence prior to the
Completion Date, then without any notice or other action by the parties to this Agreement, NAI will
cease to have any right to terminate the Supplemental Payment Obligation.) If NAI does send a
notice to BNPPLC in the form attached as Exhibit G, such notice will (as provided therein)
constitute an irrevocable and absolute waiver by NAI of NAI’s rights to purchase the Property or to
cause any of its Affiliates to purchase the Property pursuant to this Agreement. However, no such
notice will terminate BNPPLC’s right to exercise the Put Option, which BNPPLC may exercise if NAI
fails to make a 97-10/Permitted Prepayment required by the Construction Agreement.

Purchase Agreement - Page 17

 

     (C) Automatic Termination of NAI’s Rights. If NAI fails to pay the full amount of any
Supplemental Payment required by subparagraph 2(A)(3) on the Designated Sale Date, then the
Purchase Option, NAI’s Initial Remarketing Rights, NAI’s Extended Remarketing Right and all other
rights of NAI under this Agreement, other than its rights under subparagraph 3(A), will terminate
automatically. If, however, prior to the Designated Sale Date NAI effectively terminates the
Supplemental Payment Obligation pursuant to subparagraph 6(B) by the delivery of a notice to BNPPLC
in the form attached as Exhibit G, so that NAI is excused from the obligation to make any
Supplemental Payment pursuant to subparagraph 2(A)(3), then NAI’s Extended Remarketing Right will
not terminate automatically pursuant to this subparagraph 6(C), but rather will survive except to
the extent waived by such notice. No termination of NAI’s rights as described in this subparagraph
will limit BNPPLC’s other remedies, including its right to sue NAI for any 97-10/Prepayments,
pursuant to any of the Operative Documents or (following a 97-1/Default (100%)) its right to
exercise the Put Option.

     (D) Payment Only to BNPPLC. All amounts payable under this Agreement by NAI and, if
applicable, by an Applicable Purchaser must be paid directly to BNPPLC. If paid to other parties,
such payments will not be effective for purposes of this Agreement.

     (E) Preferences and Voidable Transfers. If any payment to BNPPLC by an Applicable
Purchaser is held to constitute a preference or a voidable transfer under Applicable Laws, or must
for any other reason be refunded by BNPPLC to the Applicable Purchaser or to another Person, and if
such payment to BNPPLC reduced or had the effect of reducing a payment required of NAI by this
Agreement (e.g., the Supplemental Payment) or increased or had the effect of increasing any sale
proceeds paid over to NAI pursuant to subparagraph 2(A)(2)(b) or pursuant to subparagraph 3(E),
then NAI must pay to BNPPLC upon demand an amount equal to the reduction of the payment required of
NAI or to the increase of the excess sale proceeds paid to NAI, as applicable, and this Agreement
will continue to be effective or will be reinstated as
necessary to permit BNPPLC to enforce its right to collect such amount from NAI.

     (F) Remedies Under the Other Operative Documents. No repossession of or
re-entering upon the Property or exercise of any other remedies available to BNPPLC under the other
Operative Documents will terminate NAI’s rights or obligations under this Agreement, all of which
will survive BNPPLC’s exercise of remedies under the other Operative Documents. NAI acknowledges
that the consideration for this Agreement is separate from and independent of the consideration for
the Construction Agreement, the Lease, the Closing Certificate and other agreements executed by the
parties, and NAI’s obligations under this Agreement will not be affected or impaired by any event
or circumstance that would excuse NAI from performance of its obligations under such other
Operative Documents.

Purchase Agreement - Page 18

 

7 Certain Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy BNPPLC has with respect to the
Property, and each and every right and remedy of BNPPLC will be cumulative and in addition to any
other right or remedy given to it under this Agreement or now or hereafter existing in its favor at
law or in equity. In addition to other remedies available under this Agreement, either party may
obtain a decree compelling specific performance of any of the other party’s agreements hereunder.

8 Attorneys’ Fees and Legal Expenses. If BNPPLC commences any legal action or other
proceeding because of any breach of this Agreement by NAI, BNPPLC may recover all Attorneys’ Fees
incurred by it in connection therewith from NAI, whether or not such controversy, claim or dispute
is prosecuted to a final judgment. Any Attorneys’ Fees incurred by BNPPLC in enforcing a judgment
in its favor under this Agreement will be recoverable separately from such judgment, and the
obligation for such Attorneys’ Fees is intended to be severable from other provisions of this
Agreement and not to be merged into any such judgment.

9 Successors and Assigns. The terms, provisions, covenants and conditions hereof will be
binding upon NAI and BNPPLC and their respective permitted successors and assigns and will inure to
the benefit of NAI and BNPPLC and all permitted transferees, mortgagees, successors and assignees
of NAI and BNPPLC with respect to the Property; except that (A) the rights of BNPPLC hereunder will
not pass to NAI or any Applicable Purchaser or any subsequent owner claiming through NAI or an
Applicable Purchaser, (B) BNPPLC will not assign this Agreement or any rights hereunder except
pursuant to a Permitted Transfer, and (C) NAI will not assign this Agreement or any rights
hereunder without the prior written consent of BNPPLC.

[The signature pages follow.]

Purchase Agreement - Page 19

 

     IN WITNESS WHEREOF, this Purchase Agreement is executed to be effective as of July 17, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

Purchase Agreement - Signature Page 

 

[Continuation of signature pages for Purchase Agreement dated as of July 17, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

Purchase Agreement - Signature  Page 

 

Exhibit A

Legal Description

BEING a portion of Site 12 as shown on the map entitled “Exempt Subdivision Map of Site 12”,
prepared by Barbara H. Mulkey Engineering, Inc., on May 30, 2000 as recorded in the Book of Maps
2000, Page 1300, Wake County, North Carolina Registry, such portion being described as follows:

Unit 4 and the Additional Leased Premises, both as defined below (collectively, the
“Ground Lease Premises”).

As used in this Exhibit:

     (1) “Additional Leased Premises” means the land surrounding and adjacent to
Unit 4, depicted on the site plan attached to and made a part of this Exhibit as the
area shaded in gray, which includes parking lots, driveways and other areas within
the larger area designated as Common Elements in the Condominium Declaration. The
outer boundaries of the Additional Leased Premises are described by metes and bounds
on the last page attached to and made a part of this Exhibit. All land within those
outer boundaries, other than Unit 4, is included in the Additional Leased Premises.

     (2) “Condominium Declaration” means the Declaration of Condominium for NetApp
RTP Phase I Condominium recorded in Book 012647, Page 01310, Wake County, North
Carolina Registry.

     (3) “Condominium Map” means the plat provided to BNP Paribas Leasing
Corporation (“BNPPLC”) by Network Appliance, Inc. (“NAI”) attached to and made a
part of this Exhibit. (The Condominium Map has also been filed in the Book of Maps
CM2007, Page 444A1, Wake County, North Carolina Registry.)

     (4) “Unit 4” means the land designated and described in the Condominium
Declaration as Unit 4 and is shown on the Condominium Map and site plan attached to
and made a part of this Exhibit.

TOGETHER WITH, easements appurtenant to the Ground Lease Premises as described in Exhibit A
attached to the Ground Lease dated as of July 17, 2007 between BNPPLC, as lessee, and NAI, as
lessor (the “Ground Lease”);

SUBJECT, HOWEVER, to an easement reserved over the Additional Leased Premises (but not any part of
Unit 4) in favor of the Association as described in Exhibit A attached to the Ground
Lease.

 

Exhibit A to Purchase Agreement - Page 2

 

Exhibit A to Purchase Agreement - Page 3

 

Attachment to Exhibit A — Metes and Bounds

Description of “Additional Leased Premises”

     The following is a metes and bounds description of the outer boundaries of the
Additional Leased Premise:

BEGINNING
at NCGS Monument “Hopson”. said monument having NC Grid
Coordinates of N=773,72l,48 and E=2,034,907.39 (NAD 83). traveling
thence South 11° 44' 59" West 6154.66 feet to a right-of-way
monument on the southern margin of Louis Stephens Drive (a 100 foot
public right-of-way), thence
North 72° 48' 35" East 164.29 feet to a right-of-way monument on the southern margin of Kit Creek
Road (a 150 foot public right-of-way); thence with the southern margin of said Kit Creek Road the
following two (2) courses and distances:

	 	(1)	 	South 68° 46' 54 East 412.64 feet to a right-of-way
monument; and
	 
	 	(2)	 	with a curve to the right having a radius of 924.83 feet, an
arc length of 475.96,
and a chord bearing and distance of South 54° 02' 59" East 470.72 feet to a computed
point;

said computed being the POINT AND PLACE OF BEGINNING; thence from said point of
beginning and continuing with the southern margin of Kit Creek Road
South 39° 18' 29" East
571.64 feet to a computed point, thence cornering and leaving said right-of-way and with the
common line of property now or formerly owned by Research Triangle Foundation of NC (DB 1670 PG
239) the following two (2) courses and distances:

	 	(1)	 	South 50° 41' 31" West 100.00 feet to an iron pipe found; and
	 
	 	(2)	 	South 83° 31" 01" West 483.47 feet to an iron pipe found;

thence cornering and along three (3) new lines within the bounds of property owned by Network
Appliance, Inc. (DB 10941 Pg 2054) as follows:

	 	(1)	 	North 12° 44' 00" West 279.97 feet;
	 
	 	(2)	 	North 48° 55' 31" West 50.30 feet; and
	 
	 	(3)	 	North 32° 57' 24" East 401.61 feet to a point along the southern margin of said Kit
Creek Road;

thence with the southern margin of Kit Creek Road along a curve to the right having a
radius of 925.04 feet, an arc length of 113.05 feet and a chord bearing and distance of South 42°
48' 33" East 112.98 feet to the POINT AND PLACE OF
BEGINNING, containing 5,36 acres
(233.621 square feet), more or less, said area shown on the rendering attached hereto.

Exhibit A
to Purchase Agreement - Page 4

 

Exhibit B

Valuation Procedures

     This Exhibit explains the procedures to be used to determine Fair Market Value of the Property
if such a determination is required by this Agreement. In such event, either party may invoke the
procedures set out herein prior to the date the determination will be needed so as to minimize any
postponement of any payment, the amount of which depends upon Fair Market Value. In the event such
a payment becomes due before the required determination of Fair Market Value is complete, such
payment will be postponed until the determination is complete. But in that event, when the
required determination is complete, the payment will be made together with interest thereon,
computed at a rate equal to ABR, accruing over the period the payment was postponed.

     If any determination of Fair Market Value is required, NAI and BNPPLC will attempt in good
faith to reach a written agreement upon the Fair Market Value without unnecessary delay, and either
party may propose such an agreement to the other. If, however, for any reason whatsoever, they do
not execute such an agreement within seven days after the first such proposed agreement is offered
by one party to the other, then the determination will be made by independent appraisers in
accordance with the following procedures:

1. Definitions and Assumptions. For purposes of the determination, Fair Market Value will
be defined as follows, and all appraisers or others involved in the determination will be
instructed to use the following definition:

     “Fair Market Value” means the most probable net cash price, as of a specified
date, for which the Property should sell after reasonable exposure in a competitive
market under all conditions requisite to a fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and assuming that neither is
under undue duress.

In addition, the appraisers or others making the determination will be instructed to assume that
ordinary and customary brokerage fees, title insurance costs and other sales expenses will be
incurred and deducted in the calculation of such net cash price. Such appraisers or others making
the determination will also be instructed to assume that the value of the Property (or applicable
portion thereof) is neither enhanced nor reduced by any lease to another tenant that BNPPLC may
have executed subsequent to the termination or expiration of the Lease (a “Replacement Lease”).
In other words, rather than determine value in light of actual rents generated or to be generated
by any such Replacement Lease, the Property (or applicable portion thereof) will be valued in light
of the most probable rent that it should bring in a competitive and open market (in this section, a
“Fair Market Rental”), taking into account:

 

 

     (i) the fact that the Ground Lease exists to permit the continued use
and enjoyment of the Property during the term of the Ground Lease
1 ; and

     (ii) the actual physical condition of the Property 2 ; and

     (iii) that a reasonable period of time may be required to market the
Property (or applicable portion thereof) for lease and make it ready for use
or occupancy before it is leased at a Fair Market Rental.

2. Initial Selection of Appraisers; Appraiser’s Agreement as to Value. After having failed
to reach a written agreement upon Fair Market Value as described in the second paragraph of this
Exhibit, either party may deliver a notice to the other demanding the appointment of appraisers
(the “First Appraisal Notice”) pursuant to this Exhibit. In such event:

     (a) Within fifteen days after the First Appraisal Notice is delivered, NAI and BNPPLC must
each appoint an independent property appraiser who has experience appraising commercial properties
in North Carolina and notify the other party of such appointment, including the name of the
appointed appraiser (a “Notice of Appointment”).

     (b) If the appraiser appointed by NAI and the appraiser appointed by BNPPLC agree in writing
upon the Fair Market Value (an “Appraiser’s Agreement As To Value”), such

 

			
	1	 	But for the Ground Lease, the Improvements
could not be used and maintained in place. Thus, the parties believe that, but
for the Ground Lease, the Improvements would be worth much less. However, it
is understood that Property does not include the fee estate in the Land, and
the continued use of the Improvements will necessitate the payment of rents as
required by the Ground Lease and compliance with the other terms and conditions
thereof. Accordingly, the value of the Land itself will not be included in the
Fair Market Value of the Property.
	 
	2	 	If, however, the use of the Property by
BNPPLC or any tenant under any Replacement Lease after NAI vacated the Property
has resulted in excess wear and tear, such excess wear and tear will be assumed
not to have occurred for purposes of determining Fair Market Value.

Exhibit B to Purchase Agreement - Page 2

 

agreement will be binding upon NAI and BNPPLC. Both NAI and BNPPLC will instruct their
respective appraisers to attempt in good faith to quickly reach an Appraiser’s Agreement As To
Value. Neither appraiser will be required to produce a formal appraisal prior to reaching an
Appraiser’s Agreement As To Value.

3. Selection of a Third Appraiser. If the two appraisers fail to deliver an
Appraiser’s Agreement As to Value within thirty days following the later of the dates upon which
NAI or BNPPLC delivers its Notice of Appointment, then either party (NAI or BNPPLC) may deliver
another notice to the other (a “Third Appraisal Notice”), demanding that the two appraisers appoint
a third independent property appraiser to help with the determination of Fair Market Value.
Immediately after the Third Appraisal Notice is delivered, each of the first two appraisers must
act promptly, reasonably and in good faith to try to reach agreement upon the third appraiser. If,
however, the two appraisers fail to reach agreement upon a third appraiser within ten days after
the Third Appraisal Notice is delivered:

     (a) NAI and BNPPLC will each cause its respective appraiser to deliver, no later than fifteen
days after the delivery of the Third Appraisal Notice, an unqualified written promise addressed to
both of NAI and BNPPLC: (i) to act promptly, reasonably and in good faith in trying to reach agree
upon the third appraiser, and (ii) to propose and consider proposals of persons as the third
appraiser on the basis of objectivity and competence, not on the basis of such persons’
relationships with the other appraisers or with NAI or BNPPLC, and not on the basis of preferences
expressed by NAI or BNPPLC.

     (b) If, despite the delivery of the promises described in the preceding subsection, the two
appraisers fail to reach agreement upon a third appraiser within thirty days after the Third
Appraisal Notice is delivered, then each of the first two appraisers must immediately submit its
top choice for the third appraiser to the then highest ranking officer of the North Carolina Bar
Association who will agree to help and who has no attorney/client or other significant relationship
to either NAI or BNPPLC. Such officer will have complete discretion to select the most objective
and competent third appraiser from between the choice of each of the first two appraisers, and will
do so within ten days after such choices are submitted to him.

4. Resolution of Issues by the Third Appraiser. If a third appraiser is selected under the
procedure set out above:

     (a) No later than thirty days after a third appraiser is selected, each of the first two
appraisers must submit (and NAI and BNPPLC will each cause its appointed appraiser to submit) his
best estimate of Fair Market Value, together with a written report supporting such estimate. (Such
report need not be in the form of a formal appraisal, and may contain any qualifications the
submitting appraiser deems necessary under the circumstances. Any such qualifications, however,
may be considered by the third appraiser for purposes of the selection required by the next
subsection.)

Exhibit B to Purchase Agreement - Page 3

 

     (b) After receipt of the two estimates required by the preceding subsection, and no later than
forty-five days after the third appraiser is selected, he must (i) choose one or the other of the
two estimates of Fair Market Value submitted by the first two appraisers as being the more accurate
in his opinion, and (ii) notify NAI and BNPPLC of which estimate he chose. The third appraiser
will not be asked or allowed to specify an amount as Fair Market Value that is different than an
estimate provided by one of the other two appraisers (either by averaging the two estimates or
otherwise). The estimate of Fair Market Value thus chosen by the third appraiser as being the more
accurate will be binding upon NAI and BNPPLC.

5. Criteria For Selecting Appraisers; Cost of Appraisals. All appraisers selected
for the appraisal process set out in this Exhibit will be disinterested, reputable, qualified
appraisers with the designation of MAI or equivalent and with at least five years experience in
appraising commercial properties comparable to the Property. NAI and BNPPLC will each bear the
expense of the appraiser appointed by it, and the expense of the third appraiser and of any officer
of the North Carolina Bar Association who participates in the appraisal process described above
will be shared equally by NAI and BNPPLC.

6. Time is of the Essence; Defaults.

     (a) All time periods and deadlines specified in this Exhibit are of the essence.

     (b) Each party must cause the appraiser appointed by it (as set forth in Section 2(a)) to
comply in a timely manner with the requirements of this Exhibit applicable to such appraiser.
Accordingly, if an appraiser appointed by one of the parties as provided in Section 2(a) fails to
comply in a timely manner with any provision of this Exhibit, such failure will be considered a
default by the party who appointed such appraiser.

     (c) Any breach of or default under this Exhibit by either party will be construed as a breach
of the Purchase Agreement to which this Exhibit is attached.

     (d) Any such breach or default by NAI will constitute a 97-1/Default (100%); provided,
however:

     (1) Before characterizing any such breach or default as a 97-1/Default (100%), BNPPLC
must first notify NAI of the breach or default and give NAI the opportunity, during the five
days after delivery of such notice, to fully rectify the breach or default.

     (2) Any breach or default by NAI under this Exhibit will be deemed rectified if, within
such five day period, NAI offers BNPPLC an unqualified written agreement that all
determinations of Fair Market Value required by this Agreement will, if made by the
appraiser appointed by BNPPLC as hereinabove provided, be binding upon BNPPLC

Exhibit A to Purchase Agreement - Page 4

 

and NAI. (It
is understood that following the delivery of any such agreement by NAI, no further input
from NAI’s appraiser or from any official of the North Carolina bar association or from a
third appraiser will be required for any required determination of Fair Market Value.)

Exhibit A to Purchase Agreement - Page 5

 

Exhibit C

Requirements Re: Forms to Accomplish Assignment and Conveyance

The form of the documents to be used to accomplish any conveyance of BNPPLC’s interest in the
Improvements and other Property pursuant to this Agreement will depend upon whether the conveyance
is to NAI or an Applicable Purchaser and, in the case of an conveyance by NAI itself, upon whether
NAI elects to take an assignment of the Ground Lease or to terminate the Ground Lease.

If NAI is itself acquiring BNPPLC’s interest in the Property, the conveyance of such interest will
be accomplished either by (A) the execution of an Agreement Concerning Ground Lease in the form
attached as Exhibit C-1, which (among other things) will effectively terminate the Ground
Lease with the result that BNPPLC’s interest in all Improvements will revert to NAI by operation of
law, or (B) BNPPLC’s execution of assignments in the forms attached as Exhibit C-2 and
Exhibit C-3 and NAI’s execution of an Acknowledgment of Disclaimer of Representations and
Warranties in the form attached as Exhibit C-4. NAI may choose between the Agreement
Concerning Ground Lease or the alternative forms attached as Exhibits C-2, C-3 and
C-4; however, if NAI fails to notify BNPPLC at least fifteen days prior to the Designated
Sale Date that NAI chooses to receive the assignments in the forms attached as Exhibit C-2
and Exhibit C-3, BNPPLC may assume that NAI has elected instead to have BNPPLC execute the
Agreement Concerning Ground Lease in the form attached as Exhibit C-1. If NAI does choose
to receive the assignments in the forms attached as Exhibit C-2 and Exhibit C-3,
NAI must execute and deliver to BNPPLC the Acknowledgment of Disclaimer of Representations and
Warranties in the form attached as Exhibit C-4.

