Document:

exv10w56

 

Exhibit 10.56

CONSTRUCTION AGREEMENT

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

July 17, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ENGAGEMENT AND AUTHORIZATION
	 	 	1	 
	GENERAL TERMS AND CONDITIONS
	 	 	2	 
	1    Additional definitions
	 	 	2	 
	“97-10/Maximum Permitted Prepayment”
	 	 	2	 
	“97-10/Meltdown Event”
	 	 	2	 
	“97-10/Prepayment”
	 	 	3	 
	“97-10/Project Costs”
	 	 	3	 
	“97-10/Pronouncement”
	 	 	4	 
	“NAI’s Estimate of Force Majeure Delays”
	 	 	4	 
	“NAI’s Estimate of Force Majeure Excess Costs”
	 	 	4	 
	“Accrued Construction Period Interest Expense”
	 	 	4	 
	“Administrative Fee”
	 	 	5	 
	“Affiliate’s Contract”
	 	 	5	 
	“Arrangement Fee”
	 	 	5	 
	“Capital Adequacy Charges”
	 	 	5	 
	“Carrying Costs”
	 	 	5	 
	“Commitment Fee Rate”
	 	 	5	 
	“Commitment Fees”
	 	 	6	 
	“Complete Taking”
	 	 	6	 
	“Completion Date”
	 	 	6	 
	“Completion Notice”
	 	 	6	 
	“Construction Advances”
	 	 	6	 
	“Construction Advance Request”
	 	 	6	 
	“Construction Allowance”
	 	 	7	 
	“Construction Budget”
	 	 	7	 
	“Construction Project”
	 	 	7	 
	“Covered Construction Period Losses”
	 	 	7	 
	“Defective Work”
	 	 	7	 
	“FOCB Notice”
	 	 	7	 
	“Force Majeure Event”
	 	 	8	 
	“Funded Construction Allowance”
	 	 	8	 
	“Future Work”
	 	 	8	 
	“Ground Lease Rents”
	 	 	8	 
	“Increased Cost Charges”
	 	 	8	 
	“Increased Commitment”
	 	 	8	 
	“Increased Funding Commitment”
	 	 	8	 
	“Increased Time Commitment”
	 	 	8	 
	“Initial Advance”
	 	 	8	 
	“Maximum Construction Allowance”
	 	 	8	 
	“Notice of NAI’s Intent to Terminate”
	 	 	8	 
	“Notice of NAI’s Intent to Terminate Because of a Force Majeure Event”
	 	 	8	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page	 
	“Notice of Termination by NAI”
	 	 	9	 
	“Outstanding Construction Allowance”
	 	 	9	 
	“Owner’s Election to Continue Construction”
	 	 	9	 
	“Pre-lease Casualty”
	 	 	9	 
	“Pre-lease Force Majeure Delays”
	 	 	9	 
	“Pre-lease Force Majeure Event”
	 	 	9	 
	“Pre-lease Force Majeure Event Notice”
	 	 	9	 
	“Pre-lease Force Majeure Excess Costs”
	 	 	9	 
	“Pre-lease Force Majeure Losses”
	 	 	9	 
	“Prior Work”
	 	 	10	 
	“Projected Cost Overruns”
	 	 	10	 
	“Reimbursable Construction Period Costs”
	 	 	11	 
	“Remaining Proceeds”
	 	 	11	 
	“Scope Change”
	 	 	11	 
	“Target Completion Date”
	 	 	11	 
	“Termination of NAI’s Work”
	 	 	11	 
	“Third Party Contract”
	 	 	11	 
	“Third Party Contract/Termination Fees”
	 	 	12	 
	“Timing or Budget Shortfall”
	 	 	12	 
	“Work”
	 	 	12	 
	“Work/Suspension Event”
	 	 	12	 
	“Work/Suspension Notice”
	 	 	13	 
	“Work/Suspension Period”
	 	 	13	 
	2 Construction and Management of the Property by NAI
	 	 	14	 
	(A) The Construction Project
	 	 	14	 
	(1) Construction Approvals by BNPPLC
	 	 	14	 
	(a)Preconstruction Approvals by BNPPLC
	 	 	14	 
	(b)Approval of Scope Changes
	 	 	14	 
	(2) NAI’s Right to Possession and to Control Construction
	 	 	14	 
	(a)Performance of the Work
	 	 	15	 
	(b)Third Party Contracts
	 	 	15	 
	(c)Adequacy of Drawings, Specifications and Budgets
	 	 	16	 
	(d)Existing Condition of the Land and Improvements
	 	 	16	 
	(e)Correction of Defective Work
	 	 	16	 
	(f)Clean Up
	 	 	16	 
	(g)No Damage for Delays
	 	 	16	 
	(h)No Fee For Construction Management
	 	 	17	 
	(3) Quality of Work
	 	 	17	 
	(B) Completion Notice
	 	 	17	 
	(C) Status of Property Acquired With BNPPLC’s Funds
	 	 	17	 

(ii)

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page	 
	(D) Insurance
	 	 	18	 
	(1) Liability Insurance
	 	 	18	 
	(2) Property Insurance
	 	 	18	 
	(3) Failure of NAI to Obtain Insurance
	 	 	19	 
	(4) Waiver of Subrogation
	 	 	19	 
	(E) Condemnation
	 	 	19	 
	(F) Additional Representations, Warranties and Covenants of NAI Concerning the Property
	 	 	20	 
	(1) Payment of Local Impositions
	 	 	20	 
	(2) Operation and Maintenance
	 	 	21	 
	(3) Debts for Construction, Maintenance, Operation or Development
	 	 	22	 
	(4) Permitted Encumbrances and the Ground Lease
	 	 	22	 
	(5) Books and Records Concerning the Property
	 	 	22	 
	(G) BNPPLC’s Right of Access
	 	 	22	 
	(1) Access Generally
	 	 	22	 
	(2) Failure of NAI to Perform
	 	 	23	 
	3 Amounts to be Added to the Lease Balance (in Addition to Construction Advances)
	 	 	23	 
	(A) Initial Advance
	 	 	24	 
	(B) Carrying Costs
	 	 	25	 
	(C) Commitment Fees
	 	 	25	 
	(D) Future Administrative Fees and Out-of-Pocket Costs
	 	 	26	 
	(E) Increased Cost Charges and Capital Adequacy Charges
	 	 	26	 
	(F) Ground Lease Payments
	 	 	27	 
	4 Construction Advances
	 	 	27	 
	(A) Costs Subject to Reimbursement Through Construction Advances
	 	 	27	 
	(B) Exclusions From Reimbursable Construction Period Costs
	 	 	29	 
	(C) Conditions to NAI’s Right to Receive Construction Advances
	 	 	29	 
	(1) Construction Advance Requests
	 	 	29	 
	(2) Amount of the Advances
	 	 	30	 
	(a) The Maximum Construction Allowance
	 	 	30	 
	(b) Costs Previously Incurred by NAI
	 	 	30	 
	(c) Limits During any Work/Suspension Period
	 	 	31	 
	(d) Restrictions Imposed for Administrative Convenience
	 	 	31	 
	(3) No Advances After Certain Dates
	 	 	31	 
	(D) Breakage Costs for Construction Advances Requested But Not Taken
	 	 	31	 
	(E) No Third Party Beneficiaries
	 	 	32	 
	(F) No Waiver
	 	 	32	 
	5 Application of Insurance and Condemnation Proceeds
	 	 	32	 
	(A) Collection and Application Generally
	 	 	32	 

(iii)

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	(B)	 	Advances of Escrowed Proceeds to NAI	 	 	33	 
	 	 	(C)	 	Status of Escrowed Proceeds After Commencement of the Term of the Lease	 	 	33	 
	 	 	(D)	 	Special Provisions
Applicable After a 97-10/Meltdown Event or Event of Default	 	 	33	 
	 	 	(E)	 	NAI’s Obligation to Restore	 	 	33	 
	 	 	(F)	 	Special Provisions Concerning a Complete Taking	 	 	34	 
	6	 	Notice of Cost Overruns and Pre-lease Force Majeure Events	 	 	34	 
	 	 	(A)	 	Notice of Projected Cost Overruns	 	 	34	 
	 	 	(B)	 	Pre-lease Force Majeure Event Events and Notices	 	 	34	 
	7	 	Suspension and Termination of NAI’s Work	 	 	34	 
	 	 	(A)	 	Rights and Obligations During a Work/Suspension Period	 	 	34	 
	 	 	(B)	 	NAI’s Election to Terminate NAI’s Work	 	 	34	 
	 	 	(C)	 	BNPPLC’s Election to Terminate NAI’s Work	 	 	38	 
	 	 	(D)	 	Surviving Rights and Obligations	 	 	38	 
	 	 	(E)	 	Cooperation After a Termination of NAI’s Work	 	 	38	 
	8	 	Continuation of Construction by BNPPLC	 	 	40	 
	 	 	(A)	 	Owner’s Election to Continue Construction	 	 	40	 
	 
	 	 	 	(1)	 	Take Control of the Property	 	 	40	 
	 
	 	 	 	(2)	 	Continuation of Construction	 	 	40	 
	 
	 	 	 	(3)	 	Arrange for Turnkey Construction	 	 	41	 
	 
	 	 	 	(4)	 	Suspension or Termination of Construction by BNPPLC	 	 	41	 
	 	 	(B)	 	Powers Coupled With an Interest	 	 	42	 
	9	 	NAI’s Obligation for 97-10/Prepayments	 	 	42	 
	10	 	Indemnity for Covered Construction Period Losses	 	 	43	 
	 	 	(A)	 	Covenant to Indemnify Against Covered Construction Period Losses	 	 	43	 
	 	 	(B)	 	Certain Losses Included or Excluded	 	 	44	 
	 
	 	 	 	(1)	 	Environmental	 	 	44	 
	 
	 	 	 	(2)	 	Failure to Maintain a Safe Work Site	 	 	44	 
	 
	 	 	 	(3)	 	Failure to Complete Construction	 	 	45	 
	 
	 	 	 	(4)	 	Fraud	 	 	45	 
	 
	 	 	 	(5)	 	Excluded Taxes and Established Misconduct	 	 	45	 
	 	 	(C)	 	Express Negligence Protection	 	 	45	 
	 	 	(D)	 	Survival of Indemnity	 	 	46	 
	 	 	(E)	 	Due Date for Indemnity Payments	 	 	46	 
	 	 	(F)	 	Order of Application of Payments	 	 	46	 
	 	 	(G)	 	Defense of BNPPLC	 	 	46	 
	 
	 	 	 	(1)	 	Assumption of Defense	 	 	46	 
	 
	 	 	 	(2)	 	Indemnity Not Contingent	 	 	46	 
	 	 	(H)	 	Notice of Claims	 	 	47	 
	 	 	(I)	 	Withholding of Consent to Settlements Proposed by NAI	 	 	47	 
	 	 	(J)	 	Settlements Without the Prior Consent of NAI	 	 	47	 

(iv)

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page	 
	(1) Election
to Pay Reasonable Settlement Costs in Lieu of Actual
	 	 	47	 
	(2) Conditions
to Election
	 	 	48	 
	(3) Indemnity
Survives Settlement
	 	 	48	 
	(K) No Authority to Admit Wrongdoing on the Part of NAI
	 	 	48	 
	(L) Refunds of Covered Construction Period Losses Paid by NAI
	 	 	49	 
	(1) Payment
by BNPPLC After Refund
	 	 	49	 
	(2) Meaning
of Refund
	 	 	49	 
	(3) Conditions
to Payment
	 	 	50	 

Exhibits and Schedules

	 	 	 	 	 
	Exhibit A
	 	Legal Description
	Exhibit B
	 	Description of the Construction Project and Budget
	Exhibit C
	 	Construction Advance Request Form
	Exhibit D
	 	Pre-lease Force Majeure Event Notice
	Exhibit E
	 	Notice of Termination by NAI's Work
	Exhibit F
	 	Notice of NAI's Intent to Terminate
	Exhibit G
	 	Notice of Increased Funding Commitment by BNPPLC
	Exhibit H
	 	Notice of Increased Time Commitment by BNPPLC
	Exhibit I
	 	Notice of Rescission of NAI's Intent to Terminate

(v)

 

CONSTRUCTION AGREEMENT

     This CONSTRUCTION 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.

     At the request of NAI and to facilitate the transaction contemplated in the other Operative
Documents, contemporaneously with this Agreement BNPPLC is executing and accepting a Ground Lease
from NAI (the “Ground Lease”), pursuant to which BNPPLC is acquiring a leasehold estate in the Land
described in Exhibit A and any existing Improvements on such Land.

     Also contemporaneously with this Agreement, BNPPLC and NAI are executing a Lease Agreement
(the “Lease”), pursuant to which the parties expect that NAI will lease the Improvements on the
Land described in Exhibit A from BNPPLC for a lease term that will commence on the
Completion Date (as defined below).

     In anticipation of the construction of new or additional Improvements for NAI’s use pursuant
to the Lease, BNPPLC and NAI have agreed upon the terms and conditions upon which BNPPLC is willing
to authorize NAI to arrange and manage such construction and upon which BNPPLC is willing to
provide funds for such construction, and by this Agreement BNPPLC and NAI desire to evidence such
agreement.

ENGAGEMENT AND AUTHORIZATION

     Subject to the terms and conditions set forth in this Agreement, BNPPLC does hereby
engage and authorize NAI — and NAI does hereby accept such engagement and authorization, as an
independent contractor for BNPPLC — to construct the Construction Project on the Land and to manage
such construction for BNPPLC. As more particularly provided in subparagraph 2(A)(2) below, NAI
will take possession and control of the Land and all

 

 

Improvements on the Land to accomplish such construction. However, the rights and authority
granted to NAI by this Agreement are expressly made subject and subordinate to the terms and
condition hereinafter set forth and to the Ground Lease, to the Permitted Encumbrances and to any
other claims or encumbrances affecting the Land or the Property that may be asserted by third
parties other than Liens Removable by BNPPLC.

GENERAL TERMS AND CONDITIONS

1 Additional definitions. As used in this Agreement, capitalized terms defined above will
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 defined herein
will have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement; and, the following terms will have the following respective meanings:

“97-10/Maximum Permitted Prepayment” as of any date means the amount equal to eighty-nine
and nine-tenths of one percent (89.9%) of the aggregate of all 97-10/Project Costs paid or
incurred on or prior to such date.

“97-10/Meltdown Event” means any of the following:

     (a) NAI gives a Notice of NAI’s Intent to Terminate and thereafter (i)
fails to rescind the same as described in subparagraph 7(B)(7) within ten
days after BNPPLC responds with any Increased Commitment, or (ii) gives a
Notice of Termination by NAI as provided in subparagraph 7(B)(1); or

     (b) NAI gives a notice to terminate its Supplemental Payment Obligation
under the Purchase Agreement as described in subparagraph 6(B) of
the Purchase Agreement; or

     (c) BNPPLC gives notice to NAI as described in subparagraph 7(C) to
cause a Termination of NAI’s Work; or

     (d) NAI fails for any reason whatsoever to substantially complete the
Construction Project and give a Completion Notice to BNPPLC prior to the
Target Completion Date; or

     (e) for any reason whatsoever (including the accrual of Carrying
Costs), the Funded Construction Allowance exceeds the Maximum Construction
Allowance.

Construction Agreement - Page 2

 

 

“97-10/Prepayment” means any payment to BNPPLC required by Paragraph 9, which in each
case will equal (A) the 97-10/Maximum Permitted Prepayment, computed as of the date on which
the payment becomes due, less (B) the sum of (1) the accreted value of any prior payments
actually received by BNPPLC from NAI constituting 97-10/Prepayments, and (2) amounts (if
any) then owed by BNPPLC to NAI pursuant to this Agreement as reimbursements for
Reimbursable Construction Period Costs paid by NAI and not theretofore reimbursed. For
purposes of the preceding sentence, “accreted value” of a payment means the amount of the
payment plus an amount equal to the interest that would have accrued on the payment if it
bore interest at the Effective Rate plus the Spread.

“97-10/Project Costs” means the following:

     (a) costs incurred for the Work, including not only hard costs incurred for the new
Improvements described in Exhibit B, but also the following costs to the extent
reasonably incurred in connection with the Construction Project:

	 	•	 	soft costs, such as architectural fees, engineering fees and
fees and costs paid in connection with obtaining project permits and approvals
required by governmental authorities or any Permitted Encumbrance,
	 
	 	•	 	site preparation costs, and
	 
	 	•	 	costs of offsite and other public improvements required as
conditions of governmental approvals for the Construction Project or required
by any Permitted Encumbrances;

     (b) costs incurred to maintain insurance required by (and consistent with the
requirements of) this Agreement prior to the Completion Date;

     (c) Local Impositions that have accrued or become due prior to the Completion Date;

     (d) Accrued Construction Period Interest Expense; and

     (e) any costs in addition to those described in clauses (a) through (d)
preceding that GAAP (as it exists on the Effective Date) would allow BNPPLC to capitalize as
part of the cost of the Property or that the 97-10/Pronouncement would allow BNPPLC to
characterize as project costs, including: (1) cancellation or termination

Construction Agreement - Page 3

 

 

fees or other
compensation payable by NAI or BNPPLC pursuant to any contract concerning the Construction
Project made by NAI or BNPPLC with any general contractor, architect,
engineer or other third party because of any election by NAI or BNPPLC to cancel or
terminate such contract, and (2) any costs that BNPPLC incurs and is allowed to capitalize
to continue or complete the Construction Project after any Owner’s Election to Continue
Construction as provided in subparagraph 8(A).

However, notwithstanding the foregoing, 97-10/Project Costs will not include Pre-lease Force
Majeure Losses, Administrative Fees, the Arrangement Fee or any legal fees which are
included in Transaction Expenses.

“97-10/Pronouncement” means the pronouncement issued by the Emerging Issues Task Force of
the Financial Accounting Standards Board in 1998 titled “EITF 97-10: The Effect of Lessee
Involvement in Asset Construction”, which provides that certain kinds of involvement by a
lessee in pre-lease commencement construction will cause the lessee to be considered as the
owner of the leased property during the construction period and then will require
application of the appropriate sale and leaseback accounting rules.

“NAI’s Estimate of Force Majeure Delays” has the meaning indicated in subparagraph 7(B)(4).

“NAI’s Estimate of Force Majeure Excess Costs” has the meaning indicated in subparagraph
7(B)(3).

“Accrued Construction Period Interest Expense” means interest that has accrued and
that BNPPLC has paid or is obligated to pay on Funding Advances for any period prior to the
Completion Date. Such interest will include a percentage, equal to the aggregate
Percentages of all Participants (under and as defined in the Participation Agreement), of
Carrying Costs and Commitment Fees that accrue after the execution of any Participation
Agreement and that are added to the Outstanding Construction Allowance as provided in this
Agreement, it being understood that the additional amounts BNPPLC must pay to the
Participants under the Participation Agreement because of the accrual of Carrying Costs and
Commitment Fees effectively constitute construction period interest on advances the
Participants make to BNPPLC under the Participation Agreement. Accrued Construction Period
Interest Expense will also include any interest and other finance charges that accrue prior
to the Completion Date because of Funding Advances provided to BNPPLC by BNPPLC’s Parent in
the form of loans, regardless of whether BNPPLC’s obligation in respect of such loans is
limited to BNPPLC’s interest in the Property. However, any such interest and other finance
charges accruing on Funding Advances provided by BNPPLC’s Parent and included in Accrued
Construction Period Interest Expense will not exceed the Carrying Costs attributable to the
portion of the Lease Balance funded or maintained by

 Construction Agreement - Page 4

 

 

such Funding Advances. Further,
Accrued Construction Period Interest will not include any portion of Carrying Costs included
in Pre-lease Force Majeure Losses (as set forth in
the definition thereof below) or interest or finance charges that BNPPLC must pay to the
Participants under the Participation Agreement because of the accrual of such portion of
Carrying Costs.

“Administrative Fee” has the meanings indicated in subparagraph 3(A) and subparagraph 3(D).

“Affiliate’s Contract” has the meaning indicated in subparagraph 2(A)(2)(b)2).

“Arrangement Fee” has the meaning indicated in subparagraph 3(A).

“Capital Adequacy Charges” has the meaning indicated in subparagraph 3(E)(1).

“Carrying Costs” has the meaning indicated in subparagraph 3(B).

“Commitment Fee Rate” means, for each Construction Period, the amount established as
of the date (in this definition, the “CFR Test Date”) that is two Business Days prior to
such period by reference to the pricing grid below, based upon the ratio calculated by
dividing (1) Adjusted EBITDA for the then latest Rolling Four Quarters Period that ended
prior to (and for which NAI has reported earnings as necessary to compute Adjusted EBITDA)
into (2) the Total Debt of NAI and its Subsidiaries (determined on a consolidated basis) as
of the end of such Rolling Four Quarters Period. In each case, the Commitment Fee Rate will
be established at the Level in the pricing grid below which corresponds to such ratio;
provided, that promptly after earnings are reported by NAI for the latest quarter in
any Rolling Four Quarters Period, NAI must notify BNPPLC of any resulting change in the
Commitment Fee Rate under this definition, and no reduction in the Commitment Fee Rate from
one period to the next will be effective for purposes of this Agreement unless, prior to the
CFR Test Date for the next period, NAI shall have provided BNPPLC with a written notice
setting forth and certifying the calculation under this definition that justifies the
reduction.

	 	 	 	 	 
	Levels	 	Ratio of Total Debt to Adjusted EBITDA	 	Spread
	Level I

	 	less than 0.5
	 	8.0 basis points
	Level II

	 	greater than or equal to 0.5, but less
than 1.0
	 	10.0 basis points

Construction Agreement - Page 5

 

 

	 	 	 	 	 
	Levels	 	Ratio of Total Debt to Adjusted EBITDA	 	Spread
	Level III

	 	greater than or equal to 1.0, but less
than 1.5
	 	12.5 basis points
	Level IV

	 	greater than or equal to 1.5
	 	15.0 basis points

All determinations of the Spread by BNPPLC will, in the absence of clear and demonstrable error, be
binding and conclusive for purposes of the Operative Documents. Further BNPPLC may, but will not
be required, to rely on the determination of the Spread set forth in any notice delivered by NAI as
described above in clause (a) of this definition..

“Commitment Fees” has the meaning indicated in subparagraph 3(C).

“Complete Taking” means a taking by eminent domain prior to the Completion Date over NAI’s
objection of all of the Land or the Property, or so much thereof as to make it impossible to
complete the Construction Project for its intended uses on the Land regardless of any Scope
Changes BNPPLC may be willing to approve or any Increased Commitment that BNPPLC may be
willing to provide.

“Completion Date” means the date upon which NAI gives the notice to BNPPLC which is required
by subparagraph 2(B), after having substantially completed the Construction Project and
having obtained any certificate of occupancy or other permit (temporary or permanent)
required for the commencement of NAI’s use of the Improvements.

“Completion Notice” means the notice required by subparagraph 2(B) from NAI to BNPPLC,
advising BNPPLC that NAI has substantially completed construction of the Construction
Project and has obtained any certificate of occupancy or other permit (temporary or
permanent) required for the commencement of NAI’s use of the Improvements.

“Construction Advances” means (1) actual advances of funds made by or on behalf of
BNPPLC to or on behalf of NAI as provided in Paragraph 4, which sets forth NAI’s rights to
receive advances for Reimbursable Construction Period Costs, and (2) other amounts paid or
incurred by BNPPLC that subparagraph 8(A) or other provisions of this Agreement allow BNPPLC
to characterize as Construction Advances. The term “Construction Advances” will not,
however, include advances of insurance proceeds, condemnation proceeds or other Escrowed
Proceeds to pay or reimburse costs of repairs or restoration.

“Construction Advance Request” has the meaning indicated in subparagraph 4(C)(1).

Construction Agreement - Page 6

 

 

“Construction Allowance” means the allowance to be provided by BNPPLC for the
design and construction of the Construction Project, against which and from which Carrying
Costs, Construction Advances and other amounts will be or may be charged and paid as
provided in various provisions of this Agreement (including Paragraphs 3, 4 and 8).

“Construction Budget” means the budget for the Construction Project set forth in Exhibit
B.

“Construction Project” means the new buildings or other substantial Improvements to be
constructed, or the alteration of existing Improvements, as described generally in
Exhibit B.

“Covered Construction Period Losses” has the meaning indicated in subparagraph 10(A).

“Defective Work” has the meaning indicated in subparagraph 2(A)(2)(e).

“FOCB Notice” means a notice from BNPPLC to NAI advising NAI of any of the following events
or circumstances, and also advising NAI that because of any of the following events or
circumstances BNPPLC will be entitled to make the election described in subparagraph 7(C),
which will constitute a Termination of NAI’s Work and a 97-10/Meltdown Event:

     (1) NAI has taken action to cancel or terminate or reduce the coverage available to
BNPPLC under the builder’s risk insurance obtained for the Construction Project as required
by this Agreement, or NAI has otherwise failed to maintain any insurance or to provide
insurance certificates to BNPPLC as required by this Agreement and not cured such failure
within ten days after receiving notice thereof, or

     (2)
NAI has given any Pre-lease Force Majeure Event Notice to BNPPLC,
or

     (3) an Event of Default has occurred and is continuing; or

     (4) a Work/Suspension Event has occurred and continued for more than thirty consecutive
days after NAI’s receipt of a Work/Suspension Notice advising NAI of such Work/Suspension
Event, and subsequent to such thirty day period the Work/Suspension Event has not been
rectified by NAI.

“Force Majeure Event” means (A) any taking of any part of the Property by eminent domain
prior to the Completion Date, and (B) any damage to the Improvements or

Construction Agreement - Page 7

 

 

disruption of the
Work that occurs prior to the Completion Date and that is caused by fire
or acts of God (such as flood, lightning, earthquake or hurricane), war, strikes and other
labor disputes, or riot or similar civil disturbance, but only to the extent such damage or
disruption (i) is beyond the control of and not caused in whole or in part by negligence,
illegal acts or willful misconduct on the part of NAI or of its employees or of any other
party acting under NAI’s control or with the approval or authorization of NAI, and (ii)
could not have been avoided or overcome by the exercise of due diligence or reasonable
foresight on the part of NAI or of any other such party.

“Funded Construction Allowance” means on any day the Outstanding Construction Allowance on
that day, including all Construction Advances and Carrying Costs added to the Outstanding
Construction Allowance on or prior to that day, plus the amount of any Qualified Prepayments
deducted on or prior to that day in the calculation of such Outstanding Construction
Allowance.

“Future Work” has the meaning indicated in subparagraph 4(C)(2)(b).

“Ground Lease Rents” has the meaning indicated in subparagraph 3(F).

“Increased Cost Charges” has the meaning indicated in subparagraph 3(E)(1).

“Increased Commitment” has the meaning indicated in subparagraph 7(B)(6).

“Increased Funding Commitment” has the meaning indicated in subparagraph 7(B)(6)(a).

“Increased Time Commitment” has the meaning indicated in subparagraph 7(B)(6)(b).

“Initial Advance” has the meaning indicated in subparagraph 3(A).

“Maximum Construction Allowance” means an amount equal to the difference computed by
subtracting the Initial Advance from $61,000,000, as such amount may be increased from time
to time by any Increased Funding Commitment made by BNPPLC as provided in subparagraph
7(B)(6).

“Notice of NAI’s Intent to Terminate” has the meaning indicated in subparagraph 7(B)(2).

“Notice of NAI’s Intent to Terminate Because of a Force Majeure Event” has the meaning
indicated in subparagraph 7(B)(5).

Construction Agreement - Page 8

 

 

“Notice of Termination by NAI” has the meaning indicated in subparagraph 7(B)(1).

“Outstanding Construction Allowance” means, as of any date, the difference (but not less
than zero) of (A) the total Construction Advances made by or on behalf of BNPPLC on or prior
to such date in question, plus (B) all Carrying Costs, Commitment Fees, Administrative Fees,
Increased Cost Charges and Capital Adequacy Charges added on or prior to the date as
provided in Paragraph 3, less (C) any funds received and applied as Qualified Prepayments on
or prior to such date.

“Owner’s Election to Continue Construction” has the meaning indicated in subparagraph 8(A).

“Pre-lease Casualty” has the meaning indicated in subparagraph 2(A)(2)(a).

“Pre-lease Force Majeure Delays” means delays in the completion of the Work to the extent
(but only to the extent) caused solely by a Pre-lease Force Majeure Event.

“Pre-lease Force Majeure Event” means a Force Majeure Event that occurs prior to the
Completion Date; provided, however, that if NAI does not notify BNPPLC of any such Force
Majeure Event by the delivery of a Pre-lease Force Majeure Event Notice within thirty days
after the Force Majeure Event first occurs or commences, then such Force Majeure Event will
not qualify as a “Pre-lease Force Majeure Event” for purposes of this Agreement or the other
Operative Documents.

“Pre-lease Force Majeure Event Notice” has the meaning indicated in subparagraph 6(B).

“Pre-lease Force Majeure Excess Costs” means the amount (if any) by which the
increases in the costs of the Work resulting directly and solely from a Pre-lease Force
Majeure Event (such as, for example, the costs of repairing damage to the Improvements
caused by a Pre-lease Force Majeure Event) exceed the amounts available to pay or reimburse
NAI for such increased costs. Amounts available to pay or reimburse such increased costs
will include (a) insurance proceeds or any recovery from a third party (including any
Escrowed Proceeds held by BNPPLC), and (b) any part of the Construction Allowance (including
any unused contingency amount in the Construction Budget) not used or needed to cover other
Reimbursable Construction Period Costs.

“Pre-lease Force Majeure Losses” means any of the following Losses that BNPPLC suffers by
reason of any taking or damage to the Improvements which constitutes a Pre-lease Force
Majeure Event:

Construction Agreement - Page 9

 

 

     (a) the costs of repairing any such damage to the extent that such costs have,
as of the date of any required determination of Pre-lease Force Majeure Losses, been
paid or reimbursed from a Construction Advance (and thus are included in the Lease
Balance as of that date), to be distinguished from costs of repairs paid or
reimbursed from insurance proceeds or from any recovery from a third party;

     (b) any diminution in the value of the Improvements resulting from any such
taking or resulting from any such damage that has not, as of the date of the
required determination of Pre-lease Force Majeure Losses, been repaired;

     (c) any increase in the total amount of Carrying Costs, Commitment Fees,
Administrative Fees, Increased Cost Charges, Capital Adequacy Charges and Ground
Lease Rents (and any other amounts) added to the Lease Balance as provided in
Paragraph 3 solely by reason of Pre-lease Force Majeure Delays; and

     (d) to the extent not already included in the increase described in the preceding
clause, all increases in Carrying Costs that are attributable to the amounts included in
Pre-lease Force Majeure Losses pursuant to the preceding clause (a);

but in each case such amounts will constitute Pre-lease Force Majeure Losses only to the
extent, if any, that they are not offset by condemnation or insurance proceeds which are (1)
paid by reason of such Pre-lease Force Majeure Event (including insurance proceeds paid to
compensate BNPPLC or NAI for increased financing costs, the lost time value of BNPPLC’s
investment in the Project or business interruption) and (2) applied as a Qualified
Prepayment to reduce the Lease Balance.

Also, for purposes of this definition, the diminution in the value of the
Improvements, as described in the preceding clause (b), because of any damage that
constitutes a Pre-lease Force Majeure Event will not exceed the amount thereof estimated in
good faith by any independent appraiser or insurance adjuster engaged by BNPPLC to determine
such amount after BNPPLC has received a Pre-lease Force Majeure Event Notice as provided in
subparagraph 6(B), nor will it exceed the cost of repairing the damage as estimated in good
faith by any such independent insurance adjuster or as indicated by any bona fide written
bid to make the repairs that BNPPLC obtains from a reputable contractor capable of making
the repairs.

“Prior Work” has the meaning indicated in subparagraph 4(C)(2)(b).

“Projected Cost Overruns” means the excess (if any), calculated as of the date of each
Construction Advance Request, of (1) the total of projected Reimbursable Construction

Construction Agreement - Page 10

 

 

Period
Costs yet to be incurred or for which NAI has yet to be reimbursed hereunder (including
projected Reimbursable Construction Period Costs for Future Work), over (2) the balance of
the remaining Construction Allowance then projected to be available to cover such costs. The
balance of the remaining Construction Allowance then projected to be available will equal:
(i) the amount (if any) by which the Maximum Construction Allowance exceeds the Funded
Construction Allowance, plus (ii) any Escrowed Proceeds then available or expected to be
available to cover costs of repairs and restoration that NAI will perform as part of the
Work after a casualty or condemnation, less (iii) all projected future Carrying Costs,
Commitment Fees, Administrative Fees and other amounts to be added to the Outstanding
Construction Allowance as provided in Paragraph 3.

“Reimbursable Construction Period Costs” has the meaning indicated in subparagraph 4(A).

“Remaining Proceeds” has the meaning indicated in subparagraph 5(A).

“Scope Change” means a change to the Construction Project that, if implemented, will make
the quality, function or capacity of the Improvements “materially different” (as defined
below in this subparagraph) than as described or inferred by the site plan or plans and
renderings referenced in Exhibit B. The term “Scope Change” is not intended to
include the mere refinement, correction or detailing of the site plan, plans or renderings
submitted to BNPPLC by NAI. As used in this definition, a “material difference” means a
difference that could reasonably be expected to (a) cause the Lease Balance to exceed the
fair market value of the Property when the Construction Project is completed and all
Construction Advances required in connection therewith have been funded, or significantly
increase any such excess, (b) change the general character of the Improvements from that
needed to accommodate the uses to be permitted by subparagraph 2(A) of the Lease, or
(c) cause or exacerbate Projected Cost Overruns.

“Target Completion Date” means the date which is last day of the 18th calendar month
following the Effective Date, as such date may be extended from time to time by any
Increased Time Commitment made by BNPPLC as provided in subparagraph 7(B)(6).

“Termination of NAI’s Work” means a termination of NAI’s rights and obligations to continue
the Work because of an election to terminate made by NAI pursuant to subparagraph 7(B) or
because of an election by BNPPLC made pursuant to subparagraph 7(C).

“Third Party Contract” has the meaning indicated in subparagraph 2(A)(2)(b)1).

Construction Agreement - Page 11

 

 

“Third Party Contract/Termination Fees” means any amounts, however denominated, for which
NAI will be obligated under a Third Party Contract as a result of any election or decision
by NAI to terminate such Third Party Contract, including demobilization costs; provided,
however, amounts payable only by reason of Prior Work as of the date of any such termination
will not be characterized as Third Party Contract/Termination Fees. If NAI reserves an
absolute express right in a Third Party Contract to terminate such contract at any time,
without cause, for a specified U.S. dollar amount, such amount will constitute a Third Party
Contract/Termination Fee. If no such right is reserved in a Third Party Contract, the
amount of damages that NAI is required to pay (in addition to payments required for Prior
Work) upon a repudiation of the Third Party Contract by NAI will qualify as a “Third Party
Contract/Termination Fee” applicable to such contract for purposes of this Agreement.

“Timing or Budget Shortfall” means that, as of any time prior to the Completion Date, (i)
the remaining available Construction Allowance will not be sufficient to cover Reimbursable
Construction Period Costs yet to be paid or reimbursed from Construction Advances (x)
because the cost of the Work exceeds budgeted expectations (resulting in Projected Cost
Overruns) through no fault of NAI or its employees or any other party acting under NAI’s
control or with the approval or authorization of NAI, (y) because of any Pre-lease Force
Majeure Event or (z) because NAI can no longer satisfy conditions to BNPPLC’s obligation to
provide further Construction Advances, or (ii) the Work will not be substantially completed
prior to the Target Completion Date through no fault of NAI or its employees or any other
party acting under NAI’s control or with the approval or authorization of NAI. As used in
this definition with respect to any party, the term “fault” will not include inadequate
estimation of time or dollars unless shown to be caused by the negligence or wilful
misconduct of that party.

“Work” has the meaning indicated in subparagraph 2(A)(2)(a).

“Work/Suspension Event” means any of the following:

     (1) Projected Cost Overruns have become more likely than not, in BNPPLC’s good
faith judgment (taking into account any notices or Construction Draw Requests from NAI
indicating that a Pre-lease Force Majeure Event may result in Projected Cost Overruns), and
BNPPLC has notified NAI of such judgement and the reasons therefor.

     (2) Delays in the Work (including any delays resulting from damage to the Property by
fire or other casualty or from any taking of any part of the Property by condemnation) have
made it substantially unlikely, in BNPPLC’s good faith judgment, that
NAI will be able to complete the Construction Project in accordance with the
requirements of this Agreement prior to the Target Completion Date using only the funds

Construction Agreement - Page 12

 

 

available to NAI under this Agreement, and BNPPLC has notified NAI of such judgement and the
reasons therefor.

     (3) BNPPLC has requested with respect to any Construction Advance, but NAI has failed
to provide within thirty days after receipt of the request: (1) invoices, requests for
payment from contractors and other evidence reasonably establishing that the costs and
expenses for which NAI has requested or is requesting reimbursement constitute actual
Reimbursable Construction Period Costs, and (2) canceled checks, lien waivers or other
evidence reasonably establishing that all prior Construction Advances paid to NAI have been
used by NAI to pay the Reimbursable Construction Period Costs for which the prior advances
were requested and made.

“Work/Suspension Notice” means a notice from BNPPLC to NAI advising NAI of any event or
circumstances that constitute a Work/Suspension Event and advising NAI that (1) before the
Work/Suspension Event is rectified BNPPLC may limit Construction Advances to NAI as
permitted by this Agreement, and (2) unless NAI does rectify the Work/Suspension Event
within thirty days after NAI’s receipt of such notice, BNPPLC may elect to send an FOCB
Notice in anticipation of a Termination of NAI’s Work.

“Work/Suspension Period” means any period (1) beginning with the date of any Work/Suspension
Notice, FOCB Notice or Notice of NAI’s Intent to Terminate, and (2) ending on the earlier of
(a) the first date upon which (i) no Work/Suspension Events are continuing, (ii) all
previous FOCB Notices and Notices of NAI’s Intent to Terminate (if any) have been rescinded,
and (iii) no 97-10/Meltdown Events have occurred, or (b) the effective date of any
Termination of NAI’s Work as described in subparagraph 7(B) or subparagraph 7(C).

Construction Agreement - Page 13

 

 

2 Construction and Management of the Property by NAI.

     (A) The Construction Project.

     (1) Construction Approvals by BNPPLC.

     (a) Preconstruction Approvals by BNPPLC. NAI has submitted and obtained
BNPPLC’s approval of the site plan and descriptions of the Construction Project
referenced in Exhibit B. Also set forth in Exhibit B is a general
description of the Construction Project. The Construction Project, as constructed by
NAI pursuant to this Agreement, and all construction contracts and other agreements
executed or adopted by NAI in connection therewith, must not be inconsistent in any
material respect with the plans or other items referenced in Exhibit B,
except to the extent otherwise provided by any Scope Change approved by BNPPLC and
except as otherwise provided in subparagraph 8(A) if BNPPLC should make an Owner’s
Election to Continue Construction after any Termination of NAI’s Work.

     (b) Approval of Scope Changes. Before making a Scope Change, NAI must
provide to BNPPLC a reasonably detailed written description of the Scope Change, a
revised Construction Budget and a copy of any changes to the drawings, plans and
specifications for the Improvements required in connection therewith, all of which
must be approved in writing by BNPPLC before the Scope Change is implemented. After
receiving such items, BNPPLC will endeavor in good faith to respond promptly (and in
any event no later than thirty days after such receipt) to any request by NAI for
approval of the Scope Change. BNPPLC will not, however, be liable for any failure
to provide a prompt response. Further, BNPPLC’s approval will not in any event
constitute a waiver of subparagraph 2(A)(3) or of any other provision of this
Agreement or other Operative Documents.

     (2) NAI’s Right to Possession and to Control Construction. Subject to the terms
and conditions set forth in this Agreement, and prior to any Termination of NAI’s Work as
provided in subparagraphs 7(B) and 7(C), NAI will have possession of the Land and all
Improvements on the Land to the exclusion of BNPPLC and will have the sole right to control
and the sole responsibility for the design and construction of the Construction Project,
including the means, methods, sequences and procedures implemented to accomplish such design
and construction. Although title to all Improvements will vest in BNPPLC (as more
particularly provided in subparagraph 2(C)), BNPPLC’s obligation with respect to the
Construction Project will be limited to the making of advances under and subject to the
conditions set forth in this

Construction Agreement - Page 14

 

 

Agreement. Without limiting the foregoing, NAI acknowledges and
agrees that:

     (a) Performance of the Work. Except as provided in subparagraphs 7(A)
and 7(D), NAI must, using its best skill and judgment and in an expeditious and
economical manner not inconsistent with the interests of BNPPLC, perform or cause to
be performed all work required, and must provide or cause to be provided all
supplies and materials required, to design and complete construction of the
Construction Project (collectively, the “Work”) no later than the Target Completion
Date. The Work will include obtaining all necessary building permits and other
governmental approvals required in connection with the design and construction of
the Construction Project, or required in connection with the use and occupancy
thereof (e.g., certificates of occupancy). The Work will also include any repairs or
restoration required because of damage to Improvements by fire or other casualty
prior to the Completion Date (a “Pre-lease Casualty”); provided, however, the cost
of any such repairs or restoration will be subject to reimbursement not only through
Construction Advances made to NAI on and subject to the terms and conditions of this
Agreement, but also through the application of Escrowed Proceeds as provided in
Paragraph 5; and, provided further, like other Work, any such repairs and
restoration to be provided by NAI will be subject to subparagraphs 7(A) and 7(B),
which establish certain rights of NAI to suspend or discontinue any Work. NAI will
carefully schedule and supervise all Work, will check all materials and services
used in connection with all Work and will keep full and detailed accounts as may be
necessary to document expenditures made or expenses incurred for the Work.

     (b) Third Party Contracts.

     1) NAI will not enter into any construction contract or other agreement
with a third party concerning the Work or the Construction Project (a “Third
Party Contract”) in the name of BNPPLC or otherwise purport to bind BNPPLC
to any obligation to any third party.

     2) In any Third Party Contract between NAI and any of its Affiliates
(an “Affiliate’s Contract”) NAI must reserve the right to terminate such
contract at any time, without cause, and without subjecting NAI to liability
for any Third Party Contract/Termination Fee. Further, NAI must not enter
into any Affiliate’s Contract that obligates NAI to pay more than would be
required under an arms-length contract or that would require NAI to pay its
Affiliate any amount in excess of the sum of actual, out-of-pocket direct
costs and internal labor costs incurred by the Affiliate to perform such
contract.

Construction Agreement - Page 15

 

 

     (c) Adequacy of Drawings, Specifications and Budgets. BNPPLC has
not made and will not make any representations as to the adequacy of the
Construction Budget or any other budget or any site plans, renderings, plans,
drawings or specifications for the Construction Project, and no modification of any
such budgets, site plans, renderings, plans, drawings or specifications that may be
required from time to time will entitle NAI to any adjustment in the Construction
Allowance.

     (d) Existing Condition of the Land and Improvements. NAI is familiar
with the conditions of the Land and any existing Improvements on the Land. NAI will
have no claim for damages against BNPPLC or for an increase in the Construction
Allowance or for an extension of the deadline specified in subparagraph 2(A)(2)(a)
for completing the Work by reason of any condition (concealed or otherwise) of or
affecting the Land or Improvements.

     (e) Correction of Defective Work. NAI will promptly correct all Work
performed prior to any Termination of NAI’s Work that does not comply with the
requirements of this Agreement for any reason other than a Pre-lease Casualty
(“Defective Work”). If NAI fails to correct any Defective Work or fails to carry out
Work in accordance with this Agreement, BNPPLC may (but will not be required to)
order NAI to stop all Work until the cause for such failure has been eliminated.

     (f) Clean Up. Upon the completion of all Work, NAI will remove all
waste material and rubbish from and about the Land, as well as all tools,
construction equipment, machinery and surplus materials. NAI will keep the Land and
the Improvements thereon in a reasonably safe and sightly condition as Work
progresses.

     (g) No Damage for Delays. NAI will have no claim for damages
against BNPPLC or for an increase in the Construction Allowance by reason of any
delay in the performance of any Work. Nor will NAI have any claim for an extension
of the deadline specified in subparagraph 2(A)(2)(a) for completing the Work because
of any such period of delay, except that (i) in the case of any Pre-lease Force
Majeure Delays, NAI will have certain rights as set forth in subparagraph 7(B) and
other provisions of this Agreement, and (ii) in the event of intentional
interference with the Work by BNPPLC itself for which NAI provides written notice to
cease, NAI will be entitled to an extension of the deadline specified in
subparagraph 2(A)(2)(a) as needed because of any delays resulting from such
intentional interference. It is also understood that any such intentional

Construction Agreement - Page 16

 

 

interference by BNPPLC will constitute a Force Majeure Event. In no event, however,
will BNPPLC’s exercise of its rights and remedies permitted under this Agreement or
the other Operative Documents be construed as intentional interference with
NAI’s performance of any Work; and thus neither BNPPLC’s exercise of its right to
withhold Construction Advances at any time when NAI has failed to satisfy all
conditions herein to such advances, nor BNPPLC’s exercise of its right to terminate
Work by NAI as provided in subparagraph 7(C), be considered as intentional
interference with the Work or a Pre-lease Force Majeure Event.

     (h) No Fee For Construction Management. NAI will have no claim under
this Agreement for any fee or other compensation or for any reimbursement of
internal administrative or overhead expenses (other than the out-of-pocket overhead
expenses properly included in the Construction Budget, if any), it being understood
that NAI is executing this Agreement in consideration of the rights expressly
granted to it herein and in the other Operative Documents.

     (3) Quality of Work. NAI will cause the Work undertaken and administered by it
pursuant to this Agreement to be performed (a) in a safe and good and workmanlike manner,
(b) in accordance with Applicable Laws, and (c) in compliance with the provisions of this
Agreement and the material provisions of the Permitted Encumbrances.

     (B) Completion Notice. Within fifteen Business Days after NAI substantially completes
construction of the Construction Project and obtains any certificate of occupancy or other permit
(temporary or permanent) required by Applicable Laws for the commencement of NAI’s use and
occupancy of the Improvements, NAI must provide a notice (a “Completion Notice”) to BNPPLC,
advising BNPPLC thereof, and thereby establish the Completion Date. For purposes of this
Agreement and the other Operative Documents, BNPPLC will be entitled to rely without investigation
upon any such notice given by NAI as evidence that NAI has, in fact, substantially completed the
Construction Project and has obtained any certificate of occupancy or other permit (temporary or
permanent) required for the commencement of NAI’s use of the Improvements, and after giving any
such notice NAI will be estopped from later claiming that the Completion Date has not occurred.

     (C) Status of Property Acquired With BNPPLC’s Funds. All Improvements
constructed on the Land as provided in this Agreement will constitute “Property” for purposes of
the Lease and other Operative Documents. Further, to the extent heretofore or hereafter acquired
(in whole or in part) with any portion of the Initial Advance or with any Construction Advances or
with other funds for which NAI receives reimbursement from the Initial Advance or Construction
Advances, all furnishings, furniture, chattels, permits, licenses, franchises, certificates and
other personal property of whatever nature will be considered as having been

Construction Agreement - Page 17

 

 

acquired on behalf of
BNPPLC by NAI and will constitute “Property” for purposes of the Lease and other Operative
Documents, as will all renewals or replacements of or substitutions for any such Property. The
parties intend that title to the Improvements and to any other such Property
will vest in BNPPLC without passing through NAI or NAI’s Affiliates before it is transferred
to BNPPLC from contractors, suppliers, vendors or other third Persons, but with the understanding
that all such Property will be accepted by BNPPLC subject to the terms and conditions of the other
Operative Documents, including subparagraph 4(C)(1) of the Lease (concerning the
characterization of the Lease and other Operative Documents for tax and certain other purposes).
Although nothing herein constitutes authorization of NAI by BNPPLC to bind BNPPLC to any
construction contract or other agreement with a third Person, any construction contract or other
agreement executed by NAI for the acquisition or construction of Improvements or other components
of the Property may, as NAI deems appropriate, provide for the direct transfer of title to BNPPLC
as described in the preceding sentence.

     (D) Insurance.

     (1) Liability Insurance. Throughout the period prior to any Termination of
NAI’s Work, NAI must maintain commercial general liability insurance against claims for
bodily and personal injury, death and property damage occurring in or upon or resulting from
any occurrence in or upon the Property under one or more insurance policies that satisfy the
Minimum Insurance Requirements, which are set forth in an exhibit to the Common Definitions
and Provisions Agreement. NAI must deliver and maintain with BNPPLC for each liability
insurance policy required by this Agreement written confirmation of the policy and the scope
of the coverage provided thereby issued by the applicable insurer or its authorized agent,
which confirmation must also satisfy the Minimum Insurance Requirements.

     (2) Property Insurance. Throughout the period prior to any Termination
of NAI’s Work, NAI must also keep all Improvements (including all alterations, additions and
changes made to the Improvements) insured against fire and other casualty under one or more
property insurance policies that satisfy the Minimum Insurance Requirements. NAI must
deliver and maintain with BNPPLC for each property insurance policy required by this
Agreement written confirmation of the policy and the scope of the coverage provided thereby
issued by the applicable insurer or its authorized agent, which confirmation must also
satisfy the Minimum Insurance Requirements. If any of the Property is destroyed or damaged
by fire, explosion, windstorm, hail or by any other casualty against which insurance has
been required hereunder, (i) BNPPLC may, but will not be obligated to, make proof of loss if
not made promptly by NAI after notice from BNPPLC, (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 5, and (iii) BNPPLC may settle, adjust or compromise
any and all claims for

Construction Agreement - Page 18

 

 

loss, damage or destruction under any policy or policies of insurance
(provided, that so long as no 97-10/Meltdown Event has occurred and no Event of Default has
occurred and is continuing, BNPPLC must provide NAI with at least forty-five days notice of
BNPPLC’s intention to settle any such
claim before settling it unless NAI has already approved of the settlement by BNPPLC).
BNPPLC will not in any event or circumstances be liable or responsible for failure to
collect, or to exercise diligence in the collection of, any insurance proceeds. If any
casualty results in damage to or loss or destruction of the Property, NAI must give prompt
notice thereof to BNPPLC and Paragraph 5 will apply.

     (3) Failure of NAI to Obtain Insurance. If NAI fails to obtain any insurance
or to provide confirmation of any insurance as required by this Agreement, BNPPLC will be
entitled (but not required) to obtain the insurance that NAI has failed to obtain or for
which NAI has not provided the required confirmation and, without limiting BNPPLC’s other
remedies under the circumstances, BNPPLC may charge the cost of such insurance against the
Construction Allowance as if it were a Construction Advance paid to NAI as hereinafter
provided.

     (4) Waiver of Subrogation. NAI, for itself and for any Person claiming through
it (including any insurance company claiming by way of subrogation), waives any and every
claim which arises or may arise in its favor against BNPPLC or any other Interested Party
for any and all Losses, to the extent that NAI is compensated by insurance or would be
compensated by the insurance policies contemplated in this Agreement, but for any deductible
or self-insured retention maintained under such insurance or but for a failure of NAI to
maintain the insurance as required by this Agreement. NAI agrees to have such insurance
policies properly endorsed so as to make them valid notwithstanding this waiver, if such
endorsement is required to prevent a loss of insurance.

     (E) Condemnation. Immediately upon obtaining knowledge of the institution of
any proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party must promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings. Prior to
any Termination of NAI’s Work, NAI must, if requested by BNPPLC, diligently prosecute any such
proceedings and consult with BNPPLC, its attorneys and experts and cooperate with them as
reasonably requested in the carrying on or defense of any such proceedings. All proceeds of
condemnation awards or proceeds of sale in lieu of condemnation with respect to the Property and
all judgments, decrees and awards for injury or damage to the Property will be paid to BNPPLC as
Escrowed Proceeds, and all such proceeds will be applied as provided in Paragraph 5. BNPPLC is
hereby authorized, in its own name or in the name of

Construction Agreement - Page 19

 

 

NAI or in the name of both, to settle and
deliver valid acquittances for, or to challenge and to appeal from, any such judgment, decree or
award concerning condemnation of any of the Property (provided, that so long as no 97-10/Meltdown
Event has occurred and no Event of Default has occurred and is continuing, BNPPLC must provide NAI
with at least forty-five days notice of
BNPPLC’s intention to settle any such claim before settling it unless NAI has already approved
of the settlement by BNPPLC). BNPPLC will not in any event or circumstances be liable or
responsible for failure to collect, or to exercise diligence in the collection of, any such
proceeds, judgments, decrees or awards.

     (F) Additional Representations, Warranties and Covenants of NAI Concerning the
Property. Without limiting the rights granted to NAI by other provisions of this Agreement to
be reimbursed from Construction Advances for the cost of complying with the following, NAI
represents, warrants and covenants as follows:

     (1) Payment of Local Impositions. Throughout the period prior to any
Termination of NAI’s Work, NAI must pay or cause to be paid prior to delinquency all ad
valorem taxes assessed against the Property and other Local Impositions. If requested by
BNPPLC from time to time, NAI will furnish BNPPLC with receipts or other appropriate
evidence showing payment of all Local Impositions prior to the applicable delinquency date
therefor.

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

Construction Agreement - Page 20

 

 

     (2) Operation and Maintenance. Throughout the period prior to any
Termination of NAI’s Work, NAI must operate and maintain the Property in a good and
workmanlike manner and in compliance with Applicable Laws in all material respects and pay
or cause to be paid all fees or charges of any kind in connection therewith. (If NAI
does not promptly correct any failure of the Property to comply with Applicable Laws
that is the subject of a written complaint or demand for corrective action given by any
Governmental Authority to NAI, or to BNPPLC and forwarded by it to NAI, then for purposes of
the preceding sentence, NAI will be considered not to have maintained the Property “in
compliance with all Applicable Laws in all material respects” whether or not the
noncompliance would be material in the absence of the complaint or demand.) NAI must not
use or occupy, or allow the use or occupancy of, the Property in any manner which violates
any Applicable Law or which constitutes a public or private nuisance or which makes void,
voidable or cancelable any insurance then in force with respect thereto. Without limiting
the generality of the foregoing, NAI must not conduct or permit others to conduct Hazardous
Substance Activities on the Property, except Permitted Hazardous Substance Use and Remedial
Work; and NAI must not discharge or permit the discharge of anything (including Permitted
Hazardous Substances) on or from the Property that would require any permit under applicable
Environmental Laws, other than (1) storm water runoff, (2) fume hood emissions, (3) waste
water discharges through a publicly owned treatment works, (4) discharges that are a
necessary part of any Remedial Work, and (5) other similar discharges consistent with the
definition of Permitted Hazardous Substance Use which do not significantly increase the risk
of Environmental Losses to BNPPLC, in each case in strict compliance with Environmental
Laws. To the extent that any of the following would, individually or in the aggregate,
increase the likelihood of a 97-10/Meltdown Event or materially and adversely affect the
value of the Property or the use of the Property for purposes permitted by this Agreement,
NAI must not, without BNPPLC’s prior consent: (i) initiate or permit any zoning
reclassification of the Property; (ii) seek any variance under existing zoning ordinances
applicable to the Property; (iii) use or permit the use of the Property in a manner that
would result in such use becoming a nonconforming use under applicable zoning ordinances or
similar laws, rules or regulations; (iv) execute or file any subdivision plat affecting the
Property; or (v) consent to the annexation of the Property to any municipality. NAI will not
cause or permit any drilling or exploration for, or extraction, removal or production of,
minerals from the surface or subsurface of the Property, and NAI must not do anything that
could reasonably be expected to significantly reduce the market value of the Property. If
NAI receives a notice or claim from any federal, state or other governmental authority that
the Property is not in compliance with any Applicable Law, or that any action may be taken
against BNPPLC because the Property does not comply with any Applicable Law, NAI must
promptly furnish a copy of such notice or claim to BNPPLC.

Construction Agreement - Page 21

 

 

     (3) Debts for Construction, Maintenance, Operation or Development. NAI
must promptly pay or cause to be paid all debts and liabilities incurred by it or its
contractors or subcontractors in the construction, maintenance, operation or development of
the Property. Such debts and liabilities will include those incurred for labor, material
and equipment and all debts and charges for utilities servicing the Property.

     (4) Permitted Encumbrances and the Ground Lease. NAI must comply with and will
cause to be performed all of the covenants, agreements and obligations imposed upon the
owner of any interest in the Property by the Permitted Encumbrances or the Ground Lease
throughout the period prior to any Termination of NAI’s Work. NAI must not, without the
prior consent of BNPPLC, 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 encumbering BNPPLC’s
interest in the Property. (Whether BNPPLC must give any such consent requested by NAI prior
to the Completion Date will be governed by subparagraph 4(C) of the Closing
Certificate.)

     (5) Books and Records Concerning the Property. NAI must keep books and records
that are accurate and complete in all material respects for NAI’s construction and
management of the Property as contemplated in this Agreement and must permit all such books
and records (including all contracts, statements, invoices, bills and claims for labor,
materials and services supplied for the construction and operation of any Improvements) to
be inspected and copied by BNPPLC.

     (G) BNPPLC’s Right of Access.

     (1) Access Generally. BNPPLC and BNPPLC’s representatives may enter the
Property at any time for the purpose of making inspections or performing any work BNPPLC is
authorized to undertake by the next subparagraph or for the purpose confirming whether NAI
has complied with the requirements of this Agreement or the other Operative Documents.
However, prior to any Termination of NAI’s Work, BNPPLC or BNPPLC’s representative will,
before making any entry upon the Property or performing any work on the Property authorized
by this Agreement, do the following

     (a) BNPPLC will give NAI at least 24 hours notice, unless BNPPLC believes in
good faith that an emergency may exist or a Default has occurred and is continuing,
because of which significant damage to the Property or other significant Losses may
be sustained if BNPPLC delays entry to the Property; and

     (b) if then requested to do so by NAI in order to maintain NAI’s

Construction Agreement - Page 22

 

 

security, BNPPLC or its representative will: (i) sign in at NAI’s security or
information desk if NAI has such a desk on the premises, (ii) wear a visitor’s badge
or other reasonable identification, (iii) permit an employee of NAI to observe such
inspection or work, and (iv) comply with other similar reasonable nondiscriminatory
security requirements of NAI that do not, individually or in the aggregate,
significantly interfere with inspections or work of BNPPLC authorized
by this Agreement.

     (2) Failure of NAI to Perform. If NAI fails to perform any act or to take any
action required of it by this Agreement or other Operative Documents, or to pay any money
which NAI is required by this Agreement or other Operative Documents to pay, and if such
failure or action constitutes an Event of Default or renders BNPPLC or any director,
officer, employee or Affiliate of BNPPLC at risk of criminal prosecution or renders BNPPLC’s
interest in the Property or any part thereof at risk of forfeiture by forced sale or
otherwise, then in addition to any other remedies specified herein or otherwise available,
BNPPLC may, perform or cause to be performed such act or take such action or pay such money.
(To the extent that expenses so incurred by BNPPLC, or money so paid by BNPPLC, qualify as a
Covered Construction Period Losses, NAI must pay the same to BNPPLC upon demand. If any
such expenses incurred or money paid do not qualify as Covered Construction Period Losses,
but do constitute 97-10/Project Costs, BNPPLC may treat them as Construction Advances
hereunder. To the extent that any such expenses incurred or money paid do not qualify as
Covered Construction Period Losses and do constitute 97-10/Project Costs, they will be
included — with interest — in the Balance of Unpaid Covered Construction Period Losses under
and as defined in the Purchase Agreement.) Further, BNPPLC, upon making such payment, will
be subrogated to all of the rights of the person, corporation or body politic receiving such
payment. But nothing herein will imply any duty upon the part of BNPPLC to do any work
which, under any provision of this Agreement or otherwise, NAI may be required to perform,
and the performance thereof by BNPPLC will not constitute a waiver of NAI’s default. BNPPLC
may during the progress of any such work permitted by BNPPLC hereunder on or in the Property
keep and store upon the Property all necessary materials, tools, and equipment. BNPPLC will
not in any event be liable for inconvenience, annoyance, disturbance, loss of business, or
other damage to NAI or the subtenants or invitees of NAI by reason of BNPPLC’s performance
of any such work, or on account of bringing materials, supplies and equipment into or
through the Property during the course of such work, and the obligations of NAI under this
Agreement and the other Operative Documents will not thereby be excused in any manner.

     3 Amounts to be Added to the Lease Balance (in Addition to Construction Advances).

Construction Agreement - Page 23

 

 

     (A) Initial Advance. Upon execution and delivery of this Agreement by BNPPLC,
an advance (the “Initial Advance”) will be made by BNPPLC to cover the cost of certain Transaction
Expenses and other amounts described in this subparagraph. The amount of the Initial Advance, which
will be included in the Lease Balance, may be confirmed by a separate closing certificate executed
by NAI as of the Effective Date. An arrangement fee (the “Arrangement
Fee”) and an initial administrative agency fee (an “Administrative Fee”) will all be paid from
the Initial Advance (and thus be included in the Lease Balance) in the amounts provided in the Term
Sheet. To the extent that BNPPLC does not itself use the entire the Initial Advance to pay such
fees and Transaction Expenses incurred by BNPPLC, the remainder thereof will be advanced to NAI,
with the understanding that NAI will use any such amount advanced for one or more of the following
purposes: (1) the payment or reimbursement of Transaction Expenses incurred by NAI and all “soft
costs” incurred by NAI in connection with the planning, design, engineering, construction and
permitting of the Construction Project; (2) the maintenance of the Property; or (3) the payment of
other amounts due pursuant to the Operative Documents. (Before executing the separate closing
certificate to confirm the Initial Advance, NAI will make a reasonable effort to determine all
prior expenses incurred by it as described in clause (1) of the preceding sentence and to request
an Initial Advance sufficient in amount to cover all such expenses in addition to the Arrangement
Fee, the initial Administrative Fee and all Transaction Expenses incurred by BNPPLC. However, no
failure by NAI to identify and include all such expenses in the amount of the requested Initial
Advance will preclude NAI from requesting reimbursement for the same through a subsequent
Construction Advance as provided in Paragraph 4. Reimbursable Construction Period Costs to be paid
or reimbursed pursuant to Paragraph 4 will not be limited to those incurred after the Effective
Date.)

Construction Agreement - Page 24

 

 

     (B) Carrying Costs. For each Construction Period certain charges (“Carrying Costs”)
will accrue and be added to the Outstanding Construction Allowance on the last day of such
Construction Period (i.e., generally on the Advance Date upon which such Construction Period ends).
If, however, for any reason the Lease Balance (and thus the Outstanding Construction Allowance
included as a component thereof) must be determined as of any date between Advance Dates, the
Outstanding Construction Allowance determined on such date will include not only Carrying Costs
added on or before the immediately preceding Advance Date computed as described below, but also
Carrying Costs accruing on and after such preceding Advance Date to but not including the date in
question. Carrying Costs accruing for any Construction Period will be equal to:

	 	•	 	the amount equal on the first day of such Construction Period
to the Lease Balance, times
	 
	 	•	 	the sum of the Effective Rate and the Spread for such
Construction Period, times
	 
	 	•	 	a fraction, the numerator of which is the number of days in
such Construction Period and the denominator of which is three hundred sixty.

     (C) Commitment Fees. For each Construction Period additional charges
(“Commitment Fees”) will accrue and be added to the Outstanding Construction Allowance on the last
day of such Construction Period (i.e., generally on the Advance Date upon which such
Construction Period ends). If, however, for any reason the Lease Balance (and thus the
Outstanding Construction Allowance included as a component thereof) must be determined as of any
date between Advance Dates, the Outstanding Construction Allowance determined on such date will
include not only Commitment Fees added on or before the immediately preceding Advance Date computed
as described below, but also Commitment Fees accruing on and after such preceding Advance Date to
but not including the date in question. Commitment Fees for each Construction Period will be
computed as follows:

	 	•	 	the Commitment Fee Rate for such Construction Period, times an
amount equal to:

	 	(1)	 	the Maximum Construction Allowance, less
	 
	 	(2)	 	the Funded Construction Allowance on the first day of such Construction
Period; times

	 	•	 	the number of days in such Construction Period; divided by
	 
	 	•	 	three hundred sixty.

 

Construction Agreement - Page 25

 

     (D) Future Administrative Fees and Out-of-Pocket Costs. If the Completion Date does
not occur prior to the first anniversary of the Effective Date, then on each anniversary of the
Effective Date prior to the Completion Date, an administrative agency fee (also, an “Administrative
Fee”) will be added to the Outstanding Construction Allowance by BNPPLC in the amount provided in
the Term Sheet. Also, to the extent that BNPPLC incurs any out-of-pocket costs prior to the
Completion Date with respect to the administration of or performance of its obligations under this
Agreement or other Operative Documents (e.g., any rents required by the Ground Lease and any
Attorneys’ Fees or other costs incurred to evaluate lien releases and other information submitted
by NAI with requests for Construction Advances), BNPPLC may add such costs to the Outstanding
Construction Allowance from time to time.

     (E) Increased Cost Charges and Capital Adequacy Charges.

     (1) If after the Effective Date there is any increase in the cost to BNPPLC’s
Parent or any other Participant agreeing to make or making, funding or maintaining advances
to BNPPLC in connection with the Property because of any Banking Rules Change, then BNPPLC
may agree or become obligated to pay to BNPPLC’s Parent or such other Participant, as the
case may be, additional amounts (“Increased Cost Charges”) sufficient to compensate BNPPLC’s
Parent or the Participant for such increased costs. Any Increased Cost Charges paid by
BNPPLC or for which BNPPLC becomes obligated to pay, prior to the Completion Date, will be
added to the Outstanding
Construction Allowance by BNPPLC.

     (2) BNPPLC’s Parent or any other Participant may demand additional payments (“Capital
Adequacy Charges”) if BNPPLC’s Parent or the other Participant determines that any Banking
Rules Change affects the amount of capital to be maintained by it and that the amount of
such capital is increased by or based upon the existence of advances made or to be made to
BNPPLC to permit BNPPLC to maintain BNPPLC’s investment in the Property or to make
Construction Advances. To the extent that BNPPLC’s Parent or a Participant demands Capital
Adequacy Charges as compensation for the additional capital requirements reasonably
allocable to such investment or advances, and BNPPLC pays or becomes obligated to pay to
BNPPLC’s Parent or the other Participant the amount so demanded prior to the Completion
Date, such amount will also be added to the Outstanding Construction Allowance by BNPPLC.

     (3) Notwithstanding the foregoing provisions of this subparagraph 3(E), the Outstanding
Construction Allowance will not be increased by Increased Cost Charges or Capital Adequacy
Charges that arise or accrue (a) as a result of any change in the rating assigned to BNPPLC
by rating agencies or bank regulators in regard to BNPPLC’s creditworthiness, record keeping
or failure to comply with Applicable Laws (including

 

Construction Agreement - Page 26

 

U.S. banking regulations applicable to
subsidiaries of a bank holding company), or (b) more than nine months prior to the date NAI
is notified of the intent of BNPPLC’s Parent or a Participant to make a claim for such
charges; provided, that if the Banking Rules Change which results in a claim for
compensation is retroactive, then the nine month period will be extended to include the
period of the retroactive effect of such Banking Rules Change. Further, BNPPLC will cause
BNPPLC’s Parent and any Participant that is an Affiliate of BNPPLC to use commercially
reasonable efforts to reduce or eliminate any claim for compensation pursuant to this
subparagraph 3(E), including a change in the office of BNPPLC’s Parent or such Participant
through which it provides and maintains Funding Advances if such change will avoid the need
for, or reduce the amount of, such compensation and will not, in the reasonable judgment of
BNPPLC’s Parent or such Participant, be otherwise disadvantageous to it. It is understood
that NAI may also request similar commercial reasonable efforts on the part of any
Participant that is not an Affiliate of BNPPLC, but if a claim for additional compensation
by any such Participant is not eliminated or waived, then NAI may request that BNPPLC
replace such Participant under the Participation Agreement.

     (F) Ground Lease Payments. All rentals payable by BNPPLC under the Ground Lease
prior to the Completion Date (“Ground Lease Rents”) will be added to the Outstanding Construction
Allowance by BNPPLC on the date paid.

     4 Construction Advances.

     (A) Costs Subject to Reimbursement Through Construction Advances. Subject to the terms
and conditions set forth herein, NAI will be entitled to a Construction Allowance, from which
BNPPLC will make Construction Advances on Advance Dates from time to time to pay or reimburse NAI
for the following costs (“Reimbursable Construction Period Costs”) to the extent the following
costs are not already included in Transaction Expenses paid by BNPPLC from the Initial Advance:

     (1) the actual costs and expenses incurred or paid by NAI for the preparation,
negotiation and execution of this Agreement and the other Operative Documents;

     (2) costs of the Work, including not only hard costs incurred for the new Improvements
described in Exhibit B, but also the following costs to the extent reasonably
incurred in connection with the Construction Project:

	 	•	 	soft costs payable to third parties (whether or not incurred
prior to the Effective Date), such as legal fees, architectural fees,
engineering fees, construction management fees, transaction management fees and
fees and 

 

Construction Agreement - Page 27

 

	 	 	 	costs paid in connection with obtaining project permits and approvals
required by governmental authorities or any of the Permitted Encumbrances,

	 	•	 	site preparation costs,
	 
	 	•	 	costs of offsite and other public improvements required as
conditions of governmental approvals for the Construction Project, and
	 
	 	•	 	to the extent that funds from the Construction Allowance can be
used for such costs without causing Projected Cost Overruns, the costs of
constructing parking lots, driveways and other improvements on the land subject
to the Appurtenant Easements;

     (3) the cost of title insurance in favor of BNPPLC and of maintaining other insurance
required by (and consistent with the requirements of) this Agreement prior to the Completion
Date, and costs of repairing any damage to the Improvements caused by a Pre-lease Casualty
to the extent such costs are not covered by Escrowed Proceeds made available to NAI as
provided herein prior to the Completion Date;

     (4) Local Impositions that accrue or become due prior to the Completion Date;

     (5) reasonable and ordinary out-of-pocket costs of operating and maintaining
the Property prior to the Completion Date in accordance with the requirements of this
Agreement;

     (6) Third Party Contract/Termination Fees, not to exceed in the aggregate ten percent
(10%) of the Maximum Construction Allowance, payable by NAI in connection with any Third
Party Contract between NAI and a Person not an Affiliate of NAI because of any election by
NAI to cancel or terminate such contract during a Work/Suspension Period; and

     (7) furniture, trade fixtures and equipment and other tenant improvements to support
NAI’s use and occupancy of the Property for the permitted uses described in subparagraph
2(A) of the Lease, but that are not integral to or affixed in such a manner as to become
part of the Improvements, the aggregate cost of which does not exceed ten percent (10%) of
the Maximum Construction Allowance; provided, that no Construction Advance for furniture and
other items described in this clause will be required of BNPPLC or requested by NAI before
the Construction Project is substantially complete and substantially all other Reimbursable
Construction Period Costs have been paid or reimbursed from Construction Advances.

Construction Agreement - Page 28

 

 

     (B) Exclusions From Reimbursable Construction Period Costs. Notwithstanding anything
herein to the contrary, BNPPLC will not be required to make any Construction Advance to pay or to
reimburse or compensate NAI for Covered Construction Period Losses paid by NAI as provided in
subparagraph 10(A) or for any of the following Losses which may be incurred by NAI or any other
party:

     (1) Environmental Losses;

     (2) Losses that would not have been incurred but for any affirmative act taken by NAI
or by any of NAI’s contractors or subcontractors, which act is contrary to the other terms
and conditions of this Agreement or to the terms and conditions of the other Operative
Documents (e.g., undertaking a Scope Change without prior authorization of BNPPLC);

     (3) Losses that would not have been incurred but for any fraud, misapplication of
Construction Advances or other funds, illegal acts or willful misconduct on the part of NAI
or its employees or of any other party acting under NAI’s control or with the approval or
authorization of NAI; and

     (4) Losses that would not have been incurred but for any bankruptcy proceeding
involving NAI as the debtor.

     (C) Conditions to NAI’s Right to Receive Construction Advances. BNPPLC’s obligation to
provide Construction Advances to NAI from time to time under this Agreement will be subject to the
following terms and conditions, all of which terms and conditions are intended for the sole benefit
of BNPPLC, and none of which will limit in any way the right of BNPPLC to treat costs or
expenditures incurred or paid by or on behalf of BNPPLC as Construction Advances pursuant to
subparagraph 8(A):

     (1) Construction Advance Requests. NAI must make a written request (a
“Construction Advance Request”) for any Construction Advance, specifying the amount of such
advance, at least five Business Days prior to the Advance Date upon which the advance is to
be paid. To be effective for purposes of this Agreement, a Construction Advance Request must
be in substantially the form attached as Exhibit C. NAI will not submit more than
one Construction Advance Request in any calendar month.

Construction Agreement - Page 29

 

 

     (2) Amount of the Advances.

     (a) The Maximum Construction Allowance. NAI will not be entitled to
require any Construction Advance that would cause the Funded Construction Allowance
to exceed the Maximum Construction Allowance or that would increase the amount of
any such excess.

     (b) Costs Previously Incurred by NAI. NAI will not be entitled to
require any Construction Advance that would cause the aggregate of all Construction
Advances to exceed the sum of:

     (i) Reimbursable Construction Period Costs that NAI has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred by NAI other than for Work (e.g., Local Impositions), plus

     (ii) the Reimbursable Construction Period Costs that NAI has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred for Prior Work as of the date of the Construction Advance Request
in which NAI requests the advance.

As used in this Agreement, “Prior Work” means all labor and services actually
performed, and all materials actually delivered to the construction site, as part of
the Work in accordance with this Agreement prior to the date in question, and
“Future Work” means labor and services performed or to be performed, and materials
delivered or to be delivered, as part of the Work on or after the date in question.
For purposes of this Agreement, NAI and BNPPLC intend to allocate Reimbursable
Construction Period Costs between Prior Work and Future Work in
a manner that is generally consistent with the allocations expressed or implied in
construction-related contracts negotiated in good faith between NAI and third
parties not affiliated with NAI (e.g., a construction contractor engaged by NAI);
however, in order to verify the amount of Reimbursable Construction Period Costs
actually paid or incurred by NAI and the proper allocation thereof between Prior
Work and Future Work, BNPPLC will be entitled (but not required) to: (x) request,
receive and review copies of such agreements between NAI and third parties and of
draw requests, budgets or other supporting documents provided to NAI in connection
with or pursuant to such agreements as evidence of the allocations expressed or
implied therein, (y) from time to time engage one or more independent inspecting
architects, certified public accountants or other appropriate professional
consultants and, absent manifest error, rely without further investigation upon
their reports and recommendations, and (z) without waiving BNPPLC’s right to
challenge or verify allocations required with respect

Construction Agreement - Page 30

 

 

to future Construction
Advances, rely without investigation upon the accuracy of NAI’s own Construction
Advance Requests.

     (c) Limits During any Work/Suspension Period. Without limiting the
other terms and conditions imposed by this Agreement for the benefit of BNPPLC with
respect all Construction Advances, BNPPLC will have no obligation to make any
Construction Advance during any Work/Suspension Period that would cause the
aggregate of all Construction Advances to exceed the sum of:

     (i) Reimbursable Construction Period Costs that NAI has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred by NAI other than for Work (e.g., Local Impositions), plus

     (ii) the Reimbursable Construction Period Costs that NAI has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred for Prior Work as of the date the Work/Suspension Period commenced.

For purposes of computing the limits described in this subparagraph
4(C)(2)(c), Reimbursable Construction Period Costs “other than for Work” will
include Third Party Contract/Termination Fees that qualify as Reimbursable
Construction Period Costs pursuant to subparagraph 4(A)(6). However, as provided in
subparagraph 4(A)(6), the amount of such Third Party Contract/Termination Fees
subject to reimbursement will not in any event exceed ten percent (10%) of the
Maximum Construction Allowance. If NAI fails to manage and administer Third Party
Contracts as necessary to ensure that NAI can (at any point in time) terminate all
such contracts without becoming liable for Third Party
Contract/Termination Fees in excess of ten percent (10%) of the Maximum Construction
Allowance, then the excess will be the responsibility of NAI.

     (d) Restrictions Imposed for Administrative Convenience. NAI will not
request any Construction Advance (other than the final Construction Advance NAI
intends to request) for an amount less than $1,000,000.

     (3) No Advances After Certain Dates. BNPPLC will have no obligation to make any
Construction Advance (x) after the last Advance Date, (y) on or after the Designated Sale
Date, or (z) on or after the effective date of any Termination of NAI’s Work pursuant to
subparagraph 7(B) or subparagraph 7(C).

     (D) Breakage Costs for Construction Advances Requested But Not Taken. If NAI requests
but thereafter declines to accept any Construction Advance, or if NAI requests a

Construction Agreement - Page 31

 

 

Construction
Advance that it is not permitted to take because of its failure to satisfy any of the conditions
specified in subparagraph 4(C), BNPPLC will be entitled to add any resulting Breakage Costs to the
Outstanding Construction Allowance and the Lease Balance.

     (E) No Third Party Beneficiaries. No contractor or other third party will be entitled
to require BNPPLC to make advances as a third party beneficiary of this Agreement, and nothing
contained herein or in any of the other Operative Documents will be construed as an agreement
obligating BNPPLC to make advances to anyone other than NAI itself.

     (F) No Waiver. No funding of Construction Advances and no failure of BNPPLC to object
to any Work proposed or performed by or for NAI will constitute a waiver by BNPPLC of the
requirements contained in this Agreement.

5 Application of Insurance and Condemnation Proceeds.

     (A) Collection and Application Generally. This Paragraph 5 will govern the
application of proceeds received by BNPPLC or NAI from any third party prior to the commencement of
the Term of the Lease (1) under any property insurance policy as a result of damage to the Property
(including proceeds payable under any insurance policy covering the Property which is maintained by
NAI), (2) as compensation for any restriction placed upon the use or development of the Property or
for the condemnation of the Property or any portion thereof, or (3) because of any judgment, decree
or award for injury or damage to the Property (e.g., damage resulting from a third party’s release
of Hazardous Materials onto the Property); excluding, however, any funds paid to BNPPLC by BNPPLC’s
Parent, by an Affiliate of BNPPLC or by any Participant that is made to compensate BNPPLC for any
Losses BNPPLC may suffer or incur in connection with this Agreement or the Property. NAI will
promptly pay over to
BNPPLC any insurance, condemnation or other proceeds covered by this Paragraph 5 which NAI may
receive from any insurer, condemning authority or other third party. All proceeds covered by this
Paragraph 5, including those received by BNPPLC from NAI or third parties, will be applied as
follows:

     (1) First, proceeds covered by this Paragraph 5 will be used to reimburse BNPPLC for
any reasonable costs and expenses, including Attorneys’ Fees, that BNPPLC incurred to
collect the proceeds.

     (2) Second, the proceeds remaining after such reimbursement to BNPPLC (the “Remaining
Proceeds”) will be applied, as hereinafter more particularly provided, either as a Qualified
Prepayment or to pay or reimburse NAI or BNPPLC for the actual out-of-pocket costs of
repairing or restoring the Property. Until any Remaining Proceeds received by BNPPLC are
applied by BNPPLC as a Qualified Prepayment or applied by

Construction Agreement - Page 32

 

 

BNPPLC to reimburse costs of
repairs to or restoration of the Property pursuant to this Paragraph 5, BNPPLC will hold and
maintain such Remaining Proceeds as Escrowed Proceeds in an interest bearing account, and
all interest earned on such account will be added to and made a part of such Escrowed
Proceeds.

     (B) Advances of Escrowed Proceeds to NAI. Except as otherwise provided below in this
Paragraph 5, BNPPLC will hold all such Escrowed Proceeds until they are advanced to reimburse NAI
for the actual out-of-pocket cost to NAI of repairing or restoring the Property in accordance with
the requirements of this Agreement. BNPPLC will so advance the Escrowed Proceeds as the applicable
repair or restoration progresses and upon compliance by NAI with such conditions and requirements
as may be reasonably imposed by BNPPLC, including conditions and requirements similar to those that
set forth herein for the payment of Construction Advances. In no event, however, will BNPPLC be
required to pay Escrowed Proceeds to NAI in excess of the actual out-of-pocket cost to NAI of the
applicable repair, restoration or replacement, as evidenced by invoices or other documentation
reasonably satisfactory to BNPPLC.

     (C) Status of Escrowed Proceeds After Commencement of the Term of the Lease. Any
Remaining Proceeds governed by this Paragraph 5 which BNPPLC is continuing to hold as Escrowed
Proceeds when the Term of the Lease commences will be applied in accordance with the terms and
conditions of the Lease as if received by BNPPLC immediately after the Term commenced.

     (D) Special Provisions Applicable After a 97-10/Meltdown Event or Event of
Default. Notwithstanding the foregoing, after any 97-10/Meltdown Event and when any Event of
Default has occurred and is continuing, BNPPLC will be entitled to receive and collect all
insurance, condemnation or other proceeds governed by this Paragraph 5 and to apply all Remaining
Proceeds, when and in such order and to such extent deemed appropriate by BNPPLC in its sole
discretion, either (A) to the reimbursement of NAI or BNPPLC for the out-of-pocket cost of
repairing or restoring the Property, or (B) as Qualified Prepayments.

     (E) NAI’s Obligation to Restore. Regardless of the adequacy of any Remaining Proceeds
available to NAI hereunder, if the Property is damaged by fire or other casualty or any part of the
Property is taken by condemnation, NAI must to the maximum extent possible, as part of the Work,
restore the Property or the remainder thereof and continue construction of the Construction Project
on and subject to the terms and conditions set forth in this Agreement; provided, however, like
other Work, any such restoration and continuation of construction by NAI will be subject to
subparagraphs 7(A) and 7(B), which establish certain rights of NAI to suspend or discontinue any
Work; and, provided further, any additional costs required to complete the Construction Project
resulting from such a casualty or taking prior to the Completion Date will, to the extent not
covered by Remaining Proceeds paid to NAI as provided

Construction Agreement - Page 33

 

 

herein, be subject to reimbursement by BNPPLC
as Reimbursable Construction Period Costs on the same terms and conditions that apply to
reimbursements of other costs of the Work hereunder.

     (F) Special Provisions Concerning a Complete Taking. NAI may react to any threat of a
Complete Taking from a governmental authority by exercising NAI’s right to accelerate the
Designated Sale Date (as provided in the definition thereof) and by exercising the Purchase Option
under the Purchase Agreement. By so doing, NAI will put itself in a position to control
condemnation proceedings and to receive all proceeds of the Complete Taking. If, however, NAI does
not buy the Property pursuant to the Purchase Agreement prior to any Complete Taking, then BNPPLC
will be entitled to receive and retain all amounts paid for the Property in connection with the
Complete Taking, notwithstanding any contrary provision herein or in the other Operative Documents
and notwithstanding that such proceeds may exceed the Lease Balance.

6 Notice of Cost Overruns and Pre-lease Force Majeure Events.

     (A) Notice of Projected Cost Overruns. If, at the time NAI submits any Construction
Advance Request, NAI believes for any reason (including any damage to the Property by fire or other
casualty or any taking of any part of the Property by condemnation) that Projected Cost Overruns
are more likely than not, NAI must state such belief in the Construction Advance Request and, if
NAI can reasonably do so, NAI will estimate the approximate amount of such Projected Cost Overruns.

     (B) Pre-lease Force Majeure Event Events and Notices. NAI may from time to time
provide a notice to BNPPLC in the form attached as Exhibit D (a “Pre-lease Force Majeure
Event Notice”), describing any Pre-lease Force Majeure Event that has occurred or commenced within
the 30 days prior to such notice and setting forth NAI’s preliminary good faith estimate of
any Pre-lease Force Majeure Delays, Pre-lease Force Majeure Losses and Pre-lease Force Majeure
Excess Costs that are likely to result from such event. BNPPLC will have the option to respond to
any Pre-lease Force Majeure Event Notice with an FOCB Notice or, alternatively and if applicable,
with an Increased Commitment as provided in subparagraph 7(B)(6).

7 Suspension and Termination of NAI’s Work.

     (A) Rights and Obligations During a Work/Suspension Period. During any Work/Suspension
Period, NAI will have the right to suspend the Work; however, the obligations of NAI which are to
survive any Termination of NAI’s Work as provided in subparagraph 7(D) will continue and survive
during any Work/Suspension Period.

     (B) NAI’s Election to Terminate NAI’s Work. NAI may elect to terminate its rights and
obligations to continue Work at any time prior to the Completion Date if at such time NAI

Construction Agreement - Page 34

 

 

believes
in good faith that a Timing or Budget Shortfall exists. To be effective, however, any such
election by NAI must be made in accordance with the following provisions:

     (1) Any such election by NAI to terminate its rights and obligations to continue the
Work must be made by notice to BNPPLC in the form of Exhibit E (a “Notice of
Termination by NAI”).

     (2) At least forty-five days before giving any such Notice of Termination by NAI, NAI
must give a notice of NAI’s intent to terminate to BNPPLC in the form of Exhibit F
(a “Notice of NAI’s Intent to Terminate”), and the Notice of NAI’s Intent to Terminate must
state the reasons, in NAI’s good faith determination, for the Timing or Budget Shortfall.

     (3) Without limiting the forgoing, prior to giving any Notice of Termination by NAI
predicated upon NAI’s belief that the remaining available Construction Allowance will not be
sufficient only because of Pre-lease Force Majeure Excess Costs incurred or anticipated as a
result of a Pre-lease Force Majeure Event, NAI must — after having notified BNPPLC of the
such event by the delivery of a Pre-lease Force Majeure Event Notice in accordance with
subparagraph 6(B) — expressly set forth such belief in the Notice of NAI’s Intent to
Terminate as indicated in Exhibit F. In any such Notice of NAI’s Intent to
Terminate, NAI must also specify its good faith estimate of the Pre-lease Force Majeure
Excess Costs likely to be incurred (“NAI’s Estimate of Force Majeure Excess Costs”).

     (4) Similarly, prior to giving any Notice of Termination by NAI predicated upon
NAI’s belief that the Work will not be substantially complete before the Target Completion
Date only because of Pre-lease Force Majeure Delays resulting from a Pre-lease Force Majeure
Event, NAI must — after having notified BNPPLC of such event by
the delivery of a Pre-lease Force Majeure Event Notice in accordance with subparagraph
6(B) — expressly set forth such belief in the Notice of NAI’s Intent to Terminate as
indicated in Exhibit F. In any such Notice of NAI’s Intent to Terminate, NAI must
also specify its good faith estimate of the Pre-lease Force Majeure Delays likely to occur
(“NAI’s Estimate of Force Majeure Delays”).

     (5) As used herein, a “Notice of NAI’s Intent to Terminate Because of a Force Majeure
Event” means any Notice of NAI’s Intent to Terminate that sets forth NAI’s belief, by the
optional provisions contemplated in Exhibit F, that either or both: (a) the
remaining available Construction Allowance will not be sufficient only because of Pre-lease
Force Majeure Excess Costs incurred or anticipated as a result of a Pre-lease Force Majeure
Event, or (b) the Work will not be substantially complete before the Target Completion Date
only because of Pre-lease Force Majeure Delays resulting from a Pre-lease Force Majeure
Event. Should any Termination of NAI’s Work occur before

Construction Agreement - Page 35

 

 

NAI sends a Notice of NAI’s Intent
to Terminate Because of a Force Majeure Event (in accordance with this subparagraph and in
the form attached as Exhibit F), such Termination of NAI’s Work will, for purposes
of determining whether any 97-10/Prepayment may be required pursuant to Paragraph 9, be
conclusively presumed to have occurred for reasons other than a Pre-lease Force Majeure
Event.

     (6) After receipt of any Notice of NAI’s Intent to Terminate and before receipt of a
Notice of Termination by NAI, BNPPLC may, but will not be obligated to, respond to NAI with
certain commitments as follows (such a response being hereinafter called an “Increased
Commitment”):

     (a) In the case of a Notice of Intent to Terminate Because of a Force Majeure
Event which expresses NAI’s belief that the remaining available Construction
Allowance will not be sufficient only because of Pre-lease Force Majeure Excess
Costs, BNPPLC may respond with a written commitment to increase the Construction
Allowance (an “Increased Funding Commitment”) by an amount at least equal to NAI’s
Estimate of Force Majeure Excess Costs as set forth in such Notice of NAI’s Intent
to Terminate. Any such Increased Funding Commitment may be in the form of
Exhibit G.

     (b) In the case of a Notice of Intent to Terminate Because of a Force
Majeure Event which expresses NAI’s belief that the Work will not be substantially
complete before the Target Completion Date only because of Pre-lease Force Majeure
Delays, BNPPLC may respond with a written commitment to extend the Target Completion
Date (an “Increased Time Commitment”) by at least the number of days included in
NAI’s Estimate of Force Majeure Delays as set forth in
such Notice of NAI’s Intent to Terminate. Any such Increased Time Commitment
may be in the form of Exhibit H.

     (c) In the case of a Notice of Intent to Terminate Because of a Force Majeure
Event which expresses NAI’s belief that both (i) the remaining available
Construction Allowance will not be sufficient only because of Pre-lease Force
Majeure Excess Costs and (ii) the Work will not be substantially complete before the
Target Completion Date only because of Pre-lease Force Majeure Delays, BNPPLC may
respond with both an Increased Funding Commitment and an Increased Time Commitment
as provided in the preceding subparagraphs (a) and (b).

     (d) In the case of a Notice of Intent to Terminate which is not a Notice of
Intent to Terminate Because of a Force Majeure Event (and thus not covered by any of
the preceding subparagraphs (a) through (c)), BNPPLC may require

Construction Agreement - Page 36

 

 

NAI to promptly
provide a good faith estimate of the minimum Increased Funding Commitment or
Increased Time Commitment (or both) reasonably required to eliminate the reasons for
NAI’s delivery of the Notice of Intent to Terminate. After receipt of NAI’s good
faith estimate, BNPPLC may respond with an Increased Funding Commitment or Increased
Time Commitment (or both) consistent with such estimate.

     (7) If BNPPLC does respond to a Notice of NAI’s Intent to Terminate with an Increased
Commitment, NAI will be entitled to, and will not unreasonably refuse to, rescind such
Notice of NAI’s Intent to Terminate within ten days after receipt of such Increased
Commitment. To be effective, any such rescission must be by notice to BNPPLC in the form of
Exhibit I. In any event, except as provided in the next subparagraph, the failure
of NAI to so rescind any Notice of NAI’s Intent to Terminate within ten days after receipt
of the Increased Commitment will, for purposes of determining whether any 97-10/Prepayment
may be required pursuant to Paragraph 9, create a conclusive presumption that any
Termination of NAI’s Work after the date of such response was made for reasons other than a
Pre-lease Force Majeure Event.

     (8) For the avoidance of doubt, BNPPLC acknowledges that NAI’s rescission of any
Notice of NAI’s Intent to Terminate (including any Notice of NAI’s Intent to Terminate
Because of a Force Majeure Event) after receipt of an Increased Commitment as described in
the preceding subsection will not preclude NAI from subsequently exercising its rights under
this subparagraph 7(B) in the event NAI subsequently believes in good faith that a Timing or
Budget Shortfall exists.
Thus, for example, if NAI rescinds a Notice of NAI’s Intent to Terminate Because of a
Force Majeure Event after receiving an Increased Commitment from BNPPLC, but subsequently
determines that such Increased Commitment is insufficient (through no fault of NAI or its
employees or any other party acting under NAI’s control or with the approval or
authorization of NAI) to rectify the Timing or Budget Shortfall which caused NAI to send
such notice, then NAI may deliver a second Notice of NAI’s Intent to Terminate Because of a
Force Majeure Event, and in response thereto BNPPLC may elect to provide yet another
Increased Commitment. Moreover, such process may be repeated any number of times, in each
case without causing NAI to lose its right to subsequently invoke this subparagraph 7(B) and
send yet another Notice of NAI’s Intent to Terminate (including another Notice of NAI’s
Intent to Terminate Because of a Force Majeure Event).