If an Applicable Purchaser is acquiring BNPPLC’s interest in the Improvements and other Property,
such interest will be conveyed by BNPPLC’s execution and delivery of assignments in the forms
attached as Exhibit C-2 and Exhibit C-3, and the Applicable Purchaser must execute
and deliver to BNPPLC an Acknowledgment of Disclaimer of Representations and Warranties in the form
attached as Exhibit C-4.

 

 

Exhibit C-1

RECORDING REQUESTED BY AND,

WHEN RECORDED, RETURN TO:

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

AGREEMENT CONCERNING GROUND LEASE

     THIS AGREEMENT CONCERNING GROUND LEASE (this “Agreement”) dated as of                     , 20___(the
“Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware
corporation, and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

This Agreement is entered into upon, and with respect to, the following facts and intentions:

     A. BNPPLC and NAI have heretofore entered into the following agreements:

     (1) Ground Lease dated as of July 17, 2007 and recorded (or referenced in a memorandum
thereof recorded) in Book                     , page                      of the Wake County, North Carolina Registry (as
the same may have been modified, the “Ground Lease”), whereby NAI, as ground lessor, ground
leased to BNPPLC, as ground lessee, that certain land more particularly described in Annex
A, attached hereto and incorporated herein by this reference (herein the “Land”); and

     (2) Lease Agreement dated as of July 17, 2007 (as the same may have been modified, the
“Sublease”), which was the subject of that certain Short Form of Sublease, dated as of July
17, 2007 and recorded in Book                     , page                      of the Wake County, North Carolina Registry
(the “Short Form of Sublease”), whereby BNPPLC, as sublessor, leased to NAI, as sublessee,
its ground leasehold interest in the Land and all of the improvements located thereon
(collectively the “Subleased Premises”); and

     (3) Purchase Agreement dated as of July 17, 2007 (has the same may have been modified,
the “Purchase Agreement”), which was the subject of that certain Memorandum of Purchase
Agreement, dated as of July 17, 2007, recorded in Book                     , page                      of the Wake County,
North Carolina Registry.

     (4) Common Definitions and Provisions Agreement dated as of July 17, 2007
Date (as the same may have been modified, the “Common Definitions and Provisions

 

 

Agreement”). As used in this Agreement, capitalized terms defined in the Common Definitions
and Provisions Agreement and not otherwise defined in this Agreement are intended to have
the respective meanings assigned to them in the Common Definitions and Provisions Agreement.

     B. BNPPLC and NAI now mutually wish to terminate the Ground Lease on the terms and conditions
more particularly herein set forth.

AGREEMENT

NOW, THEREFORE, for good and valuable consideration the adequacy of which is hereby acknowledges,
the parties hereto agree as follows:

     1. Termination of Ground Lease. As of the Effective Date, BNPPLC hereby surrenders
all of its right title and interest in the Ground Lease unto NAI, subject only to the “Permitted
Encumbrances” described in Annex B attached hereto and incorporated herein by this reference, and
the Ground Lease is hereby terminated. Notwithstanding anything to the contrary in this Agreement,
BNPPLC does, for itself and its successors, covenant, warrant and agree to defend the title to the
Land against claims and demands of any person claiming under or through a Lien Removable by BNPPLC.
Except as expressly set forth in the preceding sentence, BNPPLC makes no warranty of title, express
or implied.

     2. Acknowledgment of Reversion. BNPPLC also acknowledges and agrees that because of
the termination of the Ground Lease, all of BNPPLC’s right, title and interest in and to the
following property will revert to NAI and BNPPLC does hereby forever relinquish, waive, and
quitclaim unto NAI (subject to such Permitted Encumbrances):

	 	A.	 	the Sublease;
	 
	 	B.	 	the Purchase Agreement;
	 
	 	C.	 	any pending or future award made because of our condemnation affecting the
Property or because of any conveyance to be made in lieu thereof, and any unpaid
proceeds of insurance or claim or cause of action for damages, loss or injury to the
Subleased Premises; and
	 
	 	D.	 	all other property included within the definition of “Property” as set forth in
the Purchase Agreement;

provided, however, that excluded from this conveyance and reserved to BNPPLC are any rights
or privileges of BNPPLC under the following are expressly reserved and retained by BNPPLC: (i) the
indemnities set forth in the Sublease and the Ground Lease, whether such rights are presently
known or unknown, including rights of BNPPLC to be indemnified against environmental claims of
third parties, as provided in the Ground Lease which may not presently

Exhibit C-1 to Purchase Agreement - Page 2

 

be known; and (ii) provision
in the Sublease that establish the right of BNPPLC to recover any accrued unpaid rent under the
Sublease which may be outstanding as of the date hereof; and (iii) agreements between BNPPLC and
BNPPLC’s Parent or any Participant, or any modification or extension thereof.

BNPPLC agrees to warrant and defend the title to the Subleased Premises as herein assigned, against
claims and demands of any person claiming under or through a Lien Removable by BNPPLC relating to
the Subleased Premises.

     3. “As Is” Reversion. Notwithstanding any contrary provisions contained herein, NAI
acknowledges that BNPPLC makes no representations or warranties of any nature or kind, whether
statutory, express or implied, with respect to environmental matters or the physical condition of
the Subleased Premises, and NAI, by acceptance of this agreement, accepts the Subleased Premises
“As Is,” “Where Is,” and “With All Faults,” and without any such representation or warranty by
BNPPLC as to environmental matters, the physical condition of the Subleased Premises, compliance
with subdivision or platting requirements or construction of any improvements. Without limiting the
generality of the foregoing, NAI hereby further acknowledges and agrees that warranties of
merchantability and fitness for a particular purpose are excluded from the transactions
contemplated by this Agreement, as are any warranties arising from a course of dealing or usage of
trade. NAI hereby assumes all risk and liability (and agrees that BNPPLC will not be liability for
any special, direct, indirect, consequential, or other damages) resulting or arising from or
relating to the ownership, use, condition, location, maintenance, repair, or operation of the
Subleased Premises, except for damages proximately caused by (and attributed by any applicable
principles of comparative fault to) the “Established Misconduct” of BNPPLC.

     4. Binding Effect. The terms, provisions, covenants, and conditions hereof will be
binding upon NAI and BNPPLC and their respective successors and assigns, and any other party
claiming through either of them, and will inure to the benefit of NAI and BNPPLC and all
transferees, mortgages, successors and assigns.

Exhibit C-1 to Purchase Agreement - Page 3

 

     5. Miscellaneous. This Agreement and any other agreement relating hereto and executed
concurrently herewith represent the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede any prior negotiations and agreement between BNPPLC and NAI
concerning the subject matter hereof. No amendment or modification of this Agreement will be
binding or valid unless express in a writing executed by both parties hereto. This Agreement will
be governed by and construed in accordance with the laws of the State of North Carolina without
regard to conflict or choice of laws. Words in the singular number will be held to include the
plural and vice versa, unless the context otherwise requires. This Agreement may be executed in
counterparts, each of which will be an original and all of which together will be a single
instrument.

[Signature pages follow.]

Exhibit C-1 to Purchase Agreement - Page 4

 

IN WITNESS WHEREOF, BNPPLC and NAI have signed this Agreement Concerning Ground Lease to be
effective as of                                         _, 20___.

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a Delaware

corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                     

	 	 	)	 	 	 

I,                                                             , certify that
                                         personally came
before me this day and acknowledged that he is                                          of BNP Paribas Leasing
Corporation, a Delaware corporation, and that he, as a                                          being duly
authorized to do so, executed the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day of                    , 20___.

	 	 	 	 	 
	 

	 	 

Notary Public, State of                     
	 	 

My Commission Expires:

                                                            

(Notary Seal)

Exhibit C-1 to Purchase Agreement - Page 5

 

[Continuation of signature pages to Agreement Concerning Ground Lease dated to be effective as of
                                        , 20___.]

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                     

	 	 	)	 	 	 

I,                                                             , certify that
                                         personally came
before me this day and acknowledged that he is                                          of Network Appliance, Inc.
        , a Delaware corporation, and that he, as a                                          being duly
authorized to do so, executed the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day of                    , 20___.

	 	 	 	 	 
	 

	 	 

Notary Public, State of                     
	 	 

My Commission Expires:

                                                            

(Notary Seal)

Exhibit C-1
to Purchase Agreement - Page 6

 

 

Annex A

Legal Description

[DRAFTING NOTE: TO THE EXTENT THAT THE “LAND” COVERED BY THE GROUND LEASE CHANGES FROM TIME
TO TIME AS PROVIDED THEREIN OR BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPPLC’S CONSENT OR
APPROVAL AS PROVIDED IN THE CLOSING CERTIFICATE, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW
CHANGE. ANY SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS “DRAFTING NOTE”
WILL BE DELETED BEFORE THE ASSIGNMENT TO WHICH THIS DESCRIPTION IS ATTACHED IS ACTUALLY EXECUTED
AND DELIVERED.]

BEING a portion of Site 12 as shown on the map entitled “Exempt Subdivision Map of Site 12”,
prepared by Barbara H. Mulkey Engineering, Inc., on May 30, 2000 as recorded in the Book of Maps
2000, Page 1300, Wake County, North Carolina Registry, such portion being described as follows:

Unit 4 and the Additional Leased Premises, both as defined below (collectively, the
“Ground Lease Premises”).

As used in this Exhibit:

     (1) “Additional Leased Premises” means the land surrounding and adjacent to
Unit 4, depicted on the site plan attached to and made a part of this Exhibit as the
area shaded in gray, which includes parking lots, driveways and other areas within
the larger area designated as Common Elements in the Condominium Declaration. The
outer boundaries of the Additional Leased Premises are described by metes and bounds
on the last page attached to and made a part of this Exhibit. All land within those
outer boundaries, other than Unit 4, is included in the Additional Leased Premises.

     (2) “Condominium Declaration” means the Declaration of Condominium for NetApp
RTP Phase I Condominium recorded in Book 012647, Page 01310, Wake County, North
Carolina Registry.

     (3) “Condominium Map” means the plat provided to BNP Paribas Leasing
Corporation (“BNPPLC”) by Network Appliance, Inc. (“NAI”) attached to and made a
part of this Exhibit. (The Condominium Map has also been filed in the Book of Maps
CM2007, Page 444A1, Wake County, North Carolina Registry.)

Exhibit C-1 to Purchase Agreement - Page 7

 

 

     (4) “Unit 4” means the land designated and described in the Condominium
Declaration as Unit 4 and is shown on the Condominium Map and site plan attached to
and made a part of this Exhibit.

TOGETHER WITH, easements appurtenant to the Ground Lease Premises as described in Exhibit A
attached to the Ground Lease dated as of July 17, 2007 between BNPPLC, as lessee, and NAI, as
lessor (the “Ground Lease”);

SUBJECT, HOWEVER, to an easement reserved over the Additional Leased Premises (but not any part of
Unit 4) in favor of the Association as described in Exhibit A attached to the Ground
Lease.

Exhibit C-1 to Purchase Agreement - Page 8

 

 

Exhibit C-1 to Purchase Agreement - Page 9

 

 

Exhibit C-1 to Purchase Agreement - Page 10

 

 

Attachment to Exhibit A — Metes and Bounds

Description of “Additional Leased Premises"

     The following is a metes and bounds description of the outer boundaries of the Additional
Leased Premise:

BEGINNING at NCGS Monument “Hopson”, said monument having NC Grid Coordinates of
N-773,721.48 and E-2,034,907.39 (NAD 83), traveling thence South 11°44¢592 West 6154.66 feet to a
right-of-way monument on the southern margin of Louis Stephens Drive (a 100 foot public
right-of-way), thence North 72°48¢352 East 164.29 feet to a right-of-way monument on the southern
margin of Kit Creek Road (a 150 foot public right-of-way); thence with the southern margin of said
Kit Creek Road the following two (2) courses and distances:

	 	(1)	 	South 68°46¢542 East 412.64 feet to a right-of-way monumen; and
	 
	 	(2)	 	with a curve to the right having a radius of 924.83 feet, an arc length of 475.96.
and a chord bearing and distance of South 54°02¢592 East 470.72 feet to a computed point;

said
computed being the POINT AND PLACE OF BEGINNING; thence from said point of beginning
and continuing with the southern margin of Kit Creek Road South 39°18¢292 East 571.64 feet to
a computed point thence coming and leaving said right-of-way and with the common line of
property now or formerly owned by Research Triangle Foundation of NC (DB 1670 PG 239) the
following two (2) courses and distances:

	 	(1)	 	South 50°41¢312 West 100.00 feet to an iron pipe found; and
	 
	 	(2)	 	South 83°31¢012 West 483.47 feet to an iron pipe found;

thence cornering and along three (3) new lines within the bounds of property owned by Network
Appliance. Inc. (DB 10941 Pg 2054) as follows:

	 	(1)	 	North
12°44¢002 West 279.97 feet;
	 
	 	(2)	 	North 48°55¢312 West 50.30 feet; and
	 
	 	(3)	 	North 32°57¢242 East 401.61 feet to a point along the southern margin of said Kit Creek Road;

thence with the southern margin of Kit Creek Road along a curve to the right having a radius
of 925.04 feet, an arc length of 113,05 feet and a chord bearing and distance of South 42°48¢332
East 112.98 feet to the POINT AND PLACE OF
BEGINNNING,
 containing 5.36 acres (233.621 square
feet), more or less, said area shown on the rendering attached hereto.

Exhibit C-1 to Purchase Agreement - Page 11

 

 

Annex B

Permitted Encumbrances

[DRAFTING NOTE: BEFORE THIS AGREEMENT IS ACTUALLY EXECUTED AND DELIVERED BY BNPPLC: ALL PERMITTED
ENCUMBRANCES LISTED IN EXHIBIT B TO THE CLOSING CERTIFICATE WILL BE SET OUT BELOW, IN ADDITION TO
THE ITEMS ALREADY LISTED. ALSO, IF ANY ENCUMBRANCES (OTHER THAN “LIENS REMOVABLE BY BNPPLC”) ARE
IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW OR IN EXHIBIT B TO THE CLOSING CERTIFICATE, SUCH
ADDITIONAL ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW. AFTER SUCH ADJUSTMENTS ARE MADE, THIS
“DRAFTING NOTE” WILL BE DELETED. THE ADDITIONAL ENCUMBRANCES TO BE LISTED BELOW WOULD INCLUDE ANY
NEW ENCUMBRANCES APPROVED BY BNPPLC AS “PERMITTED ENCUMBRANCES” FROM TIME TO TIME OR BECAUSE OF
NAI’s REQUEST FOR BNPPLC’S CONSENT OR APPROVAL TO AN ADJUSTMENT.]

This conveyance is subject to all encumbrances not constituting a “Lien Removable by BNPPLC” (as
defined in the Common Definitions and Provisions Agreement), including the following matters to the
extent the same are still valid and in force:

1. Taxes and assessments for the year 20___and subsequent years, which are not yet due and payable.

	2.	 	Amended Declaration of Covenants recorded in Book 1663, page 559, Wake County Registry and
Amended Conditions, Covenants, Restrictions and Reservations recorded in Book 3679, page 53,
Wake County Registry as further amended and modified by instrument recorded in Book 3679, page
41, Wake County Registry; instrument recorded in Book 3679, page 48, Wake County Registry; and
instrument recorded in Book 3679, page 53, Wake County Registry. The aforesaid covenants were
extended by Extension Agreement recorded in Book 6098, page 683, Wake County Registry.
	 
	3.	 	Easement(s) to Duke Power Company recorded in Book 1306, page 330; Book 1262, page 51; Book
1262, page 186; Book 1306, page 334; Book 1389, page 570; and Book 1389, page 568, Wake County
Registry.
	 
	4.	 	Sanitary Sewer Easement recorded in Book 4783, page 360, Wake County Registry; and shown in
Map Book 1990, pages 973-976, Wake County Registry.
	 
	5.	 	Easement to Duke Power Company as shown in Plat Book 1985, page 1208 and Plat Book 1985,
1347, Wake County Registry.

Exhibit C-1 to Purchase Agreement - Page 12

 

 

	6.	 	The following maters as shown on plat prepared by Barbara H. Mulkey Engineering, Inc.,
dated May 30, 2000 entitled “Exempt Subdivision Map of Site 12”, recorded in Book of Maps
2000, page 1300, Wake County Registry:

	 	(a)	 	New permanent drainage easement along the eastern right of way identified on
such plat as “Future Roadway for Louis Stephens Drive”;
	 
	 	(b)	 	Surface Cover Maintenance easement along the western boundary of Site 12 as
shown on such plat;
	 
	 	(c)	 	One hundred (100) year flood zone along the southern boundary of Site 12 as
shown on such plat;
	 
	 	(d)	 	Temporary drainage easement along norther boundary of Site 12 as shown on such
plat;
	 
	 	(e)	 	Existing sixty (60) foot right of way of Kit Creek Road, which right of way is
to be abandoned (if it has not already been abandoned) as located in the northeastern
portion of Site 12 as shown on such plat;
	 
	 	(f)	 	Overhead electric lines located on the northeastern portion of Site 12 as shown
on such plat;
	 
	 	(g)	 	Flood plain area, wetlands and creek located within the Natural Area Preserve
as shown on such plat; and
	 
	 	(h)	 	Thirty (30) foot Wake County sanitary sewer easement within the Natural Areas
Preserve as shown on such plat.

	7.	 	The terms and conditions of the Condominium Declaration.

Exhibit C-1 to Purchase Agreement - Page 13

 

 

Exhibit C-2

Form of Assignment of Ground Lease and Improvements

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

	 	 	 
	NAME:

	 	[NAI or the Applicable Purchaser]
	ADDRESS:

	 	                                                            
	ATTN:                                                            
	CITY:

	 	                                                            
	STATE:

	 	                                                            
	Zip:

	 	                                                            

ASSIGNMENT OF GROUND LEASE AND IMPROVEMENTS

(Covering Improvements and Leasehold Estate in Land)

     BNP Paribas Leasing Corporation (“Assignor”), a Delaware corporation, for and in consideration
of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Assignor by [NAI or the
Applicable Purchaser] (hereinafter called “Assignee”), the receipt and sufficiency of which are
hereby acknowledged, does hereby GRANT, SELL, CONVEY, ASSIGN and DELIVER to Assignee (1) the
leasehold estate created by a Ground Lease from NAI to Assignor dated as of July 17, 2007, which
covers the land described in Annex A attached hereto and hereby made a part hereof, and (2) all
other rights, titles and interests of Assignor in and to (a) such land, (b) the buildings and other
improvements situated on such land, (c) any fixtures and other property affixed thereto and (d) the
adjacent streets, alleys and rights-of-way (all of the property interests conveyed hereby being
hereinafter collectively referred to as the “Property”); however, this conveyance is made by
Assignor and accepted by Assignee subject to the terms and conditions of the aforementioned Ground
Lease and to all zoning and other ordinances affecting the Property, all general or special
assessments due and payable after the date hereof, all encroachments, variations in area or in
measurements, boundary line disputes, roadways and other matters not of record which would be
disclosed by a current survey and inspection of the Property, and the encumbrances listed in Annex
B attached hereto and made a part hereof (collectively, the “Permitted Encumbrances”).

     TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances
thereto belonging unto Assignee, its successors and assigns, forever, and Assignor does hereby bind
Assignor and Assignor’s successors and assigns to warrant and forever defend all and singular the
said premises unto Assignee, its successors and assigns against every person whomsoever lawfully
claiming, or to claim the same, or any part thereof by, through or under Assignor, but not
otherwise; subject, however, to the Permitted Encumbrances. Except as expressly set forth in the
preceding sentence, Assignor makes no warranty of title, express or implied.

 

 

     Assignor makes no representations or warranties of any nature or kind, whether statutory,
express or implied, with respect to environmental matters or the physical condition of the
Property, and Assignee, by acceptance of this Assignment, accepts the Property “AS
IS,” “WHERE IS,” “WITH ALL FAULTS” and without any
such representation or warranty by Assignor as to environmental matters, the physical condition of
the Property, compliance with subdivision or platting requirements or construction of any
improvements. Without limiting the generality of the foregoing, by acceptance of this Assignment,
Assignee hereby further acknowledges and agrees that warranties of merchantability and fitness for
a particular purpose are excluded from the transaction contemplated by this Assignment, as are any
warranties arising from a course of dealing or usage of trade.