     (9) Notwithstanding the foregoing, in the event of a Complete Taking, NAI may deliver a
Notice of NAI’s Intent to Terminate Because of a Force Majeure Event that explains the
futility of continuing with the Construction Project on the Land regardless of

Construction Agreement - Page 37

 

 

any
willingness of BNPPLC to approve or consider Scope Changes or an Increased Commitment, and
no offer by BNPPLC of an Increased Commitment after a Complete Taking will preclude a
“Termination of NAI’s Work Because of a Pre-lease Force Majeure Event” for the purposes of
determining whether NAI must pay a 97-10/Prepayment pursuant to Paragraph 9.

     (C) BNPPLC’s Election to Terminate NAI’s Work. By notice to NAI BNPPLC may elect to
terminate NAI’s rights and obligations to continue the Work at any time (i) more than thirty days
after BNPPLC has given an FOCB Notice to NAI, or (ii) after BNPPLC’s receipt of a Notice of NAI’s
Intent to Terminate and before an election by NAI to rescind the same as described in subparagraph
7(B)(7).

     (D) Surviving Rights and Obligations. Following any Termination of NAI’s Work as
provided in subparagraph 7(B) or in 7(C), NAI will have no obligation to continue or complete any
Work; however, no such Termination of NAI’s Work will reduce or excuse the following rights and
obligations of the parties, it being intended that all such rights and obligations will survive and
continue after any Termination of NAI’s Work:

     (1) NAI’s obligations described in the next subparagraph 7(E);

     (2) the rights and obligations of NAI and BNPPLC under the Ground Lease;

     (3) the rights and obligations of NAI and BNPPLC under the Purchase Agreement,
other than NAI’s Supplemental Payment Obligation if it has been terminated as provided in
subparagraph 6(B) of the Purchase Agreement;

     (4) any obligations of NAI under the other Operative Documents by reason of any
misrepresentation or other act or omission of NAI that occurred prior to the Termination of
NAI’s Work or during any subsequent period in which NAI remains in possession or control of
the Construction Project; and

     (5) NAI’s obligations to indemnify BNPPLC as set forth in subparagraph 10(A).

     (E) Cooperation After a Termination of NAI’s Work. After any Termination of NAI’s
Work as provided in subparagraph 7(B) or subparagraph 7(C), NAI must comply with the following
terms and conditions, all of which will survive notwithstanding any such termination:

     (1) NAI must promptly deliver copies to BNPPLC of all Third Party Contracts and
purchase orders made by NAI in the performance of or in connection with the Work, together
with all plans, drawings, specifications, bonds and other materials

Construction Agreement - Page 38

 

 

relating to the Work in
NAI’s possession, including all papers and documents relating to governmental permits,
orders placed, bills and invoices, lien releases and financial management under this
Agreement. All such deliveries must be made free and clear of any liens, security interests,
or encumbrances, except such as may be created by the Operative Documents.

     (2) Promptly after any request from BNPPLC made with respect to any Third Party
Contract, NAI must deliver a letter confirming: (i) whether NAI has performed any act or
executed any other instrument which invalidates or modifies such contract in whole or in
part (and, if so, the nature thereof); (ii) the extent to which such contract is valid and
subsisting and in full force and effect; (iii) that, to NAI’s knowledge, there are no
defaults or events of default then existing under such contract and, to NAI’s knowledge, no
event has occurred which with the passage of time or the giving of notice, or both, would
constitute such a default or event of default (or, if there is a default or potential
default, the nature of such default in detail); (iv) whether the services and construction
contemplated by such contract are proceeding in a satisfactory manner in all material
respects (and if not, a detailed description of all significant problems with the progress
of the services or construction); (v) in reasonable detail the then critical dates projected
by NAI for work and deliveries required by such contract; (vi) the total amount received by
the other party to such contract for work or services provided by the other party through
the date of the letter; (vii) NAI’s good faith estimate of the total cost of completing the
services and work contemplated under such contract as of the date of the letter, together
with any current draw or payment schedule for the contract; and (viii) any other information
BNPPLC may reasonably request to allow it to decide what steps it should take concerning the
contract within BNPPLC’s rights under this Agreement and the other Operative Documents.

     (3) As and to the extent requested by BNPPLC, NAI will make every reasonable effort
(but without any obligation to incur any expense or liability to do so, unless BNPPLC agrees
to reimburse the same with reasonable promptness) to secure any required consents or
approvals for an assignment of any then existing Third Party Contract to BNPPLC or its
designee, upon terms satisfactory to BNPPLC. To the extent assignable, any then existing
Third Party Contract will be assigned by NAI to BNPPLC upon request, without charge by NAI.

     (4) If NAI has canceled any Third Party Contract before and in anticipation of a
Termination of NAI’s Work, then as and to the extent requested by BNPPLC, NAI must make
every reasonable effort (but without any obligation to incur any expense or liability to do
so, unless BNPPLC agrees to reimburse the same with reasonable promptness) to secure a
reinstatement of such Third Party Contract in favor of BNPPLC and upon terms satisfactory to
BNPPLC.

Construction Agreement - Page 39

 

 

     (5) For a period not to exceed thirty days after the Termination of NAI’s Work, NAI
must take such steps as are reasonably necessary to preserve and protect Work completed and
in progress and to protect materials, equipment, and supplies at the Property or in transit.
Without regard to the conditions applicable to other payments required of BNPPLC by this
Agreement, BNPPLC must with reasonable promptness reimburse any reasonable out-of-pocket
expenses incurred by NAI to comply with this subparagraph (5); however, BNPPLC may at any
time or from time to time by notice to NAI limit or terminate such reimbursements as to
expenses incurred after NAI’s receipt of such notice, and thereafter NAI will be excused
from any obligation to incur expenses that BNPPLC may decline to reimburse.

8 Continuation of Construction by BNPPLC.

     (A) Owner’s Election to Continue Construction. Without limiting BNPPLC’s other
rights and remedies under this Agreement or the other Operative Documents, and without terminating
NAI’s surviving obligations under this Agreement or NAI’s obligations under the other Operative
Documents, after any Termination of NAI’s Work as provided in subparagraph 7(B) or subparagraph
7(C), BNPPLC will be entitled (but not obligated) to take whatever action it deems necessary or
appropriate by the use of legal proceedings or otherwise to continue or complete the Construction
Project in a manner not substantially inconsistent (to the extent practicable under Applicable
Laws) with the general description of the Construction Project set forth in Exhibit B. (As
used herein, “Owner’s Election to Continue Construction” means any election by BNPPLC to continue
or complete the Construction Project pursuant to the preceding sentence.) After any Owner’s
Election to Continue Construction, BNPPLC may do any one or more of the following pursuant to this
subparagraph without further notice and regardless of whether any breach of this Agreement by NAI
is then continuing:

     (1) Take Control of the Property. BNPPLC may cause NAI and any contractors or
other parties on the Property to vacate the Property until the Construction Project is
complete or BNPPLC elects not to continue work on the Construction Project.

     (2) Continuation of Construction. BNPPLC may perform or cause to be performed
any work to complete or continue the construction of the Construction Project. In this
regard, so long as work ordered or undertaken by BNPPLC is not substantially inconsistent
(to the extent practicable under Applicable Laws) with the general description of the
Construction Project set forth in Exhibit B and the permitted use of the Property
set forth in the Lease, BNPPLC will have complete discretion to:

     (a) proceed with construction according to such plans and specifications as
BNPPLC may from time to time approve;

Construction Agreement - Page 40

 

 

     (b) establish and extend construction deadlines as BNPPLC from time to time
deems appropriate, without obligation to adhere to any deadlines for construction by
NAI set forth in this Agreement;

     (c) hire, fire and replace architects, engineers, contractors, construction
managers and other consultants as BNPPLC from time to time deems appropriate,
without obligation to use, consider or compensate architects, engineers,
contractors, construction managers or other consultants previously selected or
engaged by NAI;

     (d) determine the compensation that any architect, engineer, contractor,
construction manager or other consultant engaged by BNPPLC will be paid, and the
terms and conditions that will govern the payment of such compensation (including
whether payment will be due in advance, over the course of construction or on some
other basis and including whether contracts will be let on a fixed price basis, a
cost plus a fee basis or some other basis), as BNPPLC from time to time reasonably
deems appropriate;

     (e) pay, settle or compromise existing or future bills and claims which are or
may be liens against the Property or as BNPPLC reasonably considers necessary or
desirable for the completion of the Construction Project or the removal of any
clouds on title to the Property;

     (f) prosecute and defend all actions or proceedings in connection with
the construction of the Construction Project;

     (g) select and change interior and exterior finishes for the Improvements and
landscaping as BNPPLC from time to time deems appropriate; and

     (h) generally do anything that NAI itself might have done if NAI had satisfied
or obtained BNPPLC’s waiver of the conditions specified therein.

     (3) Arrange for Turnkey Construction. Without limiting the generality of the
foregoing, BNPPLC may engage any contractor or real estate developer BNPPLC believes to be
reputable to take over and complete construction of the Construction Project on a “turnkey”
basis.

     (4) Suspension or Termination of Construction by BNPPLC. Notwithstanding any
Owner’s Election to Continue Construction, BNPPLC may subsequently elect at any

Construction Agreement - Page 41

 

 

time to
suspend or terminate further construction without obligation to NAI.

For purposes of the Operative Documents (including the determination of the Outstanding
Construction Allowance, the Lease Balance and the Break Even Price), after any Owner’s Election to
Continue Construction, all costs and expenditures incurred or paid by or on behalf of BNPPLC to
complete or continue construction as provided in this subparagraph 8(A) will be considered
Construction Advances, regardless of whether they cause the Funded Construction Allowance to exceed
the Maximum Construction Allowance. Further, as used in the preceding sentence, “costs incurred” by
BNPPLC will include costs that BNPPLC has become obligated to pay to any third party that is not an
Affiliate of BNPPLC (including any construction contractor), even if the payments for which BNPPLC
has become so obligated constitute prepayments for work or services to be rendered after payment
and notwithstanding that BNPPLC’s obligations for the payments may be conditioned upon matters
beyond BNPPLC’s control. For example, even if a construction contract between BNPPLC and a
contractor excuses BNPPLC from making further progress payments to the contractor upon NAI’s
failure to make any required 97-10/Prepayment under this Agreement, the obligation to make a
progress payment would nonetheless be “incurred” by BNPPLC, for purposes of determining whether
BNPPLC has incurred costs considered to be 97-10/Project Costs and Construction Advances, when
BNPPLC’s obligation to pay it became subject only to NAI’s payment of a 97-10/Prepayment or other
conditions beyond BNPPLC’s control.

     (B) Powers Coupled With an Interest. BNPPLC’s rights under subparagraph 8(A) are
intended to constitute powers coupled with an interest which cannot be revoked.

9 NAI’s Obligation for 97-10/Prepayments. After any 97-10/Meltdown Event NAI must make
a 97-10/Prepayment to BNPPLC within three Business Days after receipt from BNPPLC of any demand for
such a payment. BNPPLC may demand 97-10/Prepayments
pursuant to this Paragraph at any time and from time to time (as 97-10/Project Costs increase)
after a 97-10/Meltdown Event. NAI acknowledges that it is undertaking the obligation to make
97-10/Prepayments as provided in this Paragraph 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 its rights under any other Operative Documents. If a 97-10/Meltdown Event does occur,
NAI’s obligation to make 97-10/Prepayments as provided in this Paragraph will survive any
Termination of NAI’s Work.

Notwithstanding the foregoing provisions of this Paragraph 9, if (as provided in subparagraph 7(B))
NAI effectively makes the election for a Termination of NAI’s Work because of a Pre-lease Force
Majeure Event that resulted in Pre-lease Force Majeure Excess Costs or Pre-lease Force Majeure
Delays, then NAI will be excused from the obligation to make 97-10/Prepayments until such time (if
ever) that BNPPLC itself completes the Construction Project or causes it to be completed as BNPPLC
is authorized to do by subparagraph 8(A).

Construction Agreement - Page 42

 

 

10 Indemnity for Covered Construction Period Losses.

     (A) Covenant to Indemnify Against Covered Construction Period Losses. Subject to the
qualifications in subparagraph 10(B), as directed by BNPPLC, NAI must indemnify and defend BNPPLC
from and against all of the following Losses (“Covered Construction Period Losses”):

     (1) Losses suffered or incurred by BNPPLC, directly or indirectly, relating to or
arising out of, based on or as a result of any of the following which occurs or is alleged
to have occurred prior to any Termination of NAI’s Work: (i) any Hazardous Substance
Activity; (ii) any violation of any applicable Environmental Laws relating to the Land or
the Property or to the ownership, use, occupancy or operation thereof; (iii) any
investigation, inquiry, order, hearing, action, or other proceeding by or before any
governmental or quasi-governmental agency or authority in connection with any Hazardous
Substance Activity; or (iv) any claim, demand, cause of action or investigation, or any
action or other proceeding, whether meritorious or not, brought or asserted against BNPPLC
which directly or indirectly relates to, arises from, is based on, or results from any of
the matters described in clauses (i), (ii), or (iii) of this provision or any allegation of
any such matters;

     (2) Losses incurred or suffered by BNPPLC that BNPPLC would not have incurred or
suffered but for any act or any omission of NAI or of any NAI’s contractors or
subcontractors during the period prior to any Termination of NAI’s Work (as provided in
subparagraphs 7(B) and 7(C)) or during any other period that NAI remains in possession or
control of the Construction Project (including any failure by NAI to obtain or maintain
insurance as required by this Agreement during such periods; but excluding, however, as
described below, certain Losses consisting of claims related to any failure of NAI to
complete the Construction Project);

     (3) Losses incurred or suffered by BNPPLC that would not have been incurred but for any
fraud, misapplication of funds (including Construction Advances), illegal acts, or willful
misconduct on the part of NAI or its employees or of any other party acting under NAI’s
control or with the approval or authorization of NAI; and

     (4) Losses incurred or suffered by BNPPLC that would not have been incurred but for any
bankruptcy proceeding involving NAI as the debtor.

NAI’s obligations under this indemnity will apply whether or not BNPPLC is also indemnified as to
the applicable Covered Construction Period Loss by any third party (including another Interested
Party) and whether or not the Covered Construction Period Loss arises or accrues

Construction Agreement - Page 43

 

 

prior to the
Effective Date. Further, in the event, for income tax purposes, BNPPLC must include in its taxable
income any payment or reimbursement from NAI which is required by this indemnity (in this
provision, the “Original Indemnity Payment”), and yet BNPPLC is not entitled during the same
taxable year to a corresponding and equal deduction from its taxable income for the Covered
Construction Period Loss paid or reimbursed by such Original Indemnity Payment (in this provision,
the “Corresponding Loss”), then NAI must also pay to BNPPLC on demand the additional amount (in
this provision, the “Additional Indemnity Payment”) needed to gross up the Original Indemnity
Payment for any and all resulting additional income taxes. That is, NAI must pay an Additional
Indemnity Payment as is needed so that the Corresponding Loss (computed net of the reduction, if
any, of BNPPLC’s income taxes because of credits or deductions that are attributable to the
BNPPLC’s payment or deemed payment of the Corresponding Loss and that are recognized for tax
purposes in the same taxable year during which BNPPLC must recognize the Original Indemnity Payment
as income) will not exceed the difference computed by subtracting (i) all income taxes (determined
for this purpose based on the highest marginal income tax rates applicable to corporations for the
relevant period or periods and the highest applicable state or local marginal rates of such taxing
authority applicable to corporations for the relevant period or periods) imposed upon BNPPLC with
respect to the Original Indemnity Payment and the Additional Indemnity Payment, from (ii) the sum
of the Original Indemnity Payment and the Additional Indemnity Payment. (With regard to any
payment or reimbursement of an Original Indemnity Payment, “After Tax Basis” means that such
payment or reimbursement is or will be made together with the additional amount needed to gross up
such Original Indemnity Payment as described in this provision.)

     (B) Certain Losses Included or Excluded.

     (1) Environmental. As used in clause (1) of the preceding subparagraph 10(A), “Losses”
will not include costs properly incurred in connection with
the Work to prevent the occurrence of a violation of Environmental Laws that did not
previously exist. (For example, Environmental Losses will not include the increase in costs
resulting from NAI’s installation of fire proofing materials other than asbestos because of
Environmental Laws that prohibit the use of asbestos.) However, any costs to correct or
answer for any violation of Environmental Laws that occurred on or prior to the Effective
Date or that NAI causes or permits to occur after the Effective Date in connection with the
Work or the Property will constitute Environmental Losses. (Thus, for instance, if NAI
releases Hazardous Materials from the Property in a manner that contaminates ground water in
violation of Environmental Laws, the costs of correcting the contamination and any
applicable fines or penalties will constitute Environmental Losses for which NAI must
indemnify and defend BNPPLC pursuant to subparagraph 10(A).)

     (2) Failure to Maintain a Safe Work Site. If a third party asserts a claim for

Construction Agreement - Page 44

 

 

damages
against BNPPLC because of injuries the third party sustained while on the Land as a result
of NAI’s breach of its obligations under this Agreement to keep the Land and the
Improvements thereon in a reasonably safe condition as Work progresses under NAI’s direction
and control, then any such claim and other Losses resulting from such claim will constitute
Covered Construction Period Losses under clause (2) of subparagraph 10(A).

     (3) Failure to Complete Construction. Additional costs of construction may result from
NAI’s failure to complete the Construction Project if a Termination of NAI’s Work occurs
pursuant to subparagraphs 7(B) and 7(C). Nevertheless, it is understood that a failure of
NAI to complete the Construction Project following any such Termination of NAI’s Work will
not necessarily constitute a breach of this Agreement, and clause (2) of subparagraph 10(A)
will not include any such additional costs of performing the Work or the cost to BNPPLC of
completing the Construction Project after the Termination of NAI’s Work. (To the extent,
however, that such costs qualify as 97-10/Project Costs, they may increase the 97-10/Maximum
Permitted Prepayment.)

     (4) Fraud. As used in clause (3) of subparagraph 10(A), “fraud” or “willful
misconduct” will include (i) any deliberate decision by NAI to make a Scope Change without
BNPPLC’s prior written approval, (ii) any fraud or intentional misrepresentation by NAI, or
its vendors, contractors or subcontractors regarding NAI’s ongoing compliance with the
requirements of this Agreement, and (iii) the performance by NAI or its vendors, contractors
or subcontractors of Defective Work, with NAI’s knowledge that it constitutes Defective
Work, prior to any Termination of NAI’s Work as provided in subparagraphs 7(B) and 7(C).

     (5) Excluded Taxes and Established Misconduct. Nothing in this Paragraph 10 or other
provisions of this Agreement will be construed to require NAI to reimburse or pay Excluded
Taxes or Losses incurred or suffered by BNPPLC that are
proximately caused by (and attributed by any applicable principles of comparative fault
to) the Established Misconduct of BNPPLC.

     (C) Express Negligence Protection. Every release provided in this Agreement for
BNPPLC or any other Interested Party, and the indemnity provided for the benefit of BNPPLC in the
preceding subparagraph 10(A), will apply even if and when the subject matters thereof are alleged
to be caused by or to arise out of the negligence or strict liability of BNPPLC or another
Interested Party. Further, all such releases and the indemnity will apply even if insurance
obtained by NAI or required of NAI by this Agreement is not adequate to cover Losses against or for
which the releases and the indemnity are provided (although NAI’s liability for any failure to
obtain insurance required by this Agreement will not be limited to Losses against which indemnity
is

Construction Agreement - Page 45

 

 

provided, it being understood that the parties have agreed upon insurance requirements for
reasons that extend beyond providing a source of payment for Losses against which BNPPLC may be
indemnified by NAI).

     (D) Survival of Indemnity. NAI’s obligations under this Paragraph 10 will survive the
termination or expiration of this Agreement and any Termination of NAI’s Work with respect to
Losses suffered by BNPPLC resulting or arising from events or circumstances which existed or
occurred or are alleged to have existed or occurred prior to the Termination of NAI’s Work or
during any subsequent period in which NAI remains in possession or control of the Construction
Project, whether such Losses are asserted, suffered or paid before or after the Termination of
NAI’s Work.

     (E) Due Date for Indemnity Payments. Any amount to be paid by NAI under this
Paragraph 10 will be due fifteen days after a notice requesting such payment is received by NAI.
Any such amount not paid by NAI when first due will bear interest at the Default Rate in effect
from time to time from the date it first became due until paid; provided, that nothing herein
contained will be construed as permitting the charging or collection of interest at a rate
exceeding the maximum rate permitted under Applicable Laws.

     (F) Order of Application of Payments. BNPPLC will be entitled to apply any payments
by or on behalf of NAI against NAI’s obligations under this Paragraph 10 or against other amounts
owing by NAI and then past due under any of the other Operative Documents in the order the same
became due or in such other order as BNPPLC may elect.

     (G) Defense of BNPPLC.

     (1) Assumption of Defense. By notice to NAI BNPPLC may direct NAI to assume on behalf
of BNPPLC and to conduct with due diligence and in good faith the defense of and the
response to any claim, proceeding or investigation included in or concerning any Covered
Construction Period Loss. NAI must promptly comply with any
such direction using counsel selected by NAI and reasonably satisfactory to BNPPLC to
represent BNPPLC. In the event NAI fails to promptly comply with any such direction from
BNPPLC, BNPPLC may contest or settle the claim, proceeding or investigation using counsel of
its own selection at NAI’s expense, subject only to subparagraph 10(I) if that subparagraph
is applicable.

     (2) Indemnity Not Contingent. Also, although subparagraphs 10(I) and 10(J) will apply
to tort claims asserted against BNPPLC related to the Property, the right of BNPPLC to be
indemnified pursuant to subparagraph 10(A) for payments made to satisfy governmental
requirements (“Government Mandated Payments”) (e.g., fines payable because of any release of
Hazardous Materials from the Property) will not be conditioned in any way upon NAI having
consented to or approved of, or having been provided with

Construction Agreement - Page 46

 

 

an opportunity to defend against
or contest, such Government Mandated Payments. In all cases, however, including those which
may involve Government Mandated Payments, the rights of BNPPLC to be indemnified will be
subject to subparagraph 10(K).

     (H) Notice of Claims. If BNPPLC receives a written notice of a claim for taxes or a
claim alleging a tort or other unlawful conduct that BNPPLC believes is covered by the indemnity in
subparagraph 10(A), then BNPPLC will be expected to promptly furnish a copy of such notice to NAI.
The failure to so provide a copy of the notice will not excuse NAI from its obligations under
subparagraph 10(A); except that if such failure continues for more than fifteen days after the
notice is received by BNPPLC and NAI is unaware of the matters described in the notice, with the
result that NAI is unable to assert defenses or to take other actions which could minimize its
obligations, then NAI will be excused from its obligation to indemnify BNPPLC against the Covered
Construction Period Losses, if any, which would not have been incurred or suffered but for such
failure. For example, if BNPPLC fails to provide NAI with a copy of a notice of an overdue tax
obligation covered by the indemnity set out in subparagraph 10(A) and NAI is not otherwise already
aware of such obligation, and if as a result of such failure BNPPLC becomes liable for penalties
and interest covered by the indemnity in excess of the penalties and interest that would have
accrued if NAI had been promptly provided with a copy of the notice, then NAI will be excused from
any obligation to BNPPLC (or any Affiliate of BNPPLC) to pay the excess.

     (I) Withholding of Consent to Settlements Proposed by NAI. With regard to any
tort claim against BNPPLC for which NAI undertakes to defend BNPPLC as provided in subparagraph
10(G)(1), if BNPPLC unreasonably refuses to consent to a settlement of the claim which is proposed
by NAI and which will meet the conditions listed in the next sentence, NAI’s liability for the
cost of continuing the defense and for any other amounts payable in respect of the claim will be
limited to the total cost for which the settlement proposed by NAI would have been accomplished but
for the unreasonable refusal to consent. Any such settlement proposed by NAI must meet the
following conditions: (A) at the time of the settlement by NAI, NAI must pay all amounts required
to release BNPPLC and other affected Interested Parties (if any) and their
property interests from any further obligation for or liens securing the applicable claim and
from any interest, penalties and other related liabilities, and (B) the settlement or compromise
must not involve an admission of fraud or criminal wrongdoing or result in some other material
adverse consequence to BNPPLC or any other Interested Party.

     (J) Settlements Without the Prior Consent of NAI.

     (1) Election to Pay Reasonable Settlement Costs in Lieu of Actual. Except as otherwise
provided in subparagraph 10(J)(2), if BNPPLC settles any tort claim for which it is entitled
to be indemnified by NAI without NAI’s consent, then NAI may, by notice given to BNPPLC no
later than ten days after NAI is notified of the settlement, elect to

Construction Agreement - Page 47

 

 

pay Reasonable
Settlement Costs to BNPPLC in lieu of a payment or reimbursement of actual settlement costs.
(With respect to any tort claim asserted against BNPPLC, “Reasonable Settlement Costs”
means the maximum amount that a prudent Person in the position of BNPPLC, but able to pay
any amount, might reasonably agree to pay to settle the tort claim, taking into account the
nature and amount of the claim, the relevant facts and circumstances known to BNPPLC at the
time of settlement and the additional Attorneys Fees’ and other costs of defending the claim
which could be anticipated but for the settlement.) After making an election to pay
Reasonable Settlement Costs with regard to a particular tort claim, NAI will have no right
to rescind or revoke the election, despite any subsequent determination that Reasonable
Settlement Costs exceed actual settlement costs. It is understood that Reasonable
Settlement Costs may be more or less than actual settlement costs and that a final
determination of Reasonable Settlement Costs may not be possible until after NAI must decide
between paying Reasonable Settlement Costs or paying actual settlement costs.

     (2) Conditions to Election. Notwithstanding the foregoing, NAI will have no right to
elect to pay Reasonable Settlement Costs in lieu of actual settlement costs if BNPPLC
settles claims without NAI’s consent at any time when an Event of Default has occurred and
is continuing or after a failure by NAI to conduct with due diligence and in good faith the
defense of and the response to any claim, proceeding or investigation as provided in
subparagraph 10(G)(1).

     (3) Indemnity Survives Settlement. Except as provided in this subparagraph
10(J), no settlement by BNPPLC of any claim made against it will excuse NAI from any
obligation to indemnify BNPPLC against the settlement costs or other Covered Construction
Period Losses suffered by reason of, in connection with, arising out of, or in any way
related to such claim.

     (K) No Authority to Admit Wrongdoing on the Part of NAI. BNPPLC will not under any
circumstances have any authority to bind NAI to an admission of wrongdoing or
responsibility to any third party claimant with regard to matters for which BNPPLC claims a
right to indemnification from NAI under this Agreement.

Further, nothing herein contained, including the foregoing provisions concerning settlements by
BNPPLC of indemnified Losses, will be construed as authorizing BNPPLC to bind NAI to do or refrain
from doing anything to satisfy a third party claimant. If, for example, a claim is made by a
Governmental Authority that NAI must refrain from some particular conduct on or about the Land in
order to comply with Applicable Laws, BNPPLC cannot bind NAI (and will not purport to bind NAI) to
any agreement to refrain from such conduct or otherwise prevent NAI from continuing to contest the
claim by reason of any provision set forth herein.

Construction Agreement - Page 48

 

 

Moreover, so long as this Agreement or the Lease continues, BNPPLC’s right to settle any claim
involving the Property will not include the right to bind NAI to any agreement (including any
consent decree proposed by any Governmental Authority) which purports to prohibit, limit or impose
conditions upon any use of the Property by NAI without the prior written consent of NAI. In the
case of any proposed settlement of a claim asserted by a Governmental Authority against BNPPLC, NAI
will not unreasonably withhold such consent. However, for purposes of determining whether it is
reasonable for NAI to withhold such consent, any diligent ongoing undertaking by NAI to contest
such the claim on behalf of BNPPLC will be relevant.

Subject to the foregoing provisions in this subparagraph 10(K), BNPPLC may agree for itself (and
only for itself) to act or refrain from doing anything as demanded or requested by a third party
claimant; provided, however, in no event will such an agreement impede NAI from continuing to
exercise its rights to operate its business on the Property or elsewhere in any lawful manner
deemed appropriate by NAI, nor will any such agreement limit or impede NAI’s right to contest
claims raised by any third party claimants (including Governmental Authorities) that NAI is not
complying or has not complied with Applicable Laws.

     (L) Refunds of Covered Construction Period Losses Paid by NAI.

     (1) Payment by BNPPLC After Refund. If BNPPLC receives a refund of any Covered
Construction Period Losses paid, reimbursed or advanced by NAI pursuant to subparagraph
10(A), BNPPLC will promptly pay to NAI the amount of such refund, plus or minus any net tax
benefits or detriments realized by BNPPLC as a result of such refund and such payment to
NAI; provided, that the amount payable to NAI will not exceed the amount of the indemnity
payment in respect of such refunded Covered Construction Period Losses that was made by NAI.
If it is subsequently determined that BNPPLC was not entitled to such refund, the portion of
such refund that is repaid or recaptured will be treated as a Covered Construction Period
Loss for which NAI must indemnify BNPPLC pursuant to subparagraph 10(A) without regard to
subparagraph 10(B)(5). If, in connection any such refund, BNPPLC also receives an amount
representing interest on
such refund, BNPPLC will promptly pay to NAI the amount of such interest, plus or minus
any net tax benefits or detriments realized by BNPPLC as a result of the receipt or accrual
of such interest and as a result of the such payment to NAI; provided, that BNPPLC will not
be required to make any such payment in respect of the interest (if any) that is fairly
attributable to a period before NAI paid, reimbursed or advanced the Covered Construction
Period Losses refunded to BNPPLC.

     (2) Meaning of Refund. With respect to Covered Construction Period Losses incurred or
suffered by BNPPLC and paid or reimbursed by NAI on an After Tax Basis, if taxes of BNPPLC
which are not subject to indemnification by NAI are reduced because of such Losses (whether
by reason of a deduction, credit or otherwise) and such

Construction Agreement - Page 49

 

 

reduction was not taken into account
in the calculation of the required reimbursement or payment by NAI, then for purposes of
this subparagraph 10(L) such reduction will be considered a “refund”.

     (3) Conditions to Payment. Notwithstanding the foregoing, in no event will BNPPLC be
required to make any payment to NAI pursuant to this subparagraph 10(L) after any
97-10/Meltdown Event or when any Event of Default has occurred and is continuing.

[The signature pages follow.]

Construction Agreement - Page 50

 

 

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

	 	 	 	 	 
	 	BNP PARIBAS LEASING
CORPORATION, a
 Delaware
corporation
 	 
	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 

Construction Agreement - Page

 

 

	 	 	 	 	 

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

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

Construction Agreement - 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 Construction Agreement - Page 2

 

 

Exhibit A
to Construction 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-773,721.48
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 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 Construction
Agreement - Page 4 

 

 

Exhibit B

Description of the Construction Project and Construction Budget

     Subject to future Scope Changes, the Construction Project will be substantially consistent
with the following general description and with any site plan, elevations or renderings attached to
this Exhibit:

The project will include a data center that will be used as a research lab. The
data center is expected to be approximately 120,063 square feet. The building will
be two stories above ground and a basement area. The basement area will house the
utility space. The first floor will contain the server area. The second floor will
contain the HVAC and electrical equipment.

The data center is considered a state of the art Tier IV level data center with a
very high electric power level per square foot, and considerable redundancies in
terms of cooling. However, it will not be built with a UPS system or back-up
generators.

     All of the buildings will be suitable for uses contemplated in the Lease and of a quality,
when complete to be considered first class facilities for such uses. Also included in the
Construction Project will be the construction of appurtenant parking areas, driveways and other
facilities on the Land of suitable quality for such buildings.

     The budget for the Construction Project is as shown on the attached pages.

 

 

[Attach, Site Plan, Elevations and Budget]

Exhibit B to Construction Agreement - Page 2

 

 

Exhibit C

Construction Advance Request Form

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement referenced in the
Construction Agreement. This letter constitutes a Construction Advance Request, requesting a
Construction Advance of:

$                    ,

on the Advance Date that will occur on:

, 20                    .

     To induce BNPPLC to make such Construction Advance, NAI represents and warrants as follows:

I. Calculation of limit imposed by Subparagraph 4(C)(2)(b) of the Construction Agreement:

(1) NAI has paid or incurred bona fide Reimbursable Construction Period

Costs other than for Work (e.g., property taxes) of no less than $                                        

(2) NAI has paid or incurred bona fide Reimbursable Construction Period

Costs for Prior Work of no less than $                                        

(3) NAI has received prior Construction Advances of $                                        

 

 

LIMIT (1
+ 2  – 3)                     $                                        

II. Projected Cost Overruns:

     NAI [check one: ___does / ___does not ] believe that Projected Construction Overruns are more
likely than not. [If NAI does believe that Projected Cost Overruns are more likely than not, and if
NAI believes that the amount of such Projected Construction Overruns can be reasonably estimated,
NAI estimates the same at $                    .]

III. Construction Advances Covering Pre-lease Force Majeure Losses:

Neither the Construction Advance requested by this letter nor prior Construction Advances (if any)
have been used or will be used to cover any costs of repairs that constitute Pre-lease Force
Majeure Losses, except as follows: (if there are no exceptions, insert “No Exceptions”)

	 	 	 
	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

IV. Absence of Certain Work/Suspension Events:

     A. The Construction Project is progressing without significant interruption in a good and
workmanlike manner and substantially in accordance with Applicable Laws, with Permitted
Encumbrances and with the requirements of the Construction Agreement, except as follows: (if there
are no exceptions, insert “No Exceptions”)

	 	 	 
	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

     B. If NAI has received notice of any Defective Work, NAI has promptly corrected or is
diligently pursuing the correction of such Defective Work, except as follows: (if there are no
exceptions, insert “No Exceptions”)

	 	 	 
	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit C
to Construction Agreement - Page 3

 

 

Exhibit D

Pre-lease Force Majeure Event Notice

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

     This letter constitutes a Pre-lease Force Majeure Event Notice, given as provided in
subparagraph 6(B) of the Construction Agreement to preserve the right of NAI to assert the
occurrence of a Pre-lease Force Majeure Event.

     NAI certifies to BNPPLC that the following Pre-lease Force Majeure Event occurred or commenced
on                     , 20___:

[INSERT DESCRIPTION OF EVENT HERE]

     NAI’s preliminary good faith estimate of the Pre-lease Force Majeure Delays, of the Pre-lease
Force Majeure Losses and of the Pre-lease Force Majeure Excess Costs likely to result from such
event are                      days, $                                         and $                                        , respectively. Such amounts,
however, are only estimates.

     NAI acknowledges that after NAI gives this notice, BNPPLC may at any time deliver an FOCB
Notice to NAI as described in the Construction Agreement.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit D
to Construction Agreement - Page 2

 

 

Exhibit E

Notice of Termination of NAI’s Work

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

     NAI has determined that the Construction Allowance to be provided to it under the Construction
Agreement will not be sufficient to cover all Reimbursable Construction Period Costs yet to be paid
or reimbursed from Construction Advances for the reason or reasons set forth in the Notice of NAI’s
Intent to Terminate dated ______, 200___, previously delivered to you as provided in subparagraph
7(B) of the Construction Agreement. That Notice of NAI’s Intent to Terminate has not been
rescinded by NAI.

     NAI hereby irrevocably and unconditionally elects to terminate its rights and obligations to
continue the Work under Construction Agreement effective as of the date of this letter (which, as
required by subparagraph 7(B) of the Construction Agreement, is a date not less than forty-five
days after the date the aforementioned Notice of NAI’s Intent to Terminate). This notice
constitutes a “Notice of Termination by NAI” as described in subparagraph 7(B) of the Construction
Agreement.

     NAI also acknowledges that a 97-10/Meltdown Event has occurred under and as defined in the
Construction Agreement, and that BNPPLC is thus entitled to demand and receive 97-10/Prepayments
under and as provided in Paragraph 9 of the Construction Agreement, unless the last sentence of
Paragraph 9 excuses NAI from paying the same.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

Exhibit F

Notice of NAI’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

                                                            

[DRAFTING NOTE: Unless this letter contains the alternative provisions set forth below as being
required after a Complete Taking in any “Notice of NAI’s Intent to Terminate Because of a Force
Majeure Event,” this letter must contain the following paragraph and inserts following such
paragraph as indicated:

     NAI has determined that the Construction Allowance to be provided to it under the Construction
Agreement will not be sufficient to cover all Reimbursable Construction Period Costs yet to be paid
or reimbursed from Construction Advances, because:

[INSERT ANY ONE OR MORE OF THE FOLLOWING REASONS THAT APPLY: (1) THE
COST OF THE WORK EXCEEDS BUDGETED EXPECTATIONS (RESULTING IN
PROJECTED COST OVERRUNS), (2) A PRE-LEASE FORCE MAJEURE EVENT HAS
OCCURRED, OR (3) NAI CAN NO LONGER SATISFY CONDITIONS TO BNPPLC’S
OBLIGATION TO PROVIDE CONSTRUCTION ADVANCES IN THE CONSTRUCTION
AGREEMENT.]

 

 

                                                            

     The purpose of this letter is to give notice to BNPPLC and Participants of NAI’s intent to
terminate NAI’s rights and obligations to perform Work under the Construction Agreement. This
letter constitutes a “Notice of NAI’s Intent to Terminate” given pursuant to subparagraph 7(B) of
the Construction Agreement. As provided in that subparagraph, as a condition to any effective
Termination of NAI’s Work, NAI must deliver a subsequent notice of termination to BNPPLC and
Participants, no less than forty-five days after the date BNPPLC receives this letter.

                                                            

[DRAFTING NOTE: Unless this letter contains the alternative provisions set forth below as being
required for any “Notice of NAI’s Intent to Terminate Because of a Force Majeure Event,” this
letter must contain the following paragraph:

     The period running from the date of BNPPLC’s receipt of this letter to the effective date of
any actual Termination of NAI’s Work by NAI or BNPPLC will constitute a Work/Suspension Period
under the Construction Agreement. During such period BNPPLC’s funding obligations will be limited
and NAI may suspend the Work to the extent so provided in the Construction Agreement. Moreover, NAI
acknowledges that the delivery of this Notice of Intent to Terminate is a 97-10/Meltdown Event.
Therefore, after receipt of this notice BNPPLC will have the rights to demand and receive
97-10/Prepayments from NAI as provided in Paragraph 9 of the Construction Agreement.]

[DRAFTING NOTE: This letter will qualify as a “Notice of NAI’s Intent to Terminate Because of a
Force Majeure Event” only if NAI includes one of the following alternative sets of provisions, as
applicable.]

[ALTERNATIVE #1 (Applies only if there has been a Complete Taking):

     This letter constitutes a “Notice of NAI’s Intent to Terminate Because of a Force Majeure
Event” as defined in the Construction Agreement. A Complete Taking has occurred. Thus, regardless
of any Scope Changes BNPPLC may be willing to approve or consider, and regardless of any Increased
Commitment BNPPLC may be willing to provide, it would be futile to continue the Construction
Project on the Land.

     NAI acknowledges and agrees that BNPPLC is entitled to all proceeds of the taking of the
Property and all such proceeds must be paid to BNPPLC. NAI has no right and will not assert any
right to share in such proceeds. NAI agrees to cooperate with BNPPLC as BNPPLC may from time to
time request in order to maximize BNPPLC’s recovery of such proceeds.]

 

 

[ALTERNATIVE #2 (applies in the event of a Pre-lease Force Majeure Event other than a Complete
Taking): Include the next (single sentence) paragraph, together with one or both (as applicable)
of the two paragraphs following the next (single sentence) paragraph, and together with the
remaining paragraphs after those two paragraphs, all with blanks filled in appropriately:

     This letter constitutes a “Notice of NAI’s Intent to Terminate Because of a Force Majeure
Event” as defined in the Construction Agreement.

     NAI now believes that the remaining available Construction Allowance will not be sufficient to
cover all Reimbursable Construction Period Costs yet to be paid or reimbursed from Construction
Advances only because of Pre-lease Force Majeure Excess Costs incurred or anticipated as a result
of one or more Pre-lease Force Majeure Events. BNPPLC has previously been notified of such
Pre-lease Force Majeure Event(s) by notice(s) dated ______, which NAI delivered to BNPPLC in
accordance with subparagraph 6(B) of the Construction Agreement. NAI’s current good faith
estimate of the Pre-lease Force Majeure Excess Costs that are most likely to be incurred because of
such Pre-lease Force Majeure Event(s) is $______.

     NAI now believes that the Work will not be substantially complete before the Target Completion
Date only because of Pre-lease Force Majeure Delays resulting from one or more Pre-lease Force
Majeure Events. BNPPLC has previously been notified of such Pre-lease Force Majeure Event(s) by
notice(s) dated ______, which NAI delivered to BNPPLC in accordance with subparagraph 6(B) of
the Construction Agreement. NAI’s current good faith estimate of the Pre-lease Force Majeure
Delays that are most likely to occur because of such Pre-lease Force Majeure Event(s) is
______days.

     Also be advised that, as provided in subparagraph 7(B) of the Construction Agreement, BNPPLC
is entitled to (but not obligated to) respond to this notice with an Increased Commitment.
Responding with an Increased Commitment will result in a conclusive presumption (for purposes of
calculating any 97-10/Prepayment required of NAI under the Purchase Agreement) that any Termination
of NAI’s Work is for reasons other than the Pre-lease Force Majeure Events of which BNPPLC has
previously been notified.

     In the event BNPPLC fails to respond with an Increased Commitment, the failure may
excuse NAI from the obligation to make a 97-10/Prepayment under Paragraph 9 of the Construction
Agreement notwithstanding any Termination of NAI’s Work, which would constitute a very material
adverse consequence to BNPPLC. Moreover, the Construction Agreement grants to NAI a right to cause
a Termination of NAI’s Work at any time more than forty-five days after giving this notice,
provided that NAI continues to believe that a Timing or Budget Shortfall exists at that time.
Thus, if BNPPLC intends to respond with an Increased Commitment, BNPPLC would be well advised to do
so before the expiration of such forty-five day period.]

Exhibit F
to Construction Agreement - Page 3

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit F
to Construction Agreement - Page 4

 

 

Exhibit G

Notice of Increased Funding Commitment by BNPPLC

[Date]

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Telecopy: (919) 476-5750

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement or in the Common Definitions and Provisions Agreement referenced in the
Construction Agreement.

     NAI has
delivered a notice to BNPPLC dated ______, 20___, which by its terms expressed NAI’s
intent that it constitute a “Notice of NAI’s Intent to Terminate Because of a Force Majeure Event”
as defined in the Construction Agreement. In such notice, NAI advised BNPPLC of NAI’s intent to
terminate the Construction Agreement because of NAI’s belief that the Construction Allowance to be
provided to it under the Construction Agreement will not be sufficient to cover all Reimbursable
Construction Period Costs yet to be paid or reimbursed from Construction Advances. Such notice
also suggested NAI’s belief that, but for the cost of repairing damage to the Improvements caused
by a Pre-lease Force Majeure Event, the remaining available Construction Allowance would be
sufficient. In addition, such notice set forth the amount of $______as NAI’s estimate of the
Pre-lease Force Majeure Excess Costs most likely to be incurred because of such Pre-lease Force
Majeure Event.

     This response to such notice constitutes an Increased Funding Commitment. BNPPLC hereby
commits to increase the amount of the Construction Allowance by $______(the estimate given by
NAI as described above). Such commitment is made on and subject to all of the same terms and
conditions set forth in the Construction Agreement and other Operative Documents as being
applicable to the original Construction Allowance and to Construction Advances required thereunder.

     Please note that, according to the Construction Agreement, NAI will have ten days after
the date of any Increased Commitment (which may be comprised of this Increased Funding Commitment
and any separate Increased Time Commitment given contemporaneously herewith)

 

 

within which NAI may rescind the aforementioned Notice of NAI’s Intent to Terminate Because
of a Force Majeure Event by a notice given in the form prescribed by the Construction
Agreement. Any failure of NAI to so rescind the notice will constitute a 97-10/Meltdown Event
under and as defined in the Construction Agreement and will result in a conclusive presumption (for
purposes of calculating any 97-10/Prepayment required of NAI) that any Termination of NAI’s Work
occurred for reasons other than the Pre-lease Force Majeure Events of which BNPPLC has previously
been notified.

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a Delaware	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit G to Construction Agreement - Page 2

 

 

Exhibit H

Notice of Increased Time Commitment by BNPPLC

[Date]

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Telecopy: (919) 476-5750

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement or in the Common Definitions and Provisions Agreement referenced in the
Construction Agreement.

     NAI has
delivered a notice to BNPPLC dated ______, 20___, which by its terms expressed NAI’s
intent that it constitute a “Notice of NAI’s Intent to Terminate Because of a Force Majeure Event”
as defined in the Construction Agreement. In such notice, NAI advised BNPPLC of NAI’s intent to
elect a Termination of NAI’s Work because of NAI’s belief that the Work will not be substantially
complete prior to the Target Completion Date only because of Pre-lease Force Majeure Delays. Such
notice also expressed NAI’s belief that Pre-lease Force Majeure
Delays are likely to be  ______
days in the aggregate.

     This response to such notice constitutes an Increased Time Commitment. BNPPLC hereby commits
to extend the Target Completion Date by ______days (the estimate given by NAI as described
above).

     Please note that, according to the Construction Agreement, NAI will have ten days after the
date of any Increased Commitment (which may be comprised of this Increased Time Commitment and any
separate Increased Funding Commitment given contemporaneously herewith) within which NAI may
rescind the aforementioned Notice of NAI’s Intent to Terminate Because of a Force Majeure Event by
a notice given in the form prescribed by the Construction Agreement. Any failure of NAI to so
rescind the notice will constitute a 97-10/Meltdown Event under and as defined in the Construction
Agreement and will result in a conclusive presumption (for purposes of calculating any
97-10/Prepayment required of NAI) that any Termination of NAI’s Work occurred for reasons other
than the Pre-lease Force Majeure Events of which BNPPLC has previously been notified.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a	 	 
	 	 	Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

Exhibit I

Rescission of Notice of NAI’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Construction Agreement dated as of July 17, 2007 (the “Construction 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 Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

     NAI has delivered
to BNPPLC a Notice of NAI’s Intent to Terminate dated ______, 200___, and
BNPPLC has responded with an Increased Commitment as of ______, 200___.
NAI hereby accepts
the Increased Commitment and, as provided in subparagraph 7(B) of the Construction Agreement,
rescinds such Notice of NAI’s Intent to Terminate.