     Assignee hereby assumes the obligations (including any personal obligations) of Assignor, if
any, created by or under, and agrees to be bound by the terms and conditions of, the Permitted
Encumbrances to the extent that the same concern or apply to the land or improvements conveyed by
this Assignment.

[Signature pages follow.]

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Assignment to be effective as of
                    , 20___.

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a	 	 
	 	 	Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF                                         

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

I,                                                                        
         , certify that                                          personally came
before me this day and acknowledged that he is                                          of BNP Paribas Leasing
Corporation, a Delaware corporation, and that he, as a                                          being duly
authorized to do so, executed the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day of                     , 20___.

	 	 	 	 	 
	 
	 
	 
	 

	 	 	 	 
	 

	 	Notary Public, State of                     	 	 

My Commission Expires:

 

(Notary Seal)

Exhibit C-2 to Purchase Agreement - Page 3

 

 

[Continuation of signature pages to Assignment of Ground Lease and Improvements dated to be
effective as of                     , 20___.]

[NAI or the Applicable Purchaser]

By:                                                             

Name:                                                             

Title:                                                             

	 	 	 	 	 	 	 
	STATE OF                                         

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

I,      
              
               
               
           , certify that  
                     
                                                           personally came
before me this day and acknowledged that he is                                          of [NAI or the
Applicable Purchaser], a         
              
                
  , and that he, as a          
               
                 being duly
authorized to do so, executed the foregoing on behalf of the                     .

Witness my hand and official seal this the                      day of                    , 20___.

	 	 	 	 	 
	 
	 
	 
	 

	 	 	 	 
	 

	 	Notary Public, State of                     	 	 

My Commission Expires:

 

(Notary Seal)

Exhibit C-2 to Purchase Agreement - Page 4

 

 

Annex A

LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE “LAND” COVERED BY THE GROUND LEASE CHANGES FROM
TIME TO TIME AS PROVIDED THEREIN OR BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPPLC’S CONSENT
OR APPROVAL AS PROVIDED IN THE CLOSING CERTIFICATE, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW
CHANGE. ANY SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS “DRAFTING NOTE”
WILL BE DELETED BEFORE THE ASSIGNMENT TO WHICH THIS DESCRIPTION IS ATTACHED IS ACTUALLY EXECUTED
AND DELIVERED.]

BEING a portion of Site 12 as shown on the map entitled “Exempt Subdivision Map of Site 12”,
prepared by Barbara H. Mulkey Engineering, Inc., on May 30, 2000 as recorded in the Book of Maps
2000, Page 1300, Wake County, North Carolina Registry, such portion being described as follows:

Unit 4 and the Additional Leased Premises, both as defined below (collectively, the
“Ground Lease Premises”).

As used in this Exhibit:

     (1) “Additional Leased Premises” means the land surrounding and adjacent to
Unit 4, depicted on the site plan attached to and made a part of this Exhibit as the
area shaded in gray, which includes parking lots, driveways and other areas within
the larger area designated as Common Elements in the Condominium Declaration. The
outer boundaries of the Additional Leased Premises are described by metes and bounds
on the last page attached to and made a part of this Exhibit. All land within those
outer boundaries, other than Unit 4, is included in the Additional Leased Premises.

     (2) “Condominium Declaration” means the Declaration of Condominium for NetApp
RTP Phase I Condominium recorded in Book 012647, Page 01310, Wake County, North
Carolina Registry.

     (3) “Condominium Map” means the plat provided to BNP Paribas Leasing
Corporation (“BNPPLC”) by Network Appliance, Inc. (“NAI”) attached to and made a
part of this Exhibit. (The Condominium Map has also been filed in the Book of Maps
CM2007, Page 444A1, Wake County, North Carolina Registry.)

Exhibit C-2 to Purchase Agreement - Page 5

 

 

(4) “Unit 4” means the land designated and described in the Condominium

Declaration as Unit 4 and is shown on the Condominium Map and site plan attached to

and made a part of this Exhibit.

TOGETHER WITH, easements appurtenant to the Ground Lease Premises as described in Exhibit A
attached to the Ground Lease dated as of July 17, 2007 between BNPPLC, as lessee, and NAI, as
lessor (the “Ground Lease”);

SUBJECT, HOWEVER, to an easement reserved over the Additional Leased Premises (but not any part of
Unit 4) in favor of the Association as described in Exhibit A attached to the Ground Lease.

Exhibit C-2 to Purchase Agreement - Page 6

 

 

Exhibit C-2 to Purchase Agreement - Page 7

 

 

Exhibit C-2 to Purchase Agreement - Page 8

 

 

Attachment to Exhibit A — Metes and Bounds

Description of “Additional Leased Premises”

          The following is a metes and bounds description of the outer boundaries of the Additional
Leased Premise:

BEGINNING at NCGS Monument “Hopson”. said monument having NC Grid Coordinates of
N-773.72l.48 and E-2.034.907.39 (NAD 83), traveling thence South 11o 44’ 59”
West 6154.66 feet to a right-of-way monument on the southern margin of Louis
Stephens Drive (a 100 foot public right-of-way), thence North 72o 48’ 35” East 164.29
feet to a right-of-way monument on the southern margin of Kit Creek Road (a 150 foot
public right-of-way); thence with the southern margin of said Kit Creek
Road the following two (2) courses and distances:

	 	(1)	 	South 68o 46’ 54 East 412.64 feet to a right-of-way monument, and
	 
	 	(2)	 	with a curve to the right having a radius of 924,83 feet, an arc length of 475,96. and a chord bearing
and distance of South 54o 02’ 59” East 470.72 feet to a computed point;

said computed being the POINT AND PLACE OF BEGINNING: thence from said
point of beginning and continuing with the southern margin of Kit Creek
Road South 39o 18’ 29” East 571.64 feet to a computed point, thence cornering and
leaving said right-of-way and with the common line of property now or formerly owned by
Research Triangle Foundation of NC (DB 1670 PG 239) the following two (2) courses and distances:

	 	(1)	 	South 50o 41’ 31” West 100.00 feet to an iron pipe found; and
	 
	 	(2)	 	South 83o 31’ 01” West 483,47 feet to an iron pipe found;

thence cornering and along three (3) new lines within the bounds of property
owned by Network Appliance. Inc. (DB 10941 Pg 2054) as follows:

	 	(1)	 	North 12o 44’ 00” West 279.97 feet;
	 
	 	(2)	 	North 48o 55’ 31” West 50.30 feet; and
	 
	 	(3) 	 	North 32o 57’ 24” East 401,61 feet to a point along the southern margin of said Kit Creek Road;

thence with the southern margin of Kit Creek Road along a curve to the right
having a radius of 925.04 feet, an arc length of 113.05 feet and a chord bearing
and distance of South 42o 48’ 33” East 112.98 feet to the
POINT AND PLACE OF BEGINNING containing 5.36 acres (233.621 square feet),
more or less, said area shown on the rendering attached hereto.

Exhibit C-2 to Purchase Agreement - Page 9

 

 

Annex B

Permitted Encumbrances

[DRAFTING NOTE: BEFORE THIS ASSIGNMENT IS ACTUALLY EXECUTED AND DELIVERED BY BNPPLC: ALL
PERMITTED ENCUMBRANCES LISTED IN EXHIBIT B TO THE CLOSING CERTIFICATE WILL BE SET OUT BELOW, IN
ADDITION TO THE ITEMS ALREADY LISTED. ALSO, IF ANY ENCUMBRANCES (OTHER THAN “LIENS REMOVABLE BY
BNPPLC”) ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW OR IN EXHIBIT B TO THE CLOSING
CERTIFICATE, SUCH ADDITIONAL ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW. AFTER SUCH ADJUSTMENTS
ARE MADE, THIS “DRAFTING NOTE” WILL BE DELETED. THE ADDITIONAL ENCUMBRANCES TO BE LISTED BELOW
WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPPLC AS “PERMITTED ENCUMBRANCES” FROM TIME TO TIME
OR BECAUSE OF NAI’s REQUEST FOR BNPPLC’S CONSENT OR APPROVAL TO AN ADJUSTMENT.]

     This conveyance is subject to all encumbrances not constituting a “Lien Removable by BNPPLC”
(as defined in the Common Definitions and Provisions Agreement incorporated by reference into the
Lease Agreement referenced in the last item of the list below), including the following matters to
the extent the same are still valid and in force:

	1.	 	Taxes and assessments for the year 20 ___ and subsequent years, which are not yet due and payable.
	 
	2.	 	Amended Declaration of Covenants recorded in Book 1663, page 559, Wake County Registry and
Amended Conditions, Covenants, Restrictions and Reservations recorded in Book 3679, page 53,
Wake County Registry as further amended and modified by instrument recorded in Book 3679, page
41, Wake County Registry; instrument recorded in Book 3679, page 48, Wake County Registry; and
instrument recorded in Book 3679, page 53, Wake County Registry. The aforesaid covenants were
extended by Extension Agreement recorded in Book 6098, page 683, Wake County Registry.
	 
	3.	 	Easement(s) to Duke Power Company recorded in Book 1306, page 330; Book 1262, page 51; Book
1262, page 186; Book 1306, page 334; Book 1389, page 570; and Book 1389, page 568, Wake County
Registry.
	 
	4.	 	Sanitary Sewer Easement recorded in Book 4783, page 360, Wake County Registry; and shown in
Map Book 1990, pages 973-976, Wake County Registry.
	 
	5.	 	Easement to Duke Power Company as shown in Plat Book 1985, page 1208 and Plat Book 1985,
1347, Wake County Registry.

Exhibit C-2 to Purchase Agreement - Page 10

 

 

	6.	 	The following maters as shown on plat prepared by Barbara H. Mulkey Engineering, Inc.,
dated May 30, 2000 entitled “Exempt Subdivision Map of Site 12”, recorded in Book of
Maps 2000, page 1300, Wake County Registry:

	 	(a)	 	New permanent drainage easement along the eastern right of way identified on
such plat as “Future Roadway for Louis Stephens Drive”;
	 
	 	(b)	 	Surface Cover Maintenance easement along the western boundary of Site 12 as
shown on such plat;
	 
	 	(c)	 	One hundred (100) year flood zone along the southern boundary of Site 12 as
shown on such plat;
	 
	 	(d)	 	Temporary drainage easement along norther boundary of Site 12 as shown on such
plat;
	 
	 	(e)	 	Existing sixty (60) foot right of way of Kit Creek Road, which right of way is
to be abandoned (if it has not already been abandoned) as located in the northeastern
portion of Site 12 as shown on such plat;
	 
	 	(f)	 	Overhead electric lines located on the northeastern portion of Site 12 as shown
on such plat;
	 
	 	(g)	 	Flood plain area, wetlands and creek located within the Natural Area Preserve
as shown on such plat; and
	 
	 	(h)	 	Thirty (30) foot Wake County sanitary sewer easement within the Natural Areas
Preserve as shown on such plat.

	7.	 	The terms and conditions of the Condominium Declaration.

Exhibit C-2 to Purchase Agreement - Page 11

 

 

Exhibit C-3

BILL OF SALE AND ASSIGNMENT

     Reference is made to: (1) that certain Purchase Agreement dated as of July 17, 2007, (the
“Purchase Agreement”) between BNP Paribas Leasing Corporation (“Assignor”), a Delaware corporation,
and Network Appliance, Inc. , a Delaware corporation, and (2) that certain Lease Agreement dated as
of July 17, 2007 (the “Lease”) between Assignor, as landlord, and Network Appliance, Inc. , a
Delaware corporation, as tenant. (Capitalized terms used and not otherwise defined in this document
are intended to have the meanings assigned to them in the Common Definitions and Provisions
Agreement incorporated by reference into both the Purchase Agreement and Lease.)

     As contemplated by the Purchase Agreement, Assignor hereby sells, transfers and assigns unto
[NAI or the Applicable Purchaser], a                      (“Assignee”), all of Assignor’s right, title
and
interest in and to the following property, if any, to the extent such property is assignable:

	 	(a)	 	the Lease;
	 
	 	(b)	 	any pending or future award made because of any condemnation affecting the
Property or because of any conveyance to be made in lieu thereof, and any unpaid award
for damage to the Property and any unpaid proceeds of insurance or claim or cause of
action for damage, loss or injury to the Property; and
	 
	 	(c)	 	all other personal or intangible property included within the definition of
“Property” as set forth in the Purchase Agreement, including but not limited to any of
the following transferred to Assignor by the tenant pursuant to Paragraph 6 of
the Lease or otherwise acquired by Assignor, at the time of the execution and delivery
of the Lease and Purchase Agreement or thereafter, by reason of Assignor’s status as
the owner of any interest in the Property: (1) any goods, equipment, furnishings,
furniture, chattels and tangible personal property of whatever nature that are located
on the Property and all renewals or replacements of or substitutions for any of the
foregoing; (ii) the rights of Assignor, existing at the time of the execution of the
Lease and Purchase Agreement or thereafter arising, under Permitted Encumbrances; and
(iii) any general intangibles, other permits, licenses, franchises, certificates, and
other rights and privileges related to the Property that Assignee would have acquired
if Assignee had itself acquired the interest of Assignor in and to the Property instead
of Assignor.

Provided, however, excluded from this conveyance and reserved to Assignor are any rights or
privileges of Assignor under the following: (1) the indemnities set forth in the Construction
Agreement, the Lease and the Ground Lease, whether such rights are presently known or unknown,
including rights of the Assignor to be indemnified against environmental claims of

 

 

third parties as
provided in the Construction Agreement and the Lease which may not presently be known, all of which
indemnities will survive the deliver of this Bill of Sale and Assignment and other documents
required by the Purchase Agreement, (2) provisions in the Lease that establish the
right of Assignor to recover any accrued unpaid rent under the Lease which may be outstanding as of
the date hereof, (3) agreements between Assignor and Assignor’s Parent or any Participant, or (4)
any other instrument being delivered to Assignor contemporaneously herewith pursuant to the
Purchase Agreement.[Drafting Note: The following sentence will be included unless the
Property is being sold to NAI or an Affiliate pursuant to subparagraph 2(A)(1), 3(A) or 3(B) of the
Purchase Agreement: Also excluded from this conveyance and reserved to Assignor are (i) the right
to retain Escrowed Proceeds, if any, that consist of condemnation or insurance proceeds resulting
from a Pre-completion Force Majeure Event, and (ii) any right to receive future payments of any
such condemnation or insurance proceeds. ]

     Assignor does for itself and its successors covenant and agree to warrant and defend the title
to the property assigned herein against the just and lawful claims and demands of any person
claiming under or through a Lien Removable by Assignor, but not otherwise.

     Assignee hereby assumes and agrees to keep, perform and fulfill Assignor’s obligations, if
any, relating to any permits or contracts (including the Lease), under which Assignor has rights
being assigned herein.

[Signature pages follow.]

Exhibit C-3 to Purchase Agreement - Page 2

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Bill of Sale and Assignment to be
effective as of                     , 20___.

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a	 	 
	 	 	Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF
                                        

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF
                                        

	 	 	)	 	 	 

I,
                                        
          
          , certify that
                     
                    personally came
before me this day and acknowledged that he is
                                        
 of BNP Paribas Leasing
Corporation, a Delaware corporation, and that he, as a
                                        
 being duly
authorized to do so, executed the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day
of                     , 20___.

	 	 	 	 	 
	 
	 
	 
	 

	 	 	 	 
	 

	 	Notary Public, State of                     	 	 

My Commission Expires:

 

(Notary Seal)

Exhibit C-3 to Purchase Agreement - Page 3

 

 

[Continuation of signature pages to Bill of Sale and Assignment dated to be effective as of
                    , 20___.]

[NAI or the Applicable Purchaser]

By:
                                        
                    

Name:
                                        
                    

Title:
                                        
                    

	 	 	 	 	 	 	 
	STATE OF
                                        

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF
                                        

	 	 	)	 	 	 

I,
                                        
                    , certify that  
                    
                    personally came
before me this day and acknowledged that he is
                                        
 of [NAI or the
Applicable Purchaser], a
            
              
              
, and that he, as a            
              
                being duly
authorized to do so, executed the foregoing on behalf of the                     .

Witness my hand and official seal this the                      day
of                     , 20___.

	 	 	 	 	 
	 
	 
	 
	 

	 	 	 	 
	 

	 	Notary Public, State of                     	 	 

My Commission Expires:

 

(Notary Seal)

Exhibit C-3 to Purchase Agreement - Page 4

 

 

Exhibit C-4

ACKNOWLEDGMENT OF DISCLAIMER

OF REPRESENTATIONS AND WARRANTIES

     THIS ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES (this “Certificate”) is
made as of
                                        
, ___, by [NAI or the Applicable Purchaser], a
                                        
(“Assignee”).

     Contemporaneously with the execution of this Certificate, BNP Paribas Leasing Corporation
(“Assignor”), a Delaware corporation, is executing and delivering to Assignee (1) an Assignment of
Ground Lease and Improvements, and (2) a Bill of Sale and Assignment (the foregoing documents and
any other documents to be executed in connection therewith are herein called the “Conveyancing
Documents” and any of the properties, rights or other matters assigned, transferred or conveyed
pursuant thereto are herein collectively called the “Subject Property”).

     Notwithstanding any provision contained in the Conveyancing Documents to the contrary,
Assignee acknowledges that Assignor makes no representations or warranties of any nature or kind,
whether statutory, express or implied, with respect to environmental matters or the physical
condition of the Subject Property, and Assignee, by acceptance of the Conveyancing Documents,
accepts the Subject Property “AS IS,” “WHERE IS,” “WITH
ALL FAULTS” and without any such representation or warranty by Grantor as to
environmental matters, the physical condition of the Subject Property, compliance with subdivision
or platting requirements or construction of any improvements. Without limiting the generality of
the foregoing, Assignee hereby further acknowledges and agrees that warranties of merchantability
and fitness for a particular purpose are excluded from the transaction contemplated by the
Conveyancing Documents, as are any warranties arising from a course of dealing or usage of trade.
Assignee hereby assumes all risk and liability (and agrees that Assignor will not be liable for any
special, direct, indirect, consequential, or other damages) resulting or arising from or relating
to the ownership, use, condition, location, maintenance, repair, or operation of the Subject
Property, except for damages proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of Assignor. As used in the preceding sentence,
“Established Misconduct” is intended to have, and be limited to, the meaning given to it in the
Common Definitions and Provisions Agreement incorporated by reference into the Purchase Agreement
dated as of July 17, 2007 between Assignor and Network Appliance, Inc. , pursuant to which Purchase
Agreement Assignor is delivering the Conveyancing Documents.

     The provisions of this Certificate will be binding on Assignee, its successors and assigns and
any other party claiming through Assignee. Assignee hereby acknowledges that Assignor is entitled
to rely and is relying on this Certificate.

[Signature page follows.]

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Bill of Sale and Assignment to be
effective as of                     , 20___.

[NAI or the Applicable Purchaser]

By:
              
              
            
              
      

Name:
                                        
                    

Title:
                                        
                    

	 	 	 	 	 	 	 
	STATE OF
                                        

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF
                                        

	 	 	)	 	 	 

I,
                                        
                    , certify that  
                     
                   personally came
before me this day and acknowledged that he is
                                        
 of [NAI or the
Applicable Purchaser], a                     , and that he, as a
                                        
 being duly
authorized to do so, executed the foregoing on behalf of the                     .

Witness my hand and official seal this the                      day
of                     , 20___.

	 	 	 	 	 
	 
	 
	 
	 

	 	 	 	 
	 

	 	Notary Public, State of                     	 	 

My Commission Expires:

 

(Notary Seal)

Exhibit C-4 to Purchase Agreement - Page 2

 

 

Exhibit D

SECRETARY’S CERTIFICATE

     The undersigned, [Secretary or Assistant Secretary] of BNP Paribas Leasing Corporation
(“BNPPLC”), a Delaware corporation, hereby certifies as follows:

     1. That he is the duly, elected, qualified and acting Secretary [or Assistant Secretary] of
the Corporation and has custody of the corporate records, minutes and corporate seal.

     2. That the following named persons have been properly designated, elected and assigned to the
office in BNPPLC as indicated below; that such persons hold such office at this time and that the
specimen signature appearing beside the name of such officer is his or her true and correct
signature.

[The following blanks must be completed with the names and signatures of the officers who will be
signing the Sale Closing Documents on behalf of BNPPLC.]

	 	 	 	 	 
	Name	 	Title	 	Signature
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 

     3. That the resolutions attached hereto and made a part hereof were duly adopted by the Board
of Directors of BNPPLC in accordance with BNPPLC’s Articles of Incorporation and Bylaws. Such
resolutions have not been amended, modified or rescinded and remain in full force and effect.

     IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the Corporation on
this                     , day of                     , 20                    .

[signature and title]

 

 

CORPORATE RESOLUTIONS OF

BNP PARIBAS LEASING CORPORATION

[DRAFTING NOTE: INSERT HERE COPIES OF RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS OF
BNPPLC SUFFICIENT TO AUTHORIZE THE DELIVERY OF SALE CLOSING DOCUMENTS. SUCH RESOLUTIONS MAY BE AS
FOLLOWS:

     WHEREAS, pursuant to that certain Purchase Agreement (herein called the “Purchase Agreement”)
dated as of July 17, 2007, by and between BNP Paribas Leasing Corporation (“BNPPLC”) and Network
Appliance, Inc. (“NAI”) , BNPPLC agreed to sell and Purchaser agreed to purchase or cause the
Applicable Purchaser (as defined in the Purchase Agreement) to purchase the Corporation’s interest
in the property (the “Property”) located in                     , North Carolina, more particularly
described therein.

     NOW THEREFORE, BE IT RESOLVED, that the Board of Directors of BNPPLC, in its best business
judgment, deems it in the best interest of BNPPLC and its shareholders that BNPPLC convey the
Property to NAI or the Applicable Purchaser pursuant to and in accordance with the terms of the
Purchase Agreement.

     RESOLVED FURTHER, that the proper officers of BNPPLC, and each of them, are hereby authorized
and directed in the name and on behalf of BNPPLC to cause BNPPLC to fulfill its obligations under
the Purchase Agreement.

     RESOLVED FURTHER, that the proper officers of BNPPLC, and each of them, are hereby authorized
and directed to take or cause to be taken any and all actions and to prepare or cause to be
prepared and to execute and deliver any and all deeds, assignments and other documents, instruments
and agreements that are necessary, advisable or appropriate, in such officer’s sole and absolute
discretion, to carry out the intent and to accomplish the purposes of the foregoing resolutions. ]

Exhibit D to Purchase Agreement - Page 2

 

 

Exhibit E

CERTIFICATION OF NON-FOREIGN STATUS

     Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real
property interest must withhold tax if the transferor is a foreign person.

     To inform [NAI or the Applicable Purchaser] (“Transferee”) that withholding of tax is not
required upon the disposition of a U.S. real property interest by BNP PARIBAS LEASING CORPORATION
(“Transferor”), a Delaware corporation, the undersigned hereby certifies the following on behalf of
Transferor:

10 Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate
(as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

11 Transferor is not a disregarded entity (as defined in Section 1.1445-2(b)(2)(iii) of the Income
Tax Regulations);

12 Transferor’s U.S. employer identification number is 75-2252918; and

13 Transferor’s office address is:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Transferor understands that this Certification of Non-Foreign Status may be disclosed to the
Internal Revenue Service by Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this Certification of Non-Foreign Status
and to the best of my knowledge and belief it is true, correct and complete, and I further
declare that I have authority to sign this document on behalf of the Transferor.

     Dated:                     , 20                    .

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit F

Grant of Repurchase Option

And Restrictive Covenants

     THIS GRANT OF REPURCHASE OPTION AND RESTRICTIVE COVENANTS AGREEMENT (this “Agreement”) is made
as of ___, ___, by NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation, whose
address is ___, and [THE APPLICABLE PURCHASER] (the “Applicable Purchaser”), whose
address is ___, in favor of BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware
corporation.

RECITALS

     BNPPLC and NAI entered into a Purchase Agreement dated as of July 17, 2007, (the “Purchase
Agreement”) concerning the leasehold estate under a ground lease covering the land described in
Annex 1 attached hereto and made a part hereof and other property described therein.
(Capitalized terms used and not otherwise defined in this document are intended to have the
meanings assigned to them in the Common Definitions and Provisions Agreement incorporated by
reference into the Purchase Agreement.)

     Pursuant to the Purchase Agreement, BNPPLC is, contemporaneously with the execution of this
Agreement, executing and delivering to the Applicable Purchaser (1) an Assignment of Ground Lease
and Improvements and (2) a Bill of Sale and Assignment (the foregoing documents and any other
documents to be executed in connection therewith are herein called the “Conveyancing Documents” and
any of the properties, rights or other matters assigned, transferred or conveyed pursuant thereto
are herein collectively called the “Subject Property”).

     As provided in the Purchase Agreement, BNPPLC is entitled to require this Agreement from NAI
and the Applicable Purchaser to induce BNPPLC to execute the Conveyancing Documents and in
consideration thereof.

COVENANTS AND GRANTS

     NOW, THEREFORE, the Applicable Purchaser does hereby grant to BNPPLC an option to repurchase
the Subject Property (the “Repurchase Option”) for a price and on the terms and conditions
hereinafter set forth, and on the condition that NAI or the Applicable Purchaser breaches either of
the following covenants (a “Breach”), both of which covenants are made jointly and severally by NAI
and the Applicable Purchaser as covenants intended to run with the land described in Annex
1 for the benefit of BNPPLC and its successors and assigns:

     1. No Other Payments to NAI. Except for the payments (if any) that BNPPLC must pay
to NAI as provided in the Purchase Agreement, neither NAI nor any Affiliate of NAI will receive or
accept any payment or other thing of value, directly or indirectly, from the Applicable

 

 

Purchaser or any Affiliate of the Applicable Purchaser or any successor or assign of the
Applicable Purchaser because of or in connection with the sale of the Subject Property from BNPPLC
to the Applicable Purchaser pursuant to the Purchase Agreement.

     2. 10 Year Restriction Against NAI’s Involvement With the Property. Neither NAI nor
any Affiliate of NAI may acquire, occupy or use, directly or indirectly, the Subject Property for a
period of ten years after the date hereof.

     To exercise the Repurchase Option, BNPPLC must deliver notice thereof to NAI and the
Applicable Purchaser at the addresses indicated above no later than the earlier of (1) one year
after BNPPLC is itself notified of a Breach, or (2) the tenth anniversary of the date of this
Agreement. Within thirty days after receipt of any such notice, NAI and the Applicable Purchaser
must deliver to BNPPLC an assignment of ground lease and bill of sale that is sufficient to
reconvey the Subject Property back to BNPPLC, with warranties of title by NAI and the Applicable
Purchaser against any and all claims other than the Permitted Encumbrances. Further, if the Ground
Lease is no longer then in effect, NAI must reinstate the Ground Lease in favor of BNPPLC. (But in
no event will BNPPLC be responsible for any breach of, or required to cure any default by the
lessee under, the Ground Lease that first occurred after the date hereof and prior to any such
conveyance back to BNPPLC.) Contemporaneously with the reconveyance back to BNPPLC, NAI and the
Applicable Purchaser must cause possession of the Subject Property to be delivered to BNPPLC, with
the Subject Property in good condition and in compliance with Applicable Laws, unoccupied and free
from any encumbrances other than Permitted Encumbrances.

     The price required for the Subject Property if BNPPLC exercises the Repurchase Option will be
the lesser of (1) the net cash sales proceeds remaining after the payment of all sales costs that
BNPPLC is receiving and entitled to retain under the Purchase Agreement because of its sale of the
Subject Property to the Applicable Purchaser, or (2) the then fair market value of the Subject
Property, as determined in accordance with the appraisal procedures set forth in Annex 2
attached hereto. If for any reason the price has not been determined as of the date upon which a
reconveyance to BNPPLC is required by this Agreement, such date will be deferred until the price is
determined.

     Any reconveyance of the Subject Property back to BNPPLC pursuant to this Agreement will cut
off and terminate any interest in the Subject Property claimed by, through or under the Applicable
Purchaser (such as, but not limited to, any judgment liens established against the Subject Property
because of a judgment rendered against the Applicable Purchaser and any leasehold or other
interests conveyed by the Applicable Purchaser in the ordinary course of its business). Anyone
accepting or taking any interest in the Property through or under the Applicable Purchaser after
the date of this Agreement will acquire such interest subject to the Repurchase Option. Further,
BNPPLC may make any payment of the purchase price required by this Agreement for the purchase of
the Subject Property directly to the Applicable Purchaser

Exhibit F to Purchase Agreement - Page 2

 

 

notwithstanding any prior conveyance or assignment by the Applicable Purchaser, voluntary or
otherwise, of any right or interest in the Subject Property, and BNPPLC will not be responsible for
the proper distribution or application of any such payments by the Applicable Purchaser; and any
such payment to the Applicable Purchaser will discharge the obligation of BNPPLC to cause such
payment to all Persons claiming an interest in such payment.

     Notwithstanding any exercise by BNPPLC of the Repurchase Option, BNPPLC’s obligation to close
the repurchase of the Subject Property will be subject to the following terms and conditions, all
of which are for the benefit of BNPPLC: (1) BNPPLC must have been furnished with evidence
satisfactory to BNPPLC that title will be conveyed to it as required by the preceding subparagraph;
(2) nothing has occurred or been discovered after BNPPLC exercised the Repurchase Option that could
significantly and adversely affect title to the Subject Property or BNPPLC’s use thereof, (3) all
of the representations of NAI in the Ground Lease must continue to be true as if made effective on
the date of the closing and, with respect to any such representations which may be limited to the
knowledge of NAI or any of NAI’s representatives, would continue to be true on the date of the
closing if all relevant facts and circumstances were known to NAI and such representatives, (4)
BNPPLC must find the price for the Subject Property to be acceptable after it is determined as
provided in this Agreement, (5) the deed and other documents which are described in this Agreement
as documents to be delivered to BNPPLC at the closing of BNPPLC’s repurchase must have been
tendered to BNPPLC; and (6) NAI and the Applicable Purchaser must have complied with the all the
terms and condition of this Agreement.

     BNPPLC may deduct from the purchase price required of it by this Agreement the full amount of
any transfer taxes required because of the reconveyance of the Subject Property back to BNPPLC.
Further, BNPPLC may deduct any withholding tax from the price required by this Agreement if BNPPLC
is not excused from such withholding because of the delivery to it of an appropriate certificate of
nonforeign status as needed to comply with the provisions of the U.S. Foreign Investors Real
Property Tax Act (FIRPTA) or any comparable federal, state or local law in effect at the time.

     At the closing or any repurchase of the Subject Property by BNPPLC hereunder, NAI and the
Applicable Purchaser will pay for and deliver to BNPPLC an owner’s title insurance policy in the
full amount of the purchase price payable by BNPPLC, issued by a title insurance company designated
by BNPPLC (or written confirmation from the title company that it is then prepared to issue such a
policy), and subject only to standard printed exceptions which the title insurance company refuses
to delete or modify in a manner acceptable to BNPPLC and to Permitted Encumbrances.

     To secure the obligations of the Applicable Purchaser to reconvey the Subject Property if
BNPPLC exercises the Repurchase Option and to pay any damages to BNPPLC caused by a breach of NAI’s
or the Applicable Purchaser’s obligations hereunder, including any such breach

Exhibit F to Purchase Agreement - Page 3

 

 

caused by a rejection or termination of this Agreement in any bankruptcy or insolvency
proceeding instituted by or against NAI or the Applicable Purchaser, as debtor, the Applicable
Purchaser does hereby grant to BNPPLC (and BNPPLC does hereby reserve from the conveyances provided
in the Conveyancing Documents) a lien and security interest against all rights, title and interests
conveyed by BNPPLC under the Conveyancing Documents.

     The terms, provisions, covenants and conditions hereof will be binding upon NAI and the
Applicable Purchaser and their respective successors and assigns with respect to the Subject
Property and will inure to the benefit of BNPPLC and all transferees, mortgagees, successors and
assignees of BNPPLC with respect to the Subject Property. It is understood that BNPPLC may
transfer the Repurchase Option and other rights and interests granted to it or reserved by it
herein, in whole or in part, by any instrument recorded in the real property records of the county
in which the Subject Property is located.

[Signature pages follow.]

Exhibit F to Purchase Agreement - Page 4

 

 

IN WITNESS WHEREOF, the NAI and the Applicable Purchaser have signed this Grant of Repurchase
Option and Restrictive Covenants to be effective as of ___, 20___.

	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF 

	 	 	 	§
	 	 
	 

	 	 	 	 	 
	 

	 	 	 	§	 	 
	COUNTY OF 

	 	 	§	 	 
	 

	 	 	 	 	 

I,                     , certify that
                     personally came
before me this day and acknowledged that he is
                     of Network Appliance,
Inc., a Delaware corporation, and that he, as a                      being duly authorized to do
so, executed the foregoing on behalf of the corporation.

Witness my
hand and official seal this the                      day
of                     ,
20                    .

	 	 	 	 	 
	 
	 
	 
	 	 	 
	 

	 	Notary Public, State of	 	 
	 

	 	 	 	 

	 	 	 
	My Commission Expires:
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	(Notary Seal)
	 	 

Exhibit F to Purchase Agreement - Page 5

 

 

[Continuation of signature pages to Grant of Repurchase Option and Restrictive Covenants dated to
be effective as of                     ,
20                    .]

[the Applicable Purchaser]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	Title:
	 	 	 	 
	 

	 	 	 	 

[INSERT NOTARY CERTIFICATE FOR ACKNOWLEDGMENT BY APPLICABLE PURCHASER]

Exhibit F to Purchase Agreement - Page 6

 

 

Annex A

LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE “LAND” COVERED BY THE GROUND LEASE CHANGES FROM TIME
TO TIME AS PROVIDED THEREIN OR BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPPLC’S CONSENT OR
APPROVAL AS PROVIDED IN THE CLOSING CERTIFICATE, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW
CHANGE. ANY SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS “DRAFTING NOTE”
WILL BE DELETED BEFORE THE ASSIGNMENT TO WHICH THIS DESCRIPTION IS ATTACHED IS ACTUALLY EXECUTED
AND DELIVERED.]

BEING a portion of Site 12 as shown on the map entitled “Exempt Subdivision Map of Site 12”,
prepared by Barbara H. Mulkey Engineering, Inc., on May 30, 2000 as recorded in the Book of Maps
2000, Page 1300, Wake County, North Carolina Registry, such portion being described as follows:

Unit 4 and the Additional Leased Premises, both as defined below (collectively, the
“Ground Lease Premises”).

     As used in this Exhibit:

     (1) “Additional Leased Premises” means the land surrounding and adjacent to
Unit 4, depicted on the site plan attached to and made a part of this Exhibit as the
area shaded in gray, which includes parking lots, driveways and other areas within
the larger area designated as Common Elements in the Condominium Declaration. The
outer boundaries of the Additional Leased Premises are described by metes and bounds
on the last page attached to and made a part of this Exhibit. All land within those
outer boundaries, other than Unit 4, is included in the Additional Leased Premises.

     (2) “Condominium Declaration” means the Declaration of Condominium for NetApp
RTP Phase I Condominium recorded in Book 012647, Page 01310, Wake County, North
Carolina Registry.

     (3) “Condominium Map” means the plat provided to BNP Paribas Leasing
Corporation (“BNPPLC”) by Network Appliance, Inc. (“NAI”) attached to and made a
part of this Exhibit. (The Condominium Map has also been filed in the Book of Maps
CM2007, Page 444A1, Wake County, North Carolina Registry.)

Exhibit F to Purchase Agreement - Page 7

 

 

     (4) “Unit 4” means the land designated and described in the Condominium
Declaration as Unit 4 and is shown on the Condominium Map and site plan attached to
and made a part of this Exhibit.

TOGETHER WITH, easements appurtenant to the Ground Lease Premises as described in Exhibit A
attached to the Ground Lease dated as of July 17, 2007 between BNPPLC, as lessee, and NAI, as
lessor (the “Ground Lease”);

SUBJECT, HOWEVER, to an easement reserved over the Additional Leased Premises (but not any part of
Unit 4) in favor of the Association as described in Exhibit A attached to the Ground Lease.

Exhibit F to Purchase Agreement - Page 8

 

 

Exhibit F to Purchase Agreement - Page 9

 

 

Exhibit F to Purchase Agreement - Page 10

 

 

Attachment to Exhibit A — Metes and Bounds

Description of “Additional Leased Premises”

     The following is a metes and bounds description of the outer boundaries of the
Additional Leased Premise:

BEGINNING at NCGS Monument “Hopson”. said monument having NC Grid Coordinates of
N-773.721.48 and E-2.034.907.39 (NAD 83), traveling thence South 11°44' 59"
West 6154.66 feet to a right-of-way monument on the southern margin of Louis Stephens Drive (a 100
foot public right-of-way), thence North 72°48' 35" East 164.29 feet to a
right-of-way monument on the southern margin of Kit Creek Road (a 150 foot public right-of-way);
thence with the southern margin of said Kit Creek Road the following two (2) courses and
distances:

	 	(1)	 	South 68°46' 54" East 412.64 feet to a right-of-way monument, and
	 
	 	(2)	 	with a curve to the right having a radius of 924,83 feet, an arc length of 475,96.
and a chord bearing and distance of South 54°02' 59" East 470.72 feet to a computed
point;

said computed being the POINT AND PLACE OF BEGINNING; thence from said point of beginning and
continuing with the southern margin of Kit Creek Road South 39°18' 29"
East 571.64 feet to a computed point, thence cornering and leaving said right-of-way and with the
common line of property now or formerly owned by Research Triangle Foundation of NC (DB 1670 PG
239) the following two (2) courses and distances:

	 	(1)	 	South 50°41' 31" West 100.00 feet to an iron pipe found; and
	 
	 	(2)	 	South 83° 31' 01" West 483.47 feet to an iron pipe found;

thence cornering and along three (3) new lines within the bounds of property owned by Network
Appliance. Inc,(DB 10941 Pg 2054) as follows:

	 	(1)	 	North 12°44' 00" West 279.97 feet;
	 
	 	(2)	 	North 48° 55' 31" West 50.30 feet; and
	 
	 	(3)	 	North 32° 57'24" East 401,61 feet to a point along the southern margin of said Kit Creek
Road; thence with the southern margin of Kit Creek Road along a curve to the right having a radius
of 925.04 feet, an arc length of 113,05 feet and a chord bearing and distance of South
42° 48' 33" East 112,98 feet to the POINT AND PLACE OF BEFGINNING containing 5.36 acres (233.621 square feet), more or less,
said area shown on the rendering attached hereto.

Exhibit F to Purchase Agreement - Page 11

 

 

Annex B

Appraisal Procedures

     If the Applicable Purchaser and BNPPLC do not otherwise agree upon the amount of the fair
market value of the Subject Property as required to establish the price to be paid by BNPPLC for
the Subject Property following BNPPLC’s exercise of the Repurchase Option, the fair market value
will be determined in accordance with the following procedure:

1. The Applicable Purchaser and BNPPLC must each appoint a real estate appraiser who is familiar
with properties in the vicinity of the Subject Property and who has not previously acted for either
party. Each party will make the appointment no later than ten days after receipt of notice from
the other party that the appraisal process described in this Annex has been invoked. The agreement
of the two appraisers as to the Option Price will be binding upon the Applicable Purchaser and
BNPPLC. If the two appraisers cannot agree upon fair market value within ten days following their
appointment, they must within another ten days agree upon a third real estate appraiser.
Immediately thereafter, each of the first two appraisers will submit his best estimate of the fair
market value of the Subject Property (together with a written report supporting such estimate) to
the third appraiser and the third appraiser will choose between the two estimates. The estimate of
fair market value chosen by the third appraiser as the closest to the actual fair market value will
be binding upon the Applicable Purchaser and BNPPLC. Notification in writing of fair market value
must be made to the Applicable Purchaser and BNPPLC within fifteen days following the selection of
the third appraiser.

2. If appraisers must be selected under the procedure set out above and either BNPPLC or the
Applicable Purchaser fails to appoint an appraiser or fails to notify the other party of such
appointment within fifteen days after receipt of notice that the prescribed time for appointing the
appraisers has passed, then the other party’s appraiser will determine fair market value. All
appraisers selected for the appraisal process set out in this Annex will be disinterested,
reputable, qualified real estate appraisers with the designation of MAI or equivalent and with at
least 5 years experience in appraising properties comparable to the Subject Property.