     NAI acknowledges that, because of such rescission, NAI must, as a condition precedent to any
exercise of its remaining rights to terminate the Construction Agreement pursuant to subparagraph
7(B) thereof, deliver another Notice of NAI’s Intent to Terminate at least forty five days prior to
the effective date of the Termination of NAI’s Work.

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:exv10w57

 

Exhibit 10.57

LEASE AGREEMENT

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

July 17, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	1	 	 	Term; Lease Obligations Deferred Until Completion of Initial
Improvements; Termination Prior
to Lease Commencement
	 	 	2	 
	 	 	 	 	(A) Scheduled Term; Deferral of Obligations
	 	 	2	 
	 	 	 	 	(B) Option of BNPPLC to Terminate
	 	 	3	 
	 	 	 	 	(C) Automatic Termination
	 	 	3	 
	 	 	 	 	(D) Extension of the Term
	 	 	3	 
	 	2	 	 	Use and Condition of the Property
	 	 	4	 
	 	 	 	 	(A) Use
	 	 	4	 
	 	 	 	 	(B) Condition of the Property
	 	 	5	 
	 	 	 	 	(C) Consideration for and Scope of Waiver
	 	 	5	 
	 	3	 	 	Rent
	 	 	5	 
	 	 	 	 	(A) Base Rent Generally
	 	 	5	 
	 	 	 	 	(B) Calculation of and Due Dates for Base Rent
	 	 	6	 
	 	 	 	 	(1) Determination of Payment Due Dates Generally
	 	 	6	 
	 	 	 	 	(2) Special Adjustments to Base Rent Payment Dates and Periods
	 	 	6	 
	 	 	 	 	(3) Base Rent Formula
	 	 	6	 
	 	 	 	 	(4) Fixed Rate Lock
	 	 	7	 
	 	 	 	 	(C) Early Termination of Fixed Rate Lock
	 	 	8	 
	 	 	 	 	(D) Additional Rent
	 	 	8	 
	 	 	 	 	(E) Administrative Fees.
	 	 	8	 
	 	 	 	 	(F) No Demand or Setoff
	 	 	9	 
	 	 	 	 	(G) Default Interest and Order of Application
	 	 	9	 
	 	 	 	 	(H) Calculations by BNPPLC Are Conclusive
	 	 	9	 
	 	4	 	 	Nature of this Agreement
	 	 	9	 
	 	 	 	 	(A) “Net” Lease Generally
	 	 	9	 
	 	 	 	 	(B) No Termination
	 	 	9	 
	 	 	 	 	(C) Characterization of this Lease
	 	 	10	 
	 	5	 	 	Payment of Executory Costs and Losses Related to the Property
	 	 	12	 
	 	 	 	 	(A) Local Impositions
	 	 	12	 
	 	 	 	 	(B) Increased Costs; Capital Adequacy Charges
	 	 	13	 
	 	 	 	 	(C) NAI’s Payment of Other Losses; General Indemnification
	 	 	14	 
	 	 	 	 	(D) Exceptions and Qualifications to Indemnities
	 	 	18	 
	 	 	 	 	(E) Refunds and Credits Related to Losses Paid by NAI
	 	 	23	 
	 	 	 	 	(F) Reimbursement of Excluded Taxes Paid by NAI
	 	 	24	 
	 	 	 	 	(G) Collection on Behalf of Participants
	 	 	24	 
	 	6	 	 	Replacement of Participants.
	 	 	25	 
	 	 	 	 	(A) NAI’s Right to Substitute Participants
	 	 	25	 
	 	 	 	 	(B) Conditions to Replacement of Participants
	 	 	25	 
	 	7	 	 	Items Included in the Property
	 	 	26	 
	 	 	 	 	(A) Status of Property
	 	 	26	 
	 	 	 	 	(B) Changes in the Land Covered by the Ground Lease
	 	 	26	 
	 	8	 	 	Environmental
	 	 	27	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	(A) Environmental Covenants by NAI
	 	 	27	 
	 	 	 	 	(B) Right of BNPPLC to do Remedial Work Not Performed by NAI
	 	 	27	 
	 	 	 	 	(C) Environmental Inspections and Reviews
	 	 	28	 
	 	 	 	 	(D) Communications Regarding Environmental Matters
	 	 	28	 
	 	9	 	 	Insurance Required and Condemnation
	 	 	29	 
	 	 	 	 	(A) Liability Insurance
	 	 	29	 
	 	 	 	 	(B) Property Insurance
	 	 	30	 
	 	 	 	 	(C) Failure to Obtain Insurance
	 	 	30	 
	 	 	 	 	(D) Condemnation
	 	 	31	 
	 	 	 	 	(E) Waiver of Subrogation
	 	 	31	 
	 	10	 	 	Application of Insurance and Condemnation Proceeds
	 	 	32	 
	 	 	 	 	(A) Collection and Application of Insurance and Condemnation Proceeds Generally
	 	 	32	 
	 	 	 	 	(B) Advances of Escrowed Proceeds to NAI
	 	 	32	 
	 	 	 	 	(C) Application of Escrowed Proceeds as a Qualified Prepayment
	 	 	33	 
	 	 	 	 	(D) Right of NAI to Receive and Apply Remaining Proceeds Below a Certain Level
	 	 	33	 
	 	 	 	 	(E) Special Provisions Applicable After a 97-10/Meltdown Event or an Event of Default
	 	 	33	 
	 	 	 	 	(F) NAI’s Obligation to Restore
	 	 	34	 
	 	 	 	 	(G) Takings of All or Substantially All of the Property on or after the Completion Date
	 	 	34	 
	 	 	 	 	(H) If Remaining Proceeds Exceed the Lease Balance
	 	 	34	 
	 	11	 	 	Additional Representations, Warranties and Covenants of NAI Concerning the Property
	 	 	34	 
	 	 	 	 	(A) Operation and Maintenance
	 	 	34	 
	 	 	 	 	(B) Debts for Construction, Maintenance, Operation or Development
	 	 	35	 
	 	 	 	 	(C) Repair, Maintenance, Alterations and Additions
	 	 	36	 
	 	 	 	 	(D) Permitted Encumbrances
	 	 	37	 
	 	 	 	 	(E) Books and Records Concerning the Property
	 	 	37	 
	 	12	 	 	Assignment and Subletting by NAI
	 	 	37	 
	 	 	 	 	(A) BNPPLC’s Consent Required
	 	 	37	 
	 	 	 	 	(B) Standard for BNPPLC’s Consent to Assignments and Certain Other Matters
	 	 	38	 
	 	 	 	 	(C) Consent Not a Waiver
	 	 	39	 
	 	13	 	 	Assignment by BNPPLC
	 	 	39	 
	 	 	 	 	(A) Restrictions on Transfers
	 	 	39	 
	 	 	 	 	(B) Effect of Permitted Transfer or other Assignment by BNPPLC
	 	 	39	 
	 	14	 	 	BNPPLC’s Right to Enter and to Perform for NAI 
	 	 	39	 
	 	 	 	 	(A) Right to Enter
	 	 	39	 
	 	 	 	 	(B) Performance for NAI
	 	 	40	 

(ii)

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	(C) Building Security
	 	 	40	 
	 	15	 	 	Remedies
	 	 	41	 
	 	 	 	 	(A) Traditional Lease Remedies
	 	 	41	 
	 	 	 	 	(B) Foreclosure Remedies
	 	 	43	 
	 	 	 	 	(C) Notice Required So Long As the Purchase Option Continues Under the Purchase Agreement
	 	 	43	 
	 	 	 	 	(D) Enforceability
	 	 	44	 
	 	 	 	 	(E) Remedies Cumulative
	 	 	44	 
	 	16	 	 	Default by BNPPLC
	 	 	44	 
	 	17	 	 	Quiet Enjoyment
	 	 	44	 
	 	18	 	 	Surrender Upon Termination
	 	 	45	 
	 	19	 	 	Holding Over by NAI
	 	 	45	 
	 	20	 	 	Recording Memorandum
	 	 	45	 
	 	21	 	 	Independent Obligations Evidenced by Other Operative Documents
	 	 	45	 
	 	22	 	 	Proprietary Information and Confidentiality
	 	 	46	 
	 	 	 	 	(A) Proprietary Information
	 	 	46	 
	 	 	 	 	(B) Confidentiality
	 	 	46	 

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Legal Description
	Exhibit B

	 	North Carolina Lien and Foreclosure Provisions

(iii)

 

LEASE AGREEMENT

     This LEASE AGREEMENT (this “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 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 Lease
for all purposes. As used in this Lease, capitalized terms defined in the Common Definitions and
Provisions Agreement and not otherwise defined in this 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, pursuant to the Ground Lease, BNPPLC is acquiring a leasehold estate in the Land
described in Exhibit A and any existing improvements on the Land from NAI contemporaneously
with the execution of this Lease.

     In anticipation of BNPPLC’s acquisition of the leasehold estate under the Ground Lease and
other property described below, BNPPLC and NAI have reached agreement as to the terms and
conditions upon which BNPPLC is willing to sublease the Land to NAI and to lease to NAI any
existing Improvements and the Improvements to be constructed on the Land as hereinafter provided,
and by this Lease BNPPLC and NAI desire to evidence such agreement.

GRANTING CLAUSES

     BNPPLC does hereby LEASE, DEMISE and LET unto NAI for the Term (as hereinafter defined) all
right, title and interest of BNPPLC, now owned or hereafter acquired, in and to:

     (1) the Land, including the leasehold estate in the Land acquired by BNPPLC under the
Ground Lease;

     (2) any and all Improvements;

     (3) all easements and other rights appurtenant to the leasehold estate created by the
Ground Lease or to the Improvements; and

     (4) (A) any land lying within the right-of-way of any street, open or proposed,
adjoining the Land, (B) any sidewalks and alleys adjacent to the Land, and (C) any
strips and gores between the Land and abutting land.

 

 

BNPPLC’s interest in all property described in clauses (1) through (4) above is 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 BNPPLC under the Ground Lease or as described in
subparagraph 7(A) below, BNPPLC also hereby grants and assigns to NAI for the term of this Lease
the right to use and enjoy (and, in the case of contract rights, to enforce) such rights or
interests of BNPPLC:

     (a) any goods, equipment, furnishings, furniture and other tangible personal property
of whatever nature that are located on the Real Property and all renewals or replacements of
or substitutions for any of the foregoing (collectively, the “Tangible Personal Property”);

     (b) the benefits, if any, conferred upon the owner of the Real Property by the
Permitted Encumbrances; and

     (c) any permits, licenses, franchises, certificates, and other rights and privileges
against third parties related to the Real Property or Tangible Personal Property, including
warranties, if any, given by vendors from whom any Tangible Personal Property was or may be
acquired.

Such rights and interests of BNPPLC, whether now existing or hereafter arising, are hereinafter
collectively called the “Personal Property”. The Real Property and the Personal Property are
hereinafter sometimes collectively called the “Property.”

     However, the leasehold estate conveyed by this Lease and NAI’s rights hereunder are expressly
made subject and subordinate to the terms and conditions of this Lease and the Ground Lease, to the
matters listed in Exhibit B to the Closing Certificate and all other Permitted
Encumbrances, and to any other claims or encumbrances not constituting Liens Removable by BNPPLC.

GENERAL TERMS AND CONDITIONS

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

1 Term; Lease Obligations Deferred Until Completion of Initial Improvements; Termination Prior
to Lease Commencement.

     (A) Scheduled Term; Deferral of Obligations. The term of this Lease (the
“Term”)
will not commence until a Completion Date occurs because of a Completion Notice given by NAI
to BNPPLC, as required by subparagraph 2(B) of the Construction Agreement after NAI

 

 

substantially completes the Construction Project. The Term will begin on and include any such
Completion Date and will end on the first Business Day of August, 2014, unless the Term is extended
as provided in subparagraph 1(D) or sooner terminated as expressly provided in other provisions of
this Lease.

     BNPPLC and NAI intend to be legally bound by this Lease when it is executed by them. They
also intend, however, that this Lease will not impose any payment obligations upon either of them
prior to the Completion Date. Accordingly, neither NAI nor BNPPLC will have any obligation to make
any payments under this Lease until the Completion Date, and if this Lease terminates before the
Completion Date pursuant to subparagraph 1(B) or subparagraph 1(C), the Term will never commence
and neither party will have any obligation for payments by reason of this Lease following the
termination.

     Nothing in this subparagraph 1(A) nor any other provision of this Lease will defer or
terminate the rights and obligations of the parties under the other Operative Documents. Unlike
this Lease, the other Operative Documents will, when executed, immediately impose payment
obligations upon BNPPLC and NAI.

     (B) Option of BNPPLC to Terminate. BNPPLC will have the option to terminate this
Lease, which BNPPLC may exercise by notice to NAI, at any time after any 97-10/Meltdown Event or
after BNPPLC’s receipt of a Pre-lease Force Majeure Notice. Such option may be exercised by BNPPLC
as it deems appropriate in its sole and absolute discretion.

     (C) Automatic Termination. If NAI elects to accelerate the Designated Sale Date (as
provided in the definition thereof in the Common Definitions and Provisions Agreement) prior to the
Completion Date, or if a Termination of NAI’s Work occurs under and as provided in the Construction
Agreement before the Completion Date, then this Lease will terminate automatically before the Term
begins.

     (D) Extension of the Term. The Term may be extended at the option of NAI for up
to two successive periods of five years each; provided, however, that prior to each such extension
the following conditions must have been satisfied: (A) NAI must have delivered a notice of its
election to exercise the option at least one hundred eighty days prior to the end of the Term, and
prior to the commencement of any such extension BNPPLC and NAI must have agreed in writing upon,
and received the written consent and approval of BNPPLC’s Parent and all Participants (other than
Participants being replaced at the request of NAI as provided in Paragraph 6) to, (1) a
corresponding extension of the date specified in clause (1) of the definition of Designated Sale
Date in the Common Definitions and Provisions Agreement and of the term of the Ground Lease, and
(2) an adjustment to the Rent that NAI will be required to pay during the extension, it being
expected that the Rent for the extension may be different than the Rent required for the
original Term or any prior extension, and it being understood that the Rent for

Lease Agreement - Page 3

 

any extension must
in all events be satisfactory to both BNPPLC and NAI, each in its sole and absolute discretion; (B)
at the time of NAI’s exercise of its option to extend, no Event of Default has occurred and is
continuing and no Event of Default will result from the extension; (C) immediately prior to any
such extension, this Lease must then remain in effect; and (D) if this Lease has been assigned by
NAI, then NAI must have executed a guaranty (or confirmed an existing guaranty, if applicable),
guaranteeing NAI’s assignee’s obligations under the Operative Documents throughout such extended
Term. With respect to the condition that BNPPLC and NAI must have agreed upon the Rent required
for any extension of the Term, neither NAI nor BNPPLC is willing to submit itself to a risk of
liability or loss of rights hereunder for being judged unreasonable. Accordingly, NAI and BNPPLC
will each have sole and absolute discretion in making its determination, and both NAI and BNPPLC
hereby disclaim any obligation express or implied to be reasonable in negotiating the Rent for any
such extension. Subject to the changes to the Rent and satisfaction of the other conditions
listed in this subparagraph, if NAI exercises its option to extend the Term as provided in this
subparagraph, this Lease will continue in full force and effect, and the leasehold estate hereby
granted to NAI will continue without interruption and without any loss of priority over other
interests in or claims against the Property that may be created or arise after the Effective Date
and before the extension.

2 Use and Condition of the Property.

     (A) Use. Subject to the Permitted Encumbrances, NAI may use and occupy the Property
during the Term, but only for the following purposes and other lawful purposes incidental thereto:

     (1) construction and development of the Construction Project;

     (2) administrative and office space;

     (3) activities related to NAI’s research and development or production of products
that are of substantially the same type and character as those regularly sold by NAI in the
ordinary course of its business as of the Effective Date;

     (4) cafeteria and other support facilities that NAI may provide to its employees; and

     (5) other lawful purposes (including NAI’s research and development or
production of products that are not of substantially the same type and character as those
regularly sold by NAI in the ordinary course of its business as of the Effective Date)
approved in advance and in writing by BNPPLC, which approval will not be
unreasonably withheld after completion of the Construction Project (but NAI

Lease Agreement - Page 4

 

acknowledges that BNPPLC’s withholding of such approval shall be reasonable if BNPPLC
determines in good faith that (1) giving the approval may materially increase BNPPLC’s risk
of liability for any existing or future environmental problem, or (2) giving the approval is
likely to substantially increase BNPPLC’s administrative burden of complying with or
monitoring NAI’s compliance with the requirements of this Improvements Lease or other
Operative Documents).

     (B) Condition of the Property. NAI acknowledges that it has carefully and fully
inspected the Property and accepts the Property in its present state, AS IS, and without
any representation or warranty, express or implied, as to the condition of such property or as to
the use which may be made thereof. NAI also accepts the Property without any covenant,
representation or warranty, express or implied, by BNPPLC or its Affiliates regarding the title
thereto or the rights of any parties in possession of any part thereof, except as expressly set
forth in Paragraph 17. BNPPLC will not be responsible for any latent or other defect or change of
condition in the Land, Improvements or other Property or for any violations with respect thereto of
Applicable Laws. Further, BNPPLC will not be required to furnish to NAI any facilities or services
of any kind, including water, phone, sewer, steam, heat, gas, air conditioning, electricity, light
or power.

     (C) Consideration for and Scope of Waiver. The provisions of subparagraph 2(B)
have been negotiated by BNPPLC and NAI as being consistent with the Rent payable under this Lease,
and such provisions are intended to be a complete exclusion and negation of any representations or
warranties of BNPPLC or its Affiliates, express or implied, with respect to the Property that may
arise pursuant to any law now or hereafter in effect or otherwise, except as expressly set forth
herein.

     However, such exclusion of representations and warranties by BNPPLC is not intended to impair
any representations or warranties made by other parties, including any architects, engineers or
contractors engaged to work on the Construction Project, the benefit of which may pass to NAI
during the Term because of the definition of Personal Property and Property above.

3 Rent.

     (A) Base Rent Generally. On each Base Rent Date through the end of the Term,
NAI must pay BNPPLC rent (“Base Rent”), calculated as provided below . Each payment of Base Rent
must be received by BNPPLC no later than 2:00 p.m. (Eastern time) on the date it becomes
due; if received after 2:00 p.m. (Eastern time) it will be considered for purposes of this
Lease as

Lease Agreement - Page 5

 

received on the next following Business Day. At least five days prior to any Base Rent
Date upon which an installment of Base Rent becomes due, BNPPLC will notify NAI in writing of the
amount of each installment, calculated as provided below. Any failure by BNPPLC to so notify NAI,
however, will not constitute a waiver of BNPPLC’s right to payment, but absent such notice NAI will
not be in default hereunder for any underpayment resulting therefrom if NAI, in good faith,
reasonably estimates the payment required, makes a timely payment of the amount so estimated and
corrects any underpayment within three Business Days after being notified by BNPPLC of the
underpayment.

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

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

     (2) Special Adjustments to Base Rent Payment Dates and Periods.
Notwithstanding the foregoing, if NAI or any Applicable Purchaser purchases BNPPLC’s
interest in the Property pursuant to the Purchase Agreement, any accrued unpaid Base Rent
and all outstanding Additional Rent will be due on the date of purchase in addition to the
purchase price and other sums due to BNPPLC under the Purchase Agreement.

     (3) Base Rent Formula. Each installment of Base Rent payable for any Base Rent
Period will equal:

	 	•	 	the Lease Balance on the first day of such Base Rent Period, less Losses (if
any) that BNPPLC suffered or incurred prior to the Term and that qualify as Pre-lease
Force Majeure Losses (as defined in the Construction Agreement), times
	 
	 	•	 	the sum of the Effective Rate and the Spread, times
	 
	 	•	 	the number of days in the period from and including the preceding Base Rent
Date to but not including the Base Rent Date upon which the installment is due, divided
by
	 
	 	•	 	three hundred sixty.

Lease Agreement - Page 6

 

     Only for the purpose of illustration, assume the following for a hypothetical Base Rent
Period: that prior to the first day of such Base Rent Period the Construction Allowance has
been fully funded, and no Pre-lease Force Majeure Losses have occurred, but Qualified
Prepayments have been received by BNPPLC, leaving a Lease Balance of $50,000,000; that the
Effective Rate for the Base Rent Period is 6%; that the Spread is one hundred fifty basis
points (150/100 of 1%); and that such Base Rent Period contains exactly thirty days. Under
such assumptions, Base Rent for the hypothetical Base Rent Period will equal:

$50,000,000 x [6% + 1.50%] x 30/360 = $312,500.

     (4) Fixed Rate Lock. At any time during the Term, NAI may deliver a notice in
the form attached to the Common Definitions and Provisions Agreement as Annex 2 (a
“Fixed Rate Lock Notice”), requesting that BNPPLC establish a fixed rate for use in the
calculation of the Effective Rate hereunder (a “Fixed Rate Lock”) for all Base Rent Periods
commencing on or after a date specified in such notice, which date must be the first
Business Day of a calendar month (the “Fixed Rate Lock Date”). Promptly after receiving a
Fixed Rate Lock Notice, BNPPLC will enter into an Interest Rate Swap with BNP Paribas (the
“Fixed Rate Swap”); except that BNPPLC may decline to enter into the Fixed Rate Swap and to
establish a Fixed Rate Lock if:

     (a) NAI does not deliver the Fixed Rate Lock Notice to BNPPLC at least ten
Business days prior to the Fixed Rate Lock Date specified therein;

     (b) NAI specifies a Fixed Rate Lock Date in the Fixed Rate Lock Notice
that is prior to the end of any Base Rent Period which commenced before
BNPPLC receives the Fixed Rate Lock Notice;

     (c) any notice has been given to accelerate the Designated Sale Date as
provided in the definition thereof in the Common Definitions and Provisions
Agreement;

     (d) the estimate of the Fixed Rate (hereinafter defined) specified by NAI in
the Fixed Rate Lock Notice is for any reason less than the fixed rate available to
BNPPLC under any Interest Rate Swap proposed by BNP Paribas;

     (e) at the time the Fixed Rate Lock Notice is given, the Interest Rate Swap
requested thereby is contrary to any Applicable Laws or any interpretation thereof
by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or any request or

Lease Agreement - Page 7

 

directive (whether or
not having the force of law) of any such authority, central bank or comparable
agency (including, without limitation, any such requirement imposed by the Board of
Governors of the United States Federal Reserve System); or

     (f) any event has occurred or circumstance exists that constitutes a Default or
a 97-10/Meltdown Event.

The notional principal amount of the Fixed Rate Swap will equal the Lease Balance on the
date such notice is given. The fixed rate used to calculate payments required of BNPPLC
under the Fixed Rate Swap, as the counterparty designated the fixed rate payor, will
constitute the “Fixed Rate” for purposes of this Lease.

     (C) Early Termination of Fixed Rate Lock. After a Fixed Rate Lock is
established, BNPPLC may cause or suffer a termination in whole or in part of the Fixed Rate Swap in
the event that (i) NAI fails to make any payment of Base Rent required hereunder on the Base Rent
Date when it first becomes due, (ii) the Designated Sale Date occurs before the date specified in
clause (1) of the definition thereof in the Common Definitions and Provisions Agreement, (iii) for
any reason a Qualified Prepayment is applied to reduce the Lease Balance, (iv) the Lease Balance on
the Fixed Rate Lock Date is less than the notional amount of the Fixed Rate Swap for any reason.
NAI must reimburse to BNPPLC any Fixed Rate Settlement Amount charged to BNPPLC in connection with
such a termination, and if the termination is a complete, rather than a partial, termination of the
Fixed Rate Swap then in effect, it will for purposes of this Lease constitute a termination of the
Fixed Rate Lock itself. Further, if BNPPLC is charged penalties or interest because of its failure
to make a timely payment required under the Fixed Rate Swap, and if BNPPLC’s failure to make the
timely payment was caused by NAI’s failure to make a timely payment of Base Rent or other amounts
due hereunder or under other Operative
Documents, then such penalties or interest will constitute Losses against which BNPPLC is
entitled to be indemnified pursuant to subparagraph 5(C). If a Fixed Rate Lock is terminated as
provided in this subparagraph, NAI shall have no right to require BNPPLC to enter into another
Interest Rate Swap in order to establish a new fixed rate.

     (D) Additional Rent. All amounts which NAI is required to pay to or on behalf of
BNPPLC pursuant to this Lease, together with every charge, premium, interest and cost set forth
herein which may be added for nonpayment or late payment thereof, will constitute rent (all such
amounts, other than Base Rent, are herein called “Additional Rent”; and, collectively, Base Rent
and Additional Rent are herein sometimes called “Rent”).

     (E) Administrative Fees. In addition to other amounts payable by NAI hereunder, on or
before each anniversary of the Effective Date after the Completion Date and prior to the Designated
Sale Date, NAI must pay BNPPLC an annual administrative agency fee (an

Lease Agreement - Page 8

 

“Administrative Fee”) as
provided in the Term Sheet. Each payment of an Administrative Fee will represent Additional Rent
for the first Base Rent Period during which it first becomes due.

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

     (G) Default Interest and Order of Application. All Rent will bear interest, if not
paid when first due, at the Default Rate in effect from time to time from the date due until paid;
provided, that nothing herein contained will be construed as permitting the charging or collection
of interest at a rate exceeding the maximum rate permitted under Applicable Laws. BNPPLC may apply
any amounts paid by or on behalf of NAI against any Rent then past due in the order the same became
due or in such other order as BNPPLC elects.

     (H) Calculations by BNPPLC Are Conclusive. All calculations by BNPPLC of Base Rent,
Additional Rent or any amount needed to calculate Base Rent (including the Effective Rate for any
Base Rent Period and the Lease Balance) or Additional Rent will, in the absence of clear and
demonstrable error, be conclusive and binding upon NAI.

4 Nature of this Agreement.

     (A) “Net” Lease Generally. Subject only to the exceptions listed in subparagraph 5(D)
below, it is the intention of BNPPLC and NAI that Base Rent and other payments herein specified
will be absolutely net to BNPPLC and that NAI must pay all costs, expenses and obligations of every
kind relating to the Property or this Lease which may arise or become due. Further, it is
understood that all amounts payable by NAI to BNPPLC under this Lease and the other Operative
Documents are expressed as minimum payments to be made net of any deduction or withholding required
under any Applicable Laws.

     (B) No Termination. Except as expressly provided in this Lease itself, this Lease will
not terminate, nor will NAI have any right to terminate this Lease, nor will NAI be entitled to any
abatement of or setoff against the Rent, nor will the obligations of NAI under this Lease be
excused, for any reason whatsoever, including any of the following: (i) any damage to or the
destruction of all or any part of the Property from whatever cause, (ii) the taking of the Property
or any portion thereof by eminent domain or otherwise for any reason, (iii) the prohibition,
limitation or restriction of NAI’s use or development of all or any portion of the Property or any
interference with such use by governmental action or otherwise, (iv) any eviction of NAI or of
anyone claiming through or under NAI, (v) any default on the part of BNPPLC under this Lease or any
of the other Operative Documents 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

Lease Agreement - Page 9

 

the Property or any change in the
condition thereof or the existence with respect to the Property of any violations of Applicable
Laws, (viii) NAI’s 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 hereunder be separate and
independent of the covenants and agreements of BNPPLC, that Base Rent and all other sums payable by
NAI hereunder continue to be payable in all events and that the obligations of NAI hereunder
continue unaffected, unless the requirement to pay or perform the same have been terminated or
limited pursuant to an express provision of this Lease. Without limiting the foregoing, NAI waives
to the extent permitted by Applicable Laws, except as otherwise expressly provided herein, all
rights to which NAI may now or hereafter be entitled by law (including any such rights arising
because of any “warranty of suitability” or other warranties implied as a matter of law) (i) to
quit, terminate or surrender this Lease or the Property or any part thereof or (ii) to any
abatement, suspension, deferment or reduction of the Rent.

     However, nothing in this subparagraph 4(B) 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 Lease: (i)
the recovery of monetary damages in the case of any default that continues beyond the period for
cure provided in Paragraph 16, (ii) 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 Lease which are binding upon BNPPLC (including the confidentiality provisions
set forth in subparagraph 22(B) below), or (iii) a decree compelling performance by BNPPLC of any
of the express covenants, agreements, conditions or provisions of this Lease which are binding upon
BNPPLC.

     (C) Characterization of this Lease.

     (1) Both NAI and BNPPLC intend that (A) for the purposes of determining the proper
accounting for this Lease by NAI, BNPPLC will be treated as the owner and landlord of the
Property and NAI will be treated as the tenant of the Property, and (B) for income tax
purposes and real estate, commercial law (including bankruptcy) and regulatory purposes, (1)
this Lease and the other Operative Documents will be treated as a financing arrangement, (2)
BNPPLC will be deemed a lender making loans to NAI in the principal amount equal to the
Lease Balance, which loans are secured by the Property, and (3) NAI will be treated as the
owner of the Property and will be entitled to all tax benefits available to the owner of the
Property. Consistent with such intent, by the provisions set forth in the attached
Exhibit B, NAI is granting to BNPPLC a lien upon and mortgaging and warranting title
to the leasehold estate in the Land created by the Ground Lease and the Improvements and all
rights, titles and interests of NAI in and to other Property, WITH POWER OF SALE, to secure
all obligations (monetary or

Lease Agreement - Page 10

 

otherwise) of NAI arising under or in connection with any of
the Operative Documents. Without limiting the generality of the foregoing, NAI and BNPPLC
desire that their intent as set forth in this subparagraph be given effect both in the
context of any bankruptcy, insolvency or receivership proceedings concerning NAI or BNPPLC
and in other contexts. Accordingly, NAI and BNPPLC expect that in the event of any
bankruptcy, insolvency or receivership proceedings affecting NAI or BNPPLC or any
enforcement or collection actions arising out of such proceedings, the transactions
evidenced by this Lease and the other Operative Documents will be characterized and treated
as loans made to NAI by BNPPLC, as an unrelated third party lender to NAI, secured by the
Property.

     (2) Notwithstanding the foregoing, NAI acknowledges and agrees that none of BNPPLC or
the other Interested Parties has made, or will be deemed to have made, in the Operative
Documents or otherwise, any representations or warranties concerning how this Lease and the
other Operative Documents will be characterized or treated under applicable accounting
rules, income tax, regulatory, commercial or real estate law, bankruptcy, insolvency or
receivership law or any other rules or requirements concerning the tax, accounting or legal
characteristics of the Operative Documents. NAI further acknowledges and agrees that it is
sophisticated and knowledgeable regarding all such matters and that it has, as it deemed
appropriate, obtained from and relied upon its own professional accountants, counsel and
other advisors for such tax, accounting and legal advice concerning the Operative Documents.

     (3) In any event, NAI will be required by subparagraph 5(C) below to indemnify
and hold harmless BNPPLC from and against all actual additional taxes that may arise or
become due because of any refusal of taxing authorities to recognize and give effect to the
intention of the parties as set forth in subparagraph 4(C)(1) (“Unexpected
Recharacterization Taxes”), including any actual, additional income or
capital gain tax that may become due because of payments to BNPPLC of the purchase
price upon any sale under the Purchase Agreement resulting from any insistence of such
taxing authorities that BNPPLC be treated as the “true owner” of the Property for tax
purposes (a “Forced Recharacterization”); provided, however, NAI will not be required to
pay or reimburse Unexpected Recharacterization Taxes to the extent that they are, in any
given tax year, eliminated or offset by actual savings to BNPPLC because of additional
depreciation deductions or other tax benefits available to BNPPLC in the same year only by
reason of the Forced Recharacterization (“Unexpected Tax Savings”). To the extent
Unexpected Recharacterization Taxes are eliminated or offset by Unexpected Tax Savings in a
given tax year, including the tax year in which any sale under the Purchase Agreement occurs
(the “Year of Sale”), such Unexpected Recharacterization Taxes will constitute Excluded
Taxes as provided in clause (D) of the definition thereof in the Common Definitions and
Provisions Agreement. Also, for purposes of this

Lease Agreement - Page 11

 

provision, it is understood that any
depreciation deductions first available to BNPPLC in tax years prior to the Year of Sale and
resulting from a Forced Recharacterization (“Prior Year Depreciation Deductions”) will be
considered “available to BNPPLC” in the Year of Sale (and thus will eliminate or offset any
Unexpected Recharacterization Taxes resulting from the recapture of such Prior Year
Depreciation Deductions upon a sale under the Purchase Agreement) to the extent that (A)
such Prior Year Depreciation Deductions are not otherwise used to generate Unexpected Tax
Savings or Unexpected Net Tax Benefits (as defined below), and (B) the tax laws and
regulations applicable in the Year of Sale effectively permit BNPPLC to carry over the Prior
Year Depreciation Deductions to the Year of Sale by allowing BNPPLC to carry over net
operating losses from the years in which the Prior Year Depreciation Deductions were first
available to BNPPLC to the Year of Sale.

     (4) After any Forced Recharacterization, BNPPLC will make a reasonable effort to
determine whether Unexpected Tax Savings exceed Unexpected Recharacterization Taxes in any
given tax year (any such excess being hereinafter called an “Unexpected Net Tax Benefit”);
and if BNPPLC does determine that an Unexpected Net Tax Benefit has been realized and the
amount thereof, BNPPLC will notify NAI of the same and either credit the amount thereof
against payments otherwise then due or to become due from NAI under this Lease or the other
Operative Documents or pay the amount of such Unexpected Net Tax Benefit to NAI. It is
understood, however, that the tax position of BNPPLC (and the consolidated tax group of
which it is a part) may, in any given tax year, be such that no Unexpected Net Tax Benefit
exists or can be determined with a reasonable effort on the part of BNPPLC. Therefore,
BNPPLC makes no representation that NAI will receive any credits or payments pursuant to
this provision after any Forced Recharacterization. Also, the determination by BNPPLC of
the amount of any Unexpected Net Tax Benefit will be conclusive absent clear and manifest
error, as
will any determination by BNPPLC that the amount of any Unexpected Net Tax Benefit in a
given tax year cannot be calculated with a reasonable effort. If NAI is dissatisfied with
any such determination by BNPPLC prior to the Designated Sale Date, NAI will be entitled to
accelerate the Designated Sale Date (as provided in clause (2) of the definition thereof),
after which NAI may purchase or cause an Applicable Purchaser to purchase the Property on
the accelerated Designated Sale Date pursuant to the Purchase Agreement.

5 Payment of Executory Costs and Losses Related to the Property.

     (A) Local Impositions. Subject only to the exceptions listed in subparagraph 5(D)
below, NAI must pay or cause to be paid prior to delinquency all Local Impositions. If requested by
BNPPLC from time to time, NAI must furnish BNPPLC with receipts or other appropriate evidence
showing payment of all Local Impositions at least ten days prior to the applicable delinquency date
therefor.

Lease Agreement - Page 12

 

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

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

     (1) If there is any increase in the cost to BNPPLC’s Parent or any Participant
of agreeing to make or making, funding or maintaining advances to BNPPLC in connection with
the Property because of any Banking Rules Change, then NAI must from time to time (after
receipt of a request from BNPPLC’s Parent or such Participant as
provided below) pay to BNPPLC for the account of BNPPLC’s Parent or such Participant,
as the case may be, additional amounts sufficient to compensate BNPPLC’s Parent or the
Participant for such increased cost. A certificate as to the amount of such increased cost,
submitted to BNPPLC and NAI by BNPPLC’s Parent or the Participant, will be conclusive and
binding upon NAI, absent clear and demonstrable error.

     (2) BNPPLC’s Parent or any Participant may demand additional payments (“Capital
Adequacy Charges”) if BNPPLC’s Parent or the Participant determines that any Banking Rules
Change affects the amount of capital to be maintained by it and that the amount of such
capital is increased by or based upon the existence of advances made or to be made to or for
BNPPLC to permit BNPPLC to maintain BNPPLC’s investment in the Property. To the extent that
BNPPLC’s Parent or any Participant demands Capital Adequacy Charges as compensation for the
additional capital requirements reasonably allocable to such investment or advances, NAI
must pay to BNPPLC for the account of

Lease Agreement - Page 13

 

BNPPLC’s Parent or the Participant, as the case may
be, the amount so demanded.

     (3) Notwithstanding the foregoing provisions of this subparagraph 5(B), NAI will not be
obligated to pay any claim for compensation pursuant to this subparagraph 5(B) that arises
or accrues (a) as a result of any change in the rating assigned to BNPPLC by rating agencies
or bank regulators in regard to BNPPLC’s creditworthiness, record keeping or failure to
comply with Applicable Laws (including U.S. banking regulations applicable to subsidiaries
of a bank holding company), or (b) more than nine months prior to the date NAI is notified
of the intent of BNPPLC’s Parent or a Participant to make a claim for such charges;
provided, that if the Banking Rules Change which results in a claim for compensation is
retroactive, then the nine month period will be extended to include the period of the
retroactive effect of such Banking Rules Change. Further, BNPPLC will cause BNPPLC’s Parent
and any Participant that is an Affiliate of BNPPLC to use commercially reasonable efforts to
reduce or eliminate any claim for compensation pursuant to this subparagraph 5(B), including
a change in the office of BNPPLC’s Parent or such Participant through which it provides and
maintains Funding Advances if such change will avoid the need for, or reduce the amount of,
such compensation and will not, in the reasonable judgment of BNPPLC’s Parent or such
Participant, be otherwise disadvantageous to it. It is understood that NAI may also request
similar commercial reasonable efforts on the part of any Participant that is not an
Affiliate of BNPPLC, but if a claim for additional compensation by any such Participant is
not eliminated or waived, then NAI may request that BNPPLC replace such Participant as
provided in Paragraph 6. Nothing in this subparagraph will be construed to require BNPPLC’s
Parent or any Participant to create any new office through which to make or maintain Funding
Advances.

     (4) Any amount required to be paid by NAI under this subparagraph 5(B) will
be due ten days after a notice requesting such payment is received by NAI from BNPPLC’s
Parent or the applicable Participant.

     (C) NAI’s Payment of Other Losses; General Indemnification. Subject only to the
exceptions listed in subparagraph 5(D) below:

     (1) Agreement to Indemnify. As directed by BNPPLC, NAI must pay, reimburse, indemnify,
defend, protect and hold harmless BNPPLC and all other Interested Parties from and against
all Losses (including Environmental Losses) asserted against or incurred or suffered by any
of them at any time and from time to time by reason of, in connection with, arising out of,
or in any way related to the following:

	 	•	 	the ownership or alleged ownership of any interest in
the Property or the Rents;

Lease Agreement - Page 14

 

	 	•	 	the purchase, design, construction, preparation,
installation, inspection, delivery, non-delivery, acceptance,
rejection, possession, use, operation, maintenance, management, rental,
lease, sublease, repossession, condition (including defects, whether or
not discoverable), destruction, repair, alteration, modification,
restoration, addition or substitution, storage, transfer of title,
redelivery, return, sale or other disposition of all or any part of or
interest in the Property;
	 
	 	•	 	the imposition of any Lien (or incurring of any
liability to refund or pay over any amount as a result of any Lien)
against all or any part of or interest in the Property;
	 
	 	•	 	any failure of the Property or NAI itself to comply
with Applicable Laws;
	 
	 	•	 	Permitted Encumbrances or any violation thereof;
	 
	 	•	 	Hazardous Substance Activities, including those
occurring prior to the Term;
	 
	 	•	 	the negotiation, administration or enforcement of the
Operative Documents or the Participation Agreement;
	 
	 	•	 	the making or maintenance of Funding Advances;
	 
	 	•	 	any Interest Rate Swap that BNPPLC enters into as described in
subparagraph 3(B)(4) of this Lease;
	 
	 	•	 	the breach by NAI of this Lease, any other Operative
Document or any other document executed by NAI pursuant to or in
connection with any Operative Document;
	 
	 	•	 	any obligations of BNPPLC under the Closing Certificate
or the Ground Lease; or
	 
	 	•	 	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.

Lease Agreement - Page 15

 

NAI’s obligations under this indemnity will apply whether or not any Interested Party is
also indemnified as to the applicable Loss by another Interested Party and whether or not
the Loss arises or accrues because of any condition of the Property or other circumstance
concerning the Property prior to the Effective Date.

Further, in the event, for income tax purposes, an Interested Party must include in
its taxable income any payment or reimbursement from NAI which is required by this indemnity
(in this provision, the “Original Indemnity Payment”), and yet the Interested Party is not
entitled during the same taxable year to a corresponding and equal deduction from its
taxable income for the Loss paid or reimbursed by such Original Indemnity Payment (in this
provision, the “Corresponding Loss”), then NAI must also pay to such Interested Party on
demand the additional amount (in this provision, the “Additional Indemnity Payment”) needed
to gross up the Original Indemnity Payment for any and all resulting additional income
taxes. That is, NAI must pay an Additional Indemnity Payment as is needed so that the
Corresponding Loss (computed net of the reduction, if any, of the Interested Party’s income
taxes because of credits or deductions that are attributable to the Interested Party’s
payment or deemed payment of the Corresponding Loss and that are recognized for tax purposes
in the same taxable year during which the Interested Party must recognize the Original
Indemnity Payment as income) will not exceed the difference computed by subtracting (i) all
income taxes (determined for this purpose based on the highest marginal income tax rates
charged to corporations by federal, state and local tax authorities, as applicable, for the
relevant period or periods) imposed because of the receipt or constructive receipt of the
Original Indemnity Payment and the Additional Indemnity Payment, from (ii) the sum of the
Original Indemnity Payment and the Additional Indemnity Payment. (With regard to any
payment or reimbursement of an Original Indemnity Payment, “After Tax Basis” means that such
payment or reimbursement is or will be made together with the additional amount needed to
gross up such Original Indemnity Payment as described in this provision.)

     (2) Scope of Indemnities and Releases. Every indemnity and release provided
in this Lease and the other Operative Documents for the benefit of BNPPLC or other
Interested Parties, including the indemnity set forth in subparagraph 5(C)(1), will apply
even if and when the subject matter of the indemnity or release arises out of or results
from the negligence or strict liability of BNPPLC or any other Interested Party. 
Further, all such indemnities and releases will apply even if insurance obtained by NAI or
required of NAI by this Lease or the other Operative Documents is not adequate to cover
Losses against or for which the indemnities and releases are provided. (However, NAI’s
liability for any failure to obtain insurance required by this Lease or the other Operative
Documents will not be limited to Losses

Lease Agreement - Page 16

 

against which indemnities are provided, it being
understood that the parties have agreed upon insurance requirements for reasons that extend
beyond providing a source of payment for Losses against which BNPPLC and other Interested
Parties may be indemnified by NAI.)

     (3) Nonexclusive List of Costs Covered by Indemnity. Costs and expenses for which NAI
is responsible on an After Tax Basis pursuant to this subparagraph 5(C) will include all of
the following, except to the extent that the following are included in the Initial Advance
or in the calculation of any Break Even Price or Make Whole Amount paid to BNPPLC pursuant
to the Purchase Agreement:

	 	•	 	appraisal fees;
	 
	 	•	 	Uniform Commercial Code search fees;
	 
	 	•	 	filing and recording fees;
	 
	 	•	 	inspection fees and expenses;
	 
	 	•	 	brokerage fees and commissions;
	 
	 	•	 	survey fees;
	 
	 	•	 	title policy premiums and escrow fees;
	 
	 	•	 	any Breakage Costs or Fixed Rate Settlement Amount;
	 
	 	•	 	Attorneys’ Fees incurred by BNPPLC with respect to the drafting,
negotiation, administration or enforcement of this Lease or the
other Operative Documents; and
	 
	 	•	 	all taxes (except Excluded Taxes) related to the
Property or to the transactions contemplated in the Operative
Documents.

Such costs and expenses will also include all rent or other payments required of
BNPPLC under the Ground Lease, so long as this Lease remains in force or NAI remains
in possession of the Property or is entitled to possession by this Lease. (It is
understood, however, that with respect to payments which are required by the Ground
Lease from BNPPLC to NAI and for which NAI is required to reimburse BNPPLC, such
payments and the corresponding reimbursements will be offset and deemed paid by
offsetting book entries rather than by an actual transfer of funds back and forth
between the parties.)

Lease Agreement - Page 17

 

     (4) Defense and Settlement of Indemnified Claims.

     (a) By notice to NAI BNPPLC may direct NAI to assume on behalf of BNPPLC or any
other Interested Party and to conduct with due diligence and in good faith the
defense of and the response to any claim, proceeding or investigation included in or
concerning any Loss for which NAI is responsible pursuant to subparagraph 5(C)(1).
NAI must promptly comply with any such direction using counsel selected by NAI and
reasonably satisfactory to BNPPLC to represent BNPPLC or the applicable Interested
Party. In the event NAI fails to promptly comply with any such direction from
BNPPLC, BNPPLC or any other affected Interested Party may contest or settle the
claim, proceeding or investigation using counsel of its own selection at NAI’s
expense, subject to subparagraph 5(D)(3) if that subparagraph is applicable.

     (b) Also, although subparagraphs 5(D)(3) and 5(D)(4) will apply to tort claims
asserted against any Interested Party related to the Property, the right of an
Interested Party to be indemnified pursuant to this subparagraph 5(C) for taxes or
other payments made to satisfy governmental requirements (“Government Mandated
Payments”) will not be conditioned in any way upon NAI having consented to or
approved of, or having been provided with an opportunity to defend against or
contest, such Government Mandated Payments. In all cases, however, including those
which may involve Government Mandated Payments, the rights of each Interested Party
to be indemnified will be subject to subparagraph 5(D)(5).

     (5) Payments Due. Any amount to be paid by NAI under this subparagraph 5(C) will be
due ten days after a notice requesting such payment is given to NAI, subject to any
applicable contest rights expressly granted to NAI by other provisions of this Lease.

     (6) Survival. NAI’s obligations under this subparagraph 5(C) will survive the
termination or expiration of this Lease with respect to Losses suffered by any Interested
Party on or prior to, or by reason of any actual or alleged occurrence or circumstances on
or prior to, the later of the dates upon which (a) this Lease terminates or expires, or (b)
NAI surrenders possession and control of the Property.

     (D) Exceptions and Qualifications to Indemnities.

     (1) Exceptions. BNPPLC acknowledges and agrees that nothing in Paragraph 4 or the
preceding subparagraphs of this Paragraph 5 will be construed to require NAI to pay or
reimburse:

Lease Agreement - Page 18

 

     • Excluded Taxes; or

     • Losses incurred or suffered by any Interested Party to the extent proximately
caused by (and attributed by any applicable principles of comparative fault to) the
Established Misconduct of that Interested Party; or

     • Losses that result from any Liens Removable by BNPPLC; or

     • Losses incurred or suffered by any of the Participants in connection with the
negotiation or execution of the Participation Agreement (or supplements making them
parties thereto) or in connection with any due diligence Participants may undertake
before entering into the Participation Agreement; or

     • Local Impositions or other Losses contested, if and so long as they are
contested, by NAI in accordance with any of the provisions of this Lease or other
Operative Documents which expressly authorize such contests; or

     • transaction expenses or other Losses caused by or necessary to accomplish any
conveyance by BNPPLC to BNPPLC’s Parent or a Qualified Affiliate which constitutes a
Permitted Transfer only by reason of clause (3) of the definition of Permitted
Transfer in the Common Definitions and Provisions Agreement ; or

     • any amount which may from time to time be payable by BNPPLC
to any Participant representing the excess of “Base Rent” as defined in the
Participation Agreement over Base Rent as defined in and calculated pursuant to this
Lease and the Common Definitions and Provisions Agreement; or

     • any decline in the value of the Property solely by reason of a decline in
general market conditions and not because of any breach of this Lease or other
Operative Documents by NAI.

Further, without limiting BNPPLC’s rights (as provided in other provisions of this Lease and
other Operative Documents) to include the following in the calculation of the Lease Balance,
the Break Even Price and the Make Whole Amount (as applicable) or to collect Base Rent, a
Supplemental Payment and other amounts, the calculation of which depends upon the Lease
Balance, BNPPLC acknowledges and agrees that nothing in Paragraph 4 or the preceding
subparagraphs of this Paragraph 5 will be construed to require NAI to pay or reimburse an
Interested Party for costs paid by BNPPLC with the proceeds of the Initial Advance as part
of the Transaction Expenses or with Construction Advances.

Lease Agreement - Page 19

 

     (2) Notice of Claims. If an Interested Party receives a written notice of a claim for
taxes or a claim alleging a tort or other unlawful conduct that the Interested Party
believes is covered by the indemnity in subparagraph 5(C)(1), then such Interested Party
will be expected to promptly furnish a copy of such notice to NAI. The failure to so
provide a copy of the notice will not excuse NAI from its obligations under subparagraph
5(C)(1); except that if such failure continues for more than fifteen days after the notice
is received by such Interested Party and NAI is unaware of the matters described in the
notice, with the result that NAI is unable to assert defenses or to take other actions which
could minimize its obligations, then NAI will be excused from its obligation to indemnify
such Interested Party (and any Affiliate of such Interested Party) against Losses, if any,
which would not have been incurred or suffered but for such failure. For example, if BNPPLC
fails to provide NAI with a copy of a notice of an overdue tax obligation covered by the
indemnity set out in subparagraph 5(C)(1) and NAI is not otherwise already aware of such
obligation, and if as a result of such failure BNPPLC becomes liable for penalties and
interest covered by the indemnity in excess of the penalties and interest that would have
accrued if NAI had been promptly provided with a copy of the notice, then NAI will be
excused from any obligation to BNPPLC (or any Affiliate of BNPPLC) to pay the excess.

     (3) Withholding of Consent to Settlements Proposed by NAI. With regard to any
tort claim against an Interested Party for which NAI undertakes to defend the Interested
Party as provided in subparagraph 5(C)(4)(a), if the Interested Party unreasonably refuses
to consent to a settlement of the claim which is proposed by NAI and which will meet the
conditions listed in the next sentence, NAI’s liability for the cost
of continuing the defense and for any other amounts payable in respect of the claim
will be limited to the total cost for which the settlement proposed by NAI would have been
accomplished but for the unreasonable refusal to consent. Any such settlement proposed by
NAI must meet the following conditions: (A) at the time of the settlement by NAI, NAI must
pay all amounts required to release the Interested Party and its property interests from any
further obligation for or liens securing the applicable claim and from any interest,
penalties and other related liabilities, and (B) the settlement or compromise must not
involve an admission of fraud or criminal wrongdoing or result in some other material
adverse consequence to the Interested Party.

     (4) Settlements Without the Prior Consent of NAI.

     (a) Except as otherwise provided in subparagraph 5(D)(4)(b), if any Interested
Party settles any tort claim for which it is entitled to be indemnified by NAI
without NAI’s consent, then NAI may, by notice given to the Interested Party

Lease Agreement - Page 20

 

no
later than ten days after NAI is notified of the settlement, elect to pay Reasonable
Settlement Costs to the Interested Party in lieu of a payment or reimbursement of
actual settlement costs. (With respect to any tort claim asserted against an
Interested Party, “Reasonable Settlement Costs” means the maximum amount that a
prudent Person in the position of the Interested Party, but able to pay any amount,
might reasonably agree to pay to settle the tort claim, taking into account the
nature and amount of the claim, the relevant facts and circumstances known to such
Interested Party at the time of settlement and the additional Attorneys Fees’ and
other costs of defending the claim which could be anticipated but for the
settlement.) After making an election to pay Reasonable Settlement Costs with
regard to a particular tort claim and a particular Interested Party, NAI will have
no right to rescind or revoke the election, despite any subsequent determination
that Reasonable Settlement Costs exceed actual settlement costs. It is understood
that Reasonable Settlement Costs may be more or less than actual settlement costs
and that a final determination of Reasonable Settlement Costs may not be possible
until after NAI must decide between paying Reasonable Settlement Costs or paying
actual settlement costs.

     (b) Notwithstanding the foregoing, NAI will have no right to elect to pay
Reasonable Settlement Costs in lieu of actual settlement costs if an Interested
Party settles claims without NAI’s consent at any time when an Event of Default has
occurred and is continuing or after a failure by NAI to conduct with due diligence
and in good faith the defense of and the response to any claim, proceeding or
investigation as provided in subparagraph 5(C)(4)(a).

     (c) Except as provided in this subparagraph 5(D)(4), no settlement by
any Interested Party of any claim made against it will excuse NAI from any
obligation to indemnify the Interested Party against the settlement costs or other
Losses suffered by reason of, in connection with, arising out of, or in any way
related to such claim.

     (5) No Authority to Admit Wrongdoing by NAI or to Bind NAI to any Settlement. No
Interested Party will under any circumstances have any authority to bind NAI to an admission
of wrongdoing or responsibility to any third party claimant with regard to matters for which
such Interested Party claims a right to indemnification from NAI under this Lease.

Further, nothing herein contained, including the foregoing provisions concerning settlements
by Interested Parties of indemnified Losses, will be construed as authorizing any Interested
Party to bind NAI to do or refrain from doing anything to satisfy a third party claimant.
If, for example, a claim is made by a Governmental Authority that NAI

Lease Agreement - Page 21

 

must refrain from some
particular conduct on or about the Land in order to comply with Applicable Laws, BNPPLC
cannot bind NAI (and will not purport to bind NAI) to any agreement to refrain from such
conduct or otherwise prevent NAI from continuing to contest the claim by reason of any
provision set forth herein.

Moreover, so long as this Lease continues, no Interested Party may settle any claim
involving the Property by executing any agreement (including any consent decree proposed by
any Governmental Authority) which purports to prohibit, limit or impose conditions upon any
use of the Property by NAI without the prior written consent of NAI. In the case of any
proposed settlement of a claim asserted by a Governmental Authority against BNPPLC, NAI will
not unreasonably withhold such consent. However, for purposes of determining whether it is
reasonable for NAI to withhold such consent, any diligent ongoing undertaking by NAI to
contest such the claim on behalf of BNPPLC will be relevant.

Subject to the foregoing provisions in this subparagraph 5(D)(5), any Interested Party may
agree for itself (and only for itself) to act or refrain from doing anything as demanded or
requested by a third party claimant; provided, however, in no event will such an agreement
impede NAI from continuing to exercise its rights to operate its business on the Property or
elsewhere in any lawful manner deemed appropriate by NAI, nor will any such agreement limit
or impede NAI’s right to contest claims raised by any third party claimants (including
Governmental Authorities) that NAI is not complying or has not complied with Applicable
Laws.

     (6) Defense of Tax Claims. This Lease does not grant to NAI any right to
control the defense of or contest any tax claim for which an Interested Party may have a
right to indemnity under subparagraph 5(C), other than the right to contest Local
Impositions as provided in subparagraph 5(A), nor does this Lease grant to NAI the right to
inspect the income tax returns, books or records of any Interested Party. Nevertheless, if
a tax claim is asserted against BNPPLC for which it is entitled to be indemnified pursuant
to subparagraph 5(C), BNPPLC will consider in good faith any defenses and strategies
proposed by NAI with regard to such claim. Further, if any such tax claim is asserted
against BNPPLC which involves assertions that apply not only to the transactions
contemplated by this Lease, but also to other similar transactions in which BNPPLC has
participated, then BNPPLC will not settle the claim on a basis that results in a
disproportionately greater tax burden with respect to the transactions contemplated herein
than with respect to such other similar transactions. For example, if taxing authorities
assert that both this Lease and other comparable lease agreements made by BNPPLC are not
financing arrangements as intended by the parties thereto, and on the basis of such
assertions the taxing authorities claim that BNPPLC owes income taxes which are not Excluded
Taxes, then BNPPLC will not settle the claim in a manner that

Lease Agreement - Page 22

 

would cause NAI’s liability
under subparagraph 5(C) to be disproportionately greater than the indemnity obligation of
another similarly situated tenant of BNPPLC under another lease agreement with an indemnity
provision comparable to subparagraph 5(C). Also, BNPPLC will not grant to another tenant
the right to dictate to BNPPLC the tax position BNPPLC must take in regard to the Property
or the Operative Documents, except that BNPPLC may include provisions comparable to the
foregoing in other leases to assure other tenants against a disproportionately greater
burden than NAI will bear in regard to any settlement of a tax claim by BNPPLC.

     (7) Indemnified Parties Other than Landlord. As a condition to making any indemnity
payment for Losses directly to any Interested Party other than BNPPLC itself, NAI may
require the Interested Party to confirm and agree in writing that it will be obligated to
make the payments to NAI as provided in subparagraph 5(E) in the event the Interested Party
subsequently receives a refund of the Losses covered by such indemnity payment.

     (E) Refunds and Credits Related to Losses Paid by NAI.

     (1) If BNPPLC receives a refund of any Losses paid, reimbursed or advanced by
NAI pursuant to this Paragraph 5 that has not already been accounted for in the After Tax
Basis calculation described in subparagraph 5(C)(1), BNPPLC will promptly pay to NAI the
amount of such refund, plus or minus any net tax benefits or detriments realized by BNPPLC
as a result of the refund and such payment to NAI; provided, that the amount payable to NAI
will not exceed the amount of the indemnity payment in respect of such refunded Losses that
was made by NAI. If it is subsequently determined that BNPPLC was not entitled to the
refund, the portion of the refund that is repaid or recaptured will be
treated as a Loss for which NAI must indemnify BNPPLC pursuant to this Paragraph 5
without regard to subparagraph 5(D). If, in connection with any such refund, BNPPLC also
receives an amount representing interest on such refund, BNPPLC will promptly pay to NAI the
amount of such interest, plus or minus any net tax benefits or detriments realized by BNPPLC
as a result of the receipt or accrual of the interest and as a result of such payment to
NAI; provided, that BNPPLC will not be required to make any such payment in respect of the
interest (if any) that is fairly attributable to a period for which NAI had not yet paid,
reimbursed or advanced the Losses refunded to BNPPLC.

     (2) If any Interested Party (other than BNPPLC itself) receives a refund of any Loss
paid, reimbursed or advanced by NAI pursuant to this Paragraph 5 that has not already been
accounted for in the After Tax Basis calculation described in subparagraph 5(C)(1), NAI may
demand (and enforce the demand pursuant to any agreement previously delivered by the
Interested Party as provided in

Lease Agreement - Page 23

 

subparagraph 5(D)(7)) that such Interested Party promptly
pay to NAI the amount of such refund, plus or minus any net tax benefits or detriments
realized by such Interested Party as a result of the refund and such payment to NAI;
provided, that the amount payable to NAI will not exceed the amount of the indemnity payment
in respect of such refunded Losses that was made by NAI. If it is subsequently determined
that such Interested Party was not entitled to the refund, the portion of the refund that is
repaid or recaptured will be treated as a Loss for which NAI must indemnify such Interested
Party pursuant to this Paragraph 5 without regard to subparagraph 5(D). If, in connection
with any such refund, such Interested Party also receives an amount representing interest on
such refund, NAI may demand that such Interested Party promptly pay to NAI the amount of
such interest, plus or minus any net tax benefits or detriments realized by such Interested
Party as a result of the receipt or accrual of the interest and as a result of such payment
to NAI; provided, that such Interested Party will not be required to make any such payment
in respect of the interest (if any) which is fairly attributable to a period before NAI
paid, reimbursed or advanced the Losses refunded to such Interested Party.

(3) With respect to Losses incurred or suffered by an Interested Party and paid or
reimbursed by NAI on an After Tax Basis, if taxes of such Interested Party which are not
subject to indemnification by NAI are reduced because of such Losses (whether by reason of a
deduction, credit or otherwise) and such reduction was not taken into account in the
calculation of the required reimbursement or payment by NAI, then for purposes of this
subparagraph 5(E) such reduction will be considered a “refund”.

(4) Notwithstanding the foregoing, in no event will BNPPLC or any other Interested
Party be required to make any payment to NAI pursuant to this subparagraph 5(E) when an
Event of Default has occurred and is continuing.

     (F) Reimbursement of Excluded Taxes Paid by NAI. If NAI is ever required (by laws
imposing withholding tax obligations or otherwise) to pay Excluded Taxes that any Interested Party
should have paid, but failed to pay when due, in connection with this Lease, such Interested Party
must reimburse NAI for such Excluded Taxes (together with any additional amount required to
preserve for NAI the full amount of such reimbursement after related taxes are considered,
calculated in the same manner that an Additional Indemnity Payment would be calculated under
subparagraph 5(C)(1) in the case of a reimbursement owed by NAI to an Interested Party) within 30
days after such Interested Party’s receipt of a written demand for such reimbursement by NAI.

     (G) Collection on Behalf of Participants. BNPPLC may, on behalf of any Participant or
its Affiliates, collect any amount that becomes due from NAI to such Participant or its Affiliates
pursuant to subparagraph 5(B) or 5(C), in which case BNPPLC will be obligated to such Participant
in respect of the collected amount as provided in the Participation Agreement.

Lease Agreement - Page 24

 

Alternatively, as
provided in the Participation Agreement, BNPPLC may assign the right to collect any such amount to
such Participant, in which case the Participant will be entitled to collect the same directly from
NAI.

6 Replacement of Participants.

     (A) NAI’s Right to Substitute Participants. So long as no Event of Default exists,
and subject to the terms and conditions set forth in subparagraph 6(B), if any Participant which is
not an Affiliate of BNPPLC (in this Paragraph, the “Unrelated Participant”) (1) declines to approve
the Rent for an extension of this Lease under subparagraph 1(D), or (2) makes a demand for
compensation under subparagraph 5(B), NAI may request that BNPPLC execute Participation Agreement
Supplements (as defined in the Participation Agreement) as needed to transfer the rights of the
Unrelated Participant thereunder to one or more new Participants (in this subparagraph, whether one
or more, the “New Participants”) designated by NAI who are willing and able to accept such
interests and to make Funding Advances as necessary to terminate the Unrelated Participant’s right
to payments in respect of Base Rent and the Lease Balance under the Operative Documents. BNPPLC
will execute such Participation Agreement Supplements within ten Business Days of the later to
occur of such request by NAI and satisfaction of all conditions set forth in subparagraph 6(B).

     (B) Conditions to Replacement of Participants. NAI and BNPPLC, working
together, will endeavor in good faith to identify New Participants that are willing to replace any
Unrelated Participant described in the preceding subparagraph and that are acceptable to both NAI
and BNPPLC. (The term New Participants may include new parties to the Participation Agreement and
it may include existing Participants that increase their Funding Advances as needed to replace the
Unrelated Participant.) However, nothing contained herein will be construed to require BNPPLC
itself to increase its Percentage (as defined in the Participation Agreement) to
replace an Unrelated Participant, and nothing herein contained will be construed to require
BNPPLC itself to provide or to obtain from its Affiliates Funding Advances to replace the Funding
Advances that an Unrelated Participant has provided or agreed to provide. Also, New Participants
will be subject to the approval of BNPPLC; provided, that BNPPLC must not unreasonably withhold its
approval for the substitution of any New Participant proposed by NAI for any Unrelated Participant
so long as (i) no Event of Default has occurred and is continuing, (ii) BNPPLC determines it can
give such approval without violating Applicable Laws, without breaching its obligations under the
Participation Agreement, and without waiving rights or remedies it has under this Lease or the
other Operative Documents, (iii) BNPPLC or BNPPLC’s Parent is not involved in any material
litigation adverse to the New Participant in any pending lawsuit or other legal proceeding, and
(iv) all of the conditions listed in the next sentence are satisfied. Any substitution of New
Participants for an Unrelated Participant as provided in this Paragraph will be subject to the
following conditions:

Lease Agreement - Page 25

 

     (1) the proposed substitution does not include a waiver of rights by BNPPLC against any
Unrelated Participant or require BNPPLC to pay any amounts out-of-pocket that are not
reimbursed concurrently by NAI or the New Participants;

     (2) the New Participants must become parties to the Participation Agreement (by
executing supplements to that agreement as provided therein) and must provide all funds due
to the Unrelated Participant being replaced because of the termination of the Unrelated
Participant’s rights to receive payments in respect of Net Cash Flow and Net Sales Proceeds
(both as defined in the Participation Agreement); and

     (3) the obligations of BNPPLC to the New Participants must not exceed the obligations
that BNPPLC would have had to the Unrelated Participant if there had been no substitution,
other than those for which NAI is liable.

Upon consummation of any such substitution NAI must pay to the replaced Participant Breakage Costs,
if any, incurred by the replaced Participant because of the substitution.

7 Items Included in the Property

     (A) Status of Property. All Improvements on the Land from time to time will
constitute “Property” covered by this Lease. Further, as provided in the Construction Agreement,
to the extent heretofore or hereafter acquired by NAI (in whole or in part) with any portion of the
Initial Advance or with any Construction Advances or with other funds for which NAI receives
reimbursement from the Initial Advance or Construction Advances, all furnishings, furniture,
chattels, permits, licenses, franchises, certificates and other personal property of whatever
nature will be deemed to have been acquired on behalf of BNPPLC by NAI and will constitute
“Property” covered by this Lease, as will all renewals or replacements of or substitutions for any
such Property. Upon request of BNPPLC, but not more often than once in any period of twelve
consecutive months, NAI will deliver to BNPPLC an inventory describing all significant items of
Personal Property (and, in the case of tangible personal property, showing the make, model, serial
number and location thereof), with a certification by NAI that such inventory is true and complete
and that all items specified in the inventory are covered by this Lease free and clear of any Lien
other than the Permitted Encumbrances or Liens Removable by BNPPLC.

     (B) Changes in the Land Covered by the Ground Lease. Upon any amendment of the
definition of the “Land” covered by the Ground Lease, the “Land” as defined in and covered by this
Lease and the other Operative Documents will also be so amended.

Lease Agreement - Page 26

 

8 Environmental.

     (A) Environmental Covenants by NAI.

     (1) NAI will not conduct or permit others to conduct Hazardous Substance Activities on
the Property, except Permitted Hazardous Substance Use and Remedial Work.

     (2) NAI will not discharge or permit the discharge of anything (including Permitted
Hazardous Substances) on or from the Property that would require any permit under applicable
Environmental Laws, other than (i) storm water runoff, (ii) waste water discharges through a
publicly owned treatment works, (iii) discharges that are a necessary part of any Remedial
Work, and (iv) other similar discharges consistent with the definition herein of Permitted
Hazardous Substance Use which do not significantly increase the risk of Environmental Losses
to BNPPLC, in each case in strict compliance with Environmental Laws.

     (3) Following any discovery that Remedial Work is required by Environmental Laws or is
otherwise reasonably believed by BNPPLC to be required, and to the extent not inconsistent
with the other provisions of this Lease, NAI must promptly perform and diligently and
continuously pursue such Remedial Work.

     (4) If requested by BNPPLC in connection with any Remedial Work required by this
subparagraph, NAI must retain environmental consultants reasonably acceptable to BNPPLC to
evaluate any significant new information generated during NAI’s implementation of the
Remedial Work and to discuss with NAI whether such new information indicates the need for
any additional measures that NAI should take to protect the health and safety of persons
(including employees, contractors and subcontractors and their employees) or to protect the
environment. NAI must implement any such additional measures to the extent required with
respect to the Property by
Environmental Laws or otherwise reasonably believed by BNPPLC to be required.

     (B) Right of BNPPLC to do Remedial Work Not Performed by NAI. If NAI’s failure to
perform any Remedial Work required as provided in subparagraph 8(A) continues beyond the
Environmental Cure Period (as defined below), BNPPLC may, in addition to any other remedies
available to it, conduct all or any part of the Remedial Work. To the extent that Remedial Work is
done by BNPPLC pursuant to the preceding sentence (including any removal of Hazardous Substances),
the cost thereof will be a demand obligation owing by NAI to BNPPLC. As used in this subparagraph,
“Environmental Cure Period” means the period ending on the earliest of: (1) ninety days after NAI
is notified of the breach which must be cured within such period or, if during such ninety days NAI
initiates the Remedial Work and diligently and continuously pursues it in accordance with a
timetable accepted and approved by applicable Governmental Authorities (which may include delays
waiting for permits or other authorizations), the date by

Lease Agreement - Page 27

 

which such Remedial Work is to be
completed according to such timetable, (2) the date that any writ or order is issued for the levy
or sale of any property owned by BNPPLC (including the Property) because of such breach, (3) the
date that any criminal action is instituted or overtly threatened against BNPPLC or any of its
directors, officers or employees because of such breach, or (4) any Designated Sale Date upon
which, for any reason, NAI or an Affiliate of NAI or any Applicable Purchaser does not purchase
BNPPLC’s interest in the Property pursuant to the Purchase Agreement for a net price to BNPPLC
(when taken together with any Supplemental Payment paid by NAI pursuant to the Purchase Agreement,
in the case of a purchase by an Applicable Purchaser) equal to the Break Even Price.

     (C) Environmental Inspections and Reviews. BNPPLC reserves the right to retain
environmental consultants to review any report prepared by NAI or to conduct BNPPLC’s own
investigation to confirm whether NAI is complying with the requirements of this Paragraph 8. NAI
grants to BNPPLC and to BNPPLC’s agents, employees, consultants and contractors the right to enter
upon the Property during reasonable hours and after reasonable notice to inspect the Property and
to perform such tests as BNPPLC deems reasonably necessary or appropriate to review or investigate
Hazardous Substances in, on, under or about the Property or any discharge or reasonably suspected
discharge of Hazardous Substances into groundwater or surface water from the Property. NAI must
promptly reimburse BNPPLC for the fees of its environmental consultants and the costs of any such
inspections and tests; provided, however, BNPPLC’s right to reimbursement for the fees of any
consultant engaged as provided in this subparagraph or for the costs of any inspections or test
undertaken as provided in this subparagraph will be limited to the following circumstances: (1) an
Event of Default has occurred and is continuing at the time of such engagement, tests or
inspections; (2) NAI has not exercised the Purchase Option and BNPPLC has retained the consultant
to establish the condition of the Property prior to any conveyance thereof pursuant to the Purchase
Agreement or to the expiration of this Lease; (3) BNPPLC has retained the consultant to satisfy any
regulatory requirements applicable to BNPPLC or its Affiliates; (4) BNPPLC has retained the
consultant because it has reason to
believe, and does in good faith believe, that a significant violation of Environmental Laws
concerning the Property has occurred; or (5) BNPPLC has retained the consultant because BNPPLC has
been notified of a possible violation of Environmental Laws concerning the Property by any
Governmental Authority having jurisdiction.

     (D) Communications Regarding Environmental Matters.

     (1) NAI must promptly advise BNPPLC and Participants of (i) any discovery known to NAI
of any event or circumstance which would render any of the representations of NAI herein or
in any of the other Operative Documents concerning environmental matters materially
inaccurate or misleading if made at the time of such discovery and assuming that NAI was
aware of all relevant facts, (ii) any Remedial Work (or change in Remedial Work) required or
undertaken by NAI or its Affiliates in response

Lease Agreement - Page 28

 

to any (A) discovery of any Hazardous
Substances on, under or about the Property other than Permitted Hazardous Substances or (B)
any claim for damages resulting from Hazardous Substance Activities, (iii) any discovery
known to NAI of any occurrence or condition on any real property adjoining or in the
vicinity of the Property which would or could reasonably be expected to cause the Property
or any part thereof to be subject to any ownership, occupancy, transferability or use
restrictions under Environmental Laws, or (iv) any investigation or inquiry known to NAI of
any failure or alleged failure by NAI to comply with Environmental Laws affecting the
Property by any Governmental Authority responsible for enforcing Environmental Laws. In
such event, NAI will deliver to BNPPLC within thirty days after BNPPLC’s request, a
preliminary written environmental plan setting forth a general description of the action
that NAI proposes to take with respect thereto, if any, to bring the Property into
compliance with Environmental Laws or to correct any breach by NAI of this Paragraph 8,
including any proposed Remedial Work, the estimated cost and time of completion, the name of
the contractor and a copy of the construction contract, if any, and such additional data,
instruments, documents, agreements or other materials or information as BNPPLC may
reasonably request.

     (2) NAI will provide BNPPLC and Participants with copies of all material written
communications with Governmental Authorities relating to the matters listed in the preceding
clause (1). NAI will also provide BNPPLC and Participants with copies of any correspondence
from third Persons which threaten litigation over any significant failure or alleged
significant failure of NAI to maintain or operate the Property in accordance with
Environmental Laws.

     (3) Prior to NAI’s submission of a communication to any regulatory agency or
third party which causes, or potentially could cause (whether by implementation of or
response to said communication), a material change in the scope, duration, or nature of any
Remedial Work, NAI must, to the extent practicable, deliver to BNPPLC and
Participants a draft of the proposed submission (together with the proposed date of
submission), and in good faith assess and consider any comments of BNPPLC regarding the
same. Promptly after BNPPLC’s request, NAI will meet with BNPPLC to discuss the submission,
will provide any additional information reasonably requested by BNPPLC and will provide a
written explanation to BNPPLC addressing the issues raised by comments (if any) of BNPPLC
regarding the submission.

9 Insurance Required and Condemnation.

     (A) Liability Insurance. Throughout the Term NAI must maintain commercial general
liability insurance against claims for bodily and personal injury, death and property damage
occurring in or upon or resulting from any occurrence in or upon the Property under one or more

Lease Agreement - Page 29

 

insurance policies that satisfy the Minimum Insurance Requirements. NAI must deliver and maintain
with BNPPLC for each liability insurance policy required by this Lease written confirmation of the
policy and the scope of the coverage provided thereby issued by the applicable insurer or its
authorized agent, which confirmation must also satisfy the Minimum Insurance Requirements.

     (B) Property Insurance.

     (1) Throughout the Term NAI must keep all Improvements (including all alterations,
additions and changes made to the Improvements) insured against fire and other casualty
under one or more property insurance policies that satisfy the Minimum Insurance
Requirements. NAI must deliver and maintain with BNPPLC for each property insurance policy
required by this Lease written confirmation of the policy and the scope of the coverage
provided thereby issued by the applicable insurer or its authorized agent, which
confirmation must also satisfy the Minimum Insurance Requirements.

     (2) If any of the Property is destroyed or damaged by fire, explosion,
windstorm, hail or by any other casualty against which insurance is required hereunder, (a)
BNPPLC may, but will not be obligated to, make proof of loss if not made promptly by NAI
after notice from BNPPLC, (b) each insurance company concerned is hereby authorized and
directed to make payment for such loss directly to BNPPLC (or, if so instructed by BNPPLC,
to NAI) for application as required by Paragraph 10, and (c) BNPPLC will be entitled, in its
own name or in the name of NAI or in the name of both, to settle, adjust or compromise any
and all claims for loss, damage or destruction under any policy or policies of insurance;
except that, if any such claim is for less than $1,000,000, if no 97-10/Meltdown Event has
occurred and no Event of Default has occurred and is continuing, NAI alone will have the
right to settle, adjust or compromise the claim as NAI deems appropriate; and, except that,
so long as no 97-10/Meltdown Event has occurred and no Event of Default has occurred and is
continuing, BNPPLC
must provide NAI with at least forty-five days notice of BNPPLC’s intention to settle
any such claim before settling it unless NAI has already approved of the settlement by
BNPPLC.

     (3) BNPPLC will not in any event or circumstances be liable or responsible for failure
to collect, or to exercise diligence in the collection of, any insurance proceeds.

     (4) If any casualty results in damage to or loss or destruction of the Property, NAI
must give prompt notice thereof to BNPPLC and Paragraph 10 will apply.

     (C) Failure to Obtain Insurance. If NAI fails to obtain any insurance or to provide
confirmation of any such insurance as required by this Lease, BNPPLC will be entitled (but not

Lease Agreement - Page 30

 

required) to obtain the insurance that NAI has failed to obtain or for which NAI has not provided
the required confirmation and, without limiting BNPPLC’s other remedies under the circumstances,
BNPPLC may require NAI to reimburse BNPPLC for the cost of such insurance and to pay interest
thereon computed at the Default Rate from the date such cost was paid by BNPPLC until the date of
reimbursement by NAI.

     (D) Condemnation. Immediately upon obtaining knowledge of the institution of any
proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party will promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings. (As used
herein, “condemnation of the Property” or words of like effect will include any indirect
condemnation by means of a taking of the Land or the Existing Appurtenant Easements or any part
thereof.) NAI must, at its expense, diligently prosecute any such proceedings and must consult
with BNPPLC, its attorneys and experts and cooperate with them as reasonably requested in the
carrying on or defense of any such proceedings. BNPPLC is hereby authorized, in its own name or in
the name of NAI or in the name of both, at any time after a 97-10/Meltdown Event or when an Event
of Default has occurred and is continuing, but not otherwise without NAI’s prior consent, to
execute and deliver valid acquittances for, and to appeal from, any such judgment, decree or award
concerning condemnation of any of the Property. BNPPLC will not in any event or circumstances be
liable or responsible for failure to collect, or to exercise diligence in the collection of, any
such proceeds, judgments, decrees or awards.

     Notwithstanding the foregoing provisions of this subparagraph, if condemnation proceeds
totaling not more than $1,000,000 are to be recovered as a result of a taking of less than all or
substantially all of the Property, NAI may directly receive and hold such proceeds so long as no
Event of Default has occurred and is continuing and so long as NAI applies such proceeds as
required herein.

     (E) Waiver of Subrogation. NAI, for itself and for any Person claiming through it
(including any insurance company claiming by way of subrogation), waives any and every claim which
arises or may arise in its favor against BNPPLC or any other Interested Party to recover Losses for
which NAI is compensated by insurance or would be compensated by the insurance contemplated in this
Lease, but for any deductible or self-insured retention maintained under such insurance or but for
a failure of NAI to maintain the insurance as required by this Lease. NAI agrees to have such
insurance policies properly endorsed so as to make them valid notwithstanding this waiver, if such
endorsement is required to prevent a loss of insurance.

Lease Agreement - Page 31

 

10 Application of Insurance and Condemnation Proceeds.

     (A) Collection and Application of Insurance and Condemnation Proceeds Generally. This
Paragraph 10 will govern the application of proceeds received by BNPPLC or NAI during the Term from
any third party (1) under any property insurance policy as a result of damage to the Property
(including proceeds payable under any insurance policy covering the Property which is maintained by
NAI), (2) as compensation for any restriction placed upon the use or development of the Property or
for the condemnation of the Property or any portion thereof, or (3) because of any judgment, decree
or award for injury or damage to the Property (e.g.,damage resulting from a third party’s release
of Hazardous Materials onto the Property); excluding, however, any funds paid to BNPPLC by BNPPLC’s
Parent, by an Affiliate of BNPPLC or by any Participant that is made to compensate BNPPLC for any
Losses BNPPLC may suffer or incur in connection with this Lease or the Property. Except as
provided in subparagraph 10(D), NAI must promptly pay over to BNPPLC any insurance, condemnation or
other proceeds covered by this Paragraph 10 which NAI may receive from any insurer, condemning
authority or other third party. All proceeds covered by this Paragraph 10, including those received
by BNPPLC from NAI or third parties, will be applied as follows:

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

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

     (B) Advances of Escrowed Proceeds to NAI. Except as otherwise provided below in this
Paragraph 10, BNPPLC will advance all Remaining Proceeds held by it as Escrowed Proceeds to
reimburse NAI for the actual out-of-pocket cost to NAI of repairing or restoring the Property in
accordance with the requirements of this Lease and the other Operative Documents as the applicable
repair or restoration, progresses and upon compliance by NAI with such terms, conditions and
requirements as may be reasonably imposed by BNPPLC to assure the completion of such repair or
restoration with available funds. So long as any Lease Balance remains outstanding, however, BNPPLC
will not be required to pay Escrowed Proceeds to NAI in excess of the actual out-of-pocket cost to
NAI of the applicable repair or restoration, as evidenced by invoices or other documentation
reasonably satisfactory to BNPPLC, it being understood that BNPPLC may retain and, after NAI has
completed the applicable repair or

Lease Agreement - Page 32

 

restoration and been reimbursed for the out-of-pocket cost
thereof, apply any such excess (or so much thereof as is needed to reduce the Lease Balance to
zero) as a Qualified Prepayment.

     (C) Application of Escrowed Proceeds as a Qualified Prepayment. Provided no
97-10/Meltdown Event has occurred and no Event of Default has occurred and is continuing, BNPPLC
will apply any Remaining Proceeds paid to it (or other amounts available for application as a
Qualified Prepayment) as a Qualified Prepayment on any date that BNPPLC is directed to do so by a
notice from NAI; however, if such a notice from NAI specifies an effective date for a Qualified
Prepayment that is less than five Business Days after BNPPLC’s actual receipt of the notice, BNPPLC
may postpone the date of the Qualified Prepayment to any date not later than five Business Days
after BNPPLC’s receipt of the notice. In any event, BNPPLC may deduct Breakage Costs or any Fixed
Rate Settlement Amount incurred in connection with any Qualified Prepayment from the Remaining
Proceeds or other amounts available for application as the Qualified Prepayment, and NAI must
reimburse BNPPLC upon request for any such Breakage Costs or Fixed Rate Settlement Amount that
BNPPLC incurs but does not deduct.

     (D) Right of NAI to Receive and Apply Remaining Proceeds Below a Certain Level. If,
after the Completion Date, any condemnation of any portion of the Property or any casualty
resulting in the diminution, destruction, demolition or damage to any portion of the Property will
(in the good faith judgment of BNPPLC) reduce the then current “AS IS” market value by less than
$1,000,000 and (in the good faith estimation of BNPPLC) be unlikely to result in Remaining Proceeds
of more than $1,000,000, and if no 97-10/Meltdown Event has occurred and no Event of Default has
occurred and is continuing, then BNPPLC will, upon NAI’s request, instruct the condemning authority
or insurer, as applicable, to pay the Remaining Proceeds resulting therefrom directly to NAI. NAI
must apply any such Remaining Proceeds to the repair or restoration of the Property to a safe and
secure condition and to a value of no less than the value before the taking or casualty.

     (E) Special Provisions Applicable After a 97-10/Meltdown Event or an Event of
Default. Notwithstanding the foregoing, after any 97-10/Meltdown Event, and when any Event of
Default has occurred and is continuing, BNPPLC will be entitled to receive and collect all
insurance, condemnation or other proceeds governed by this Paragraph 10 and to apply all Remaining
Proceeds, when and to the extent deemed appropriate by BNPPLC in its sole discretion, either (A) to
the reimbursement of NAI or BNPPLC for the out-of-pocket cost of repairing or restoring the
Property, or (B) as Qualified Prepayments. Further, when any Event of Default has occurred and is
continuing, if the Remaining Proceeds paid to BNPPLC with respect to any damage or destruction of
the Property are reduced by reason of any insurance deductible or self-insured retention, NAI must
pay to BNPPLC upon demand an additional amount equal to the full amount of such deductible or self
insured retention, whereupon the additional amount paid will be added to the Remaining Proceeds and
applied as such by BNPPLC in accordance with the provisions of this Lease.

Lease Agreement - Page 33

 

     (F) NAI’s Obligation to Restore. Regardless of the adequacy of any Remaining Proceeds
available to NAI hereunder, if on or after the Completion Date, the Property is damaged by fire or
other casualty or less than all or substantially all of the Property is taken by condemnation, NAI
must either (1) promptly restore or improve the Property or the remainder thereof to a value no
less than the Lease Balance and to a reasonably safe and sightly condition, or (2) promptly restore
the Property or remainder thereof to a reasonably safe and sightly condition and pay to BNPPLC for
application as a Qualified Prepayment the amount (if any), as determined by BNPPLC, needed to
reduce the Lease Balance to no more than the then current “AS IS” market value of the Property or
remainder thereof.

     (G) Takings of All or Substantially All of the Property on or after the Completion
Date. In the event of any taking of all or substantially all of the Property on or after the
Completion Date, BNPPLC will be entitled to apply all Remaining Proceeds (or so much thereof as is
required to reduce the Lease Balance to zero) as a Qualified Prepayment. Any taking of so much of
the Property as, in BNPPLC’s good faith judgment, makes it impracticable to restore or improve the
remainder thereof as required by part (1) of the preceding subparagraph will be considered a taking
of substantially all the Property for purposes of this Paragraph 10.

     (H) If Remaining Proceeds Exceed the Lease Balance. Notwithstanding the various
provisions of this Paragraph 10 authorizing BNPPLC to apply Remaining Proceeds received by it
during the Term as a Qualified Prepayment, in the event any such Remaining Proceeds exceed the sum
of (i) all payments thereof made to NAI to reimburse it for the costs of repairs and restoration to
the Property, (ii) any application thereof to cover costs incurred by BNPPLC for the repair or
restoration the Property and (iii) the Lease Balance, such excess will not be applied as a
Qualified Prepayment, but rather will constitute Escrowed Proceeds which must, if NAI exercises
the Purchase Option pursuant to the Purchase Agreement, be delivered to the purchaser of the
Property (be it NAI or an Applicable Purchaser) as provided therein.

11 Additional Representations, Warranties and Covenants of NAI 
Concerning the Property. NAI represents, warrants and covenants as follows:

     (A) Operation and Maintenance. NAI must operate and maintain the Property in a good
and workmanlike manner and in compliance with Applicable Laws in all material respects and pay or
cause to be paid all fees or charges of any kind due in connection therewith. (If NAI does not
promptly correct any failure of the Property to comply with Applicable Laws that is the subject of
a written complaint or demand for corrective action given by any Governmental Authority to NAI, or
to BNPPLC and forwarded by it to NAI, then for purposes of the preceding sentence, NAI will be
considered not to have maintained the Property “in compliance with all Applicable Laws in all
material respects” whether or not the noncompliance would be material in

Lease Agreement - Page 34

 

the absence of the
complaint or demand.) NAI will not use or occupy, or allow the use or occupancy of, the Property
in any manner which violates any Applicable Laws or which constitutes a public or private nuisance
or which makes void, voidable or cancelable any insurance then in force with respect to the
Property. To the extent that any of the following would, individually or in the aggregate,
materially and adversely affect the value of the Property or the use of the Property for purposes
permitted by this Lease, NAI will not, without BNPPLC’s prior consent: (i) initiate or permit any
zoning reclassification of the Property; (ii) seek any variance under existing zoning ordinances
applicable to the Property; (iii) use or permit the use of the Property in a manner that would
result in such use becoming a nonconforming use under applicable zoning ordinances or similar laws,
rules or regulations; (iv) execute or file any subdivision plat affecting the Property; or (v)
consent to the annexation of the Property to any municipality. NAI will not cause or permit any
drilling or exploration for, or extraction, removal or production of, minerals from the surface or
subsurface of the Property, and NAI will not do anything that could reasonably be expected to
significantly reduce the market value of the Property. If NAI receives a notice or claim from any
Governmental Authority that the Property is not in compliance with any Applicable Law, or that any
action may be taken against BNPPLC because the Property does not comply with any Applicable Law,
NAI must promptly furnish a copy of such notice or claim to BNPPLC.

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

     (B) Debts for Construction, Maintenance, Operation or Development. NAI must cause all
debts and liabilities incurred in the construction, maintenance, operation or development of the
Property, including invoices for labor, material and equipment and all debts
and charges for
utilities servicing the Property, to be promptly paid.

Lease Agreement - Page 35

 

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

     (C) Repair, Maintenance, Alterations and Additions. NAI must keep the Property
in good order, operating condition and appearance and must cause all necessary repairs, renewals
and replacements to be promptly made. NAI will not allow any of the Property to be materially
misused, abused or wasted, and NAI will promptly replace any worn-out fixtures and tangible
Personal Property with fixtures and personal property comparable to the replaced items when new.
NAI will not, without the prior consent of BNPPLC, (i) remove from the Property any fixture or
Personal Property having significant value except such as are replaced by NAI by
fixtures or Personal Property of equal suitability and value, free and clear of any lien or
security interest (and for purposes of this clause “significant value” will mean any fixture or
Personal Property that has a value of more than $100,000 or that, when considered together with all
other fixtures and Personal Property removed and not replaced by NAI by items of equal suitability
and value, has an aggregate value of $500,000 or more) or (ii) make material new Improvements or
alter Improvements in any material respect following completion of the Work contemplated in the
Construction Agreement.

     However, provided that no 97-10/Meltdown Event has occurred, and so long as no Event of
Default has occurred and is continuing, BNPPLC will not unreasonably withhold a consent

Lease Agreement - Page 36

 

requested
by NAI pursuant to the preceding sentence for the construction or alteration of Improvements. NAI
acknowledges, however, that BNPPLC’s refusal or failure to give such consent will be deemed
reasonable if BNPPLC believes in good faith that the construction or alteration for which NAI is
requesting consent could have a material adverse impact upon the value of the Property (taken as
whole), or if NAI has not provided BNPPLC with adequate information to allow BNPPLC to properly
evaluate such impact on value.

     Without limiting the foregoing, NAI must notify BNPPLC before making any significant
alterations to the Improvements during the Term, regardless of the impact on the value of the
Property expected to result from such alterations.

     (D) Permitted Encumbrances. NAI must comply with and will cause to be performed all of
the covenants, agreements and obligations imposed upon the owner of any interest in the Property by
the Permitted Encumbrances. Without limiting the foregoing, NAI must cause all amounts to be paid
when due, the payment of which is secured by any Lien against the Property created by the Permitted
Encumbrances. Without the prior consent of BNPPLC, NAI will not 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 BNPPLC’s interest in the Property or be binding upon BNPPLC itself. (Whether
BNPPLC must give any such consent requested by NAI during the Term of this Lease will be governed
by subparagraph 4(C) of the Closing Certificate.)

     (E) Books and Records Concerning the Property. NAI must keep books and records
that are accurate and complete in all material respects for the Property and, subject to Paragraph
22, must permit all such books and records (including all contracts, statements, invoices, bills
and claims for labor, materials and services supplied for the construction and operation of any
Improvements) to be inspected and copied by BNPPLC during normal business hours. (BNPPLC will not
over the objection of NAI inspect or copy such materials more than once in any twelve month period
unless BNPPLC believes in good faith that more frequent inspection and copying is required to
determine whether a Default or an Event of Default has
occurred and is continuing or to assess the effect thereof or to properly exercise remedies
with respect thereto.) This subparagraph will not be construed as requiring NAI to regularly
maintain separate books and records relating exclusively to the Property, but NAI will as
reasonably requested from time to time by BNPPLC construct or abstract from its regularly
maintained books and records information required by this subparagraph relating to the Property.

12 Assignment and Subletting by NAI.

     (A) BNPPLC’s Consent Required. Without the prior consent of BNPPLC, NAI will not
assign, transfer, mortgage, pledge or hypothecate this Lease or any interest of NAI hereunder

Lease Agreement - Page 37

 

and
will not sublet all or any part of the Property, by operation of law or otherwise, except as
follows:

     (1) So long as no 97-10/Meltdown Event has occurred and no Event of Default has
occurred and is continuing, NAI may sublet (a) to Affiliates of NAI, or (b) no more than
thirty-three percent (33%) (computed on the basis of square footage) of the useable space in
then existing and completed building Improvements to Persons who are not NAI’s Affiliates,
subject to the conditions that (i) any such sublease by NAI must be made expressly subject
and subordinate to the terms hereof, (ii) the sublease must have a term equal to or less
than the remainder of the then effective Term of this Lease, and (iii) the use permitted by
the sublease must be expressly limited to uses consistent with subparagraph 2(A) or other
uses approved in advance by BNPPLC as uses that will not present any extraordinary risk of
uninsured environmental or other liability.

     (2) So long as no 97-10/Meltdown Event has occurred and no Event of Default has
occurred and is continuing, NAI may assign all of its rights under this Lease and the other
Operative Documents to an Affiliate of NAI, subject to the conditions that (a) the
assignment must be in writing and must unconditionally provide that the Affiliate assumes
all of NAI’s obligations hereunder and thereunder, and (b) NAI must execute an
unconditional guaranty of the obligations assumed by the Affiliate in form satisfactory to
BNPPLC, confirming (x) that notwithstanding the assignment NAI will remain primarily liable
for all of the obligations undertaken by NAI under the Operative Documents, (y) that such
guaranty is a guaranty of payment and performance and not merely of collection, and (z) that
NAI waives to the extent permitted by Applicable Law all defenses otherwise available to
guarantors or sureties.