3. If a third appraiser must be chosen under the procedure set out above, he will be chosen on the
basis of objectivity and competence, not on the basis of his relationship with the other appraisers
or the parties to this Agreement, and the first two appraisers will be so advised. Although the
first two appraisers will be instructed to attempt in good faith to agree upon the third appraiser,
if for any reason they cannot agree within the prescribed time, either the Applicable Purchaser and
BNPPLC may require the first two appraisers to immediately submit its top choice for the third
appraiser to JAMS/ENDISPUTE in Dallas, Texas, who will have complete discretion to select the most
objective and competent third appraiser from between the choices of each of the first two
appraisers, and will do so within ten Business Days after such choices are submitted for decision.

Exhibit F to Purchase Agreement - Page 12

 

 

4. Either the Applicable Purchaser or BNPPLC may notify the appraiser selected by the other party
to demand the submission of an estimate of Option Price or a choice of a third appraiser as
required under the procedure described above; and if the submission of such an estimate or choice
is required but the other party’s appraiser fails to comply with the demand within fifteen days
after receipt of such notice, then fair market value or choice of the third appraiser, as the case
may be, selected by the other appraiser (i.e., the notifying party’s appraiser) will be binding
upon the Applicable Purchaser and BNPPLC.

5. The Applicable Purchaser bear the expenses of all appraisers involved in the determination of
fair market value as provided in this Annex.

Exhibit F to Purchase Agreement - Page 13

 

 

Exhibit G

Notice of Election to Terminate the Supplemental Payment Obligation

and Irrevocable Release and Waiver of the Right to Purchase

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Purchase Agreement dated as of July 17, 2007 (the “Purchase Agreement”), between Network
Appliance, Inc. (“NAI”), a Delaware corporation, and BNP Paribas Leasing Corporation (“BNPPLC”), a
Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Purchase Agreement referenced above. This letter will constitute a notice given pursuant to
subparagraph 6(B) of the Purchase Agreement. As provided in that subparagraph, NAI irrevocably
elects to terminate the Supplemental Payment Obligation effective immediately, subject only to the
conditions described below. In addition, NAI irrevocably waives and releases its rights to
purchase or cause an Affiliate of NAI to purchase the Property granted to it by the Purchase
Agreement. Because of (but without limiting) such waiver and release, the Purchase Option is
terminated and so are all rights of NAI under subparagraphs 2(A) and 3(A) of the Purchase
Agreement.

     NAI acknowledges that this notice will not be effective to terminate the Supplemental Payment
Obligation if it is not received by BNPPLC prior to the Completion Date.

     NAI also acknowledges that even if no prior 97-10/Meltdown Event has occurred, the delivery of
this notice is in and of itself a 97-10/Meltdown Event under and as defined in the Construction
Agreement. Therefore, after receipt of this notice BNPPLC will be entitled to demand and receive a
97-10/Prepayment, if BNPPLC has not already done so, on and subject to the terms and conditions of
Paragraph 9 of the Construction Agreement. Further, if NAI fails to make a 97-10/Permitted
Prepayment required by the Construction Agreement, BNPPLC may exercise the Put Option as provided
in subparagraph 3(B) of the Purchase Agreement.

     NAI also acknowledges that its right to terminate the Supplemental Payment Obligation
is subject to the condition precedent that: (1) NAI must have given (and not rescinded) a Notice of
NAI’s Intent to Terminate as provided in the Construction Agreement, or (2) BNPPLC must

 

 

have given any FOCB Notice as provided in the Construction Agreement. Accordingly, if neither
of the notices described in the preceding sentence have been given, the Supplemental Payment
Obligation will not terminate by reason of this notice.

     Finally, NAI acknowledges that because the delivery of this notice constitutes a
97-10/Meltdown Event, BNPPLC will have the right at any time for any reason or no reason to
terminate the Lease by notice to NAI.

	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation
	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

[cc all Participants]

Exhibit G to Purchase Agreement - Page 2exv10w59

 

Exhibit 10.59

GROUND LEASE

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

July 17, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	RECITALS
	 	 	1	 
	GRANTING CLAUSES
	 	 	1	 
	GENERAL TERMS AND CONDITIONS
	 	 	3	 
	1 Additional Definitions
	 	 	3	 
	“Common Elements”
	 	 	3	 
	“Condominium Declaration”
	 	 	3	 
	“Condominium Instruments”
	 	 	3	 
	“Condominium Map”
	 	 	3	 
	“Contingent Purchase Option”
	 	 	3	 
	“Fair Rental Value”
	 	 	3	 
	“Ground Lease Default”
	 	 	4	 
	“Ground Lease Rent”
	 	 	4	 
	“Ground Lease Term”
	 	 	4	 
	“Leasehold Mortgage”
	 	 	4	 
	“Leasehold Mortgagee”
	 	 	4	 
	“Owner”
	 	 	4	 
	“Plat”
	 	 	4	 
	“Turnover Date”
	 	 	4	 
	“Unit 4”
	 	 	4	 
	2 Ground Lease Term and Early Termination
	 	 	4	 
	3 Ground Lease Rent
	 	 	5	 
	4 Receipt and Application of Insurance and Condemnation Proceeds
	 	 	5	 
	5 No Lease Termination
	 	 	5	 
	6 The Lease and Other Operative Documents
	 	 	6	 
	7 Use of Leased Property
	 	 	6	 
	8 Assignment and Subletting; Pass Through of BNPPLC’s Liability Insurance and Indemnity
Rights
	 	 	6	 
	9 Estoppel Certificate
	 	 	7	 
	10 Leasehold Mortgages
	 	 	8	 
	11 Other Representations, Warranties and Covenants of NAI
	 	 	10	 
	(A) Condition of the Property
	 	 	10	 
	(B) Environmental Representations
	 	 	10	 
	(C) Current Status of Title to the Land
	 	 	11	 
	(D) Title Insurance
	 	 	11	 
	(E) Title to Improvements
	 	 	11	 
	(F) Defense of Adverse Title Claims
	 	 	11	 
	(G) Prohibition Against Consensual Liens on the Leased Property
	 	 	13	 
	(H) Compliance With Permitted Encumbrances
	 	 	13	 
	(I) Compliance With Laws
	 	 	13	 
	(J) Modification of Permitted Encumbrances
	 	 	13	 
	(K) Performance and Preservation of the Permitted Encumbrances for the Benefit of
BNPPLC
	 	 	13	 

 

 

	 	 	 	 	 
	 	 	Page	 
	(L) Cooperation by NAI and its Affiliates
	 	 	14	 
	(M) Condominium Instruments
	 	 	15	 
	(N) Omissions
	 	 	16	 
	(O) Insurance and Casualty
	 	 	17	 
	(P) Condemnation
	 	 	17	 
	(Q) Further Assurances
	 	 	17	 
	12 Ground Lease Defaults
	 	 	17	 
	(A) Definition of Ground Lease Default
	 	 	17	 
	(B) Remedy
	 	 	18	 
	13 Quiet Enjoyment
	 	 	18	 
	14 Option to Purchase
	 	 	19	 
	15 Miscellaneous
	 	 	19	 
	(A) No Merger
	 	 	19	 
	(B) Recording; Memorandum of Lease
	 	 	19	 

Exhibits and Schedules

			
	 	 	 
	Exhibit A
	 	Legal Description
	 	 	 
	Exhibit B
	 	Permitted Encumbrances List
	 	 	 
	Exhibit C
	 	Contingent Purchase Option
	 	 	 
	Exhibit D
	 	Determination of Fair Value

 

 

GROUND LEASE

     This GROUND LEASE (this “Ground Lease”), dated as of July 17, 2007 (the “Effective
Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware corporation,
and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

     Contemporaneously with the execution of this Ground Lease, BNPPLC and NAI are executing a
Common Definitions and Provisions Agreement dated as of the Effective Date (the “Common Definitions
and Provisions Agreement”), which by this reference is incorporated into and made a part of this
Ground Lease for all purposes. As used in this Ground Lease, capitalized terms defined in the
Common Definitions and Provisions Agreement and not otherwise defined in this Ground Lease are
intended to have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement.

     At the request of NAI, and to facilitate the transactions contemplated in the other Operative
Documents, BNPPLC is executing this Ground Lease to acquire from NAI a leasehold estate of 99 years
in the Land described in Exhibit A attached hereto (the “Land”) and any existing
Improvements on the Land.

     Also contemporaneously with this Ground Lease, BNPPLC and NAI are executing a Construction
Agreement (the“Construction Agreement”) and a Lease Agreement (the “Lease”). Pursuant to the
Construction Agreement, BNPPLC is agreeing to provide funding for the construction of new
Improvements. When the term of the Lease commences, the Lease will cover all Improvements on the
Land.

     Pursuant to a Purchase Agreement dated as of the Effective Date (the “Purchase Agreement”)
between BNPPLC and NAI, NAI will have the right to purchase, among other things, BNPPLC’s leasehold
estate under this Ground Lease on and subject to the terms and conditions set forth therein.

GRANTING CLAUSES

     In consideration of the rent to be paid and the covenants and agreements to be performed by
BNPPLC, as hereinafter set forth, NAI does hereby LEASE, DEMISE and LET unto BNPPLC for the term
hereinafter set forth the Land, together with:

     (A) all easements and rights-of-way now owned or hereafter acquired by NAI for use in
connection with the Land or any Improvements constructed thereon or as a means of access
thereto and any and all easements and rights appurtenant to the Land; and

 

 

     (B) all right, title and interest of NAI, now owned or hereafter acquired, in
and to (A) any land lying within the right-of-way of any street, open or proposed, adjoining
the Land, (B) any and all sidewalks and alleys adjacent to the Land and (C) any strips and
gores between the Land and abutting land not owned by NAI.

The Land and all of the property described in items (1) and (2) above are hereinafter referred to
collectively as the “Real Property”.

     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 NAI as the owner of any interest in the Real Property,
NAI also hereby grants and assigns to BNPPLC for the term of this Ground Lease the right to use and
enjoy (and, in the case of contract rights, to enforce) such rights or interests of NAI:

     (A) the Permitted Encumbrances; and

     (B) any general intangibles, permits, licenses, franchises, certificates, and other
rights and privileges related to the Real Property that BNPPLC (rather than NAI) would have
acquired if BNPPLC had itself acquired the fee estate in the Real Property (excluding,
however, the rights and privileges of NAI under this Ground Lease, the Construction
Agreement, the Lease, the Purchase Agreement and any other Operative Documents).

Such rights and interests of NAI, 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 “Leased Property.” The Leased Property and all
Improvements on the Land now or in the future (whether such Improvements are owned by BNPPLC or
NAI) are hereinafter sometimes called the “Improved Property”.

     However, the leasehold estate conveyed hereby and BNPPLC’s rights hereunder are expressly made
subject and subordinate to the Permitted Encumbrances listed on Exhibit B.

     Further, so long as any of the other Operative Documents remain in force, the rights
and obligations of NAI and BNPPLC hereunder will be subject to any contrary provisions therein,
including provisions in the Construction Agreement and the Lease that govern the collection and
application of condemnation and insurance proceeds in the event of any taking of or damage to the
Improved Property.

 

 

GENERAL TERMS AND CONDITIONS

     The Leased Property is leased by NAI to BNPPLC and is accepted and is to be used and possessed
by BNPPLC upon and subject to the following terms, provisions, covenants, agreements and
conditions:

1 Additional Definitions. As used in this Ground Lease, capitalized terms defined above
have the respective meanings assigned to them above; as indicated above, capitalized terms that are
defined in the Common Definitions and Provisions Agreement and that are used but not otherwise
defined have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement; and, the following terms have the following respective meanings:

     “Common Elements” has the meaning assigned to it in the Condominium Declaration.

     “Condominium Declaration” means the Declaration of Condominium for NetApp RTP Phase I
Condominium recorded in Book 012647, Page 01310, Wake County, North Carolina Registry, as
such Declaration may be extended, supplemented, amended, restated or otherwise modified from
time to time in accordance with its terms and in accordance with the limitations and
requirements of this Ground Lease.

     “Condominium Instruments” has the meaning assigned to it in the Condominium
Declaration.

     “Condominium Map” means the map showing the units and common elements created by the
Condominium Declaration attached to and made a part of Exhibit A. (The Condominium
Map has also been filed in the Book of Maps CM2007, Page 444A1, Wake County, North Carolina
Registry.)

     “Contingent Purchase Option” means the option granted BNPPLC by NAI as provided in
Exhibit C attached to this Ground Lease.

     “Fair Rental Value” means (and all appraisers and other persons involved in the
determination of the Fair Rental Value will be so advised) the annual rent, as determined in
accordance with Exhibit D, that would be agreed upon between a willing tenant, under
no compulsion to lease, and a willing landlord, under no compulsion to lease, for
unimproved land (including appurtenances) comparable in size and location to the
Land, exclusive of any Improvements but assuming that there is no higher and better use for
such land than as a site for improvements of comparable size and utility to the
Improvements, at the time a determination is required under this Ground Lease and

Ground Lease - Page 3

 

taking into consideration the condition of the Land, the encumbrances affecting the
title to the Land and all applicable zoning, land use approvals and other governmental
permits relating to the Land at the time of such determination.

     “Ground Lease Default” has the meaning assigned to it in subparagraph 13(A) below.

     “Ground Lease Rent” means the rent payable by BNPPLC pursuant to Paragraph 3 below.

     “Ground Lease Term” has the meaning assigned to it in Paragraph 2 below.

     “Leasehold Mortgage” means any mortgage, deed of trust (with or without a private power
of sale), security agreement or assignment executed by BNPPLC to secure an obligation to
repay borrowed money or other voluntary obligations, which covers BNPPLC’s leasehold estate
hereunder or any part thereof or any rents or other charges to be paid to BNPPLC pursuant to
any sublease.

     “Leasehold Mortgagee” means any lender or other beneficiary of a Leasehold Mortgage
that has notified NAI of the existence such Leasehold Mortgage and of its address to which
notices should be delivered.

     “Owner” has the meaning assigned to it in the Condominium Declaration.

     “Plat” means the plat prepared by Barbara H. Mulkey Engineering, Inc., dated May 30,
2000, recorded in Book of Maps 2000, page 

1300\, Wake County Registry.

     “Turnover Date” means the day which is thirty days after any Designated Sale Date upon
which, for any reason whatsoever, NAI does not purchase the Improved Property from BNPPLC
pursuant to the Purchase Agreement.

     “Unit 4” has the meaning assigned to it in the Condominium Declaration.

2 Ground Lease Term and Early Termination. The term of this Ground Lease (herein called
the “Ground Lease Term”) will commence on and include the Effective Date and end on the last
Business Day prior to the ninety-ninth (99th) anniversary of the Effective Date. However, subject
to the prior approval of any Leasehold Mortgagee, BNPPLC will have the right to terminate this
Ground Lease by giving a notice to NAI stating that BNPPLC unequivocally elects to terminate
effective as of a date specified in such notice, which may be any date more than thirty days after
the notice and after the expiration or termination of the Lease pursuant to its terms.

Ground Lease - Page 4

 

3 Ground Lease Rent. The rent required by this Ground Lease (herein called “Ground Lease
Rent”) will equal the Fair Rental Value, determined as provided in Exhibit D, and be paid
as follows:

     Prior to the Completion Date, BNPPLC must pay Ground Lease Rent to NAI on the first Business
Day of every calendar month for the preceding month. Consistent with the agreement of the parties
in Exhibit D that the initial Fair Rental Value is $81,000 per annum, each such monthly
payment will be in the amount of $6,750 prior to the Completion Date. (Notwithstanding the
forgoing, if agreed by the parties for administrative convenience, BNPPLC will prepay all or a
portion of the Ground Lease Rent expected to accrue prior to the Completion Date, rather than pay
it monthly on the first Business Day of each month.)

     After the Completion Date, Ground Lease Rent will be paid annually in arrears on each
anniversary of the Effective Date. So long as the Lease continues, each such payment by BNPPLC
may be offset against the reimbursement for such payment required of NAI by the Lease. After the
Lease expires or terminates, however, BNPPLC’s obligation for the payment of Ground Lease will
continue so long as this Ground Lease continues, on and subject to the terms and conditions set
forth herein.

4 Receipt and Application of Insurance and Condemnation Proceeds. All insurance and
condemnation proceeds payable with respect to any damage to or taking of the Leased Property will
be payable to and become the property of BNPPLC; provided, however, NAI will be entitled to receive
condemnation proceeds awarded for the value of NAI’s remainder interest in the Land exclusive of
the Improvements. BNPPLC is authorized to take all action necessary on behalf of both BNPPLC and
NAI (as lessor under this Ground Lease) to collect insurance and condemnation proceeds.

5 No Lease Termination. Except as expressly provided herein, this Ground Lease
will not terminate, nor will NAI have any right to terminate this Ground Lease nor will the
obligations of NAI under this Ground Lease be excused, for any reason whatsoever, including without
limitation any of the following: (i) any damage to or the destruction of all or any part of the
Leased Property from whatever cause, (ii) the taking of the Leased Property or any portion thereof
by eminent domain or otherwise for any reason, (iii) any default on the part of BNPPLC under this
Ground Lease or under any other agreement to which NAI and BNPPLC are parties, or (iv) any other
cause whether similar or dissimilar to the foregoing, any existing or future law to the contrary
notwithstanding. Notwithstanding the foregoing, after any purchase by NAI of BNPPLC’s interest in
the Improved Property pursuant to the Purchase Agreement and payment to BNPPLC of the purchase
price required by the Purchase Agreement and all other sums dues under any of the other Operative
Documents, NAI (as the holder of both the lessor’s and lessee’s interests hereunder) may elect to
terminate this Ground Lease; and after a purchase by BNPPLC

Ground Lease - Page 5

 

of the Land because of BNPPLC exercise of the Contingent Purchase Option, BNPPLC (as the holder of
both the lessor’s and lessee’s interests hereunder) may elect to terminate this Ground Lease. It
is the intention of the parties hereto that the obligations of NAI hereunder will be separate and
independent of the covenants and agreements of BNPPLC. However, nothing in this Paragraph will be
construed as a waiver by NAI of any right NAI may have at law or in equity to recover monetary
damages for any default under this Ground Lease by BNPPLC.

6 The Lease and Other Operative Documents. Nothing contained in this Ground Lease will
limit, modify or otherwise affect any of NAI’s or BNPPLC’s respective rights and obligations under
the other Operative Documents, which rights and obligations are intended to be separate,
independent and in addition to, and not in lieu of, the obligations established by this Ground
Lease. In the event of any inconsistency between the terms and provisions of the other Operative
Documents and the terms and provisions of this Ground Lease, the terms and provisions of the other
Operative Documents will control.

7 Use of Leased Property. Subject to the Permitted Encumbrances and the terms hereof,
BNPPLC may use and occupy the Leased Property for any purpose permitted by Applicable Laws and may
construct, modify, renovate, replace and remove any Improvements on the Land from time to time,
subject only to the constraints that Applicable Laws would impose upon the owner of the Land if the
owner were constructing, modifying, renovating, replacing or removing Improvements. To provide NAI
an opportunity to file any applicable statutory notice of nonresponsibility, BNPPLC will, before
commencing the construction any major Improvements upon the Land after the Turnover Date, endeavor
to notify NAI that BNPPLC intends to commence such construction; provided, however, BNPPLC will
have no liability for its failure to provide such a notice.

8 Assignment and Subletting; Pass Through of BNPPLC’s Liability Insurance and Indemnity
Rights. BNPPLC may sublet or assign this Ground Lease without the consent of NAI or any of
its Affiliates, subject only to limitations set forth in the Lease for the benefit of NAI so long
as those limitations remain in force.

To the extent that BNPPLC may from time to time after the Turnover Date require any subtenant
to agree to maintain liability insurance against claims of third parties and agree to make BNPPLC
an additional or named insured under such insurance, BNPPLC will also require the subtenant to
agree to make NAI an additional or named insured. However, BNPPLC will have no liability to NAI
for a breach by the subtenant of any such agreements, and to the extent that BNPPLC’s rights as an
additional or named insured are subject to exceptions or limitations concerning BNPPLC’s own acts
or omissions or the acts or omissions of anyone other than the subtenant, so too may NAI’s rights
as an additional or named insured be subject to exceptions or limitations concerning NAI’s own acts
or omissions or the acts or omissions of anyone other than the subtenant.

Ground Lease - Page 6

 

     To the extent that BNPPLC may itself from time to time after the Turnover Date maintain
liability insurance against claims of third parties which may arise because of any occurrence on or
alleged to have occurred on or about the Leased Property, BNPPLC will cause NAI to be an additional
or named insured under such insurance, provided NAI pays or reimburses BNPPLC for any additional
insurance premium required to have NAI made an insured.

     To the extent that BNPPLC may from time to time after the Turnover Date require any subtenant
to agree to indemnify BNPPLC against Environmental Losses or other Losses concerning the Leased
Property, BNPPLC will also require the subtenant to agree to indemnify NAI. However, BNPPLC will
have no liability to NAI for a breach by the subtenant of any such agreement, and to the extent
that BNPPLC’s rights as an indemnitee of the subtenant are subject to exceptions or limitations
concerning BNPPLC’s own acts or omissions or the acts or omissions of anyone other than the
subtenant, so too may NAI’s rights as an indemnitee be subject to exceptions or limitations
concerning NAI’s own acts or omissions or the acts or omissions of anyone other than the subtenant.

9 Estoppel Certificate. NAI and BNPPLC will from time to time, within ten days after
receipt of request by the other party hereto, deliver a statement in writing to such other party or
other Person(s) designated by such party certifying:

     (A) that this Ground Lease is unmodified and in full force and effect (or if modified that
this Ground Lease as so modified is in full force and effect);

     (B) that to the knowledge of the party providing such certificate, the other party has not
previously assigned or hypothecated its rights or interests under this Ground Lease, except as is
described in such statement with as much specificity as the party so certifying is able to provide;

     (C) the term of this Ground Lease and the Ground Lease Rent then in effect and any additional
charges;

     (D) that to the knowledge of the party providing such certificate, the other party is not in
default under any provision of this Ground Lease (or if in default, the nature thereof in detail)
and, in any certificate provided by NAI, a statement as to any outstanding obligations on the part
of NAI or BNPPLC; and

     (E) in any certificate provided by NAI, such other factual matters concerning the Leased
Property or BNPPLC’s rights and obligations under this Ground Lease as are requested by BNPPLC.

NAI’s failure to deliver such statement within such time will constitute an admission by NAI
(i)

Ground Lease - Page 7

 

that this Ground Lease is in full force and effect, without modification except as may be
represented by BNPPLC, and (ii) that there are no uncured defaults in BNPPLC’s performance
hereunder.

10 Leasehold Mortgages.

     (A) By Leasehold Mortgage BNPPLC may encumber BNPPLC’s leasehold estate in the Leased Property
created by this Ground Lease and BNPPLC’s rights and interests in buildings, fixtures, equipment
and improvements situated on the Land and rents, issues, profits, revenues and other income to be
derived by BNPPLC from the Leased Property. However, prior to the Turnover Date, a Leasehold
Mortgage will be permitted hereunder only if it constitutes a Permitted Transfer and only if it is
made expressly subject to the rights of NAI under the other Operative Documents.

     (B) Any Leasehold Mortgagee or other party, including any corporation formed by a Leasehold
Mortgagee, may become the legal owner of the leasehold estate created by this Ground Lease and of
BNPPLC’s rights and interests in the improvements, equipment, fixtures and other property assigned
as additional security pursuant to a Leasehold Mortgage, by foreclosure of a Leasehold Mortgage or
as a result of the assignment or conveyance in lieu of foreclosure. Further, any such Leasehold
Mortgagee or other party may itself, after becoming the legal owner and holder of the leasehold
estate created by this Ground Lease, or of any improvements, equipment, fixtures and other property
assigned as additional security pursuant to a Leasehold Mortgage, convey or pledge the same without
the consent of NAI.

     (C) NAI must serve notice of any default by BNPPLC hereunder upon any Leasehold Mortgagee for
which NAI has received written notification from BNPPLC of the Leasehold Mortgagee’s address for
such notice. No notice of a default by BNPPLC will be deemed effective until it is so served. Any
Leasehold Mortgagee will have the right to correct or cure any such default within the same period
of time after receipt of such notice as is given to BNPPLC under this Ground Lease to correct or
cure defaults, plus an additional period of thirty days thereafter. NAI will accept performance by
any Leasehold Mortgagee of any covenant, condition or agreement on BNPPLC’s part to be performed
hereunder with the same force and effect as though performed by BNPPLC.

     (D) If this Ground Lease should terminate by reason of a disaffirmance or rejection of this
Ground Lease by BNPPLC or any receiver, liquidator or trustee for the property of BNPPLC, or by any
governmental authority which had taken possession of the business or property of BNPPLC by reason
of the insolvency or alleged insolvency of BNPPLC, then:

     (1) NAI must give notice thereof to each Leasehold Mortgagee for which NAI has
received written notification from BNPPLC of the Leasehold Mortgagee’s address for

Ground Lease - Page 8

 

such notice; and upon request of any Leasehold Mortgagee made within sixty days after
NAI has given such notice, NAI must enter into a new ground lease of the Leased Property
with such Leasehold Mortgagee for the remainder of the Ground Lease Term, at the same Ground
Lease Rent and on the same terms and conditions (including subparagraph 11(E)) as are
contained in this Ground Lease (a “New Ground Lease”).

     (2) The estate of the Leasehold Mortgagee, as lessee under the New Ground Lease, will
have priority equal to the estate of BNPPLC hereunder. That is, there will be no charge,
lien or burden upon the Leased Property prior to or superior to the estate granted by such
New Ground Lease which was not prior to or superior to the estate of BNPPLC under this
Ground Lease as of the date immediately preceding the termination of this Ground Lease. To
the extent, however, that the other Operative Documents are in effect at the time of
execution of such New Ground Lease, the New Ground Lease will be made expressly subject to
the other Operative Documents.

     (3) Notwithstanding the foregoing, if NAI receives requests to enter into a New Ground
Lease from more than one Leasehold Mortgagee because of the expiration or termination of
this Ground Lease, NAI will be required to enter into only one New Ground Lease, and the New
Ground Lease will be to the requesting Leasehold Mortgagee who holds the highest priority
lien or interest in BNPPLC’s leasehold estate in the Land. If the liens or security
interests of two or more such requesting Leasehold Mortgagees which shared the highest
priority just prior to the termination of this Ground Lease, the New Ground Lease will name
all such Leasehold Mortgagees as co-tenants thereunder.

     (E) If BNPPLC has agreed with any Leasehold Mortgagee that such Leasehold Mortgagee’s consent
will be required to any modification or early termination of this Ground Lease by BNPPLC, and if
NAI has been notified in writing of such agreement, such consent will be required for such
Leasehold Mortgagee to be bound by any such modification or early termination of this Ground Lease.

     (F) No Leasehold Mortgagee will assume any liability under this Ground Lease either by virtue
of its Leasehold Mortgage or by any subsequent receipt or collection of rents or profits generated
from the Leased Property, unless and until the Leasehold Mortgagee acquires BNPPLC’s leasehold
estate in the Leased Property at foreclosure or by deed in lieu of foreclosure.

     (G) Although the foregoing provisions concerning Leasehold Mortgages and Leasehold Mortgagees
will be self operative, NAI agrees to include, in addition to the items specified in Paragraph 9,
confirmation of the foregoing with respect to any Leasehold Mortgagee or prospective Leasehold
Mortgagee in any statement delivered to such Leasehold Mortgagee which is provided to a pursuant to
Paragraph 9.

Ground Lease - Page 9

 

11 Other Representations, Warranties and Covenants of NAI. NAI represents, warrants and
covenants as follows:

     (A) Condition of the Property. The Land described in Exhibit A is the same as
the land described in the Title Policy and is shown on both the Plat and the Condominium Map,
copies of which were delivered to BNPPLC at the request of NAI. Unit 4 is located as shown on the
Condominium Map, and all material improvements on the Land as of the Effective Date are as shown on
the Plat or the Condominium Map. There are no easements or encroachments (including Permitted
Encumbrances) which extend over or within the boundaries of Unit 4. No part of Unit 4 is within a
flood plain as designated by any governmental authority. Existing Improvements, if any, are free
from latent or patent defects or deficiencies that, either individually or in the aggregate, could
materially and adversely affect the use or occupancy of the Improved Property as permitted by the
Lease or could reasonably be anticipated to cause injury or death to any person. When the
construction contemplated by the Construction Agreement is complete in accordance with plans
approved as described therein, the Improved Property and use thereof permitted by the Lease will
comply in all material respects with all Applicable Laws, including laws regarding access and use
by disabled persons and local zoning ordinances. Adequate provision has been made (or can be made
at a cost that is reasonable in connection with future development of the Land) for the Land to be
served by electric, gas, storm and sanitary sewers, sanitary water supply, telephone and other
utilities required for the use thereof. All streets, alleys and easements necessary to serve the
Improved Property for the construction contemplated by the Construction Agreement or uses permitted
by the Lease have been completed and are serviceable or will be completed and made serviceable as
part of the construction contemplated by the Construction Agreement. No extraordinary
circumstances (including any use of the Land as a habitat for endangered species) exist that would
materially and adversely affect such construction or uses of the Improved Property. The
Improvements, when constructed as contemplated in the Construction Agreement, will be useable for
their intended purpose without the need to obtain any additional easements, rights-of-way or
concessions from any third party or parties.

     (B) Environmental Representations. Except as otherwise disclosed in the
Environmental Report, to the knowledge of NAI: (i) no Hazardous Substances Activity has occurred
prior to the Effective Date; (ii) no owner or operator of the Improved Property has reported or
been required to report any release of any Hazardous Substances on or from the Leased Property
pursuant to any Environmental Law; and (iii) no owner or operator of the Leased Property has
received from any federal, state or local governmental authority any warning, citation, notice of
violation or other communication regarding a suspected or known release or discharge of Hazardous
Substances on or from the Leased Property or regarding a suspected or known violation of
Environmental Laws concerning the Leased Property. Further, NAI represents, to its knowledge, that
the Environmental Report taken as a whole is not
misleading or inaccurate in any material respect.

Ground Lease - Page 10

 

     (C) Current Status of Title to the Land. NAI holds good and indefeasible title to the
Land, free and clear of all liens and encumbrances, other than the Permitted Encumbrances and any
Liens Removable by BNPPLC.

     (D) Title Insurance. Without limiting NAI’s obligations under the preceding
subparagraph, contemporaneously with the execution of this Ground Lease NAI must provide to BNPPLC
a title insurance policy or binder committing the applicable title insurer to issue a title
insurance policy, without the payment of further premiums (as the case may be, the “Title Policy”)
in the amount of no less than $61,000,000, in form and substance satisfactory to BNPPLC (including
comprehensive, survey, variable rate, access, and such other endorsements as may be requested by
BNPPLC), written by one or more title insurance companies satisfactory to BNPPLC and insuring
BNPPLC’s leasehold estate under the Ground Lease and its fee estate in the Improvements.

     (E) Title to Improvements. The leasehold estate created in favor of BNPPLC by this
Ground Lease will extend to and include the rights to use and enjoy any and all Improvements of
whatever nature at any time and from time to time located on the Land. Thus, throughout the term
of this Ground Lease, BNPPLC and its sublessees, assignees, licensees and concessionaires will be
entitled to use and enjoy such Improvements — to the exclusion of NAI as the lessor hereunder, but
subject to NAI’s rights under the Operative Documents (including the Lease) so long as they remain
in effect — as if the lessee hereunder was the owner of the Improvements. Further, although any
Improvements which remain on the Land when this Ground Lease expires or is terminated will revert
to NAI, it is also understood and agreed that the lessee hereunder may at any time and from time to
time — after NAI ceases to have possession of the Leased Property pursuant to the Construction
Agreement or as tenant under the Lease and prior to the expiration or termination of this Ground
Lease — remove all or any Improvements from the Land without the consent of NAI and without any
obligation to NAI or its Affiliates to provide compensation or to construct other Improvements on
or about the Land. Any Improvements removed as provided in the preceding sentence will be
considered severed from the Land and thereupon become personal property of the lessee hereunder.

     (F) Defense of Adverse Title Claims. If any encumbrance or title defect
whatsoever affecting the Improved Property, other than Permitted Encumbrances or Liens Removable by
BNPPLC, is claimed or discovered (including Liens against any part of or interest in the Improved
Property which are not Fully Subordinated or Removable) or if any legal proceedings are instituted
with respect to any such claimed or discovered encumbrance or title defect, NAI must give prompt
notice thereof to BNPPLC and at NAI’s own cost and expense will promptly remove any such
encumbrance and cure any such defect and will take all necessary and proper steps for the defense
of any such legal proceedings, including the employment of counsel, the

Ground Lease - Page 11

 

prosecution or defense of litigation and the release or discharge of all adverse claims. If
NAI fails to promptly remove any encumbrance or cure any title defect as required by the preceding
sentence, BNPPLC (whether or not named as a party to legal proceedings with respect thereto) may
take such additional steps as in its judgment may be necessary or proper to remove such encumbrance
or cure such defect or for the defense of any such attack or legal proceedings or the protection of
BNPPLC’s leasehold or other interest in the Improved Property, including the employment of counsel,
the prosecution or defense of litigation, the compromise or discharge of any adverse claims made
with respect to the Improved Property, the removal of prior liens or security interests, and all
expenses (including Attorneys’ Fees) so incurred of every kind and character will be a demand
obligation owing by NAI.

     For purposes of this subparagraph 11(B), NAI will be deemed to be acting promptly to remove
any encumbrance or to cure any title defect, other than a Lien which NAI or any of its Affiliates
has granted or authorized, so long as NAI is in good faith by appropriate proceedings contesting
the validity and applicability of the encumbrance or defect, and pending such contest NAI will not
be deemed in default under this subparagraph because of the encumbrance or defect, provided that
NAI must satisfy the following conditions and requirements:

     (1) NAI must diligently prosecute the contest to completion in a manner reasonably
satisfactory to BNPPLC.

     (2) NAI must immediately remove the encumbrance or cure the defect upon a final
determination by a court of competent jurisdiction that it is valid and applicable to the
Improved Property.

     (3) NAI must in any event conclude the contest and remove the encumbrance or
cure the defect and pay any claims asserted against BNPPLC or the Improved Property because
of such encumbrance or defect, all prior to (i) the date any criminal charges may be brought
against BNPPLC or any of its directors, officers or employees because of such encumbrance or
defect or (ii) the date any action is taken or threatened against BNPPLC or any property
owned by BNPPLC (including BNPPLC’s leasehold estate under this Ground Lease) by any
governmental authority or any other Person who has or claims rights superior to BNPPLC
because of the encumbrance or defect. Also, with respect to a contest of any encumbrance or
defect discovered or claimed before the Designated Sale Date, NAI must conclude the contest
and remove the encumbrance or cure the defect and pay any claims asserted against BNPPLC or
the Improved Property because of such encumbrance or defect, all prior to the Designated
Sale Date, unless on the Designated Sale Date NAI or an Affiliate of NAI or any Applicable
Purchaser purchases the Improved Property pursuant to the Purchase Agreement for a net price
to BNPPLC (when taken together with any additional payments made by NAI pursuant to
Paragraph 1(a)(ii) of the Purchase Agreement, in the case of a purchase by an Applicable
Purchaser) equal
to the Lease Balance.

Ground Lease - Page 12

 

     (G) Prohibition Against Consensual Liens on the Leased Property. NAI will not,
without the prior consent of BNPPLC, create, place or authorize, or through any act or failure to
act, acquiesce in the placing of, any deed of trust, mortgage or other Lien, whether statutory,
constitutional or contractual against or covering the Land or Improvements or any part thereof
(other than Permitted Encumbrances and Liens Removable by BNPPLC). It is understood and agreed,
however, that any Liens which are Fully Subordinated or Removable will constitute Permitted
Encumbrances and thus will not be prohibited by this provision.

     (H) Compliance With Permitted Encumbrances. NAI must comply with and cause to be
performed all of the covenants, agreements and obligations imposed upon NAI or the owner of the
Leased Property by the Permitted Encumbrances.

     (I) Compliance With Laws. Without limiting the foregoing, the use of the Improved
Property permitted by the Lease complies, or will comply after readily available permits are
obtained, in all material respects with all Applicable Laws.

     (J) Modification of Permitted Encumbrances. NAI will not enter create any new
Permitted Encumbrance or enter into, initiate, approve or consent to any modification of any
Permitted Encumbrance that would create or expand or purport to create or expand obligations or
restrictions which would encumber the Leased Property or any Improvements constructed thereon
without the prior consent of BNPPLC; provided, this provision will not limit any right of the NAI
Parties to modify any Lien that is Fully Subordinated or Removable and will remain Fully
Subordinated or Removable after the modification. Whether BNPPLC must give any such consent
requested by NAI prior to the Designated Sale Date will be governed by subparagraph 4(C) of
the Closing Certificate.

     (K) Performance and Preservation of the Permitted Encumbrances for the Benefit of
BNPPLC. Not only prior to the expiration or termination of other Operative Documents, but
thereafter throughout the term of this Ground Lease, NAI must comply with and perform the
obligations imposed by the Permitted Encumbrances upon NAI or upon any owner of the Land and do
whatever is required to preserve the rights and benefits conferred or intended to be conferred by
the Permitted Encumbrances, as necessary to prevent any claim against or forfeiture of any of the
Improved Property and to facilitate the construction and use of any Improvements on the Land after
the Turnover Date by BNPPLC and its successors, assigns and subtenants under this Ground Lease.
Further, NAI hereby agrees for itself and its Affiliates, as the owner of the Land and any other
land now owned or hereafter acquired by NAI or its Affiliates, which is encumbered or benefitted by
the Permitted Encumbrances, to assume liability for and to indemnify BNPPLC and other Interested
Parties and to defend and hold them harmless from and against all Losses (including Losses caused
by any decline in the value of the Leased Property or

Ground Lease - Page 13

 

of the Improvements) that they would not have incurred or suffered but for:

     (1) any breach by NAI of its obligations under the preceding sentence,

     (2) any termination of any benefit to the owner, users or occupants of the Land or
Improvements conferred by the Permitted Encumbrances if NAI agreed to the termination or the
termination resulted from a breach of any Permitted Encumbrance by NAI or its Affiliates, or

     (3) any restrictions imposed by or asserted under any Permitted Encumbrance upon any
transfer after (but only after) the Turnover Date by BNPPLC of any interests it may then
have in the Leased Property or in any Improvements.

NAI’s obligations under this subparagraph 11(K) will be binding upon any successor or assign of NAI
or its Affiliates with respect to the Land and other properties encumbered or benefitted by the
Permitted Encumbrances, and such obligations will survive any sale of NAI’s interest in the Leased
Property to BNPPLC because of BNPPLC’s exercise of the Contingent Purchase Option.

     (L) Cooperation by NAI and its Affiliates.

     (1) After the Turnover Date, if neither NAI nor an Applicable Purchaser has purchased
BNPPLC’s interest in the Improved Property pursuant to the Purchase Agreement, and if a use
of the Improved Property by BNPPLC or any new Improvements or any removal or modification of
Improvements proposed by BNPPLC would violate any Permitted Encumbrance or Applicable Law
unless NAI or any of its Affiliates, as an owner of adjacent land or otherwise, gave its
consent or approval thereto or agreed to join in a modification of a Permitted Encumbrance,
then NAI must give and cause its Affiliates to give such consent or approval or join in such
modification.

     (2) After the Turnover Date, if neither NAI nor an Applicable Purchaser has purchased
BNPPLC’s interest in the Improved Property pursuant to the Purchase Agreement, and if any
Permitted Encumbrance or Applicable Law requires the consent or approval of NAI or any of
its Affiliates or of the city or county in which the Improved Property is located or of any
other Person to an assignment of any interest in the Improved Property by BNPPLC or by any
of its successors or assigns, NAI will without charge give and cause its Affiliates to give
such consent or approval and will cooperate in any way reasonably requested by BNPPLC to
assist BNPPLC to obtain such consent or approval from the city, county or other Person.

     (3) NAI’s obligations under this subparagraph 11(L) will be binding upon any
successor or assign of NAI or its Affiliates with respect to the Land and other properties

Ground Lease - Page 14

 

encumbered or benefitted by the Permitted Encumbrances, and such obligations will
survive (a) any sale of the Improved Property by BNPPLC, other than to NAI or an Applicable
Purchaser under the Purchase Agreement, for the benefit of BNPPLC’s assignees, and (b) any
sale of NAI’s interest in the Leased Property to BNPPLC because of BNPPLC’s exercise of the
Contingent Purchase Option.

     (M) Condominium Instruments. Without limiting the provisions the preceding
subparagraphs 11(K) and 11(L), Ground Lessor agrees as follows with regard to the Condominium
Declaration and other Condominium Instruments:

     (1) This Ground Lease will be superior to any and all liens granted in the Condominium
Declaration, or arising to secure any obligations created by the Condominium Declaration
(including judgment liens which may secure damages because of any failure of the Owner of
Unit 4 to satisfy its obligations under the Condominium Instruments).