     (B) Standard for BNPPLC’s Consent to Assignments and Certain Other Matters.
Consents and approvals of BNPPLC which are required by this Paragraph 12 will not be unreasonably
withheld, but NAI acknowledges that BNPPLC’s withholding of such consent or approval will be
reasonable if BNPPLC determines in good faith that (1) giving the approval may increase BNPPLC’s
risk of liability for any existing or future environmental problem, (2) giving
the approval is likely to substantially increase BNPPLC’s administrative burden of complying
with or monitoring NAI’s compliance with the requirements of this Lease, or (3) any transaction for
which NAI has requested the consent or approval would negate NAI’s representations in the Operative
Documents regarding ERISA or cause any of the Operative Documents (or any exercise of BNPPLC’s
rights thereunder) to constitute a violation of any provision of ERISA. Further, NAI acknowledges
that BNPPLC may reasonably require, as a condition to giving its consent to any assignment by NAI,
that NAI execute an unconditional guaranty providing that NAI will remain primarily liable for all
of the tenant’s obligations hereunder and under other Operative Documents. Any such guaranty must
be a guaranty of payment and not merely of collection, must provide that NAI waives to the extent
permitted by

Lease Agreement - Page 38

 

Applicable Law all defenses otherwise available to guarantors or sureties, and must
otherwise be in a form satisfactory to BNPPLC.

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

13 Assignment by BNPPLC.

     (A) Restrictions on Transfers. Except by a Permitted Transfer, BNPPLC will not
assign, transfer, mortgage, pledge, encumber or hypothecate this Lease or the other Operative
Documents or any interest of BNPPLC in and to the Property during the Term without the prior
consent of NAI, which consent NAI may withhold in its sole discretion. Further, notwithstanding
anything to the contrary herein contained, if withholding taxes are imposed on the Rents payable to
BNPPLC hereunder because of BNPPLC’s assignment of this Lease to any citizen of, or any corporation
or other entity formed under the laws of, a country other than the United States, NAI will not be
required to compensate BNPPLC or any such assignee for the withholding tax.

     (B) Effect of Permitted Transfer or other Assignment by BNPPLC. If by a
Permitted Transfer BNPPLC sells or otherwise transfers the Property and assigns to the transferee
all of BNPPLC’s rights under this Lease and under the other Operative Documents, and if the
transferee expressly assumes all of BNPPLC’s obligations under this Lease and under the other
Operative Documents, then BNPPLC will thereby be released from any obligations arising after such
assumption under this Lease or under the other Operative Documents (other than any liability for a
breach of any continuing obligation to provide Construction Advances under the Construction
Agreement), and NAI must look solely to each successor in interest of BNPPLC for
performance of such obligations.

14 BNPPLC’s Right to Enter and to Perform for NAI .

     (A) Right to Enter. BNPPLC and BNPPLC’s representatives may, subject to subparagraph
14(C), enter the Property for the purpose of making inspections or performing any work BNPPLC is
authorized to undertake by the next subparagraph or for the purpose of confirming whether NAI has
complied with the requirements of this Lease or the other Operative Documents. So long as no Event
of Default has occurred and is continuing and no apparent emergency exists which would justify
immediate entry, BNPPLC will give NAI at least two

Lease Agreement - Page 39

 

Business Days notice before making any such
entry over the objection of NAI and will limit any such entry to normal business hours.

     (B) Performance for NAI. If NAI fails to perform any act or to take any action
required of it by this Lease or the Closing Certificate, or to pay any money which NAI is required
by this Lease or the Closing Certificate to pay, and if such failure or action constitutes an Event
of Default or renders BNPPLC or any director, officer, employee or Affiliate of BNPPLC at risk of
criminal prosecution or renders BNPPLC’s interest in the Property or any part thereof at risk of
forfeiture by forced sale or otherwise, then in addition to any other remedies specified herein or
otherwise available, BNPPLC may, perform or cause to be performed such act or take such action or
pay such money. Any expenses so incurred by BNPPLC, and any money so paid by BNPPLC, will be a
demand obligation owing by NAI to BNPPLC. Further, upon making such payment, BNPPLC will be
subrogated to all of the rights of the person, corporation or body politic receiving such payment.
But nothing herein will imply any duty upon the part of BNPPLC to do any work which under any
provision of this Lease NAI may be required to perform, and the performance thereof by BNPPLC will
not constitute a waiver of NAI’s default. BNPPLC may during the progress of any such work by BNPPLC
keep and store upon the Property all necessary materials, tools, and equipment. BNPPLC will not in
any event be liable for inconvenience, annoyance, disturbance, loss of business, or other damage to
NAI or the subtenants or invitees of NAI by reason of the performance of any such work, or on
account of bringing materials, supplies and equipment into or through the Property during the
course of such work, and the obligations of NAI under this Lease will not thereby be excused in any
manner.

     (C) Building Security. So long as NAI remains in possession of the Property, BNPPLC
or BNPPLC’s representative will, before making any inspection or performing any work on the
Property authorized by this Lease, do the following

     (1) BNPPLC will give NAI at least 24 hours notice, unless BNPPLC believes in
good faith that an emergency may exist or a Default has occurred and is continuing, because
of which significant damage to the Property or other significant Losses may be sustained if
BNPPLC delays entry to the Property; and

     (2) if then requested to do so by NAI in order to maintain NAI’s security, BNPPLC or
its representative will: (i) sign in at NAI’s security or information desk if NAI has such a
desk on the premises, (ii) wear a visitor’s badge or other reasonable identification, (iii)
permit an employee of NAI to observe such inspection or work, and (iv) comply with other
similar reasonable nondiscriminatory security requirements of NAI that do not, individually
or in the aggregate, significantly interfere with inspections or work of BNPPLC authorized
by this Lease.

Lease Agreement - Page 40

 

15 Remedies.

     (A) Traditional Lease Remedies. At any time after an Event of Default and after BNPPLC
has given any notice required by subparagraph 15(C), BNPPLC will be entitled at BNPPLC’s option
(and without limiting BNPPLC in the exercise of any other right or remedy BNPPLC may have, and
without any further demand or notice except as expressly described in this subparagraph 15(A)), to
exercise any one or more of the following remedies:

     (1) By notice to NAI, BNPPLC may terminate NAI’s right to possession of the Property.
However, only a notice clearly and unequivocally confirming that BNPPLC has elected to
terminate NAI’s right of possession will be effective for purposes of this provision.

     (2) Upon termination of NAI’s right to possession as provided in the immediately
preceding subsection (1) and without further demand or notice, BNPPLC may re-enter the
Property in any manner not prohibited by Applicable Laws and take possession of all
improvements, additions, alterations, equipment and fixtures thereon and remove any persons
in possession thereof. Any personal property on the Land may be removed and stored in a
warehouse or elsewhere, and in such event the cost of any such removal and storage will be
at the expense and risk of and for the account of NAI.

     (3) Upon termination of NAI’s right to possession as provided in the immediately
preceding subsection (1), this Lease will terminate and BNPPLC may recover from NAI damages
which include the following:

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

     (b) costs and expenses actually incurred by BNPPLC to repair damage to
the Property that NAI was obligated to (but failed to) repair prior to the
termination;

     (c) the sum of the following (“Lease Termination Damages”):

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

     2) the worth at the time of award of the amount by which the unpaid
Rent for the balance of the scheduled Term after the time of award

Lease Agreement - Page 41

 

exceeds
the amount of such rental loss that NAI proves could be reasonably avoided;

     3) any other amount necessary to compensate BNPPLC for all the
detriment proximately caused by NAI’s failure to perform NAI’s obligations
under this Lease or which in the ordinary course of things would be likely
to result therefrom, including the costs and expenses of preparing and
altering the Property for reletting and all other costs and expenses of
reletting (including Attorneys’ Fees, advertising costs and brokers’
commissions), and

     (d) such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time by applicable North Carolina law.

The “worth at the time of award” of the amounts referred to in subparagraph 15(A)(3)(a) and
subparagraph 15(A)(3)(c)1) will be computed by allowing interest at the Default Rate. The
“worth at the time of award” of the amount referred to in subparagraph 15(A)(3)(c)2) will be
computed by discounting such amount at the discount rate of the Federal Reserve Bank of New
York at the time of award plus one percent (1%).

Notwithstanding the foregoing, the total Lease Termination Damages which BNPPLC may
recover from NAI will be limited in amount to the extent required, if any, to prevent the
sum of recoverable Lease Termination Damages, plus any Supplemental Payment that BNPPLC has
received or remains entitled to recover pursuant to the Purchase Agreement, from being more
than the Maximum Remarketing Obligation; provided, however, if a Supplemental Payment is
owed to BNPPLC according to the Purchase Agreement, but NAI fails to pay it, this limitation
upon BNPPLC’s right to recover Lease Termination Damages will be of no effect. For
purposes of this provision, “Maximum Remarketing Obligation” is intended to have the meaning
assigned to it in the Purchase Agreement and is intended to be computed as of the date any
award of Lease Termination Damages to BNPPLC as if such date was the Designated Sale Date.

     (4) Even after a breach of this Lease or abandonment of the Property by NAI, BNPPLC may
continue this Lease in force and recover Rent as it becomes due. Accordingly, despite any
breach or abandonment by NAI, this Lease will continue in effect for so long as BNPPLC does
not terminate NAI’s right to possession, and BNPPLC may enforce all of BNPPLC’s rights and
remedies under this Lease, including the right to recover the Rent as it becomes due under
this Lease. NAI’s right to possession will not be deemed to have been terminated by BNPPLC
except pursuant to subparagraph 15(A)(1) hereof. The following will not constitute a
termination of NAI’s right to possession:

Lease Agreement - Page 42

 

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

     (b) The appointment of a receiver upon the initiative of BNPPLC to protect
BNPPLC’s interest under this Lease; or

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

     (B) Foreclosure Remedies. At any time when an Event of Default has occurred and is
continuing, BNPPLC may notify NAI of BNPPLC’s intent to pursue remedies described in Exhibit
B, and at any time thereafter, regardless of whether the Event of Default is continuing, if NAI
has not already purchased the Property or caused an Applicable Purchaser to purchase the Property
pursuant to the Purchase Agreement, (i) BNPPLC will have the power and authority, to the extent
provided by law, after proper notice and lapse of such time as may be required by law, to sell or
arrange for a sale to foreclose its lien and security interest granted in Exhibit B, and
(ii) BNPPLC, in lieu of or in addition to exercising any power of sale granted in Exhibit
B, may proceed by a suit or suits in equity or at law, whether for a foreclosure or sale of the
Property, or against NAI for the Lease Balance, or for the specific performance of any covenant or
agreement herein contained or in aid of the execution of any power herein granted, or for the
appointment of a receiver pending any foreclosure or sale of the Property, or for the enforcement
of any other appropriate legal or equitable remedy.

     (C) Notice Required So Long As the Purchase Option Continues Under the Purchase
Agreement. After the Term actually commences and so long as NAI remains in possession of the
Property and there has been no termination of the Purchase Option as provided in Paragraph
6 of the Purchase Agreement, BNPPLC’s right to exercise remedies provided in subparagraph 15(A)
or to complete any foreclosure sale as provided in subparagraph 15(B) will be subject to the
condition precedent that BNPPLC has notified NAI, at a time when an Event of Default has occurred
and is continuing and no less than thirty days prior to exercising such remedies or completing such
a sale, of BNPPLC’s intent to do so. The condition precedent is intended to provide NAI with an
opportunity to exercise the Purchase Option before losing possession of the
Property because of the remedies enumerated in subparagraph 15(A) or because of a sale
authorized by subparagraph 15(B). The condition precedent is not, however, intended to extend any
period for curing an Event of Default. Accordingly, if an Event of Default has occurred, and
regardless of whether any Event of Default is then continuing, BNPPLC may proceed immediately to
exercise remedies provided in subparagraph 15(A) or complete a sale authorized by subparagraph
15(B) at any time after the earliest of (i) thirty days after BNPPLC has given such a notice to
NAI, (ii) any date upon which NAI relinquishes possession of the Property, or (iii) any termination
of the Purchase Option.

Lease Agreement - Page 43

 

     (D) Enforceability. This Paragraph 15 will be enforceable to the maximum extent not
prohibited by Applicable Laws, and the unenforceability of any provision in this Paragraph will not
render any other provision unenforceable.

     (E) Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy, and each and every such right and
remedy will be cumulative and in addition to any other right or remedy given to BNPPLC under this
Lease or other Operative Documents or now or hereafter existing in favor of BNPPLC under Applicable
Laws, except as otherwise expressly provided in the last provision of subparagraph 15(A)(3) above.
In addition to other remedies provided in this Lease, BNPPLC will be entitled, to the extent
permitted by Applicable Law or in equity, to injunctive relief in case of the violation, or
attempted or threatened violation, of any of the covenants, agreements, conditions or provisions of
this Lease, or to a decree compelling performance of any of the other covenants, agreements,
conditions or provisions of this Lease to be performed by NAI, or to any other remedy allowed to
BNPPLC at law or in equity. Nothing contained in this Lease will limit or prejudice the right of
BNPPLC to prove for and obtain in proceedings for bankruptcy or insolvency of NAI by reason of the
termination of this Lease, an amount equal to the maximum allowed by any statute or rule of law in
effect at the time when, and governing the proceedings in which, the damages are to be proved,
whether or not the amount be greater, equal to, or less than the amount of the loss or damages
referred to above. Without limiting the generality of the foregoing, nothing contained herein will
modify, limit or impair any of the rights and remedies of BNPPLC under the Purchase Agreement, and
BNPPLC will not be required to give the thirty day notice described in subparagraph 15(C) as a
condition precedent to any acceleration of the Designated Sale Date or to taking any action to
enforce the Purchase Agreement. However, to prevent a double recovery, BNPPLC acknowledges that
BNPPLC’s right to recover Lease Termination Damages may be limited by the last provision of
subparagraph 15(A)(3) above in the event BNPPLC collects or remains entitled to collect a
Supplemental Payment as provided in the Purchase Agreement.

16 Default by BNPPLC. If BNPPLC should default in the performance of any of its
obligations under this Lease, BNPPLC will have the time reasonably required, but in no event less
than thirty days, to cure such default after receipt of notice from NAI specifying such default
and specifying what action NAI believes is necessary to cure the default.

17 Quiet Enjoyment. Provided NAI pays Base Rent and all Additional Rent payable hereunder
as and when due and payable and keeps and fulfills all of the terms, covenants, agreements and
conditions to be performed by NAI hereunder, BNPPLC will not during the Term disturb NAI’s
peaceable and quiet enjoyment of the Property; however, such enjoyment will be subject to the terms
and conditions of this Lease, to the Ground Lease, to Permitted Encumbrances and to any other
claims not constituting Liens Removable by BNPPLC. If any Lien Removable by BNPPLC is established
against the Property, BNPPLC will remove the Lien

Lease Agreement - Page 44

 

Removable by BNPPLC promptly. Any breach by
BNPPLC of this Paragraph will render BNPPLC liable to NAI for any monetary damages proximately
caused thereby, but as more specifically provided in subparagraph 4(B) above, no such breach will
entitle NAI to terminate this Lease or excuse NAI from its obligation to pay Rent.

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

19 Holding Over by NAI. Should NAI not purchase BNPPLC’s right, title and interest
in the Property as provided in the Purchase Agreement, but nonetheless continue to hold the
Property after the termination of this Lease without objection by BNPPLC, whether such termination
occurs by lapse of time or otherwise, such holding over will constitute and be construed as a
tenancy from day to day only on and subject to all of the terms, provisions, covenants and
agreements on the part of NAI hereunder. No payments of money by NAI to BNPPLC after the
termination of this Lease will reinstate, continue or extend the Term of this Lease and no
extension of this Lease after the termination thereof will be valid unless and until the same is
reduced to writing and signed by both BNPPLC and NAI.

20 Recording Memorandum. Contemporaneously with the execution of this Lease, the parties
will execute and record a memorandum of this Lease for purposes of effecting constructive notice to
all Persons of NAI’s rights hereunder.

21 Independent Obligations Evidenced by Other Operative Documents. NAI acknowledges and
agrees that nothing contained in this Lease will limit, modify or otherwise affect any of NAI’s
obligations under the other Operative Documents, which obligations are intended to be separate,
independent and in addition to, and not in lieu of, the obligations set forth herein. Further, in
the event of any inconsistency between the express terms and provisions

Lease Agreement - Page 45

 

of the Purchase Agreement
and the express terms and provisions of this Lease, the express terms and provisions of the
Purchase Agreement will control.

22 Proprietary Information and Confidentiality.

     (A) Proprietary Information. NAI will have no obligation to provide proprietary
information (as defined in the next sentence) to BNPPLC, except and to the extent (1) expressly
required by other terms and conditions of the Operative Documents, or (2) requested by BNPPLC in
connection with any inspection of the Property pursuant to the various provisions hereof and, in
BNPPLC’s reasonably determination, required to allow BNPPLC to accomplish the purposes of such
inspection. (Before NAI delivers any such proprietary information in connection with any
inspection of the Property, NAI may require that BNPPLC confirm and ratify the confidentiality
agreements covering such proprietary information set forth herein.) For purposes of this Lease and
the other Operative Documents, “proprietary information” means NAI’s intellectual property, trade
secrets and other confidential information of value to NAI (including, among other things,
information about NAI’s manufacturing processes, products, marketing and corporate strategies) that
(1) is received by any representative of BNPPLC at the time of any on-site visit to the Property or
(2) otherwise delivered to BNPPLC by or on behalf of NAI and labeled “proprietary” or
“confidential” or by some other similar designation to identify it as information which NAI
considers to be proprietary or confidential.

     (B) Confidentiality. BNPPLC will endeavor in good faith to use reasonable
precautions to keep confidential any proprietary information that BNPPLC may receive from NAI or
otherwise discover with respect to NAI or NAI’s business in connection with the administration of
this Lease or any investigation by BNPPLC hereunder. This provision will not, however, render
BNPPLC liable for any disclosures of proprietary information made by it or its employees or
representatives, unless the disclosure is intentional and made for no reason other than to damage
NAI’s business. Also, this provision will not apply to disclosures: (i) specifically and previously
authorized in writing by NAI; (ii) to any assignee of BNPPLC as to any interest in the Property so
long as such assignee has agreed in writing to use its reasonable efforts to keep such information
confidential in accordance with the terms of this paragraph; (iii) to legal counsel, accountants,
auditors, environmental consultants and other professional advisors to
BNPPLC so long as BNPPLC informs such persons in writing (if practicable) of the confidential
nature of such information and directs them to treat such information confidentially; (iv) to
regulatory officials having jurisdiction over BNPPLC or BNPPLC’s Parent (although the disclosing
party will request confidential treatment of the disclosed information, if practicable); (v) as
required by legal process (although the disclosing party will request confidential treatment of the
disclosed information, if practicable); (vi) of information which has previously become publicly
available through the actions or inactions of a person other than BNPPLC not, to BNPPLC’s
knowledge, in breach of an obligation of confidentiality to NAI; (vii) to any Participant so long
as the Participant is bound by and has not repudiated a confidentiality

Lease Agreement - Page 46

 

provision concerning NAI’s
proprietary information set forth in the Participation Agreement; or (vii) that are reasonably
believed by BNPPLC to be necessary or helpful to the determination or enforcement of any
contractual or other rights which BNPPLC has or may have against NAI or its Affiliates or which
BNPPLC has or may have concerning the Property (provided, that BNPPLC must cooperate with NAI as
NAI may reasonably request to mitigate any risk that such disclosures will result in subsequent
disclosures of proprietary information which are not necessary or helpful to any such determination
or enforcement; such cooperation to include, for example, BNPPLC’s agreement not to oppose a motion
by NAI to seal records containing proprietary information in any court proceeding initiated because
of a dispute between the parties over the Property or the Operative Documents).

Further, notwithstanding any other contrary provision contained in this Lease or the other
Operative Documents, BNPPLC and NAI (and each of their respective employees, representatives or
other agents) may disclose, without limitation of any kind, the tax treatment and tax structure of
the transactions contemplated by this Lease and all materials of any kind (including opinions or
other tax analyses) that are provided to such party relating to such tax treatment and tax
structure, other than any information for which non-disclosure is reasonably necessary in order to
comply with applicable securities laws and other than any information the disclosure of which would
waive the attorney-client privilege, the tax advisor privilege under Section 7525 of the Internal
Revenue Code, or similar privileges.

[The signature pages follow.]

Lease Agreement - Page 47

 

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

	 	 	 	 	 
	 	BNP PARIBAS LEASING
CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

Lease Agreement — Signature Page

 

 

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

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

Lease 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 Lease Agreement - Page 2

 

 

Exhibit A to Lease 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 NCOS 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 61 54,66 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.%.
and a chord bearing
and distance of South 54° 02’ 59” East 470.7 2 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° 4l’ 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 O) 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 Lease Agreement - Page 4

 

 

Exhibit B

North Carolina Foreclosure Provisions

Without limiting any of the provisions set forth in the body of this Lease or other attachments to
this Lease, the following provisions are included in and made a part of this Lease for all
purposes:

GRANT OF LIEN AND SECURITY INTEREST.

     NAI, for and in consideration of the sum of Ten Dollars ($10.00) to NAI in hand paid by Lloyd
G. Cox, Trustee, of Dallas County, Texas (hereinafter called the “Trustee”), in order to secure the
recovery of the Lease Balance by BNPPLC and the payment of all of the other obligations, covenants,
agreements and undertakings of NAI under this Lease or the other Operative Documents (hereinafter
called the “Secured Obligations”), does hereby GRANT, BARGAIN, SELL, CONVEY, TRANSFER, ASSIGN and
SET OVER to the Trustee, as trustee, in trust, with THE POWER OF SALE and right of entry and
possession for the benefit of BNPPLC, the leasehold interest in the Land created by the Ground
Lease, together with (i) all the buildings and other improvements now on or hereafter located
thereon; (ii) all materials, equipment, fixtures or other property whatsoever now or hereafter
attached or affixed to or installed in said buildings and other improvements, including, but not
limited to, all heating, plumbing, lighting, water heating, refrigerating, incinerating,
ventilating and air conditioning equipment, utility lines and equipment (whether owned individually
or jointly with others), sprinkler systems, fire extinguishing apparatus and equipment, water
tanks, engines, machines, elevators, motors, cabinets, shades, blinds, partitions, window screens,
screen doors, storm windows, awnings, drapes, and floor coverings, and all fixtures, accessions and
appurtenances thereto, and all renewals or replacements of or substitutions for any of the
foregoing, all of which are hereby declared to be permanent fixtures and accessions to the freehold
and part of the realty conveyed herein as security for the obligations mentioned hereinabove; (iii)
all easements and rights of way now and at any time hereafter used in connection with any of the
foregoing property or as a means of ingress to or egress from the Land or for utilities to said
property; (iv) all interests of NAI in and to any streets, ways, alleys and/or strips of land
adjoining said land or any part thereof; and (v) all rights, estates, powers and privileges
appurtenant or incident to the foregoing.

     TO HAVE AND TO HOLD the foregoing property (in this Exhibit called the “Mortgaged Property”)
unto the Trustee and his successors or substitutes in this trust and to his or their successors and
assigns, IN TRUST, however, upon the terms, provisions and conditions herein set forth for the
benefit of BNPPLC. ( No part of the Mortgaged Property constitutes all or any part of the
homestead of NAI.)

     In order to secure the Secured Obligations, NAI also hereby grants to BNPPLC a security
interest in: all components of the Property which constitute personalty, whether owned by NAI

 

 

now or hereafter, and all fixtures, accessions and appurtenances thereto, and all renewals or
replacements of or substitutions for any of the foregoing (including all building materials and
equipment now or hereafter delivered to said premises and intended to be installed or in or
incorporated as part of the Improvements); all rents and other amounts from and under leases of all
or any part of the Property; all issues, profits and proceeds from all or any part of the Property;
all proceeds (including premium refunds) of each policy of insurance relating to the Property; all
proceeds from the taking of the Property or any part thereof or any interest therein or right or
estate appurtenant thereto by eminent domain or by purchase in lieu thereof; all permits, licenses,
franchises, certificates, and other rights and privileges obtained in connection with the Property;
all plans, specifications, maps, surveys, reports, architectural, engineering and construction
contracts, books of account, insurance policies and other documents, of whatever kind or character,
relating to the use, construction upon, occupancy, leasing, sale or operation of the Property; all
proceeds and other amounts paid or owing to NAI under or pursuant to any and all contracts and
bonds relating to the construction, erection or renovation of the Property; and all oil, gas and
other hydrocarbons and other minerals produced from or allocated to the Property and all products
processed or obtained therefrom, the proceeds thereof, and all accounts and general intangibles
under which such proceeds may arise, together with any sums of money that may now or at any time
hereafter become due and payable to NAI by virtue of any and all royalties, overriding royalties,
bonuses, delay rentals and any other amount of any kind or character arising under any and all
present and future oil, gas and mining leases covering the Property or any part thereof (all of the
property described in this section hereinafter collectively called the “Collateral” in this
Exhibit) and all proceeds of the Collateral. (The Mortgaged Property and the Collateral are in
this Exhibit sometimes collectively called the “Security”.)

FORECLOSURE

     Upon the occurrence of any Event of Default, the Trustee, his successor or substitute, is
authorized and empowered and it will be his special duty at the request of BNPPLC to foreclose the
interest of NAI in the Mortgaged Property or any part thereof by nonjudicial notice and sale, and
BNPPLC shall have the right to foreclose by judicial foreclosure, in either case in accordance with
applicable law.

     Any sale made by the Trustee hereunder may be as an entirety or in such parcels as
BNPPLC may request, and any sale may be adjourned by announcement at the time and place appointed
for such sale without further notice except as may be required by law. The sale by the Trustee of
less than the whole of the Mortgaged Property will not exhaust the power of sale herein granted,
and the Trustee is specifically empowered to make successive sale or sales under such power until
the whole of the Mortgaged Property is sold; and, if the proceeds of such sale of less than the
whole of the Mortgaged Property are less than the aggregate of the Secured Obligations then
outstanding and the expense of executing this trust as provided herein, this instrument and the
lien hereof will remain in full force and effect as to the unsold portion of the
Mortgaged Property just as though no sale had been made; provided, however, that NAI will

Exhibit B to Lease Agreement - Page 2

 

 

never have any right to require the sale of less than the whole of the Mortgaged Property but
BNPPLC will have the right, at its sole election, to request the Trustee to sell less than the
whole of the Mortgaged Property. The Trustee may sell the Mortgaged Property in parcels or as a
whole and in any order the Trustee may elect. After each sale, the Trustee will make to the
purchaser or purchasers at such sale good and sufficient conveyances in the name of NAI, conveying
the property so sold to the purchaser or purchasers without warranty of title by the Trustee, and
will receive the proceeds of said sale or sales and apply the same as herein provided. Payment of
the purchase price to the Trustee will satisfy the obligation of purchaser at such sale therefor,
and such purchaser will not be responsible for the application thereof. The power of sale granted
herein will not be exhausted by any sale held hereunder by the Trustee or his substitute or
successor, and such power of sale may be exercised from time to time and as many times as BNPPLC
may deem necessary until all of the Mortgaged Property has been duly sold and all Secured
Obligations have been fully paid and satisfied. In the event any sale hereunder is not completed
or is defective in the opinion of BNPPLC, such sale will not exhaust the power of sale hereunder
and BNPPLC will have the right to cause a subsequent sale or sales to be made hereunder. Any and
all statements of fact or other recitals made in any deed or deeds given by the Trustee or any
successor or substitute appointed hereunder as to nonpayment of any Secured Obligations, or as to
the occurrence of any Event of Default, or as to BNPPLC having declared all or any part of the
Secured Obligations to be due and payable, or as to the request to sell, or as to notice of time,
place and terms of sale and of the properties to be sold having been duly given, or as to the
refusal, failure or inability to act of the Trustee or any substitute or successor, or as to the
appointment of any substitute or successor trustee, or as to any other act or thing having been
duly done by BNPPLC or by such Trustee, substitute or successor, will be taken as prima facie
evidence of the truth of the facts so stated and recited. The Trustee, his successor or
substitute, may appoint or delegate any one or more persons as agent to perform any act or acts
necessary or incident to any sale held by the Trustee, including the posting of notices and the
conduct of sale, but in the name and on behalf of the Trustee, his successor or substitute.

JUDICIAL FORECLOSURE

     This instrument will be effective as a mortgage as well as a deed of trust and upon the
occurrence of an Event of Default may be foreclosed as to any of the Security in any manner
permitted by the laws of the State of North Carolina or of any other state in which any part of the
Security is situated, and any foreclosure suit may be brought by the Trustee or by BNPPLC. In the
event a foreclosure hereunder is commenced by the Trustee, or his substitute or successor, BNPPLC
may at any time before the sale of the Security direct the said Trustee to abandon the sale, and
may then institute suit for the collection of the Secured Obligations and for the judicial
foreclosure of this instrument. It is agreed that if BNPPLC should institute a suit for the
collection of the Secured Obligations and for the foreclosure of this instrument, BNPPLC may at any
time before the entry of a final judgment in said suit dismiss the same, and require the Trustee,
his substitute or successor to exercise the power of sale granted herein to sell the Security
in accordance with the provisions of this instrument.

Exhibit B to Lease Agreement - Page 3

 

 

BNPPLC AS PURCHASER

     BNPPLC will have the right to become the purchaser at any sale held by any Trustee or
substitute or successor or by any receiver or public officer, and any BNPPLC purchasing at any such
sale will have the right to credit upon the amount of the bid made therefor, to the extent
necessary to satisfy such bid, the outstanding Lease Balance and other Secured Obligations owing to
such BNPPLC.

UNIFORM COMMERCIAL CODE REMEDIES

     Upon the occurrence of an Event of Default, BNPPLC may exercise its rights of enforcement with
respect to the Collateral under the North Carolina Uniform Commercial Code, as amended, and in
conjunction with, in addition to or in substitution for those rights and remedies:

     (a) BNPPLC may enter upon the Land to take possession of, assemble and collect the
Collateral or to render it unusable; and

     (b) BNPPLC may require NAI to assemble the Collateral and make it available at a place
BNPPLC designates which is mutually convenient to allow BNPPLC to take possession or dispose
of the Collateral; and

     (c) written notice mailed to NAI as provided herein ten (10) days prior to the date of
public sale of the Collateral or prior to the date after which private sale of the
Collateral will be made will constitute reasonable notice; and

     (d) any sale made pursuant to the provisions of this section will be deemed to have
been a public sale conducted in a commercially reasonable manner if held contemporaneously
with the sale of the Mortgaged Property under power of sale as provided herein upon giving
the same notice with respect to the sale of the Collateral hereunder as is required for such
sale of the Mortgaged Property under power of sale; and

     (e) in the event of a foreclosure sale, whether made by the Trustee under the terms
hereof, or under judgment of a court, the Collateral and the Mortgaged Property may, at the
option of BNPPLC, be sold as a whole; and

     (f) it will not be necessary that BNPPLC take possession of the Collateral or any part
thereof prior to the time that any sale pursuant to the provisions of this section is
conducted and it will not be necessary that the Collateral or any part thereof be
present at the location of such sale; and

Exhibit B to Lease Agreement - Page 4

 

 

     (g) prior to application of proceeds of disposition of the Collateral to the
Secured Obligations, such proceeds will be applied to the reasonable expenses of retaking,
holding, preparing for sale or lease, selling, leasing and the like and the reasonable
attorney’s fees and legal expenses incurred by BNPPLC; and

     (h) any and all statements of fact or other recitals made in any bill of sale or
assignment or other instrument evidencing any foreclosure sale hereunder as to nonpayment of
the Secured Obligations or as to the occurrence of any Event of Default, or as to BNPPLC
having declared any of the Secured Obligations to be due and payable, or as to notice of
time, place and terms of sale and of the properties to be sold having been duly given, or as
to any other act or thing having been duly done by BNPPLC, will be taken as prima facie
evidence of the truth of the facts so stated and recited; and

     (i) BNPPLC may appoint or delegate any one or more persons as agent to perform any act
or acts necessary or incident to any sale held by BNPPLC, including the sending of notices
and the conduct of the sale, but in the name and on behalf of BNPPLC.

PARTIAL FORECLOSURE

     In the event of an Event of Default in the payment of any part of the Secured Obligations,
BNPPLC will have the right to proceed with foreclosure of the liens and security interests
evidenced hereby without declaring the entire Secured Obligations due, and in such event any such
foreclosure sale may be made subject to the unmatured part of the Secured Obligations; and any such
sale will not in any manner affect the unmatured part of the Secured Obligations, but as to such
unmatured part this instrument will remain in full force and effect just as though no sale had been
made. Several sales may be made hereunder without exhausting the right of sale for any unmatured
part of the Secured Obligations.

PROVISIONS CONCERNING THE TRUSTEE

     The Trustee may resign by an instrument in writing addressed to BNPPLC, or the Trustee
may be removed at any time with or without cause by an instrument in writing executed by BNPPLC.
In case of the death, resignation, removal or disqualification of the Trustee or if for any reason
BNPPLC deems it desirable to appoint a substitute or successor trustee to act instead of the herein
named trustee or any substitute or successor trustee, then BNPPLC will have the right and is hereby
authorized and empowered to appoint a successor trustee, or a substitute trustee, without other
formality than appointment and designation in writing executed by BNPPLC and the authority hereby
conferred will extend to the appointment of other successor
and substitute trustees successively until the Secured Obligations has been paid in full or
until the Security is sold hereunder. In the event the Secured Obligations are at any time owned
by more than one person or entity, the holder or holders of not less than a majority in the amount
of such Secured Obligations will have the right and authority to make the appointment of a

Exhibit B to Lease Agreement - Page 5

 

 

successor or substitute trustee provided for in the preceding sentence. Such appointment and
designation by BNPPLC or by the holder or holders of not less than a majority of the Secured
Obligations will be full evidence of the right and authority to make the same and of all facts
therein recited. If BNPPLC is a corporation and such appointment is executed in its behalf by an
officer of such corporation, such appointment will be conclusively presumed to be executed with
authority and will be valid and sufficient without proof of any action by the board of directors or
any superior officer of the corporation. Upon the making of any such appointment and designation,
all of the estate and title of the Trustee in the Security will vest in the named successor or
substitute trustee and he will thereupon succeed to and hold, possess and execute all the rights,
powers, privileges, immunities and duties herein conferred upon the Trustee; but nevertheless, upon
the written request of BNPPLC or of the successor or substitute Trustee, the Trustee ceasing to act
will execute and deliver an instrument transferring to such successor or substitute Trustee all of
the estate and title in the Security of the Trustee so ceasing to act, together with all the
rights, powers, privileges, immunities and duties herein conferred upon the Trustee, and will duly
assign, transfer and deliver any of the properties and moneys held by said Trustee hereunder to
said successor or substitute Trustee. All references herein to the Trustee will be deemed to refer
to the Trustee (including any successor or substitute appointed and designated as herein provided)
from time to time acting hereunder. NAI hereby ratifies and confirms any and all acts which the
herein named Trustee or his successor or successors, substitute or substitutes, in this trust, does
lawfully by virtue hereof.

     THE TRUSTEE WILL NOT BE LIABLE FOR ANY ERROR OF JUDGMENT OR ACT DONE BY THE TRUSTEE IN GOOD
FAITH, OR BE OTHERWISE RESPONSIBLE OR ACCOUNTABLE UNDER ANY CIRCUMSTANCES WHATSOEVER (INCLUDING THE
TRUSTEE’S NEGLIGENCE), EXCEPT FOR THE TRUSTEE’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. The
Trustee will have the right to rely on any instrument, document or signature authorizing or
supporting any action taken or proposed to be taken by him hereunder, believed by him in good faith
to be genuine. All moneys received by the Trustee will, until used or applied as herein provided,
be held in trust for the purposes for which they were received, but need not be segregated in any
manner from any other moneys (except to the extent required by law), and the Trustee will be under
no liability for interest on any moneys received by him hereunder. NAI WILL REIMBURSE THE TRUSTEE
FOR, AND INDEMNIFY AND SAVE HIM HARMLESS AGAINST, ANY AND ALL LIABILITY AND EXPENSES (INCLUDING
REASONABLE ATTORNEYS’ FEES) WHICH MAY BE INCURRED BY HIM IN THE PERFORMANCE OF HER DUTIES HEREUNDER
(INCLUDING ANY LIABILITY AND EXPENSES RESULTING FROM THE TRUSTEE’S OWN NEGLIGENCE). The foregoing
indemnity will not terminate upon release, foreclosure or other termination of this
instrument.

MISCELLANEOUS

     BNPPLC may resort to any security given by this instrument or to any other security

Exhibit B to Lease Agreement - Page 6

 

 

now existing or hereafter given to secure the payment of the Secured Obligations, in whole or in
part, and in such portions and in such order as may seem best to BNPPLC in its sole and
uncontrolled discretion, and any such action will not in anywise be considered as a waiver of any
of the rights, benefits, liens or security interests evidenced by this instrument.

     To the full extent NAI may do so, NAI agrees that NAI will not at any time insist upon, plead,
claim or take the benefit or advantage of any law now or hereafter in force pertaining to the
rights and remedies of sureties or redemption, and NAI, for NAI and NAI’s successors and assigns,
and for any and all persons ever claiming any interest in the Security, to the extent permitted by
law, hereby waives and releases all rights of redemption, valuation, appraisement, stay of
execution, notice of intention to mature or declare due the whole of the Secured Obligations,
notice of election to mature or declare due the whole of the Secured Obligations and all rights to
a marshaling of the assets of NAI, including the Security, or to a sale in inverse order of
alienation in the event of foreclosure of the liens and security interests hereby created. NAI
will not have or assert any right under any statute or rule of law pertaining to the marshaling of
assets, sale in inverse order of alienation, the exemption of homestead, the administration of
estates of decedents or other matters whatever to defeat, reduce or affect the right of BNPPLC
under the terms of this instrument to a sale of the Security for the collection of the Secured
Obligations without any prior or different resort for collection, or the right of BNPPLC under the
terms of this instrument to the payment of the Secured Obligations out of the proceeds of sale of
the Security in preference to every other claimant whatever. If any law referred to in this
section and now in force, of which NAI or NAI’s successors and assigns and such other persons
claiming any interest in the Security might take advantage despite this provision, is hereafter
repealed or ceases to be in force, such law will not thereafter be deemed to preclude the
application of this provision.

     In the event there is a foreclosure sale hereunder and at the time of such sale NAI or NAI’s
successors or assigns or any other persons claiming any interest in the Security by, through or
under NAI are occupying or using the Security, or any part thereof, each and all will immediately
become the tenant of the purchaser at such sale. Such tenancy will be a tenancy from day-to-day,
terminable at the will of either landlord or tenant, at a reasonable rental per day based upon the
value of the property occupied, such rental to be due daily to the purchaser. In the event the
tenant fails to surrender possession of said property upon demand, the purchaser will be entitled
to institute and maintain a summary action for possession of the property (such as an action for
forcible detainer) in the court having jurisdiction.

Exhibit B to Lease Agreement - Page 7

 

 

COMMON DEFINITIONS

AND PROVISIONS AGREEMENT

between

BNP PARIBAS LEASING CORPORATION

and

NETWORK APPLIANCE, INC.

Dated as of July 17, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I — LIST OF DEFINED TERMS

	 	 	1	 
	97-10/Maximum Permitted Prepayment

	 	 	1	 
	97-10/Meltdown Event

	 	 	1	 
	97-10/Prepayment

	 	 	1	 
	97-10/Project Costs

	 	 	1	 
	97-10/Pronouncement

	 	 	1	 
	ABR

	 	 	2	 
	ABR Period Election

	 	 	2	 
	Active Negligence

	 	 	2	 
	Additional Rent

	 	 	2	 
	Adjusted EBITDA

	 	 	2	 
	Administrative Fees

	 	 	2	 
	Advance Date

	 	 	3	 
	Affiliate

	 	 	3	 
	After Tax Basis

	 	 	3	 
	Applicable Laws

	 	 	3	 
	Applicable Purchaser

	 	 	3	 
	Appurtenant Easements

	 	 	3	 
	Arrangement Fee

	 	 	3	 
	Attorneys’ Fees

	 	 	3	 
	Balance of Unpaid Construction Period Losses

	 	 	3	 
	Banking Rules Change

	 	 	3	 
	Base Rent

	 	 	4	 
	Base Rent Commencement Date

	 	 	4	 
	Base Rent Date

	 	 	4	 
	Base Rent Period

	 	 	5	 
	BNPPLC

	 	 	5	 
	BNPPLC’s Parent

	 	 	5	 
	Breakage Costs

	 	 	5	 
	Break Even Price

	 	 	6	 
	Business Day

	 	 	6	 
	Capital Adequacy Charges

	 	 	6	 
	Carrying Costs

	 	 	6	 
	Closing Certificate

	 	 	6	 
	Closing Letter

	 	 	7	 
	Code

	 	 	7	 
	Commitment Fees

	 	 	7	 
	Common Definitions and Provisions Agreement

	 	 	7	 
	Completion Date

	 	 	7	 

 

 

	 	 	 	 	 
	 	 	Page
	Completion Notice

	 	 	7	 
	Condominium Declaration

	 	 	7	 
	Condominium Instruments

	 	 	7	 
	Condominium Map

	 	 	7	 
	Constituent Documents

	 	 	7	 
	Construction Advances

	 	 	7	 
	Construction Advance Request

	 	 	7	 
	Construction Agreement

	 	 	7	 
	Construction Allowance

	 	 	8	 
	Construction Period

	 	 	8	 
	Construction Project

	 	 	8	 
	Covered Construction Period Losses

	 	 	8	 
	Default

	 	 	8	 
	Default Rate

	 	 	8	 
	Defective Work

	 	 	8	 
	Designated Sale Date

	 	 	8	 
	Effective Date

	 	 	9	 
	Effective Rate

	 	 	9	 
	Eligible Financial Institution

	 	 	10	 
	Environmental Cutoff Date

	 	 	11	 
	Environmental Laws

	 	 	11	 
	Environmental Losses

	 	 	11	 
	Environmental Report

	 	 	11	 
	ERISA

	 	 	12	 
	ERISA Affiliate

	 	 	12	 
	ERISA Termination Event

	 	 	12	 
	Escrowed Proceeds

	 	 	12	 
	Established Misconduct

	 	 	13	 
	Eurocurrency Liabilities

	 	 	13	 
	Eurodollar Rate Reserve Percentage

	 	 	13	 
	Event of Default

	 	 	14	 
	Excluded Taxes

	 	 	16	 
	Fed Funds Rate

	 	 	17	 
	Fixed Rate

	 	 	17	 
	Fixed Rate Lock

	 	 	18	 
	Fixed Rate Lock Date

	 	 	18	 
	Fixed Rate Lock Termination

	 	 	18	 
	Fixed Rate Lock Termination Date

	 	 	18	 
	Fixed Rate Lock Notice

	 	 	18	 
	Fixed Rate Loss

	 	 	18	 
	Fixed Rate Settlement Amount

	 	 	18	 
	Fixed Rate Swap

	 	 	19	 
	Floating Rate Payor

	 	 	19	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page
	FOCB Notice

	 	 	19	 
	Force Majeure Event

	 	 	19	 
	Fully Subordinated or Removable

	 	 	19	 
	Funded Construction Allowance

	 	 	19	 
	Funding Advances

	 	 	19	 
	Future Work

	 	 	20	 
	GAAP

	 	 	20	 
	Ground Lease

	 	 	20	 
	Hazardous Substance

	 	 	20	 
	Hazardous Substance Activity

	 	 	20	 
	Improvements

	 	 	21	 
	Increased Commitment

	 	 	21	 
	Increased Funding Commitment

	 	 	21	 
	Increased Time Commitment

	 	 	21	 
	Indebtedness

	 	 	21	 
	Initial Advance

	 	 	23	 
	Interested Party

	 	 	23	 
	Interest Rate Swap

	 	 	23	 
	Land

	 	 	23	 
	Lease

	 	 	23	 
	Lease Balance

	 	 	23	 
	Lease Termination Damages

	 	 	24	 
	Liabilities

	 	 	24	 
	LIBOR

	 	 	24	 
	LIBOR Period Election

	 	 	25	 
	Lien

	 	 	26	 
	Liens Removable by BNPPLC

	 	 	26	 
	Local Impositions

	 	 	27	 
	Losses

	 	 	27	 
	Market Quotation

	 	 	27	 
	Maximum Construction Allowance

	 	 	28	 
	Maximum Remarketing Obligation

	 	 	28	 
	Minimum Insurance Requirements

	 	 	28	 
	Multiemployer Plan

	 	 	28	 
	NAI

	 	 	28	 
	NAI’s Estimate of Force Majeure Excess Costs

	 	 	28	 
	NAI’s Estimate of Force Majeure Delays

	 	 	28	 
	NAI’s Initial Remarketing Right

	 	 	28	 
	Notice of NAI’s Intent to Terminate

	 	 	28	 

(iii) 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page
	Notice of NAI’s Intent to Terminate Because of a Force Majeure Event

	 	 	28	 
	Notice of Termination by NAI

	 	 	28	 
	Operative Documents

	 	 	29	 
	Outstanding Construction Allowance

	 	 	29	 
	Owner’s Election to Continue Construction

	 	 	29	 
	Participant

	 	 	29	 
	Participation Agreement

	 	 	29	 
	Period

	 	 	29	 
	Permitted Encumbrances

	 	 	29	 
	Permitted Hazardous Substance Use

	 	 	30	 
	Permitted Hazardous Substances

	 	 	30	 
	Permitted Transfer

	 	 	30	 
	Person

	 	 	31	 
	Personal Property

	 	 	31	 
	Plan

	 	 	31	 
	Pre-lease Casualty

	 	 	31	 
	Pre-lease Force Majeure Delays

	 	 	31	 
	Pre-lease Force Majeure Event

	 	 	31	 
	Pre-lease Force Majeure Event Notice

	 	 	32	 
	Pre-lease Force Majeure Excess Costs

	 	 	32	 
	Pre-lease Force Majeure Losses

	 	 	32	 
	Prime Rate

	 	 	32	 
	Prior Work

	 	 	32	 
	Projected Cost Overruns

	 	 	32	 
	Property

	 	 	32	 
	Purchase Agreement

	 	 	32	 
	Purchase Option

	 	 	32	 
	Qualified Affiliate

	 	 	32	 
	Qualified Income Payments

	 	 	32	 
	Qualified Prepayments

	 	 	33	 
	Real Property

	 	 	34	 
	Reimbursable Construction-Period Costs

	 	 	34	 
	Remedial Work

	 	 	34	 
	Rent

	 	 	34	 
	Responsible Financial Officer

	 	 	34	 
	Rolling Four Quarters Period

	 	 	34	 
	Scope Change

	 	 	34	 
	Spread

	 	 	34	 
	Subsidiary

	 	 	35	 

(iv) 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page
	Supplemental Payment

	 	 	35	 
	Supplemental Payment Obligation

	 	 	35	 
	Tangible Personal Property

	 	 	35	 
	Target Completion Date

	 	 	36	 
	Term

	 	 	36	 
	Term Sheet

	 	 	36	 
	Termination of NAI’s Work

	 	 	36	 
	Third Party Contract

	 	 	36	 
	Third Party Contract/Termination Fees

	 	 	36	 
	Total Debt

	 	 	36	 
	Transaction Expenses

	 	 	36	 
	Unfunded Benefit Liabilities

	 	 	36	 
	Unit 4

	 	 	36	 
	Work

	 	 	36	 
	Work/Suspension Event

	 	 	36	 
	Work/Suspension Notice

	 	 	36	 
	Work/Suspension Period

	 	 	36	 
	 
	 	 	 	 
	ARTICLE II — SHARED PROVISIONS

	 	 	37	 
	1. Notices

	 	 	37	 
	2. Severability

	 	 	39	 
	3. No Merger

	 	 	39	 
	4. No Implied Waiver

	 	 	39	 
	5. Entire and Only Agreements

	 	 	40	 
	6. Binding Effect

	 	 	40	 
	7. Time is of the Essence

	 	 	40	 
	8. Governing Law

	 	 	40	 
	9. Paragraph Headings

	 	 	40	 
	10. Negotiated Documents

	 	 	40	 
	11. Terms Not Expressly Defined in an Operative Document

	 	 	40	 
	12. Other Terms and References

	 	 	40	 
	13. Execution in Counterparts

	 	 	41	 
	14. Not a Partnership, Etc

	 	 	41	 
	15. No Fiduciary Relationship Intended

	 	 	42	 

(v) 

 

TABLE OF CONTENTS
(Continued)

Annexes

			
	Annex 23
	 	ABR Period Election Form
	 	 	 
	Annex 24
	 	Fixed Rate Lock Notice Form
	 	 	 
	Annex 25
	 	LIBOR Period Election Form
	 	 	 
	Annex 26
	 	Minimum Insurance Requirements
	 	 	 
	Annex 27
	 	Participation Agreement Form

(vi) 

 

COMMON DEFINITIONS

AND PROVISIONS AGREEMENT

     This COMMON DEFINITIONS AND PROVISIONS 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 Common Definitions and Provisions Agreement, NAI
and BNPPLC are executing the Closing Certificate (as defined below), the Ground Lease (as defined
below), the Lease (as defined below), the Construction Agreement (as defined below) and the
Purchase Agreement (as defined below), all of which concern NAI or the Property (as defined below).
Each of the Closing Certificate, the Ground Lease, the Lease, the Construction Agreement and the
Purchase Agreement (together with this Common Definitions and Provisions Agreement, the “Operative
Documents”) are intended to create separate and independent obligations upon the parties thereto.
However, NAI and BNPPLC intend that all of the Operative Documents share certain consistent
definitions and other miscellaneous provisions. To that end, the parties are executing this Common
Definitions and Provisions Agreement and incorporating it by reference into each of the other
Operative Documents.