     (2) As the Owner of Unit 4, NAI will on a timely basis pay any assessments or other
amounts required of the Owner of Unit 4 by the Condominium Instruments and take any other
action required of the Owner of Unit 4 by the Condominium Instruments, including the filing
of any new maps required by the Condominium Declaration after the completion of construction
of Improvements over the land designated as Unit 4. In no even will BNPPLC be required to
make any such payment or take any such action, nor will BNPPLC suffer any loss of rights or
interests under this Ground Lease because of any failure of NAI to do so.

     (3) Before this Ground Lease expires or is terminated, without the prior written
consent of BNPPLC in each case: (A) no rules or regulations will be imposed pursuant to the
Condominium Declaration that would limit or restrict the rights which BNPPLC would enjoy
under this Ground Lease or the other Operative Documents if the Condominium Declaration did
not exist; (B) no amendment to any of the Condominium Instruments will be made which would
terminate or limit the rights or easements appurtenant to Unit 4 thereunder or expand the
obligations of any owner or occupant of the Land thereunder; (C) no liens will be granted or
permitted against the Common Elements unless they are expressly subject and subordinate to
(i) the rights and easements appurtenant to Unit 4 under the Condominium Declaration, and
(ii) the rights and interests of BNPPLC under this Ground Lease and the other Operative
Documents; (D) the rights of the Declarant under the Condominium Declaration will not be
transferred to anyone other than the Owner of Unit 4; and (D) no conveyance of the fee
estate in Unit 4 will be made without a transfer of all rights of the Declarant to the same
transferee (i.e., the new Owner of Unit 4). Further, until this Ground Lease expires or is
terminated, this Ground Lease and the other Operative Documents will control in the event of
any

Ground Lease - Page 15

 

conflict between the Condominium Declaration and the terms and conditions of this
Ground Lease or the other Operative Documents.

     (4) After the Turnover Date: (a) BNPPLC will be entitled to attend and receive notice
of any meeting the Owners required or permitted by the Condominium Instruments, and BNPPLC
will be entitled to cast a vote in any vote of the Owners required or permitted by the
Condominium Instruments, as if BNPPLC were the Owner of Unit 4. (b) Further, if the Owner
of Unit 4 breaches any obligations imposed upon it by the Condominium Instruments, BNPPLC
will have the right to receive notice of such breach and the right, but not the obligation,
to cure such breach, as if BNPPLC itself were the Owner of Unit 4. (c) Also, the rights of
BNPPLC and its invitees to use parking and driveways within the Additional Leased Premises
(as defined in Exhibit A) will be superior to the rights granted to others by the
Condominium Declaration; and BNPPLC may, as it from time to time deems necessary, identify
any or all parking areas within the Additional Leased Premises as “reserved” or take other
reasonable steps to assure preferred access to such parking by occupants of the Improvements
which comprise Unit 4.

     (5) BNPPLC will not be restricted or limited by anything in the Condominium Instruments
in the demolition, construction, alteration repair, replacement, use or operation of
Improvements. Further, BNPPLC will not be required by reason of the Condominium
Instruments to obtain any consent or approval for any such demolition, construction,
alteration, use or operation or for any related submissions (including site plans) to Wake
County or other governmental authorities.

     (6) The rights of BNPPLC under this Ground Lease or any other Operative Documents to
control and to receive and retain or apply insurance or condemnation proceeds with respect
to the Property will control over any conflicting provisions of the Condominium Instruments.

     (7) BNPPLC will not be bound by or required to participate in any arbitration by reason
of any arbitration provisions or other provisions in the Condominium Instruments.

The agreements of NAI in this subparagraph 11(M) are made by NAI, not only as the current owner of
the Ground Leased Premises (as defined in Exhibit A), but also as the current Owner of all
Units created by the Condominium Declaration, and with the understanding that all of such
agreements will be binding upon all future Owners so long as this Ground Lease remains in force.

     (N) Omissions. None of NAI’s representations or warranties contained in this
Ground

Ground Lease - Page 16

 

Lease or in any other document, certificate or written statement furnished to BNPPLC by or on
behalf of NAI contains any untrue statement of a material fact or omits a material fact necessary
in order to make the statements contained herein or therein (when taken in their entireties) not
misleading.

     (O) Insurance and Casualty. In the event any of the Leased Property is destroyed or
damaged by fire, explosion, windstorm, hail or by any other casualty against which insurance is
maintained or required hereunder, (i) BNPPLC may make proof of loss, (ii) each insurance company
concerned is hereby authorized and directed to make payment for such loss directly to BNPPLC for
application as required by Paragraph 4, and (iii) BNPPLC’s consent must be obtained for any
settlement, adjustment or compromise of any claims for loss, damage or destruction under any policy
or policies of insurance.

     (P) Condemnation. All proceeds of condemnation awards or proceeds of sale in lieu of
condemnation with respect to the Leased Property and all judgments, decrees and awards for injury
or damage to the Leased Property will be paid to BNPPLC and applied as provided in Paragraph 4
above. BNPPLC is hereby authorized, in the name of NAI, to execute and deliver valid acquittances
for, and to appeal from, any such judgment, decree or award concerning condemnation of any of the
Leased Property. BNPPLC will 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.

     (Q) Further Assurances. NAI must, on request of BNPPLC, (i) promptly correct any
defect, error or omission which may be discovered in the contents of this Ground Lease or in any
other instrument executed in connection herewith or in the execution or acknowledgment thereof;
(ii) execute, acknowledge, deliver and record or file such further instruments and do such further
acts as may be necessary, desirable or proper to carry out more effectively the purposes of this
Ground Lease and to subject to this Ground Lease any property intended by the terms hereof to be
covered hereby including specifically, but without limitation, any renewals, additions,
substitutions, replacements or appurtenances to the Leased Property; (iii) execute, acknowledge,
deliver, procure and record or file any document or instrument deemed advisable by BNPPLC to
protect BNPPLC’s rights in and to the Leased Property against the rights or interests of third
persons; and (iv) provide such certificates, documents, reports, information, affidavits and other
instruments and do such further acts as may be necessary, desirable or proper in the reasonable
determination of BNPPLC to enable BNPPLC or any Leasehold Mortgagee to comply with the requirements
or requests of any agency or authority having jurisdiction over them.

12 Ground Lease Defaults.

     (A) Definition of Ground Lease Default. Each of the following events will be deemed

Ground Lease - Page 17

 

to be a “Ground Lease Default” by BNPPLC under this Ground Lease:

     (1) A failure by BNPPLC to pay when due any installment of Ground Lease Rent due
hereunder if such failure continues for sixty days after BNPPLC receives notice thereof.

     (2) A failure by BNPPLC to comply with any term, provision or covenant of this Ground
Lease (other than as described in the other clauses of this subparagraph 13(A)) if such
failure is not cured prior to the earlier of (A) ninety days after notice thereof is sent to
BNPPLC, or (B) the date any writ or order is issued for the levy or sale of any property
owned by NAI or its Affiliates (including the leasehold created by this Ground Lease)
because of such failure or any criminal action is instituted against BNPPLC 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 actions is instituted, if such failure
is susceptible of cure but cannot with reasonable diligence be cured within such ninety day
period, and if BNPPLC has promptly commenced to cure the same and thereafter prosecutes the
curing thereof with reasonable diligence, the period within which such failure may be cured
will be extended for such further period as is necessary to complete the cure.

     (B) Remedy. Upon the occurrence of a Ground Lease Default which is not cured within
any applicable period expressly permitted by subparagraph 13(A), NAI’s sole and exclusive remedies
will be to sue BNPPLC for the collection of any amount due under this Ground Lease, to sue for the
specific enforcement of BNPPLC’s obligations hereunder, or to enjoin the continuation of the Ground
Lease Default, provided, however, no limitation of NAI’s remedies contained herein will prevent NAI
from exercising rights expressly provided in other Operative Documents or from recovering any
reasonable costs NAI may incur to mitigate its damages by curing a Ground Lease Default that BNPPLC
has failed to cure itself (so long as the cure by NAI is pursued in a lawful manner and the costs
NAI seeks to recover do not exceed the actual damages to be mitigated). NAI may not terminate this
Ground Lease or BNPPLC’s right to possession under this Ground Lease, except as expressly provided
in the Operative Documents. Any judgment which NAI may obtain against BNPPLC for amounts due under
this Ground Lease may be collected only through resort of a judgement lien against BNPPLC’s
interest in the Leased Property and any Improvements. BNPPLC will have no personal liability for
the payment amounts due under this or for the performance of any obligations of BNPPLC under this
Ground Lease.

13 Quiet Enjoyment. NAI warrants that neither it nor any third party lawfully claiming
any right or interest in the Leased Property will, during the Ground Lease Term, disturb BNPPLC’s
peaceable and quiet enjoyment of the Leased Property; however, such enjoyment will be subject to
the terms, provisions, covenants, agreements and conditions of this Ground Lease and those
Permitted Encumbrances which are listed on Exhibit B.

Ground Lease - Page 18

 

14 Option to Purchase. Subject to the terms and conditions set forth in
Exhibit C, BNPPLC (and any assignee of BNPPLC’s entire interest in the Leased Property, but
not any subtenant or assignee of a lesser interest) will have the option, and NAI hereby grants to
BNPPLC such option, to purchase NAI’s interest in the Leased Property.

15 Miscellaneous.

     (A) No Merger. There will be no merger of this Ground Lease or of the leasehold
estate hereby created with the fee or any other estate in the Leased Property or any part thereof
by reason of the fact that the same person may acquire or hold, directly or indirectly, this Ground
Lease or the leasehold estate hereby created or any interest in this Ground Lease or in such
leasehold estate as well as the fee or any other estate in the Leased Property or any interest in
such fee or other estate, unless all parties with an interest in the Leased Property that would be
adversely affected by any such merger specifically agree in writing that such a merger has
occurred.

     (B) Recording; Memorandum of Lease. Either party may record this Ground Lease in the
real property records of Wake County, North Carolina. If NAI and BNPPLC decide not to record this
Ground Lease, they will execute a memorandum of this Ground Lease in recordable form which will be
filed in the real property records of Wake County, North Carolina.

16 Certain Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy BNPPLC has with respect to the
Improved Property, and each and every right and remedy of BNPPLC will be cumulative and in addition
to any other right or remedy given to it under this Ground Lease or now or hereafter existing in
its favor at law or in equity. In addition to other remedies available under this Ground Lease,
either party will be entitled, to the extent permitted by applicable law, to a decree compelling
performance of any of the other party’s agreements hereunder.

17 Attorneys’ Fees and Legal Expenses. If BNPPLC commences any legal action or other
proceeding because of any breach of this Ground Lease by NAI, BNPPLC may recover all Attorneys’
Fees incurred by it in connection therewith from NAI, whether or not such controversy, claim or
dispute is prosecuted to a final judgment. Any Attorneys’ Fees incurred by BNPPLC in enforcing a
judgment in its favor under this Ground Lease will be recoverable separately from such judgment,
and the obligation for such Attorneys’ Fees is intended to be severable from other provisions of
this Ground Lease and not to be merged into any such judgment.

Ground Lease - Page 19

 

18 Successors and Assigns. The terms, provisions, covenants and conditions of this Ground
Lease will be binding upon NAI and BNPPLC and their respective permitted successors and assigns and
will inure to the benefit of NAI and BNPPLC and all permitted transferees, mortgagees, successors
and assignees of NAI and BNPPLC with respect to the Leased Property; except that (A) BNPPLC will
not assign this Ground Lease or any rights hereunder except pursuant to a Permitted Transfer, and
(C) NAI will not assign this Ground Lease or any rights hereunder prior to the Turnover Date
without the prior written consent of BNPPLC.

[The signature pages follow.]

Ground Lease - Page 20

 

     IN WITNESS WHEREOF, this Ground Lease is executed to be effective as of July 17, 2007.

	 	 	 	 	 
	 	 BNP PARIBAS LEASING CORPORATION,

 a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	STATE OF TEXAS

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF DALLAS

	 	 	)	 	 	 	 	 

I,                                                             , certify that Lloyd G. Cox personally came before me
this day and acknowledged that he is Managing Director of BNP Paribas Leasing Corporation, a
Delaware corporation, and that he, as a Managing Director being duly authorized to do so, executed
the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day of July, 2007.

                                                                                

Notary Public, State of Texas

My Commission Expires:

                                                                                

(Notary Seal)

Ground
Lease - Signature Page

 

 

[Continuation of signature pages for Ground Lease dated as of July 17, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

	 	 	 	 	 	 	 	 	 
	STATE OF NORTH CAROLINA

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF WAKE

	 	 	)	 	 	 	 	 

I,                                                             , certify that Ingemar Lanevi personally came before me
this day and acknowledged that he is Vice President and Corporate Treasurer of Network Appliance,
Inc., a Delaware corporation, and that he, as a Vice President and Corporate Treasurer being duly
authorized to do so, executed the foregoing on behalf of the corporation.

Witness my hand and official seal this the                      day of July, 2007.

                                                                                

Notary Public, State of North Carolina

My Commission Expires:

                                                                                

(Notary Seal)

Ground
Lease - Signature Page

 

 

[Continuation of signature pages for Ground Lease dated as of July 17, 2007.]

Consent and Agreement of the Condominium Association

     At the request and direction of NAI, as the current Owner of all Units created by the
Condominium Declaration, the undersigned, being the Association under and as defined in the
Condominium Declaration, joins in the execution of this Ground Lease for the following limited
purposes:

     1. The Association consents to the execution of this Ground Lease and the other Operative
Documents by NAI and BNPPLC.

     2. The Association agrees that the Association’s Relevant Property Rights (as defined below)
are and will be subject and subordinate to this Ground Lease (and all its terms and conditions), to
the leasehold estate created by this Ground Lease and to each and all of the other Operative
Documents (and all of their terms and conditions). As used herein, the “Association’s Relevant
Property Rights” means any and all rights, titles and interests the Association may have, now or in
the future, to the land described in Exhibit A as the Ground Lease Premises, or any part
thereof, or to any land burdened by easements appurtenant to the Ground Lease Premises as described
in Exhibit A. The Association’s Relevant Property Rights will include its rights, titles
and interests in and to Common Elements.

     3. In consideration of the rents to be paid to NAI under this Ground Lease, and to assure
BNPPLC that the Association’s Relevant Property Rights will be subject to the leasehold estate
contemplated by this Ground Lease, the Association does hereby LEASE, DEMISE AND LET unto BNPPLC
the Association’s Relevant Property Rights. However, this lease by the Association to BNPPLC will
be limited to the land described in Exhibit A as the Ground Lease Premises and the
easements appurtenant to the Ground Lease Premises as described in Exhibit A. Accordingly,
any rights of possession or use created in favor of BNPPLC by the lease from the Association will
be limited to possession of the Ground Lease Premises and to the nonexclusive use of adjacent land
pursuant to such appurtenant easements.

	 	 	 	 	 
	 	 NETAPP RTP PHASE I CONDOMINIUM OWNERS 
ASSOCIATION,
INC., a North Carolina nonprofit corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Ground
Lease - Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	STATE OF NORTH CAROLINA

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF WAKE

	 	 	)	 	 	 	 	 

I,                                                             , certify that                                                              personally came
before me this day and acknowledged that he is                                                              of NetApp RTP Phase I
Condominium Owners Association, Inc., a North Carolina nonprofit corporation, and that he, as a
                                                             being duly authorized to do so, executed the foregoing on behalf of the
corporation.

Witness my hand and official seal this the                      day of July, 2007.

                                                                                

Notary Public, State of North Carolina

My Commission Expires:

                                                                                

(Notary Seal)

Ground
Lease - Signature Page

 

 

Exhibit A

Legal Description

     BEING a portion of Site 12 as shown on the map entitled “Exempt Subdivision Map of Site 12”,
prepared by Barbara H. Mulkey Engineering, Inc., on May 30, 2000 as recorded in the Book of Maps
2000, Page 1300, Wake County, North Carolina Registry, such portion being described as follows:

Unit 4 and the Additional Leased Premises, both as defined below (collectively, the
“Ground Lease Premises”).

As used in this Exhibit:

     (1) “Additional Leased Premises” means the land surrounding and adjacent to
Unit 4, depicted on the site plan attached to and made a part of this Exhibit as the
area shaded in gray, which includes parking lots, driveways and other areas within
the larger area designated as Common Elements in the Condominium Declaration. The
outer boundaries of the Additional Leased Premises are described by metes and bounds
on the last page attached to and made a part of this Exhibit. All land within those
outer boundaries, other than Unit 4, is included in the Additional Leased Premises.

     (2) “Condominium Declaration” means the Declaration of Condominium for NetApp
RTP Phase I Condominium recorded in Book 012647, Page 01310, Wake County, North
Carolina Registry.

     (3) “Condominium Map” means the plat provided to BNP Paribas Leasing
Corporation (“BNPPLC”) by Network Appliance, Inc. (“NAI”) attached to and made a
part of this Exhibit. (The Condominium Map has also been filed in the Book of Maps
CM2007, Page 444A1, Wake County, North Carolina Registry.)

     (4) “Unit 4” means the land designated and described in the Condominium
Declaration as Unit 4 and is shown on the Condominium Map and site plan attached to
and made a part of this Exhibit.

TOGETHER WITH, easements appurtenant to the Ground Lease Premises (the “Appurtenant Easements”)
under, over and across adjacent parcels (“Adjacent Parcels”) which are owned by NAI or the
Association (as defined in the Condominium Declaration) for the purposes described below and on and
subject to the express terms and conditions set forth below;

SUBJECT, HOWEVER, to an easement appurtenant to the Adjacent Parcels (the “Reserved
Easement”) over the Additional Leased Premises (but not any part of Unit 4) in favor of the

 

 

Association for the purposes described below and on and subject to the express terms and
conditions set forth below.

The Appurtenant Easements will be for the following purposes:

     1. The construction (including expansion or replacement), use, maintenance and repair
of utility lines under, over and across the Adjacent Parcels and related equipment
(including lines or equipment for water, sanitary sewer, electricity, phone and gas)
(collectively, the “Utility Lines”) to serve improvements constructed from time to time on
the Ground Lease Premises.

     2. Access and parking over and in paved driveways and parking lots or garages now or
hereafter located on the Adjacent Parcels (“Driveways and Parking Areas”).

     3. The encroachment, support, maintenance, repair and replacement of any buildings
constructed on Unit 4 as shown on the Condominium Map during the period that BNPPLC owns or
leases Unit 4.

The Appurtenant Easements will be subject to the following terms and conditions:

     A. The Appurtenant Easements for Utility Lines will be limited to:

     (1) those Utility Lines, if any, existing on the first date upon which any
instrument is recorded which gives notice of the Appurtenant Easements;

     (2) those Utility Lines, if any, constructed by or at the request of NAI
itself;

     (3) any other Utility Lines reasonably necessary for the use of improvements
constructed or expected to be constructed as provided in the Construction Agreement
dated as of the date of this Ground Lease between NAI and BNPPLC (whether
constructed for BNPPLC or otherwise) (and in the case of Utility Lines permitted
only because of this clause (3), such Utility Lines must be installed in a location
that does not run through or under any then existing building or structured garage
on the Adjacent Parcels); and

     (4) replacements (including replacements that may increase utility capacity)
for any Utility Lines permitted under the preceding clauses (1) through (3).

B. Any Utility Line on any Adjacent Parcel may be relocated to another

Exhibit A to Ground Lease - Page 2

 

location on the same Adjacent Parcel by the owner of such parcel and at its sole cost
and expense, so long as the relocation is done in a good and workmanlike manner that does
not and will not impose any significant or unexpected interruption of utility services or
additional costs upon the owner or occupants of the Ground Lease Premises.

     C. The use of Driveways and Parking Areas by the owner of the Ground Lease Premises and
its tenants and other invitees will not exceed that reasonably required to provide buildings
constructed on the Ground Lease Premises with parking that both (i) meets local zoning and
other legal requirements, and (ii) when taken together with any permanent, concrete parking
spaces from time to time constructed on the Ground Lease Premises, causes the Parking Ratio
(as defined below) for building(s) constructed upon Unit 4 to equal the average Parking
Ratio for all buildings constructed upon all Units created by the Condominium Declaration
(collectively, the “Parking Requirements”). As used in the preceding sentence, “Parking
Ratio” means, for any building, the percentage computed by dividing of the number of parking
spaces on the Additional Leased Premises or on the Adjacent Tracts which are available to
the occupants of such building, divided by the useable square footage of such building.