AGREEMENTS

ARTICLE I — LIST OF DEFINED TERMS

     Unless a clear contrary intention appears, the following terms will have the respective
indicated meanings as used herein and in the other Operative Documents:

     “97-10/Maximum Permitted Prepayment” has the meaning indicated in the Construction Agreement

     “97-10/Meltdown Event” has the meaning indicated in the Construction Agreement.

     “97-10/Prepayment” has the meaning indicated in the Construction Agreement.

     “97-10/Project Costs“has the meaning indicated in the Construction Agreement.

     “97-10/Pronouncement” has the meaning indicated in the Construction Agreement.

 

 

     “ABR” means, for any day, a fluctuating rate of interest per annum (rounded upwards, if
necessary, to the next 1/100th of 1%) equal to the higher of (a) the Prime Rate in effect on such
day and (b) the Fed Funds Rate in effect one day prior to such day plus 1/4 of 1% per annum. For
any period (including any Base Rent Period), “ABR” means the average of the ABR for each day during
such period.

     “ABR Period Election” means an election to have the Effective Rate for any Period calculated
by reference to the ABR, rather than by reference to LIBOR or a Fixed Rate. NAI may (subject to the
limitations and qualifications set forth in this definition) make any Period after the first
Construction Period subject to an ABR Period Election by a notice given to BNPPLC in the form
attached as Annex 1 at least five Business Days prior to the commencement of such Period.
After an ABR Period Election becomes effective, it will remain in effect for all subsequent Periods
until the Fixed Rate Lock Date for any Fixed Rate Lock or a different election is made in
accordance with the provisions of this definition and the definition of LIBOR Period Election. In
no event will changes in any ABR Period Election or LIBOR Period Election become effective except
upon the commencement of a new Period. (For purposes of the Operative Documents, an ABR Period
Election for any Period will also be considered in effect on the Effective Date, Advance Date, Base
Rent Commencement Date or Base Rent Date upon which such Period begins.)

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

     “Additional Rent” has the meaning indicated in subparagraph 3(F) of the Lease.

     “Adjusted EBITDA” has the meaning indicated in subparagraph 3(A) of the Closing
Certificate.

     “Administrative Fees” means the fees identified as such in subparagraph 3(E) of the
Lease and subparagraph 3(A) of the Construction Agreement.

 

 

     “Advance Date” means, regardless of whether any Construction Advance is actually made
on such date, the first Business Day of every calendar month, beginning with the first Business Day
in August, 2007 and continuing regularly thereafter to and including the Base Rent Commencement
Date, which will be the last Advance Date.

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

     “After Tax Basis” has the meaning indicated in subparagraph 5(C)(1) of the Lease.

     “Applicable Laws” means any or all of the following, to the extent applicable to BNPPLC, NAI,
the Property or the Operative Documents, after giving effect to the contractual choice of law
provisions in the Operative Documents: restrictive covenants; zoning ordinances and building codes;
flood disaster laws; health, safety and environmental laws and regulations; the Americans with
Disabilities Act and other laws pertaining to disabled persons; and other laws, statutes,
ordinances, rules, permits, regulations, orders, determinations and court decisions.

     “Applicable Purchaser” means any third party designated to purchase BNPPLC’s interest in the
Property and in any Escrowed Proceeds as provided in the Purchase Agreement.

     “Appurtenant Easements” has the meaning indicated in Exhibit A attached to the Ground
Lease.

     “Arrangement Fee” has the meaning indicated in the Construction Agreement.

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

     “Balance of Unpaid Construction Period Losses” has the meaning indicated in the Purchase
Agreement.

     “Banking Rules Change” means either: (1) the introduction of or any change after the

Common Definitions and Provisions Agreement - Page 3

 

 

Effective Date (other than any change by way of imposition or increase of reserve requirements
included in the Eurodollar Rate Reserve Percentage) in any law or regulation applicable to BNPPLC,
BNPPLC’s Parent or any Participant, or in the generally accepted interpretation by the
institutional lending community of any such law or regulation, or in the interpretation of any such
law or regulation asserted by any regulator, court or other governmental authority (other than any
change by way of imposition or increase of reserve requirements included in the Eurodollar Rate
Reserve Percentage) or (2) the compliance by BNPPLC, BNPPLC’s Parent or any Participant with any
new guideline or new request issued after the Effective Date from any central bank or other
governmental authority (whether or not having the force of law).

     “Base Rent” means the rent payable by NAI pursuant to subparagraph 3(A) of the Lease.

     “Base Rent Commencement Date” means the first Business Day of the first calendar month after
the Completion Date.

     “Base Rent Date” means a date upon which Base Rent must be paid under the Lease, all of which
dates will be the first Business Day of a calendar month. The first Base Rent Date will be
determined as follows:

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

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

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

     (1) If an ABR Period Election or a LIBOR Period Election of one month is in effect on a
Base Rent Date, or if a Fixed Rate Lock commences or continues on a Base Rent Date, then the
first Business Day of the first calendar month following such Base Rent Date will be
the next following Base Rent Date.

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

Thus, for example, if the Base Rent Commencement Date falls on the first Business Day of

Common Definitions and Provisions Agreement - Page 4

 

 

September, 2008 and a LIBOR Period Election of three months commences on the Base Rent Commencement
Date, then the first Base Rent Date will be the first Business Day of December, 2008.

     “Base Rent Period” means a period for which Base Rent must be paid under the Lease, each of
which periods will correspond to the ABR Period Election or LIBOR Period Election for the period
(except when a Fixed Rate Lock continues in effect). The first Base Rent Period will begin on and
include the Base Rent Commencement Date, and each successive Base Rent Period will begin on and
include the Base Rent Date upon which the preceding Base Rent Period ends. Each Base Rent Period,
including the first Base Rent Period, will end on but not include the first or second Base Rent
Date after the Base Rent Date upon which such period began, determined as follows:

     (1) If an ABR Period Election or a LIBOR Period Election of one month or three months
is in effect for a Base Rent Period, or if a Fixed Rate Lock commences or continues on the
first day of the Base Rent Period, then such Base Rent Period will end on but not include
the first Base Rent Date after the Base Rent Date upon which such period began.

     (2) If a LIBOR Period Election of six months is in effect for a Base Rent Period, then
such Base Rent Period will end on but not include the second Base Rent Date after
the Base Rent Date upon which such period began.

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

     1) If NAI makes a LIBOR Period Election of three months for a hypothetical Base Rent
Period beginning on the first Business Day in January, 2008, then such Base Rent Period will
end on but not include the first Base Rent Date after it begins; that is, such Base Rent
Period will end on but not include the first Business Day in April, 2008, the third calendar
month after January, 2008.

     2) If, however, NAI makes a LIBOR Period Election of six months for the hypothetical
Base Rent Period beginning the first Business Day in January, 2008, then such Base Rent
Period will end on but not include the second Base Rent Date after it begins; that is, the
first Business Day in July, 2008.

     “BNPPLC” means BNPPLC Leasing Corporation, a Delaware corporation.

     “BNPPLC’s Parent” means BNP Paribas, a bank organized and existing under the laws of France,
and any successors of such bank.

     “Breakage Costs” means any and all costs, losses or expenses incurred or sustained by

Common Definitions and Provisions Agreement - Page 5

 

 

BNPPLC’s Parent (as a Participant or otherwise) or any Participant, for which BNPPLC’s Parent or
the Participant requests reimbursement from BNPPLC, because of:

(1) the resulting liquidation or redeployment of deposits or other funds that were used
to make or maintain Funding Advances upon application of a Qualified Prepayment or upon any
sale of the Property pursuant to the Purchase Agreement, if such application or sale occurs
on any day other than the last day of a Construction Period or Base Rent Period; or

(2) the resulting liquidation or redeployment of deposits or other funds that were
reserved to provide a Construction Advance requested by NAI, if and when the Construction
Advance is not made as anticipated, either because NAI declined to accept the Construction
Advance for any reason or because NAI failed to satisfy any of the conditions to such
Construction Advance specified in the Construction Agreement; or

(3) the resulting liquidation or redeployment of deposits or other funds that were used
to make or maintain Funding Advances upon the acceleration of the end of any Construction
Period or Base Rent Period because of an acceleration of the Designated Sale Date as
described in clauses (2) or (3) of the definition thereof.

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

     “Break Even Price” has the meaning indicated in the Purchase Agreement.

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

     “Capital Adequacy Charges” means any additional amounts BNPPLC’s Parent or any Participant
requests BNPPLC to pay as compensation for an increase in required capital as
provided in subparagraph 5(B)(2) of the Lease.

     “Carrying Costs” has the meaning indicated in the Construction Agreement.

     “Closing Certificate” means the Closing Certificate and Agreement dated as of the

Common Definitions and Provisions Agreement - Page 6

 

 

Effective Date executed by NAI and BNPPLC, as such Closing Certificate and Agreement may be
extended, supplemented, amended, restated or otherwise modified from time to time in accordance
with its terms.

     “Closing Letter” means the letter agreement dated as of the Effective Date between BNPPLC and
NAI confirming the amount of the Initial Advance and the Transactions Expenses paid from the
Initial Advance.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commitment Fees” has the meaning indicated in the Construction Agreement.

     “Common Definitions and Provisions Agreement” means this Agreement, which is incorporated by
reference into each of the other Operative Documents, as this Agreement may be extended,
supplemented, amended, restated or otherwise modified from time to time in accordance with its
terms.

     “Completion Date” has the meaning indicated in the Construction Agreement.

     “Completion Notice” has the meaning indicated in the Construction Agreement.

     “Condominium Declaration” has the meaning indicated in the Ground Lease.

     “Condominium Instruments” has the meaning indicated in the Condominium Declaration.

     “Condominium Map” has the meaning indicated in the Ground Lease.

     “Constituent Documents” of any entity means the organizational documents pursuant to which
such entity was created and is governed, such as the articles of incorporation and bylaws of a
corporation, the articles of organization and regulations of a limited liability company or the
partnership agreement of a partnership.

     “Construction Advances” has the meaning indicated in the Construction Agreement.

     “Construction Advance Request” has the meaning indicated in the Construction
Agreement.

     “Construction Agreement” means the Construction Agreement dated as of the Effective Date
between BNPPLC and NAI, as such Construction Agreement may be extended, supplemented, amended,
restated or otherwise modified from time to time in accordance with its terms.

Common Definitions and Provisions Agreement - Page 7

 

 

     “Construction Allowance” has the meaning indicated in the Construction Agreement.

     “Construction Period” means each successive period of approximately one month, with the first
Construction Period beginning on and including the Effective Date and ending on but not including
the first Advance Date. Each successive Construction Period after the first Construction Period
will begin on and include the day on which the preceding Construction Period ends and will end on
but not include the next following Advance Date, until the last Construction Period, which will end
on but not include the earlier of the Base Rent Commencement Date or any Designated Sale Date upon
which NAI or any Applicable Purchaser purchases BNPPLC’s interest in the Property pursuant to the
Purchase Agreement.

     “Construction Project” has the meaning indicated in the Construction Agreement.

     “Covered Construction Period Losses” has the meaning indicated in the Construction Agreement.

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

     “Default Rate” means, a floating per annum rate equal to two percent (2%) above ABR, except
that for purposes of computing interest accruing for any period that commences thirty or more days
after the Designated Sale Date on any 97-10/Prepayment, Base Rent or Supplemental Payment that has
become due, but remains to be paid to BNPPLC by NAI, the Default Rate will mean a floating per
annum rate equal to five percent (5%) above ABR. Notwithstanding the foregoing, in no event will
the “Default Rate” at any time exceed the maximum interest rate permitted by Applicable Laws.

     “Defective Work” has the meaning indicated in the Construction Agreement.

     “Designated Sale Date” means the earliest of:

     (1) the earlier of (a) date upon which the Term is scheduled to expire as provided in
subparagraph 1(A) of the Lease (which states that the Term will expire on the first
Business Day of August, 2014, unless it is extended as provided in subparagraph 1(D)
of the Lease), or (b) any date upon which the Lease terminates pursuant to subparagraph
1(B) or subparagraph 1(C) of the Lease; or

     (2) any Business Day designated as the “Designated Sale Date” for purposes of
this Agreement and the other Operative Documents in an irrevocable, unconditional notice
given by NAI to BNPPLC before any 97-10/Meltdown Event has occurred; provided, that if the
Business Day so designated by NAI as the Designated Sale Date is

Common Definitions and Provisions Agreement - Page 8

 

 

not at least twenty days
after the date of such notice, the notice will be of no effect for purposes of this
definition; and provided, further, that to be effective, any such notice must include an
irrevocable exercise by NAI of the Purchase Option under subparagraph 2(A)(1) of the
Purchase Agreement and thereby obligate NAI to tender payment of the full Break Even Price
to BNPPLC on the Business Day so designated; or

     (3) any Business Day designated as the “Designated Sale Date” for purposes of this
Agreement and the other Operative Documents in a notice given by BNPPLC to NAI:

• when an Event of Default has occurred and is continuing and after the Completion
Date; or

• after a 97-10/Meltdown Event or after BNPPLC’s receipt of a Pre-lease Force
Majeure Event Notice from NAI or; or

• following any change in the zoning or other Applicable Laws after the Completion
Date affecting the permitted use or development of the Property that, in BNPPLC’s
judgment, materially reduces the value of the Property; or

• following any discovery of conditions or circumstances on or about the Property
after the Completion Date, such as the presence of an endangered species, which are
likely to substantially impede the use or development of the Property and thereby,
in BNPPLC’s judgment, materially reduce the value of the Property;

provided, however, that if the Business Day so designated by BNPPLC as the Designated Sale
Date is not at least thirty days after the date of such notice, the notice will be of no
effect for purposes of this definition; or

     (4) any date upon which the Lease terminates pursuant to subparagraph 1(B) or
subparagraph 1(C) of the Lease.

     “Effective Date” means July 17, 2007.

     “Effective Rate” means, for each Period, a per annum rate determined as follows:

     (1) In the case of any Period subject to a LIBOR Period Election, the Effective Rate
will equal the rate per annum determined by dividing (A) LIBOR for such Period, by (B) one
hundred percent (100%) minus the Eurodollar Rate Reserve Percentage for such Period.

Common Definitions and Provisions Agreement - Page 9

 

 

     (2) In the case of any Period that is not subject to a LIBOR Period Election,
the Effective Rate will equal the ABR for such Period.

     (3) Notwithstanding the foregoing, for any Base Rent Period that begins on or after the
Fixed Rate Lock Date applicable to a Fixed Rate Lock and that ends before or on the date
such Fixed Rate Lock is terminated as provided in subparagraph 3(C) of the Lease,
the Effective Rate will equal the Fixed Rate.

So long as any LIBOR Period Election remains in effect, as LIBOR or the Eurodollar Rate Reserve
Percentage changes from Period to Period, the Effective Rate will be automatically increased or
decreased, as the case may be, without prior notice to NAI. Also, during any period when no LIBOR
Period Election or Fixed Rate Lock is in effect, as the ABR changes from Period to Period, the
Effective Rate will be automatically increased or decreased, as the case may be, without prior
notice to NAI.

If for any reason BNPPLC determines that it is impossible or unreasonably difficult to determine
the Effective Rate with respect to a given Period in accordance with the foregoing, then the
“Effective Rate” for that Period will equal any published index or per annum interest rate
determined in good faith by BNPPLC to be comparable to LIBOR at the beginning of the first day of
that Period. A comparable interest rate might be, for example, the then existing yield on short
term United States Treasury obligations (as compiled by and published in the then most recently
published United States Federal Reserve Statistical Release H.15(519) or its successor
publication), plus or minus a fixed adjustment based on BNPPLC’s comparison of past eurodollar
market rates to past yields on such Treasury obligations.

Notwithstanding the foregoing, for the first short Construction Period which will end on August 1,
2007, the Effective Rate will equal the average of the daily “cost of funds” rate charged
internally by BNPPLC’s Parent to its Houston Branch for the overnight use of funds on each day of
such Period.

     “Eligible Financial Institution” means (a) a commercial bank organized under the laws
of the United States, or any State thereof or the District of Columbia, and having total assets in
excess of $5,000,000,000; (b) a commercial bank organized under the laws of any other country which
is a member of the Organization for Economic Cooperation and Development (“OECD”)
or has concluded special lending arrangements with the International Monetary Fund associated
with its General Arrangements to Borrow, or a political subdivision of any such country, and having
total assets in excess of $5,000,000,000; provided, that such bank is acting through a branch or
agency located in the United States; (c) the central bank of any country which is a member of the
OECD; and (d) a finance company, insurance company or other financial institution (whether a
corporation, partnership or other entity, but excluding any savings and loan association) which is
engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course of
its business, and having total assets in excess of $5,000,000,000;

Common Definitions and Provisions Agreement - Page 10

 

 

provided, however, that in no
event will any bank or other Person qualify as an Eligible Financial Institution at any time when
it has outstanding obligations with a credit rating less than investment grade from Standard &
Poor’s, a division of the McGraw-Hill Companies, or Moody’s Investors Service, Inc. or another
nationally recognized rating service.

     “Environmental Cutoff Date” means the later of the dates upon which (i) the Lease terminates
or NAI’s interests in the Property are sold at foreclosure as provided in Exhibit B
attached to the Lease, or (ii) NAI surrenders possession and control of the Property and ceases to
have interest in the Land or Improvements or rights with respect thereto under any of the Operative
Documents.

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

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

     “Environmental Report” means the May 2007 Phase I Environmental Assessment by WSP
Environmental Strategies, LLC of 7301 Kit Creek Road, Research Triangle Park, NC.

Common Definitions and Provisions Agreement - Page 11

 

 

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

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

     “ERISA Termination Event” means (a) the occurrence with respect to any Plan of (1) a
reportable event described in Sections 4043(b)(5) or (6) of ERISA or (2) any other reportable event
described in Section 4043(b) of ERISA other than a reportable event not subject to the provision
for thirty-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by such
corporation under Section 4043(a) of ERISA, or (b) the withdrawal of NAI or any ERISA Affiliate
from a Plan during a plan year in which it was a “substantial employer” as defined in Section
4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate any Plan or the treatment
of any Plan amendment as a termination under Section 4041 of ERISA, or (d) the institution of
proceedings to terminate any Plan by the Pension Benefit Guaranty Corporation under Section 4042 of
ERISA, or (e) any other event or condition which might constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

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

Common Definitions and Provisions Agreement - Page 12

 

 

the restoration of the Property or to obtain development
rights or the release of restrictions that will inure to the benefit of future owners or occupants
of the Property. Until Escrowed Proceeds are paid to NAI pursuant to Paragraph 10 of the
Lease, transferred to a purchaser under the Purchase Agreement as therein provided or applied as a
Qualified Prepayment or as otherwise described in the preceding sentence, BNPPLC will keep the same
deposited in one or more interest bearing accounts, and all interest earned on such account will be
added to and made a part of Escrowed Proceeds.

     “Established Misconduct” of a Person means, and is limited to:

     (1) if the Person is bound by the Operative Documents or the Participation Agreement,
conduct of such Person that constitutes a breach by it of the express provisions of the
Operative Documents or the Participation Agreement, as applicable, and that continues beyond
any period for cure provided therein, as determined in or as a necessary element of a final
judgment rendered against such Person by a court with jurisdiction to make such
determination, and

     (2) conduct of such Person or its Affiliates that has been determined to constitute
willful misconduct or Active Negligence in or as a necessary element of a final judgment
rendered against such Person by a court with jurisdiction to make such determination.

In no event, however, will Established Misconduct include actions of any Person undertaken in good
faith to mitigate Losses that such Person may suffer because of a breach or repudiation by NAI of
any of the Operative Documents. Further, negligence other than Active Negligence will not in any
event constitute Established Misconduct. For purposes of this definition, “conduct of a Person”
will consist of (1) the conduct of any employee of that Person to the extent (and only to the
extent) that the employee is acting within the scope of his employment by that Person, and (2) the
conduct of an agent of that Person (such as an independent environmental consultant engaged by that
Person), but only to the extent that the agent is (a) acting within the scope of the authority
granted to him by such Person, and (b) neither NAI nor acting with the consent or approval of or
at the request of or under the direction of NAI or NAI’s Affiliates, employees or agents.
Established Misconduct of one Interested Party will not be attributed to a second Interested Party
unless the second Interested Party is an Affiliate of the first, and it is understood that BNPPLC
has not been authorized, and nothing in the Participation Agreement will be construed as
authorizing BNPPLC, to act as an “agent” for any Participant as the term is used in this
definition.

     “Eurocurrency Liabilities” has the meaning indicated in Regulation D of the Board of Governors
of the Federal Reserve System, as in effect from time to time.

     “Eurodollar Rate Reserve Percentage” means, for purposes of determining the

Common Definitions and Provisions Agreement - Page 13

 

 

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

     “Event of Default” means any of the following:

     (A) NAI fails to pay when due any installment of Base Rent or Administrative Fees required by
the Lease, and such failure continues for three Business Days after NAI is notified in writing
thereof.

     (B) NAI fails to pay the full amount of any 97-10/Prepayment when due as provided in the
Construction Agreement or fails to pay the full amount of any Supplemental Payment as provided in
the Purchase Agreement on the Designated Sale Date.

     (C) NAI fails to pay when first due any amount required by the Operative Documents (other than
Base Rent or Administrative Fees required as provided in the Lease, any 97-10/Prepayment required
as provided in the Construction Agreement or any Supplemental Payment required as provided in the
Purchase Agreement) and such failure continues for ten Business Days after NAI is notified thereof.

     (D) NAI fails to cause any representation or warranty of NAI contained in any of the Operative
Documents that was false or misleading in any material respect when made to be made true and not
misleading (other than as described in the other clauses of this definition), or NAI fails to
comply with any provision of the Operative Documents (other than as described in the other clauses
of this definition), and in either case does not cure such failure prior to the earlier of (A)
thirty days after notice thereof is given to NAI or (B) the date any writ or order is issued for
the levy or sale of any property owned by BNPPLC (including the Property) or any criminal
prosecution is instituted or overtly threatened 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 prosecution is instituted or overtly threatened, the period
within which such failure may be cured by NAI will be extended for a further period (not to exceed
an additional one hundred twenty days) as is necessary for the curing thereof with diligence, if
(but only if) (x) such failure is susceptible of cure but cannot with reasonable diligence be cured
within such thirty day period, (y) NAI promptly commences to cure such failure and thereafter
continuously prosecutes the curing thereof with reasonable diligence and (z) the extension of the
period for cure will not, in any event, cause the period for cure to extend to or beyond the
Designated Sale Date.

Common Definitions and Provisions Agreement - Page 14

 

 

     (E) NAI abandons any material part of the Property.

     (F) NAI or any Subsidiary of NAI fails to pay any principal of or premium or interest on any
of its Indebtedness which is outstanding in a principal amount of at least $25,000,000 when the
same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure continues after the applicable grace period, if any,
specified in the agreement or instrument relating to such Indebtedness; or any other event occurs
or condition exists under any agreement or instrument relating to any such Indebtedness and
continues after the applicable grace period, if any, specified in such agreement or instrument, if
the effect of such event or condition is to accelerate the maturity of such Indebtedness; or any
such Indebtedness is declared by the creditor to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an
offer to prepay, redeem, purchase or defease such Indebtedness is required to be made, in each case
prior to the stated maturity thereof.

     (G) NAI or any Subsidiary of NAI is generally not paying its debts as such debts become due,
or admits in writing its inability to pay its debts generally, or makes a general assignment for
the benefit of creditors; or any proceeding is instituted by or against NAI or any Subsidiary of
NAI seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such proceeding remains
undismissed or unstayed for a period of sixty consecutive days, or any of the actions sought in
such proceeding (including the entry of an order for relief against, or the appointment of a
receiver, trustee, custodian or other similar official for, it or for any substantial part of its
property) occurs; or NAI or any Subsidiary of NAI takes any corporate action to authorize any of
the actions set forth above in this clause.

     (H) Any order, judgment or decree is entered in any proceedings against NAI or any of NAI’s
Subsidiaries decreeing its dissolution and such order, judgment or decree remains unstayed and in
effect for more than sixty days.

     (I) Any order, judgment or decree is entered in any proceedings against NAI or any of
NAI’s Subsidiaries decreeing a divestiture of any of assets that represent a substantial part, or
the divestiture of the stock of any of NAI’s Subsidiaries whose assets represent a substantial
part, of the total assets of NAI and its Subsidiaries (determined on a consolidated basis in
accordance with GAAP) or which requires the divestiture of assets, or stock of any of NAI’s
Subsidiaries, which have contributed a substantial part of the net income of NAI and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP) for any of the three
fiscal years then most recently ended, and such order, judgment or decree remains unstayed and in
effect for more than sixty days.

Common Definitions and Provisions Agreement - Page 15

 

 

     (J) A judgment or order for the payment of money in an amount (not covered by insurance) which
exceeds $25,000,000 is rendered against NAI or any of NAI’s Subsidiaries and either (i)
enforcement proceedings is commenced by any creditor upon such judgment, or (ii) within thirty days
after the entry thereof, such judgment or order is not discharged or execution thereof stayed
pending appeal, or within thirty days after the expiration of any such stay, such judgment is not
discharged.

     (K) Any ERISA Termination Event occurs that BNPPLC determines in good faith would constitute
grounds for a termination of any Plan or for the appointment by the appropriate United States
district court of a trustee to administer any Plan and such ERISA Termination Event is continuing
thirty days after notice to such effect is given to NAI by BNPPLC, or any Plan is terminated, or a
trustee is appointed by a United States district court to administer any Plan, or the Pension
Benefit Guaranty Corporation institutes proceedings to terminate any Plan or to appoint a trustee
to administer any Plan.

     (L) NAI enters into any transaction which would cause any of the Operative Documents or any
other document executed in connection herewith (or any exercise of BNPPLC’s rights hereunder or
thereunder) to constitute a non-exempt prohibited transaction under ERISA.

     (M) NAI fails to comply with the financial covenants set forth in subparagraph 3(B) of the
Closing Certificate.

     “Excluded Taxes” means:

     (A) taxes upon or measured by net income to the extent such taxes are payable in respect of
Base Rent or other Qualified Income Payments;

     (B) transfer or change of ownership taxes assessed because of BNPPLC’s transfer or conveyance
to any third party of any rights or interest in the Improvements Lease, the Purchase Agreement or
the Property (other than any such taxes assessed because of any Permitted Transfer under clauses
(1), (4) or (5) of the definition of Permitted Transfer in this Agreement);

     (C) federal, state and local income taxes upon any amounts paid as reimbursement for or to
satisfy Losses incurred by BNPPLC or any Participant to the extent, but only to the extent, such
taxes are offset by a corresponding reduction of BNPPLC’s or the applicable Participant’s income
taxes which are not otherwise subject to reimbursement or indemnification by NAI because of
BNPPLC’s or such Participant’s deduction of the reimbursed Losses from its taxable income or
because of any tax credits attributable thereto;

Common Definitions and Provisions Agreement - Page 16

 

 

     (D) income taxes that are (i) payable by BNPPLC in respect of any Qualified Prepayment
or any net sales proceeds paid to BNPPLC upon a sale of the Property because of Forced
Recharacterization as described in subparagraph 4(C)(3) of the Lease, and (ii) offset in the same
taxable period by a reduction in the taxes of BNPPLC which are not otherwise subject to
reimbursement or indemnification by NAI resulting from depreciation deductions or other tax
benefits available to BNPPLC only because of the refusal of the tax authorities to treat the Lease
and other Operative Documents as a financing arrangement;

     (E) any withholding taxes that subparagraph 13(A) of the Lease excuses NAI from paying
or requires BNPPLC to pay; and

     (F) any franchise taxes payable by BNPPLC, but only to the extent that such franchise taxes
would be payable by BNPPLC even if the transactions contemplated by the Lease and the other
Operative Documents were characterized for tax purposes as a mere financing arrangement and not as
a lease or sale.

     It is understood that if tax rates used to calculate income taxes which constitute Excluded Taxes
under clause (1) of this definition are increased, the resulting increase will not be subject to
reimbursement or indemnification by NAI. If, however, a change in Applicable Laws after the
Effective Date, as applied to the transactions contemplated by the Operative Documents on a
stand-alone basis, results in an increase in such income taxes for any reason other than an
increase in the applicable tax rates (e.g., a disallowance of deductions that would otherwise be
available against payments described in clause (1) of this definition), then for purposes of the
Operative Documents, the term “Excluded Taxes” will not include the actual increase in such taxes
attributable to the change. Accordingly, BNPPLC or any Participant may recover any such net
increase from NAI pursuant to subparagraph 5(B) of the Lease.

It is also understood that nothing in this definition of “Excluded Taxes” will prevent any Original
Indemnity Payment (as defined in subparagraph 5(C)(1) of the Lease) from being paid on an After Tax
Basis.

     “Fed Funds Rate” means, for any period, a fluctuating interest rate (expressed as a per annum
rate and rounded upwards, if necessary, to the next 1/16 of 1%) equal on each day during such
period to the weighted average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of
New York, or, if such rates are not so published for any day which is a Business Day, the average
of the quotations for each day during such period on such transactions received by BNPPLC’s Parent
from three Federal funds brokers of recognized standing selected by BNPPLC’s Parent.

     “Fixed Rate” means the fixed rate of interest established by BNPPLC’s execution of an

Common Definitions and Provisions Agreement - Page 17

 

 

Interest Rate Swap as described in subparagraph 3(B)(4) of the Lease.

     “Fixed Rate Lock” will have the meaning assigned to it in subparagraph 3(B)(4) of the
Lease.

     “Fixed Rate Lock Date” will have the meaning assigned to it in subparagraph 3(B)(4) of
the Lease.

     “Fixed Rate Lock Termination” means any termination in whole or in part of the Fixed Rate Swap
as described in the first and second sentences of subparagraph 3(C) of the Lease.

     “Fixed Rate Lock Termination Date” means the date upon which a Fixed Rate Lock Termination is
effective. In the case of a Fixed Rate Lock Termination that results from BNPPLC’s receipt of a
Qualified Prepayment, the date such Qualified Prepayment is applied to reduce the Lease Balance
will constitute the Fixed Rate Lock Termination Date. In the case of any Fixed Rate Lock
Termination resulting from an acceleration of the Designated Sale Date as provided in clauses (2)
or (3) the definition thereof in this Agreement, the Fixed Rate Lock Termination Date will
constitute the Designated Sale Date.

     “Fixed Rate Lock Notice” will have the meaning assigned to it in subparagraph 3(B)(4)
of the Lease.

     “Fixed Rate Loss” means an amount reasonably determined in good faith by the Floating Rate
Payor to be its total losses and costs in connection with any Fixed Rate Lock Termination. Fixed
Rate Loss will include any loss of bargain, cost of funding or, at the election of the Floating
Rate Payor but without duplication, loss or cost incurred as a result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position. The Floating Rate
Payor will be
expected to determine the Fixed Rate Loss as of the date of the relevant Fixed Rate Lock
Termination Date, or, if that is not reasonably practicable, as of the earliest date thereafter as
is reasonably practicable. The Floating Rate Payor may (but need not) determine its Fixed Rate
Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the
relevant markets.

     “Fixed Rate Settlement Amount” means, with respect to any Fixed Rate Lock Termination:

(a) the Market Quotation for such Fixed Rate Lock Termination, if a Market Quotation can be
determined and if (in the reasonable belief of the Floating Rate Payor as the party making
the determination) determining a Market Quotation would produce a commercially reasonable
result; or

(b) the Fixed Rate Loss, if any, for such Fixed Rate Lock Termination if a Market

Common Definitions and Provisions Agreement - Page 18

 

 

Quotation cannot be determined or would not (in the reasonable belief of the Floating Rate
Payor as the party making the determination) produce a commercially reasonable result.

     “Fixed Rate Swap” will have the meaning assigned to it in subparagraph 3(B)(4) of the
Lease.

     “Floating Rate Payor” means BNP Paribas or any successor or assign of BNP Paribas under an
Interest Rate Swap.

     “FOCB Notice” has the meaning indicated in the Construction Agreement.

     “Force Majeure Event” has the meaning indicated in the Construction Agreement.

     “Fully Subordinated or Removable” means, with respect to any Lien encumbering the Land or any
appurtenant easement, that such Lien is, either by operation of Applicable Laws or by the express
terms of documents which grant or create such Lien:

     (1) fully subject and subordinate to the Ground Lease and to all rights and property
interests of BNPPLC under the Operative Documents; or

     (2) subject to release and removal by BNPPLC or any subsequent owner of the Property at
any time after a Designated Sale Date without any requirement that BNPPLC or the subsequent
owner compensate the holder of such Lien or make any other significant payment in connection
with such release and removal;

provided, however, a Lien will not qualify as Fully Subordinated or Removable under clause (1)
preceding if a purchase of the Land by BNPPLC pursuant to the purchase option set forth in the
Ground Lease (as such option may be modified from time to time by agreement of lessor and lessee
under the Ground Lease) will not, by operation of law or the express agreement of the holder of the
Lien, effectively cut off and terminate such Lien insofar as it applies to or affects the
Improvements and the Land purchased by BNPPLC; and, provided further, a Lien will not qualify as
Fully Subordinated or Removable under clause (2) preceding if it provides or includes a power of
sale or other right or remedy in favor of the holder of such Lien which could result in a
foreclosure sale or other forfeiture of BNPPLC’s rights or interests under the Ground Lease or in
the Property.

     “Funded Construction Allowance” has the meaning indicated in the Construction Agreement.

     “Funding Advances” means all advances made by BNPPLC’s Parent or any Participant to or
on behalf of BNPPLC to allow BNPPLC to make the Initial Advance and to provide the

Common Definitions and Provisions Agreement - Page 19

 

 

Construction
Allowance or maintain its investment in the Property.

     “Future Work” has the meaning indicated in the Construction Agreement.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, applied on a basis consistent with those used in the preparation of the
financial statements referred to in subparagraph 2(A)(4) of the Closing Certificate (except
for changes with which NAI’s independent public accountants concur).

     “Governmental Authority” means (1) the United States, the state, the county, the municipality,
and any other political subdivision in which the Land is located, and (2) any other nation, state
or other political subdivision or agency or instrumentality thereof having or asserting
jurisdiction over NAI or the Property.

     “Ground Lease” means the Ground Lease of the Land dated as of the Effective Date, from NAI to
BNPPLC, as such Ground Lease may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.

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

     “Hazardous Substance Activity” means any actual, proposed or threatened use, storage,
holding, release (including any spilling, leaking, leaching, pumping, pouring, emitting, emptying,
dumping, disposing into the environment, and the continuing migration into or through soil, surface
water, groundwater or any body of water), discharge, deposit, placement, generation, processing,
construction, treatment, abatement, removal, disposal, disposition, handling or transportation of
any Hazardous Substance from, under, in, into or on Land or the Property, including the movement or
migration of any Hazardous Substance from surrounding property, surface water, groundwater or any
body of water under, in, into or onto the Property

Common Definitions and Provisions Agreement - Page 20

 

 

and any resulting residual Hazardous Substance
contamination in, on or under the Property. “Hazardous Substance Activity” also means any existence
of Hazardous Substances on the Property that would cause the Property or the owner or operator
thereof to be in violation of, or that would subject the Land or the Property to any remedial
obligations under, any Environmental Laws, assuming disclosure to the applicable Governmental
Authorities of all relevant facts, conditions and circumstances pertaining to the Property.

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

     “Increased Commitment” has the meaning indicated in the Construction Agreement.

     “Increased Funding Commitment” has the meaning indicated in the Construction Agreement.

     “Increased Time Commitment” has the meaning indicated in the Construction Agreement.

     “Indebtedness” of any Person means (without duplication of any item) Liabilities of such
Person in any of the following categories:

     (A) Liabilities for borrowed money;

     (B) Liabilities constituting an obligation to pay the deferred purchase price of
property or services;

     (C) Liabilities evidenced by a bond, debenture, note or similar instrument;

     (D) Liabilities which (1) would under GAAP be shown on such Person’s balance sheet as a
liability, and (2) are payable more than one year from the date of creation thereof (other
than reserves for taxes and reserves for contingent obligations);

     (E) Liabilities constituting principal under leases capitalized in accordance with
GAAP;

     (F) Liabilities arising under conditional sales or other title retention agreements;

Common Definitions and Provisions Agreement - Page 21

 

 

     (G) Liabilities owing under direct or indirect guaranties of Liabilities of any
other Person or otherwise constituting obligations to purchase or acquire or to otherwise
protect or insure a creditor against loss in respect of Liabilities of any other Person
(such as obligations under working capital maintenance agreements, agreements to keep-well,
or agreements to purchase Liabilities, assets, goods, securities or services), but excluding
endorsements in the ordinary course of business of negotiable instruments in the course of
collection;

     (H) Liabilities (for example, repurchase agreements, mandatorily redeemable preferred
stock and sale/leaseback agreements) consisting of an obligation to purchase or redeem
securities or other property, if such Liabilities arises out of or in connection with the
sale or issuance of the same or similar securities or property;

     (I) Liabilities with respect to letters of credit or applications or reimbursement
agreements therefor;

     (J) Liabilities with respect to payments received in consideration of oil, gas, or
other commodities yet to be acquired or produced at the time of payment (including
obligations under “take-or-pay” contracts to deliver gas in return for payments already
received and the undischarged balance of any production payment created by such Person or
for the creation of which such Person directly or indirectly received payment);

     (K) Liabilities with respect to other obligations to deliver goods or services in
consideration of advance payments therefor; or

     (L) Liabilities under any “synthetic” or other lease of property or related documents
(including a separate purchase agreement) which obligate such Person or any of its
Affiliates (whether by purchasing or causing another Person to purchase any interest in the
leased property or otherwise) to guarantee a minimum residual value of the leased property
to the lessor.

For purposes of this definition, the amount of Liabilities described in the last clause of the
preceding sentence with respect to any lease classified according to GAAP as an “operating lease,”
will equal the sum of (1) the present value of rentals and other minimum lease payments required in
connection with such lease [calculated in accordance with SFAS 13 and other GAAP relevant to the
determination of the whether such lease must be accounted for as an operating lease or capital
lease], plus (2) the fair value of the property covered by the lease; except that such amount will
not exceed the price, as of the date a determination of Indebtedness is required hereunder, for
which the lessee can purchase the leased property pursuant to any valid ongoing purchase option if,
upon such a purchase, the lessee will be excused from paying rentals or other minimum lease
payments that would otherwise accrue after the purchase.

Common Definitions and Provisions Agreement - Page 22

 

 

Notwithstanding the foregoing, the “Indebtedness” of any Person will not include Liabilities
that were incurred by such Person on ordinary trade terms to vendors, suppliers, or other Persons
providing goods and services for use by such Person in the ordinary course of its business, unless
and until such Liabilities are outstanding more than 90 days past the original invoice or billing
date therefor.

     “Initial Advance” has the meaning indicated in the Construction Agreement.

     “Interested Party” means each of following Persons and their Affiliates: (1) BNPPLC and its
successors and permitted assigns as to the Property or any part thereof or any interest therein,
(2) BNPPLC’s Parent, and (3) any Participants and their successors and permitted assigns under the
Participation Agreement; provided, however, none of the following Persons will constitute an
Interested Party: (a) any Person to whom BNPPLC may transfer an interest in the Property by a
conveyance that is not a Permitted Transfer and others that cannot lawfully claim an interest in
the Property except through or under a transfer by such a Person, (b) NAI and its Affiliates, (c)
any Person claiming through or under a conveyance made by NAI after any purchase by NAI of BNPPLC’s
interest in the Property pursuant to the Purchase Agreement, or (d) any Applicable Purchaser
designated by NAI under the Purchase Agreement who purchases the Property pursuant to a sale
arranged by NAI and any Person that cannot lawfully claim an interest in the Property except
through or under a conveyance from such an Applicable Purchaser.

     “Interest Rate Swap” means an interest rate exchange transaction, entered into between
BNPPLC, as the fixed rate payor, and BNP Paribas, as the swap counterparty and floating rate
payor, under the then most recent form of Master Agreement published by the International Swaps
and Derivatives Association, Inc., as supplemented by the definitions and such schedules, annexes,
exhibits and supplements as are agreed upon by the parties thereto, pursuant to which BNP Paribas
agrees to pay monthly to BNPPLC a floating rate of interest equal to LIBOR and BNPPLC agrees to pay
monthly to BNP Paribas a fixed rate of interest for a term that commences on the Fixed Rate Lock
Date and ends on the last day of the scheduled Term of the Lease. The notional principal amount
used for any such interest rate exchange transaction will equal the Lease Balance calculated as of
the date such transaction is entered into.

     “Land” means the land described in Exhibit A attached to the Closing Certificate, the
Lease, the Ground Lease and the Purchase Agreement.

     “Lease” means the Lease Agreement dated as of the Effective Date between BNPPLC, as landlord,
and NAI, as tenant, pursuant to which NAI has agreed to lease BNPPLC’s interest in the Property, as
such Lease Agreement may be extended, supplemented, amended, restated or otherwise modified from
time to time in accordance with its terms.

     “Lease Balance” means, as of any date, the amount equal to the sum of the Initial

Common Definitions and Provisions Agreement - Page 23

 

 

Advance, plus the sum of all Construction Advances, Carrying Costs and other amounts added to the
Outstanding Construction Allowance as provided in the Construction Agreement on or prior to such
date, minus all funds actually received by BNPPLC and applied as Qualified Prepayments on or prior
to such date. Under no circumstances will any payment of Base Rent or other Qualified Income
Payments reduce the Lease Balance.

     “Lease Termination Damages” has the meaning indicated in subparagraph 15(A)(3)(c) of
the Lease.

     “Liabilities” means, as to any Person, all indebtedness, liabilities and obligations of such
Person, whether matured or unmatured, liquidated or unliquidated, primary or secondary, direct or
indirect, absolute, fixed or contingent, and whether or not required to be considered pursuant to
GAAP.