     D. NAI and its successors and assigns as the owners of Adjacent Parcels will always
maintain a number of parking spaces on the Adjacent Parcels which is no less than the sum of
(1) the spaces required to meet Parking Requirements for buildings on the Ground Lease
Premises, and (2) the spaces required to satisfy zoning or other parking requirements for
other buildings on or served by parking on the Adjacent Parcels.

The Reserved Easement will be for the following purposes:

     1. The construction (including expansion and replacement), use, maintenance and repair
of any structured parking garage on any portion of the Additional Leased Premises (but not
any part of Unit 4) and related equipment (including lines or equipment for electricity)
(collectively, a “Structured Garage”) as deemed necessary or helpful by the Association to
serve improvements constructed from time to time on both Unit 4 and any one or more other
Units (as defined in the Condominium Declaration) designated by the Association prior to the
construction of the Structured Garage (whether one or more, the “Other Units”); and

     2. Access across paved driveways now or hereafter located on the Additional Leased
Premises, including access to loading docks which serve and are part of the building
designated as “Building 3” on the Condominium Map.

The Reserved Easement will be subject to the following terms and conditions:

     A. The construction (including expansion or replacement) of any Structured

Exhibit A to Ground Lease - Page 3

 

Garage will be not exceed the size or scope required, as proposed in good faith by the
Association and approved by Ground Lessee (which approval will not be unreasonably
withheld), to provide Unit 4 and Other Units with parking that both (i) meets local zoning
and other legal requirements, and (ii) when taken together with any permanent, concrete
parking spaces from time to time constructed and available for use on the Adjacent Tracts,
is sufficient to meet the reasonable projected parking needs of the owners and occupants of
Unit 4 and the Other Units (collectively, the “Association’s Proposed Parking
Requirements”). If, however, the Association does propose, and the tenant under this Ground
Lease does approve, the construction of a Structured Garage to meet the Association’s
Proposed Parking Requirements, then the Association may undertake such construction pursuant
to the Reserved Easement; and in the case of any such construction commenced after the
Turnover Date, the Ground Lessee must join with the owners of Other Units to reimburse to
the Association all actual, out-of-pocket costs of design and construction in accordance
with a schedule of reimbursements imposed by the Association to facilitate the construction.

     B. Before the Turnover Date, Ground Lessee will have no obligation for any such
reimbursements to the Association. After the Turnover Date, such reimbursements will be
allocated among the Ground Lessee and each owner of Other Units in proportion to the square
footage of their respective buildings to be served by the Structured Garage; subject,
however, to any reasonable determination of the Association that (1) some other allocation
of the cost would be more equitable, (2) is made before construction commences and
contemporaneously with the Association’s determination that construction of a Structured
Garage is required to meet the Association’s Proposed Parking Requirements, and (3) is made
at a time when none of the parties affected by such determination has voting control of the
Association.

     B. Prior to the Turnover Date, Ground Lessee will have no obligation to pay or
reimburse the costs of operating or maintaining any Structured Garage. However, after the
Turnover Date and construction of any Structured Garage by the Association, the cost of
operating and maintaining it (including property taxes) will be allocated among the Ground
Lessee and the owners of Other Units in the same proportion as the original costs of
construction pursuant to the preceding paragraph.

     C. The Reserved Easement will not preclude any construction by the Ground Lessee, at
its own expense, of any Structured Garage on the Additional Leased Premises if ever the
Ground Lessee itself should determine that a Structured Garage is needed to meet the parking
needs of the occupants of Unit 4.

Exhibit A to Ground Lease - Page 4

 

Exhibit A to Ground Lease - Page 5

 

Exhibit A to Ground Lease - Page 6

 

Attachment to Exhibit A — Metes and Bounds

Description of “Additional Leased Premises”

     The following is a metes and bounds description of the outer boundaries of the Additional
Leased Premise:

BEGINNING
at NCGS Monument “Hopson”, said monument having NC Grid Coordinates of
N=773,721.48 and E=2,034,907.39 (NAD 83), traveling thence South
11°
44' 59" West
6154.66 feet to a right-of-way monument on the southern margin of Louis Stephens Drive (a 100 foot
public right-of-way), thence North
72°
48' 35" East 164.29 feet to a right-of-way
monument on the southern margin of Kit Creek Road (a 150 foot public right-of-way); thence with the
southern margin of said Kit Creek Road the following two (2) courses and distances:

     (1)
South 68°
 6' 54 East 412.64 feet to a right-of-way monument; and

     (2)
with a curve to the right having a radius of 924.83 feet, an arc length of 475.96, and a
chord bearing

     and
distance of South
54°
02' 59" East 470.72 feet to a computed point;

said computed being the POINT AND PLACE OF BEGINNING; thence from said point of beginning
and continuing with the southern margin of Kit Creek Road South
39°
18' 29" East 571.64
feet to a computed point, thence cornering and leaving said right-of-way and with the common line
of property now or formerly owned by Research Triangle Foundation of NC (DB 1670 PG 239) the
following two (2) courses and distances:

     (1)
South 50° 41' 31" West 100.00 feet to an iron pipe found; and

     (2)
South 83° 31' 01" West 483.47 feet to an iron pipe found;

thence cornering and along three (3) new lines within the bounds of property owned by Network
Appliance, Inc. (DB 10941 Pg 2054) as follows:

     (1)
North
12°44'
00" West 279.97 feet;

     (2)
North 48°
55' 31" West 50.30 feet; and

     (3)
North 32°
57' 24" East 401.61 feet to a point along the southern margin of
said Kit Creek Road;
thence with the southern margin of Kit Creek Road along a curve to the right having a radius
of 925.04
feet, an arc length of 113.05 feet and a chord bearing and distance of South 42°
48' 33" East 112.98 feet to
the POINT AND PLACE OF BEGINNING. containing 5.36 acres (233.621 square feet), more
or less,
said area shown on the rendering attached hereto.

Exhibit A to Ground Lease - Page 7

 

Exhibit B

Permitted Encumbrances

     The leasehold and other interests in the Land hereby conveyed by NAI are conveyed subject to
the following matters to the extent the same are still valid and in force:

	1.	 	Taxes for the year 2007 and subsequent years, not yet due and payable.
	 
	2.	 	Amended Declaration of Covenants recorded in Book 1663, page 559, Wake County Registry and
Amended Conditions, Covenants, Restrictions and Reservations recorded in Book 3679, page 53,
Wake County Registry as further amended and modified by instrument recorded in Book 3679, page
41, Wake County Registry; instrument recorded in Book 3679, page 48, Wake County Registry; and
instrument recorded in Book 3679, page 53, Wake County Registry. The aforesaid covenants were
extended by Extension Agreement recorded in Book 6098, page 683, Wake County Registry.
	 
	3.	 	Easement(s) to Duke Power Company recorded in Book 1306, page 330; Book 1262, page 51; Book
1262, page 186; Book 1306, page 334; Book 1389, page 570; and Book 1389, page 568, Wake County
Registry.
	 
	4.	 	Sanitary Sewer Easement recorded in Book 4783, page 360, Wake County Registry; and shown in
Map Book 1990, pages 973-976, Wake County Registry.
	 
	5.	 	Easement to Duke Power Company as shown in Plat Book 1985, page 1208 and Plat Book 1985,
1347, Wake County Registry.
	 
	6.	 	The following maters as shown on plat prepared by Barbara H. Mulkey Engineering, Inc., dated
May 30, 2000 entitled “Exempt Subdivision Map of Site 12”, recorded in Book of Maps 2000, page
1300, Wake County Registry:

	 	(a)	 	New permanent drainage easement along the eastern right of way identified on
such plat as “Future Roadway for Louis Stephens Drive”;
	 
	 	(b)	 	Surface Cover Maintenance easement along the western boundary of Site 12 as
shown on such plat;
	 
	 	(c)	 	One hundred (100) year flood zone along the southern boundary of Site 12 as
shown on such plat;
	 
	 	(d)	 	Temporary drainage easement along norther boundary of Site 12 as shown on such
plat;
	 
	 	(e)	 	Existing sixty (60) foot right of way of Kit Creek Road, which right of way is to

 

 

	 	 	 	be abandoned (if it has not already been abandoned) as located in the northeastern
portion of Site 12 as shown on such plat;
	 
	 	(f)	 	Overhead electric lines located on the northeastern portion of Site 12 as shown
on such plat;
	 
	 	(g)	 	Flood plain area, wetlands and creek located within the Natural Area Preserve
as shown on such plat; and
	 
	 	(h)	 	Thirty (30) foot Wake County sanitary sewer easement within the Natural Areas
Preserve as shown on such plat.

	7.	 	Except to the extent inconsistent with or in conflict with the requirements, limitations and
qualifications of subparagraphs 11(K), 11(L) and 11(M) of this Ground Lease, the terms and
conditions of the Condominium Declaration.

Exhibit B to Ground Lease - Page 2

 

Exhibit C

CONTINGENT PURCHASE OPTION

     Subject to the terms of this Exhibit, BNPPLC shall have an option (the “Option”) to buy NAI’
fee interest in the Leased Property at any time during the term of this Ground Lease after (but
only after) any breach by NAI under the Purchase Agreement, provided NAI does not cure the breach
within any time permitted for cure by the express provisions of the Purchase Agreement, for a
purchase price (the “Option Price”) to NAI equal to fair market value.

     For the purposes of this Exhibit, “fair market value” means (and all appraisers and other
persons involved in the determination of the Option Price will be so advised) the price that would
be agreed upon between a willing buyer, under no compulsion to buy, and a willing seller, under no
compulsion to sell, for unimproved land comparable in size and location to the Land,
exclusive of any Improvements but assuming that there is no higher and better use for such land
than as a site for improvements of comparable size and utility to the Improvements, at the time of
BNPPLC’s exercise of the Option and taking into consideration the condition of the Land, the
encumbrances affecting the title to the Land and all applicable zoning, land use approvals and
other governmental permits relating to the Land at the time of the exercise of the Option.

     If BNPPLC exercises the Option, which BNPPLC may do by notifying NAI that BNPPLC has elected
to buy NAI’ interest in the Leased Property as provided herein, then:

     (1) To the extent, if any, required as a condition imposed by law to the conveyance of
the fee interest in the Leased Property to BNPPLC, NAI shall promptly at its expense do
whatever is necessary and possible (including, without limitation, cooperating with BNPPLC
in seeking any zoning variances requested by BNPPLC) to obtain approvals of a new recorded
plat or lot line adjustments. Should it be determined that it is not possible to satisfy
any such condition imposed by law, neither NAI nor BNPPLC shall be required to consummate
any purchase pursuant to this Exhibit, and this Ground Lease will continue as if BNPPLC had
not exercised the Option.

     (2) Upon BNPPLC’s tender of the Option Price to NAI, NAI will convey good and
indefeasible title to the fee estate in the Land and its interest in all other Leased
Property to BNPPLC by general warranty deed and assignment subject only to the Permitted
Encumbrances, to any claims of BNPPLC or Liens Removable by BNPPLC, and (to the extent still
in force) to the Lease and the Purchase Agreement.

     (3) BNPPLC’s obligation to close the purchase shall be subject to the following
terms and conditions, all of which are for the benefit of BNPPLC: (a) BNPPLC shall have
been furnished with evidence satisfactory to BNPPLC that NAI can convey title as required by
the preceding subparagraph; (b) nothing shall have occurred or been discovered after BNPPLC
exercised the Option that could significantly and adversely affect title to the Leased
Property or BNPPLC’s use thereof, (c) all of the

 

 

representations of NAI in this Ground Lease shall continue to be true as if made
effective on the date of the closing and, with respect to any such representations which may
be limited to the knowledge of NAI or any of NAI’ representatives, would continue to be true
on the date of the closing if all relevant facts and circumstances were known to NAI and
such representatives, and (d) BNPPLC shall have been tendered the deed and other documents
which are described in this Exhibit as documents to be delivered to BNPPLC at the closing of
BNPPLC’s purchase.

     (4) Closing of the purchase will be scheduled on the first Business Day following
thirty days after the Option Price is established in accordance with the terms and
conditions of this Exhibit and after any approvals described in subparagraph (1) above are
obtained, and prior to closing BNPPLC’s occupancy of the Leased Property shall continue to
be subject to the terms and conditions of this Ground Lease, including the terms setting
forth BNPPLC’s obligation to pay rent. Closing shall take place at the offices of any title
insurance company reasonably selected by BNPPLC to insure title under the title insurance
policy described below.

     (5) Any transfer taxes or notices or registrations required by law in connection with
the sale contemplated by this Exhibit will be the responsibility of NAI.

     (6) NAI will deliver a certificate of nonforeign status to BNPPLC at closing as needed
to comply with the provisions of the U.S. Foreign Investors Real Property Tax Act (FIRPTA)
or any comparable federal, state or local law in effect at the time.

     (7) NAI will also pay for and deliver to BNPPLC at the closing an owner’s title
insurance policy in the full amount of the Option Price, issued by a title insurance company
designated by BNPPLC (or written confirmation from the title company that it is then
prepared to issue such a policy), and subject only to standard printed exceptions which the
title insurance company refuses to delete or modify in a manner acceptable to BNPPLC and to
Permitted Encumbrances.

     (8) NAI shall also deliver at the closing all other documents or things reasonably
required to be delivered to BNPPLC or by the title insurance company to evidence NAI’
ability to transfer the Leased Property to BNPPLC.

     If NAI and BNPPLC do not otherwise agree upon the amount of the Option Price within twenty
days after BNPPLC exercises the Option, the Option Price shall be determined in accordance with the
following procedure:

     (a) NAI and BNPPLC shall each appoint a real estate appraiser who is
familiar with properties in the vicinity of the Land and who has not previously
acted for either party. Each party will make the appointment no later than ten

Exhibit C to Ground Lease - Page 2

 

days after receipt of notice from the other party that the appraisal process
described in this Exhibit has been invoked. The agreement of the two appraisers as
to the Option Price will be binding upon NAI and BNPPLC. If the two appraisers
cannot agree upon the Option Price within ten days following their appointment, they
shall within another ten days agree upon a third real estate appraiser. Immediately
thereafter, each of the first two appraisers will submit his best estimate of the
appropriate Option Price (together with a written report supporting such estimate)
to the third appraiser and the third appraiser will choose between the two
estimates. The estimate of Option Price chosen by the third appraiser as the
closest to the prevailing monthly fair market value will be binding upon NAI and
BNPPLC. Notification in writing of the Option Price shall be made to NAI and BNPPLC
within fifteen days following the selection of the third appraiser.

     (b) If appraisers must be selected under the procedure set out above and either
BNPPLC or NAI fails to appoint an appraiser or fails to notify the other party of
such appointment within fifteen days after receipt of notice that the prescribed
time for appointing the appraisers has passed, then the other party’s appraiser will
determine the Option Price. All appraisers selected for the appraisal process set
out in this Exhibit will be disinterested, reputable, qualified real estate
appraisers with the designation of MAI or equivalent and with at least 5 years
experience in appraising properties comparable to the Land.

     (c) If a third appraiser must be chosen under the procedure set out above, he
will be chosen on the basis of objectivity and competence, not on the basis of his
relationship with the other appraisers or the parties to this Ground Lease, and the
first two appraisers will be so advised. Although the first two appraisers will be
instructed to attempt in good faith to agree upon the third appraiser, if for any
reason they cannot agree within the prescribed time, either NAI and BNPPLC may
require the first two appraisers to immediately submit its top choice for the third
appraiser to the then highest ranking officer of the Dallas, Texas Bar Association
who will agree to help and who has no attorney/client or other significant
relationship to either NAI or BNPPLC. Such officer will have complete discretion to
select the most objective and competent third appraiser from between the choice of
each of the first two appraisers, and will do so within ten days after such choices
are submitted to him.

     (d) Either NAI or BNPPLC may notify the appraiser selected by the other
party to demand the submission of an estimate of Option Price or a choice of a third
appraiser as required under the procedure described above; and if the submission of
such an estimate or choice is required but the other party’s appraiser fails to
comply with the demand within fifteen days after receipt of such

Exhibit C to Ground Lease - Page 3

 

notice, then the Option Price or choice of the third appraiser, as the case may
be, selected by the other appraiser (i.e., the notifying party’s appraiser) will be
binding upon NAI and BNPPLC.

     (e) NAI and BNPPLC shall each bear the expense of the appraiser appointed by
it, and the expense of the third appraiser and of any officer of the Dallas, Texas
Bar Association who participates in the appraisal process described above will be
shared equally by NAI and BNPPLC.

Exhibit C to Ground Lease - Page 4

 

Exhibit D

DETERMINATION OF FAIR RENTAL VALUE

     Each annual payment of Ground Lease Rent will equal the Fair Rental Value, computed as of the
most recent Rental Determination Date when such payment becomes due. As used in this Exhibit,
“Rental Determination Date” means the (1) the Effective Date, (2) the earliest anniversary of the
Effective Date to follow the Turnover Date by more than thirty days, and (3) after the second
Rental Determination Date described in clause (2), each fifth anniversary of the preceding Rental
Determination Date.

     As of the Effective Date (i.e., the first Rental Determination Date), the parties have agreed
that Fair Rental Value is the dollar amount set forth in Paragraph 3 of this Ground Lease.

     If NAI and BNPPLC have not agreed upon Fair Rental Value as of any subsequent Rental
Determination Date within one hundred eighty days after the such date, then Fair Rental Value will
be determined as follows:

     (a) NAI and BNPPLC shall each appoint a real estate appraiser who is familiar with
rental values for properties in the vicinity of the Land and who has not previously acted
for either party. Each party will make the appointment no later than ten days after receipt
of notice from the other party that the appraisal process described in this Exhibit has been
invoked. The agreement of the two appraisers as to Fair Rental Value will be binding upon
NAI and BNPPLC. If the two appraisers cannot agree upon the Fair Rental Value within ten
days following their appointment, they shall within another ten days agree upon a third real
estate appraiser. Immediately thereafter, each of the first two appraisers will submit his
best estimate of the appropriate Fair Rental Value (together with a written report
supporting such estimate) to the third appraiser and the third appraiser will choose between
the two estimates. The estimate of Fair Rental Value chosen by the third appraiser as the
closest to the prevailing annual fair rental value will be binding upon NAI and BNPPLC.
Notification in writing of this estimate shall be made to NAI and BNPPLC within fifteen days
following the selection of the third appraiser.

     (b) If appraisers must be selected under the procedure set out above and either BNPPLC
or NAI fails to appoint an appraiser or fails to notify the other party of such appointment
within fifteen days after receipt of notice that the prescribed time for appointing the
appraisers has passed, then the other party’s appraiser will determine the Fair Rental
Value. All appraisers selected for the appraisal process set out in this Exhibit will be
disinterested, reputable, qualified real estate appraisers with the designation of MAI or
equivalent and with at least 5 years experience in appraising properties comparable to the
Land.

     (c) If a third appraiser must be chosen under the procedure set out above, he

 

 

or she will be chosen on the basis of objectivity and competence, not on the basis of
his relationship with the other appraisers or the parties to this Ground Lease, and the
first two appraisers will be so advised. Although the first two appraisers will be
instructed to attempt in good faith to agree upon the third appraiser, if for any reason
they cannot agree within the prescribed time, either NAI and BNPPLC may require the first
two appraisers to immediately submit its top choice for the third appraiser to the then
highest ranking officer of the Dallas, Texas Bar Association who will agree to help and who
has no attorney/client or other significant relationship to either NAI or BNPPLC. Such
officer will have complete discretion to select the most objective and competent third
appraiser from between the choice of each of the first two appraisers, and will do so within
twenty days after such choices are submitted to him.

     (d) Either NAI or BNPPLC may notify the appraiser selected by the other party to demand
the submission of an estimate of Fair Rental Value or a choice of a third appraiser as
required under the procedure described above; and if the submission of such an estimate or
choice is required but the other party’s appraiser fails to comply with the demand within
fifteen days after receipt of such notice, then the Fair Rental Value or choice of the third
appraiser, as the case may be, selected by the other appraiser (i.e., the notifying party’s
appraiser) will be binding upon NAI and BNPPLC.

     (e) NAI and BNPPLC shall each bear the expense of the appraiser appointed by it, and
the expense of the third appraiser and of any officer of the Dallas, Texas Bar Association
who participates in the appraisal process described above will be shared equally by NAI and
BNPPLC.

Exhibit D to Ground Lease - Page 4

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