     “LIBOR” means, for purposes of determining the Effective Rate for any Period, the per annum
rate equal to:

     (a) the offered rate for deposits in U.S. dollars as of approximately 11:00 a.m.,
London time, on the day that is two London Banking Days (hereinafter defined) prior to the
day upon which such Period begins (the “Reset Date”), as reported:

     (1) on Reuters Screen LIBOR01 page (or any replacement page or pages
on which London interbank rates of major banks for U.S. dollars are displayed)
by the Reuters service; or

     (2) on Moneyline Telerate Page 3750, British Bankers Association Interest
Settlement Rates, or another news page selected by BNPPLC’s Parent if the Reuters
Screen LIBOR01 page is removed from the Reuters system or changed such that, in the
opinion of BNPPLC’s Parent, the interest rates shown on it no longer represent the
same kind of interest rates as when the Operative Documents were executed; or

     (b) if such offered rate is for any reason unavailable, the rate per annum
determined by BNPPLC’s Parent on the basis of rates offered for deposits in U.S. dollars by
four major banks in the London interbank market selected by BNPPLC’s Parent (“Reference
Banks”) at approximately 11:00 a.m., London time, on the day that is two London Banking Days
preceding the Reset Date to prime banks in the London interbank market for a period
corresponding as nearly as possible to the applicable Period. ( If this clause (b) applies,
BNPPLC’s Parent will request the principal London office of each of the Reference Banks to
provide a quotation of its rate. If at least two quotations are provided, “LIBOR” will be
the arithmetic mean of the quotations. If, however, fewer than two quotations are provided,
“LIBOR” will be the arithmetic mean of the rates quoted by

Common Definitions and Provisions Agreement - Page 24

 

 

major banks in New York selected
by BNPPLC’s Parent, at approximately 11:00 a.m., New York time, on the Reset Date for loans
in U.S. dollars to leading U.S. banks for a period corresponding as nearly as possible to
the applicable Period.)

As used in this definition, “London Banking Day” means any day on which commercial banks are open
for general business (including dealings in foreign exchange and foreign currency deposits) in
London, England.

     “LIBOR Period Election” means an election to have the Effective Rate for any Period calculated
by reference to LIBOR, rather than by reference to the ABR or the Fixed Rate, and to have such
period extend for approximately one month, three months or six months. The first Construction
Period will be subject to a LIBOR Period Election of one month; and, subject to the limitations and
qualifications set forth in this definition, NAI may make any subsequent Period subject to a LIBOR
Period Election by a notice given to BNPPLC in the form attached as Annex 3 at least five
Business Days prior to the commencement of such Period. After a LIBOR Period Election becomes
effective, it will remain in effect for all subsequent Periods until a different election is made
in accordance with the provisions of this definition and the definition of ABR Period Election
above. (For purposes of the Construction Agreement and the Lease a LIBOR Period Election for any
Period will also be considered the LIBOR Period Election in effect on the Effective Date, Advance
Date, Base Rent Commencement Date or Base Rent Date upon which such Period begins.)
Notwithstanding the foregoing:

	 	•	 	No LIBOR Period Election for a period of more than one month will be effective
prior to the Completion Date.
	 
	 	•	 	No LIBOR Period Election will be effective that would cause a Base Rent Period
to extend beyond the end of the scheduled Term or beyond a Fixed Rate Lock Date.
	 
	 	•	 	No LIBOR Period Election will commence or continue during any period that
begins on or after the Fixed Rate Lock Date applicable to a Fixed Rate Lock and that
ends before or on the date such Fixed Rate Lock is terminated as provided in
subparagraph 3(C) of the Lease.
	 
	 	•	 	Changes in any ABR Period Election or LIBOR Period Election will become
effective only upon the commencement of a new Period.
	 
	 	•	 	In the event BNPPLC determines that it would be unlawful (or any central bank or
governmental authority asserts that it would be unlawful) for BNPPLC, BNPPLC’s Parent
or any Participant to provide or maintain Funding Advances during a Period if the
Carrying Costs or Base Rent accrued during such Period at a rate based upon LIBOR, NAI
will be deemed to have made such Period subject 

Common Definitions and Provisions Agreement - Page 25

 

 

	 	 	 	to an ABR Period Election, not a LIBOR
Period Election.
	 
	 	•	 	If for any reason (including BNPPLC’s receipt of a notice from NAI purporting
to make a LIBOR Period Election that is contrary to the foregoing provisions), BNPPLC
is unable to determine with certainty whether a particular Period is subject to a
specific LIBOR Period Election of one month, three months or six months, or if any
Event of Default has occurred and is continuing on the third Business Day preceding the
commencement of a particular Period, NAI will be deemed to have made an ABR Period
Election for that particular Period.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, any agreement to sell receivables with
recourse, and the filing of or agreement to give any financing statement under the Uniform
Commercial Code of any jurisdiction).

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

Common Definitions and Provisions Agreement - Page 26

 

 

     “Local Impositions” means all sales, excise, ad valorem, gross receipts, business, transfer,
stamp, occupancy, rental and other taxes (other than taxes on net income and corporate franchise
taxes), levies, fees, charges, surcharges, assessments, interest, additions to tax, or penalties
imposed by the State of North Carolina or any agency or political subdivision thereof upon BNPPLC
or any owner of the Property or any part of or interest in the Property because of (i) the Lease or
other Operative Documents, (ii) the status of record title to the Property, (iii) the ownership,
leasing, occupancy, sale or operation of the Property or any part thereof or interest therein, or
(iv) the Permitted Encumbrances; excluding, however, Excluded Taxes. “Local Impositions” will
include any real estate taxes imposed because of a change of use or ownership of the Property
resulting from, or occurring on or prior to the date of, any sale by BNPPLC pursuant to the
Purchase Agreement.

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

     “Market Quotation” means, with respect to any Fixed Rate Lock Termination, an amount
determined by the Floating Rate Payor on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid by the Floating Rate Payor in
consideration of an agreement between it and the quoting Reference Market-maker to enter into a
transaction (the “Replacement Transaction”) that would have the effect of preserving for the
Floating Rate Payor the economic equivalent of any payment or delivery (whether the underlying
obligation was absolute or contingent and assuming the satisfaction of each applicable condition
precedent) that would, but for the occurrence of the relevant Fixed Rate Lock Termination, have
been required under the Fixed Rate Swap. The Replacement Transaction would be subject to such
documentation as such party and the Reference Market-maker may, in good faith, agree. The Floating
Rate Payor (or its agent) will request each Reference Market-maker to provide its quotation to the
extent reasonably practicable as of the same day and time (without regard to different time zones)
on the effective date of or as soon as reasonably practicable after the relevant Fixed Rate Lock
Termination. The date and time as of which those quotations are to be obtained will be selected in
good faith by the Floating Rate Payor. If more than three quotations are provided, the Market
Quotation will be the arithmetic mean of the quotations, without regard to the quotations having
the highest and lowest values. If exactly three such quotations are provided, the Market Quotation
will be the quotation remaining after disregarding the highest and lowest quotations. For this
purpose, if more than one quotation has the same highest value or lowest value, then one of such
quotations will be disregarded. If fewer than three quotations are provided, it will be deemed
that the Market

Common Definitions and Provisions Agreement - Page 27

 

 

Quotation in respect of such Fixed Rate Lock Termination cannot be determined.

     “Material Adverse Effect” means a material adverse effect on (a) the assets, operations,
financial condition or businesses of NAI, (b) the ability of NAI to perform any of its obligations
under the Operative Documents, (c) the rights of or benefits available to BNPPLC under the
Operative Documents, (d) the value, utility or useful life of the Property or (e) the priority,
perfection or status of any of BNPPLC’s interests in the Property or in any of the Operative
Documents.

     “Maximum Construction Allowance” has the meaning indicated in the Construction Agreement.

     “Maximum Remarketing Obligation” has the meaning indicated in the Purchase Agreement.

     “Minimum Insurance Requirements” means the insurance requirements outlined in Annex 4
attached to this Agreement.

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

     “NAI” means Network Appliance, Inc., a Delaware corporation.

     “NAI’s Estimate of Force Majeure Excess Costs” has the meaning indicated in the Construction
Agreement.

     “NAI’s Estimate of Force Majeure Delays” has the meaning indicated in the Construction
Agreement.

     “NAI’s Initial Remarketing Right” has the meaning indicated in the Purchase Agreement.

     “Notice of NAI’s Intent to Terminate” has the meaning indicated in the Construction Agreement.

     “Notice of NAI’s Intent to Terminate Because of a Force Majeure Event” has the meaning
indicated in the Construction Agreement.

     “Notice of Termination by NAI” has the meaning indicated in the Construction Agreement.

Common Definitions and Provisions Agreement - Page 28

 

 

     “Operative Documents” means the Closing Certificate, the Ground Lease, the Lease, the
Construction Agreement, the Purchase Agreement and this Common Definitions and Provisions
Agreement.

     “Outstanding Construction Allowance” has the meaning indicated in the Construction Agreement.

     “Owner’s Election to Continue Construction” has the meaning indicated in the Construction
Agreement.

     “Participant” means any Person other than BNPPLC that from time to time, by executing a
Participation Agreement or supplements as contemplated therein, becomes a party to the
Participation Agreement and thereby agrees to participate in all or some of the risks and rewards
to BNPPLC of the Operative Documents; provided, however, no such Person will qualify as a
Participant for purposes of the Operative Documents unless such Person is approved to be a
Participant by NAI. As of the Effective Date, there are no Participants, but BNPPLC may from time
to time request NAI’s approval for prospective Participants. NAI will not unreasonably
withhold or delay any approval required for any prospective Participant which is an Eligible
Financial Institution. However, as to any prospective Participant that is not an Eligible
Financial Institution, NAI may withhold such approval in its sole discretion. Further, it is
understood that if giving such approval will increase NAI’s liability for withholding taxes or
other taxes not constituting Excluded Taxes under tax laws or regulations then in effect, NAI may
reasonably refuse to give such approval.

     “Participation Agreement” means a Participation Agreement in substantially the form attached
to this Agreement as Annex 5, pursuant to which one or more other Persons agree with BNPPLC
to participate in the risks and rewards to BNPPLC of the Operative Documents, as such Participation
Agreement may be extended, supplemented, amended, restated or otherwise modified from time to time
in accordance with its terms. It is understood, however, that because any such Participation
Agreement will expressly make NAI a third party beneficiary of each Participant’s obligations
thereunder to make advances to BNPPLC in connection with Construction Advances under the
Construction Agreement, NAI’s consent will be required to any amendment of the Participation
Agreement that limits or excuses such obligations.

     “Period” means a Construction Period or Base Rent Period.

     “Permitted Encumbrances” means (i) the encumbrances and other matters affecting the
Property that are set forth in Exhibit B attached to the Closing Certificate, (ii) any
easement agreement or other document affecting title to the Property executed by BNPPLC at the
request of or with the consent of NAI, (iii) any Liens securing the payment of Local Impositions
which are not delinquent or claimed to be delinquent or which are being contested in accordance
with subparagraph 5(A) of the Lease, (iv) statutory liens, if any, in the nature of
contractors’,

Common Definitions and Provisions Agreement - Page 29

 

 

mechanics’ or materialmen’s liens for amounts not past due or claimed to be past due
for more than thirty days or which are being contested in accordance with subparagraph
11(B) of the Lease, and (v) any other Liens which are Fully Subordinated or Removable.

     “Permitted Hazardous Substance Use” means the use, generation, storage and offsite disposal of
Permitted Hazardous Substances in strict accordance with applicable Environmental Laws and with due
care given the nature of the Hazardous Substances involved; provided, the scope and nature of such
use, generation, storage and disposal will not:

     (1) exceed that reasonably required for the construction of the Construction Project in
accordance with the Construction Agreement or for the use and operation of the Property for
the purposes expressly permitted under subparagraph 2(A) of the Lease; or

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

Further, notwithstanding anything to the contrary herein contained, Permitted Hazardous Substance
Use will not include any use of the Property (including as a landfill, incinerator or other waste
disposal facility) in a manner that requires a treatment, storage or disposal permit under the
Resource Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980,
the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of
1984.

     “Permitted Hazardous Substances” means Hazardous Substances used and reasonably required for
the construction of the Construction Project or for the use and operation of the Property by NAI
and its permitted subtenants and assigns for the purposes expressly permitted by subparagraph
2(A) of the Lease, in either case in strict compliance with all Environmental Laws and with due
care given the nature of the Hazardous Substances involved. Without limiting the generality of the
foregoing, Permitted Hazardous Substances will include usual and customary office and janitorial
products.

     “Permitted Transfer” means any one or more of the following:

     (1) the creation or conveyance by BNPPLC of rights and interests in favor of
Participants pursuant to the Participation Agreement;

Common Definitions and Provisions Agreement - Page 30

 

 

     (2) any lien, security interest or assignment covering the Property or the Rents
which is granted by BNPPLC in favor of Participants or an agent appointed for them to secure
their rights under the Participation Agreement, and any subsequent assignment or conveyance
made to accomplish a foreclosure of such lien or security interest, provided that such lien,
security interest or assignment and any such subsequent assignment or conveyance are all
made expressly subject to the rights of NAI under the Operative Documents;

     (3) other than as described in the preceding clauses, any conveyance to BNPPLC’s Parent
or to any Qualified Affiliate of BNPPLC of all or any interest in or rights with respect to
the Property or any portion thereof, provided that NAI must be notified before any such
conveyance to BNPPLC’s Parent or a Qualified Affiliate which will be recorded in the real
property records of the county in which the Land is situated;

     (4) any assignment or conveyance by BNPPLC requested by NAI or required
by any Permitted Encumbrance, by the Purchase Agreement or by Applicable Laws; or

     (5) any assignment or conveyance after a Designated Sale Date on which NAI does not
purchase or cause an Applicable Purchaser to purchase BNPPLC’s interest in the Property and,
if applicable, after the expiration of the thirty day cure period specified in Paragraph
3(A) of the Purchase Agreement.

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

     “Personal Property” has the meaning indicated on page 2 of the Lease.

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

     “Pre-lease Casualty” has the meaning indicated in the Construction Agreement.

     “Pre-lease Force Majeure Delays” has the meaning indicated in the Construction Agreement.

     “Pre-lease Force Majeure Event” has the meaning indicated in the Construction Agreement.

Common Definitions and Provisions Agreement - Page 31

 

 

     “Pre-lease Force Majeure Event Notice” has the meaning indicated in the Construction
Agreement.

     “Pre-lease Force Majeure Excess Costs” has the meaning indicated in the Construction
Agreement.

     “Pre-lease Force Majeure Losses” has the meaning indicated in the Construction Agreement.

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

     “Prior Work” has the meaning indicated in the Construction Agreement.

     “Projected Cost Overruns” has the meaning indicated in the Construction Agreement.

     “Property” means the Personal Property and the Real Property, collectively. The fee interest
in the Land itself will not be included in the Property, but the leasehold estate conveyed to
BNPPLC under the Ground Lease will be included.

     “Purchase Agreement” means the Purchase Agreement dated as of the Effective Date between
BNPPLC and NAI, as such Purchase Agreement may be extended, supplemented, amended, restated or
otherwise modified from time to time in accordance with its terms.

     “Purchase Option” has the meaning indicated in the Purchase Agreement.

     “Qualified Affiliate” means any Person that, like BNPPLC, (i) is one hundred percent (100%)
owned, directly or indirectly, by BNPPLC’s Parent or any successor of such bank, (ii) can make (and
has in writing made) the same representations to NAI that BNPPLC has made in subparagraphs 4(A)
and 4(B) of the Closing Certificate (except that it need not be incorporated in or qualified to
do business in Delaware), and (iii) is an entity organized under the laws of the State of Delaware
or another state within the United States of America.

     “Qualified Income Payments” means: (A) Base Rent; (B) payments that are made to

Common Definitions and Provisions Agreement - Page 32

 

 

BNPPLC
only because the following amounts are capitalized (i.e.,the added to the Lease Balance) as
described in subparagraph 3 of the Construction Agreement:, the Arrangement Fee,
Administrative Fees, Commitment Fees, Increased Cost Charges and Capital Adequacy Charges; (C)
payments of the following made to BNPPLC to satisfy the Lease: Administrative Fees, Increased Cost
Charges and Capital Adequacy Charges; (D) any interest paid to BNPPLC or any Participant pursuant
to subparagraph 3(G) of the Lease; and (E) payments by BNPPLC to Participants required
under the Participation Agreements because of BNPPLC’s receipt of payments described in the
preceding clauses (A) through (D).

     “Qualified Prepayments” means any payments received by BNPPLC from time to time during the
Term (1) under any property insurance policy as a result of damage to the Property, (2) as
compensation for any restriction placed upon the use or development of the Property or for the
condemnation of the Property or any portion thereof (including any indirect condemnation by means
of a taking of any of the Land or appurtenant easements), (3) because of any judgment,
decree or award for injury or damage to the Property, or (4) under any title insurance policy or
otherwise as a result of any title defect or claimed title defect with respect to the Property.
For the purposes of determining the amount of any Qualified Prepayment and other amounts dependent
upon Qualified Prepayments (e.g., the Lease Balance, the Outstanding Construction Allowance and the
Break Even Price):

     (i) there will be deducted all expenses and costs of every kind, type and nature
(including taxes and Attorneys’ Fees) incurred by BNPPLC with respect to the collection or
application of such payments;

     (ii) Qualified Prepayments will not include any payment to BNPPLC by a Participant or
an Affiliate of BNPPLC that is made to compensate BNPPLC for the Participant’s or
Affiliate’s share of any Losses BNPPLC may incur as a result of any of the events described
in the preceding clauses (1) through (4);

     (iii) Qualified Prepayments will not include any payments received by BNPPLC that
BNPPLC has paid or is obligated to pay to NAI for the repair, restoration or replacement of
the Property or that BNPPLC is holding as Escrowed Proceeds in accordance with the Paragraph
10 of the Lease or other provisions of the Operative Documents;

     (iv) payments described in the preceding clauses (i) through (iii) will be considered
as Escrowed Proceeds, not Qualified Prepayments, until they are actually applied as
Qualified Prepayments by BNPPLC as provided in Paragraph 10 of the Lease; and

     (v) in no event will interest that accrues under the Purchase Agreement on a past due
Supplemental Payment constitute a Qualified Prepayment.

Common Definitions and Provisions Agreement - Page 33

 

 

For purposes of computing the total Qualified Prepayments (and other amounts dependent upon
Qualified Prepayments, such as the Lease Balance, the Outstanding Construction Allowance and the
Break Even Price) paid to or received by BNPPLC as of any date, payments described in the preceding
clauses (1) through (4) will be considered as Escrowed Proceeds, not Qualified Prepayments, until
they are actually applied as Qualified Prepayments by BNPPLC as provided in the Paragraph
10 of the Lease.

     “Real Property” has the meaning indicated on page 2 of the Lease.

     “Reimbursable Construction-Period Costs” has the meaning indicated in the Construction
Agreement.

     “Remedial Work” means any investigation, monitoring, clean-up, containment, remediation,
removal, payment of response costs, or restoration work and the preparation and implementation of
any closure or other required remedial plans that any governmental agency or political subdivision
requires or approves (or could reasonably be expected to require if it was aware of all relevant
circumstances concerning the Property), whether by judicial order or otherwise, because of the
presence of or suspected presence of Hazardous Substances in, on, under or about the Property or
because of any prior Hazardous Substance Activity.

     “Rent” means Base Rent and Additional Rent.

     “Responsible Financial Officer” means the chief financial officer, the controller, the
treasurer or the assistant treasurer of NAI.

     “Rolling Four Quarters Period” has the meaning indicated in subparagraph 3(A) of the
Closing Certificate.

     “Scope Change” has the meaning indicated in the Construction Agreement.

     “Spread” means, for each Construction Period and for any period beginning on and including the
Base Rent Commencement Date or a Base Rent Date and ending on but not including the next Base Rent
Date, the amount established as of the date (in this definition, the “Spread Test Date”) that is
two Business Days prior to such period by reference to the pricing grid below, based upon the ratio
calculated by dividing (1) Adjusted EBITDA for the then latest Rolling Four Quarters Period that
ended prior to (and for which NAI has reported earnings as necessary to compute Adjusted EBITDA)
into (2) the Total Debt of NAI and its Subsidiaries (determined on a consolidated basis) as of the
end of such Rolling Four Quarters Period. In each case, the Spread will be established at the
Level in the pricing grid below which corresponds to such ratio; provided, that:

Common Definitions and Provisions Agreement - Page 34

 

 

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

     (b) notwithstanding anything to the contrary in this definition, after any
97-10/Meltdown Event and on any date when an Event of Default has occurred and is
continuing, the Unsecured Spread will equal the Default Rate less the Effective Rate.

	 	 	 	 	 
	Levels	 	Ratio of Total Debt to Adjusted EBITDA	 	Spread
	Level I
	 	less than 0.5
	 	40.0 basis points
	 	 	 	 	 
	Level II
	 	greater than or equal to 0.5, but less

than 1.0
	 	50.0 basis points
	 	 	 	 	 
	Level III
	 	greater than or equal to 1.0, but less

than 1.5
	 	62.5 basis points
	 	 	 	 	 
	Level IV
	 	greater than or equal to 1.5
	 	75.0 basis points

All determinations of the Spread by BNPPLC will, in the absence of clear and demonstrable error, be
binding and conclusive for purposes of the Operative Documents. Further BNPPLC may, but will not
be required, to rely on the determination of the Spread set forth in any notice delivered by NAI as
described above in clause (a) of this definition.

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

     “Supplemental Payment” has the meaning indicated in the Purchase Agreement.

     “Supplemental Payment Obligation” has the meaning indicated in the Purchase Agreement.

     “Tangible Personal Property” has the meaning indicated on page 2 of the Lease.

Common Definitions and Provisions Agreement - Page 35

 

 

     “Target Completion Date” has the meaning indicated in the Construction Agreement.

     “Term” has the meaning indicated in subparagraph 1(A) of the Lease.

     “Term Sheet” means the letter dated as of May 23, 2007 from BNPPLC to NAI concerning the
Property.

     “Termination of NAI’s Work” has the meaning indicated in the Construction Agreement.

     “Third Party Contract” has the meaning indicated in the Construction Agreement.

     “Third Party Contract/Termination Fees” has the meaning indicated in the Construction
Agreement.

     “Total Debt” has the meaning indicated in subparagraph 3(A) of the Closing
Certificate.

     “Transaction Expenses” means costs incurred in connection with the preparation and negotiation
of the Operative Documents and related documents and the consummation of the transactions
contemplated therein.

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

     “Unit 4” has the meaning indicated in the Condominium Declaration.

     “Work” has the meaning indicated in the Construction Agreement.

     “Work/Suspension Event” has the meaning indicated in the Construction Agreement.

     “Work/Suspension Notice” has the meaning indicated in the Construction Agreement.

     “Work/Suspension Period” has the meaning indicated in the Construction Agreement.

Common Definitions and Provisions Agreement - Page 36

 

 

ARTICLE II — SHARED PROVISIONS

     The following provisions will apply to and govern the construction of this Agreement and
the other Operative Documents (including attachments), except to the extent (if any) a clear,
contrary intent is expressed herein or therein:

     1. Notices. Any provision of (1) any of the Operative Documents, (2) any other
document which references this provision for purposes of establishing notice requirements (in this
provision, a “Related Document”), or (3) any Applicable Law, that makes reference to any required
payment from NAI or BNPPLC to the other or that makes reference to the sending, mailing or delivery
of any notice or demand will be subject to the following provisions (except that any notice given
by BNPPLC to satisfy any statutory requirement, including any notice of eviction or foreclosure,
will be considered sufficient if it satisfies the statutory requirements applicable to the notice,
regardless of whether the notice or payment satisfies the following provisions):

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

Federal Reserve Bank of New York

BNP Paribas — New York Branch

Favor: BNP Paribas Leasing Corporation

ABA 026 007 689

/AC/ 0200-517000-070-78

Reference: Network Appliance, Inc./2007 North Carolina-Lease

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

     (ii) All advances paid to NAI by BNPPLC under the Construction Agreement or in
connection therewith will be paid by wire transfer to:

Wells Fargo Bank

San Francisco, CA

ABA#121000248

Acct#4311-790562

Account of: Network Appliance

Reference: BNP Lease

or at such other place and in such other manner as NAI may reasonably designate from time to
time by notice to BNPPLC signed by a Responsible Financial Officer of NAI.

Common Definitions and Provisions Agreement - Page 37

 

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

Address of BNPPLC:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Telecopy: (972) 788-9140

Address of NAI:

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Telecopy: (919) 476-5750

Common Definitions and Provisions Agreement - Page 38

 

With a copy to:

Network Appliance, Inc.

495 East Java Drive

Sunnyvale, California 94089

Attention: Mr. Thom Bryant

Telecopy: (408)-822-4463

However, any party to any Operative Document or Related Document may change its address above or in
the Related Document, as applicable, by written notice to the other parties to such Operative
Document or Related Document given in accordance with this provision.

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

     3. No Merger. There will be no merger of the Lease or of the leasehold
estate created by the Lease or of the mortgage and security interest granted in subparagraph
4(C)(1) of the Lease with any other interest in the Property by reason of the fact that the same
person may acquire or hold, directly or indirectly, the Lease or the leasehold estate created
thereby or such mortgage and security interest and any other interest in the Property, unless all
Persons with an interest in the Property that would be adversely affected by any such merger
specifically agree in writing that such a merger has occurred. There will be no merger of the
Purchase Agreement or of the purchase options or obligations created by the Purchase Agreement with
any other interest in the Property by reason of the fact that the same person may acquire or hold,
directly or indirectly, the rights and options granted by the Purchase Agreement and any other
interest in the Property, unless all Persons with an interest in the Property that would be
adversely affected by any such merger specifically agree in writing that such a merger has
occurred.

     4. No Implied Waiver. The failure of any party to any Operative
Document to insist at any time upon the strict performance of any covenant or agreement therein or
to exercise any option, right, power or remedy contained therein will not be construed as a waiver
or a relinquishment thereof for the future. The waiver of or redress for any breach of any
Operative Document by any party thereto will not prevent a similar subsequent act from constituting
a violation. Any express waiver of any provision of any Operative Document will affect only the
term or condition specified in such waiver and only for the time and in the manner specifically
stated therein. No waiver by any party to any Operative Document of any provision therein will be
deemed to have been made unless expressed in writing and signed by the party to be bound by the
waiver. A receipt by any party to any Operative Document of any payment thereunder (including the
receipt by BNPPLC of any Rent paid under the Lease) with knowledge of the

Common Definitions and Provisions Agreement - Page 39

 

breach by another party of any covenant or agreement contained in that or any other Operative
Document will not be deemed a waiver of such breach.

     5. Entire and Only Agreements. The Operative Documents supersede any prior
negotiations and agreements between BNPPLC and NAI concerning the Property, and no amendment or
modification of any Operative Document will be binding or valid unless expressed in a writing
executed by all parties to such Operative Document.

     6. Binding Effect. Except to the extent, if any, expressly provided to the
contrary in any Operative Document with respect to assignments thereof, all of the covenants,
agreements, terms and conditions to be observed and performed by the parties to the Operative
Documents will be applicable to and binding upon their respective successors and, to the extent
assignment is permitted thereunder, their respective assigns.

     7. Time is of the Essence. Time is of the essence as to all obligations
created by the Operative Documents and as to all notices expressly required by the Operative
Documents.

     8. Governing Law. Each Operative Document 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 principles that might require the application of the laws of another jurisdiction.

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

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

     11. Terms Not Expressly Defined in an Operative Document. As used in any
Operative Document, a capitalized term that is not defined therein or in this Agreement, but is
defined in another Operative Document, will have the meaning ascribed to it in the other Operative
Document.

     12. Other Terms and References. Words of any gender used in each
Operative Document will be held and construed to include any other gender, and words in the
singular number will be held to include the plural and vice versa, unless the context otherwise
requires. References in any Operative Document to Paragraphs, subparagraphs, Sections, subsections
or other subdivisions refer to the corresponding Paragraphs, subparagraphs, Sections, subsections
or subdivisions of that Operative Document, unless specific reference is made to another

Common Definitions and Provisions Agreement - Page 40

 

document or instrument. References in any Operative Document to any Schedule or Exhibit refer to the
corresponding Schedule or Exhibit attached to that Operative Document, which are made a part
thereof by such reference. All capitalized terms used in each Operative Document which refer to
other documents will be deemed to refer to such other documents as they may be renewed, extended,
supplemented, amended or otherwise modified from time to time, provided such documents are not
renewed, extended or modified in breach of any provision contained in the Operative Documents or,
in the case of any other document to which BNPPLC or NAI is a party or intended beneficiary,
without its consent. All accounting terms used but not specifically defined in any Operative
Document will be construed in accordance with GAAP. The words “this [Agreement]”, “herein”,
“hereof”, “hereby”, “hereunder” and words of similar import when used in each Operative Document
refer to that Operative Document as a whole and not to any particular subdivision unless expressly
so limited. The phrases “this Paragraph”, “this subparagraph”, “this Section”, “this subsection”
and similar phrases used in any Operative Document refer only to the Paragraph, subparagraph,
Section, subsection or other subdivision described in which the phrase occurs. As used in the
Operative Documents the word “or” is not exclusive, and the words “include”, “including” and
similar terms will be construed as if followed by “without limitation to”. The rule of ejusdem
generis will not be applied to limit the generality of a term in any of the Operative Documents
when followed by specific examples. When used to qualify any representation or warranty made by a
Person, the phrases “to the knowledge of [such Person]” or “to the best knowledge of [such Person]”
are intended to mean only that such Person does not have knowledge of facts or circumstances which
make the representation or warranty false or misleading in some material respect; such phrases are
not intended to suggest that the Person does indeed know the representation or warranty is true.

     13. Execution in Counterparts. To facilitate execution, each of the
Operative Documents may be executed in multiple identical counterparts. It will not be necessary
that the signature of, or on behalf of, each party, or that the signature of all persons required
to bind any party, appear on each counterpart. All counterparts, taken together, will collectively
constitute a single instrument. But it will not be necessary in making proof of any of the
Operative Documents to produce or account for more than a single counterpart containing the
respective signatures of, or on behalf of, each of the parties to such document. Any signature page
may be detached from one counterpart and then attached to a second counterpart with identical
provisions without impairing the legal effect of the signatures on the signature page. Signing and
sending a counterpart (or a signature page detached from the counterpart) by facsimile or other
electronic means to another party will have the same legal effect as signing and delivering an
original counterpart to the other party. A copy (including a copy produced by facsimile or other
electronic means) of any signature page that has been signed by or on behalf of a party to any of
the Operative Documents will be as effective as the original signature page for the purpose of
proving such party’s agreement to be bound.

     14. Not a Partnership, Etc. Nothing in any Operative Document is intended to
create any partnership, joint venture, or other joint enterprise between BNPPLC and NAI.

Common Definitions and Provisions Agreement - Page 41

 

     15. No Fiduciary Relationship Intended. Neither the execution of the
Operative Documents or other documents referenced in this Agreement nor the administration thereof
by BNPPLC will create any fiduciary obligations of BNPPLC to NAI Moreover, BNPPLC and NAI disclaim
any intent to create any fiduciary or special relationship between themselves under or by reason of
the Operative Documents or the transactions described therein or any other documents or agreements
referenced therein.

[The signature pages follow.]

Common Definitions and Provisions Agreement - Page 42

 

     IN WITNESS WHEREOF, this Common Definitions and Provisions Agreement is executed to be
effective as of July 17, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware

corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

Common Definitions and Provisions Agreement — Signature Page

 

 

[Continuation of signature pages for Common Definitions and Provisions Agreement dated as of July
17, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

Common
Definitions and Provisions Agreement - Signature Page

 

 

Annex 1

Notice of ABR Period Election

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Common Definitions and Provisions Agreement dated as of July 17, 2007, between you, BNP Paribas
Leasing Corporation, and the undersigned, Network Appliance, Inc. This letter constitutes notice
of our election to make the first Construction Period or Base Rent Period beginning on or
after___, 20___subject to an ABR Period Election.

     We understand that until a different election becomes effective as provided in definitions of
“ABR Period Election” and “LIBOR Period Election” in the Common Definitions and Provisions
Agreement, all subsequent Construction Periods or Base Rent Periods will also be subject to an ABR
Period Election.

NOTE: YOU ARE ENTITLED TO DISREGARD THIS NOTICE IF THE DATE SPECIFIED ABOVE CONCERNING THE
COMMENCEMENT OF THE ABR PERIOD ELECTION IS LESS THAN FIVE BUSINESS DAYS AFTER YOUR RECEIPT OF THIS
NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON YOU BELIEVE THIS NOTICE
IS DEFECTIVE.

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

[cc all Participants]

 

 

Annex 2

Fixed Rate Lock Notice

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Common Definitions and Provisions Agreement dated as of July 17, 2007, between you, BNP Paribas
Leasing Corporation, and the undersigned, Network Appliance, Inc. By this letter, which is given
pursuant to subparagraph 3(B)(4) of the Lease, NAI requests that BNPPLC promptly establish
a Fixed Rate for a notional amount equal to the Lease Balance as of the date of this letter for use
in the calculation of the Effective Rate for all Base Rent Periods commencing on or after the
following Fixed Rate Lock Date: ___, 20 ___.

     As contemplated in the conditions set forth in subparagraph 3(B)(4) of the Lease, such
Fixed Rate Lock Date is the first Business Day of a calendar month which falls after the projected
Base Rent Commencement Date; such Fixed Rate Lock Date does not fall prior to the end of any Base
Rent Period which has commenced or will commence before BNPPLC receives this notice; and NAI
expects BNPPLC to receive this notice more than ten days prior to such Fixed Rate Lock Date.

     In
an earlier phone conversation today between a representative of NAI and ___ at the
New York Branch of BNP Paribas, NAI requested an estimate from BNP Paribas of the Fixed Rate that
would be established by BNPPLC and BNP Paribas entering into an Interest Rate Swap. The estimate
provided by telephone was: ___percent (___%) per annum.

     By this letter, NAI confirms that it will accept such a rate or any lower rate as the Fixed
Rate for purposes of the Lease.

NOTE: BNPPLC will be entitled to disregard this notice if the conditions to a Fixed
Rate Lock, as specified in subparagraph 3(B)(4) of the Lease, have not been satisfied.
However, NAI requests that BNPPLC notify NAI immediately if for any reason BNPPLC believes this
notice will not be effective.

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

[cc
all Participants]

Annex
2 - Page 2

 

 

Annex 3

Notice of LIBOR Period Election

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Common Definitions and Provisions Agreement dated as of July 17, 2007, between you, BNP Paribas
Leasing Corporation, and the undersigned, Network Appliance, Inc. This letter constitutes notice
of our election to make the first Construction Period or Base Rent Period beginning on or
after___, 20___ subject to a LIBOR
Period Election of ___ month(s).

     We understand that until a different election becomes effective as provided in definitions of
“ABR Period Election” and “LIBOR Period Election” in the Common Definitions and Provisions
Agreement, all subsequent Construction Period or Base Rent Periods will also be subject to the same
LIBOR Period Election.

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

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

[cc all Participants]

 

 

Annex 4

Minimum Insurance Requirements

A. PROVISIONS APPLICABLE BOTH BEFORE AND AFTER THE COMPLETION DATE.

     1. Other Requirements Not Affected: The insurance coverages required by this Annex
represent minimum requirements of BNPPLC and other Interested Parties and are not to be construed
to modify or limit NAI’s indemnities or other agreements in the Agreement to which this Annex is
attached or in any other Operative Document. Such required coverages do not constitute a
representation or determination by BNPPLC of the minimum insurance coverages NAI should maintain
for its own protection.

     2. Requirements Apply Only to the Property: Further, the insurance coverages
required by this Annex apply only to the Property, it being understood that nothing in this Annex
is intended to impose minimum insurance requirements upon NAI with respect to other properties
owned or leased by NAI.

     3. Failure to Obtain: Failure of BNPPLC to demand certificate or other evidence of
full compliance with these insurance requirements, or failure of BNPPLC to identify a deficiency
from evidence that is provided, will not be construed as a waiver of NAI’s obligation to maintain
required insurance.

     4. Copies of Policies: NAI must provide to BNPPLC, at the offices of NAI, copies of
all insurance policies required herein within ten (10) days after receipt of a request for such
copies from BNPPLC or as soon as practicable if policies are in the process of being issued by the
applicable insurer. Such copies must be certified as complete and correct by an authorized
representative of the applicable insurer, subject to availability from the insurance company.

     5. Inconsistent Endorsements. The insurance policies maintained to comply with these
requirements will contain no endorsements that restrict, limit, or exclude coverages in any manner
that is inconsistent with these express requirements without the prior express written approval of
BNPPLC.

     6. Limits of Liability. The limits of liability necessary to satisfy these
requirements may be provided by a single policy of insurance or by a combination of primary and
umbrella/excess policies, but in no event will the total limits of liability available for any one
occurrence or accident be less than the amount required herein.

     7. Additional Insured Status. Additional insured status will be provided in
favor of BNPPLC and other Interested Parties on all liability insurance required herein except
workers’ compensation and employer’s liability. Such additional insured status will be provided on
a basis that neither limits coverage to the additional insured by reason of its negligence (sole or

 

 

otherwise) nor excludes coverage for completed operations with respect to construction of the
Improvements.

     8. Primary Liability. The insurance policies maintained to comply with these
requirements will be primary to all insurance available to BNPPLC and other Interested Parties,
collectively or individually, with BNPPLC and other Interested Parties’ insurance being excess,
secondary and non-contributing (except in the case of workers’ compensation and employer’s
liability insurance). Where necessary, coverage will be endorsed to provide such primary
liability.

B. PROVISIONS APPLICABLE BEFORE THE COMPLETION DATE.

     1. General Terms and Conditions.

     A. Definitions: For purposes of this Annex:

“Construction Period Policies” means insurance policies that satisfy
the minimum requirements set forth in this Annex and that NAI has obtained or
required its Contractors to obtain with respect to the Property prior to the
Completion Date.

“Contractor” will include subcontractors of any tier.

“ISO” means Insurance Services Office.

B. Status and Rating of Insurance Company. All insurance coverages required herein
prior to the Completion Date will be written through insurance companies admitted to do
business in the State of North Carolina and rated upon each renewal no less than A-: VII in
the then most current edition of A.M. Best’s Key Rating Guide.

C. Waiver of Subrogation. All insurance coverages carried by NAI with respect to
the Construction Project, whether required herein or not, will provide a waiver of
subrogation in favor of BNPPLC and other Interested Parties.

D. Release and Waiver: Without limiting other waivers or provisions in favor
of BNPPLC and other Interested Parties in any of the Operative Documents or other
attachments thereto, NAI hereby releases, and agrees to cause all Contractors performing any
Work prior to the Completion Date (other than subcontractors providing goods and/or services
with a value of less than $100,000) to release, BNPPLC and all other Interested Parties from
any and all claims or causes of action whatsoever that NAI and/or such Contractors might
otherwise now or hereafter have resulting from or in any way

Annex 4 - Page 2

 

connected with any loss covered by insurance, whether required herein or not, or which would
have been covered by insurance required herein but for a failure of NAI and/or its
Contractors to maintain such insurance.

E. Initial Insurance Representations to BNPPLC and Other Interested Parties: NAI
represents, acknowledges and agrees that:

     1. Any Construction Period Policies not previously obtained will be
obtained by NAI (or by the primary Contractor engaged by NAI to perform the
Work), and the initial premiums for all Construction Period Policies will be
paid, before NAI requests Construction Advances that cause the Lease Balance
to exceed $2,000,000; and notwithstanding anything to the contrary in the
Construction Agreement, BNPPLC may refuse to fund any Construction Advances
that would cause the Lease Balance to exceed $2,000,000 prior to such time
as BNPPLC is satisfied that NAI has obtained and paid the premiums for the
Construction Period Policies. Moreover, in the case of the Builder’s Risk
Policy, the premium must be paid or prepaid for the entire period through
the projected Completion Date before the Lease Balance exceeds $2,000,000.

     2. The coverages provided by the Construction Period Policies will not
be terminated or modified to reduce, limit or qualify coverages in any
material respect without BNPPLC’s prior written consent in each case by
reason of any act or omission on the part of NAI or anyone acting for or
authorized to act for NAI (including any Contractor engaged by NAI to obtain
the Construction Period Policies for NAI). Without limiting the foregoing,
NAI will not do or authorize any act or omission that could cause the
coverage provided with respect to any Improvements by the Builder’s Risk
Policy to expire or lapse before the Completion Date.

     3. NAI must notify BNPPLC with reasonable promptness of any possible
damage claims known to NAI that NAI believes are, individually or taken
together, reasonably likely to a exceed seventy-five percent (75%) of any
aggregate limit of the Builder’s Risk Policy required herein.

Annex 4 - Page 3

 

     4. NAI will endeavor in good faith to cause each certificate of
insurance which is provided to BNPPLC by an insurer, or its authorized
representative, at the request of NAI in regard to any Construction Period
Policies to include the following express provision:

This is to certify that the policies of insurance described
herein have been issued to the Insured for whom this
certificate is executed and are in force at this time. In
the event of cancellation or non-renewal of coverage
affecting the certificate holder, other than by reason of
nonpayment of premium, thirty (30) days prior written notice
will be given to the certificate holder by certified mail or
registered mail, return receipt requested. In the event of
cancellation or non-renewal of coverage affecting the
certificate holder by reason of nonpayment of premium, ten
(10) days prior written notice will be given to the
certificate holder by certified mail or registered mail,
return receipt requested.

It is understood, however, that an insurer issuing such a certificate may
decline to include the foregoing statement in the certificate, in which case
NAI will instead deliver the certificate to BNPPLC with a cover letter from
NAI itself which states substantially as follows:

Enclosed is a certificate of insurance, which has been
issued by an insurer or its authorized representative, and
which we are providing to you to confirm that policies
described in the certificate have been issued to NAI or
another insured named in the certificate and are in force at
this time. NAI also certifies to you that such policies
have been issued, and in the event of any cancellation,
non-renewal, or reduction in coverage affecting you (BNP
Paribas Leasing Corporation) or other Interested Parties,
NAI will give you thirty (30) days prior written notice by
certified mail or registered mail, return receipt requested.

     5. NAI will also endeavor in good faith to cause each Construction
Period Policy to be endorsed to provide, in effect, that (A) in the event of
cancellation, non-renewal, or reduction in coverage affecting BNPPLC, other
than by reason of nonpayment of premium, thirty (30) days prior written
notice will be given by the insurer to BNPPLC by certified mail or
registered mail, return receipt requested; and (B) in the

Annex 4 - Page 4

 

event of
cancellation, non-renewal, or reduction in coverage affecting BNPPLC by
reason of nonpayment of premium, ten (10) days prior written notice will be
given by the insurer to BNPPLC by certified mail or registered mail, return
receipt requested.

     2. Commercial General Liability Insurance. Throughout the period from the Effective
Date to the Completion Date, NAI will maintain commercial general liability insurance in accordance
with the following requirements:

A. Coverage: Such insurance will cover liability (as to claims covered by the form
of CGL policy specified below, including claims for bodily injury and property damage)
arising from any occurrence on or about the Land or from any operations conducted on or
about the Land, including but not limited to tort liability assumed under any of the
Operative Documents. Defense will be provided as an additional benefit and not included
within the limit of liability.

B. Form: Commercial General Liability Occurrence form (ISO CG 0001, dated 12 04, or
an equivalent substitute form providing the same or greater coverage, and in any case
written to provide primary coverage to BNPPLC as provided in Part A.8 above).

C. Amount of Insurance: Coverage will be provided with limits of not less than:

	 	 	 	 	 	 	 
	i.

	 	Each Occurrence Limit
	 	$	1,000,000	 
	 
	 	 	 	 	 	 
	ii.

	 	General Aggregate Limit
	 	$	2,000,000	 
	 
	 	 	 	 	 	 
	iii.

	 	Product-Completed

Operations Aggregate Limit
	 	$	2,000,000	 
	 
	 	 	 	 	 	 
	iv.

	 	Personal and Advertising Injury Limit
	 	$	1,000,000	 

D. Required Endorsements:

	 	 	 	 	 
	i.

	 	Additional Insured.

	 	as required in Part A.7 above.
	 
	 	 	 	 
	ii.

	 	Aggregate Per Location
	 	The aggregate limit will apply
separately to each location through use of an Aggregate Limit of Insurance Per
Location endorsement (ISO CG 2504 1185 or its equivalent).

Annex 4 - Page 5

 

	 	 	 	 	 
	iii.

	 	Notice of Cancellation,
Nonrenewal or
Reduction in Coverage:
	 	Consistent with Part B.1.E.5 above.
	 
	 	 	 	 
	iv.

	 	Personal Injury Liability:
	 	The personal injury contractual
liability exclusion will be deleted.
	 
	 	 	 	 
	v.

	 	Primary Liability:
	 	As required in Part A.8 above.
	 
	 	 	 	 
	vi.

	 	Waiver of Subrogation:
	 	As required in Part B.1.C above.

E. Deductible or Self Insured Retention Under Liability Policies: If a gap in the
liability insurance coverage provided to BNPPLC or another Interested Party under any
Construction Period Policy results from any deductible, self-insured retention or other
similar arrangement to which NAI agrees, then such gap must be covered by one or more other
Construction Period Policies, such that liability insurance protection afforded to BNPPLC
and other Interested Parties by all such Construction Period Policies, taken together, is no
less than it would be if NAI had not agreed to the deductible, self-insured retention or
other similar arrangement.

     3. Workers’ Compensation/Employer’s Liability Insurance. Throughout the period from
the Effective Date to the Completion Date, NAI will maintain workers’ compensation and employer’s
liability insurance in accordance with the following requirements:

A. Coverage: Such insurance will cover liability arising out of NAI’s employment of
workers and anyone for whom NAI may be liable for workers’ compensation claims.

B. Amount of Insurance: Coverage will be provided with a limit of not less than:

	 	 	 	 	 
	i.

	 	Workers’ Compensation:
	 	Statutory limits.
	 
	 	 	 	 
	ii.

	 	Employer’s Liability:

	 	 $1,000,000 each accident and each disease.

     C. Required Endorsements:

	 	 	 	 	 
	i.

	 	Notice of Cancellation,
Nonrenewal or Reduction
in Coverage:
	 	Consistent with Part B.1.E.5 above.
	 
	 	 	 	 
	ii.

	 	Waiver of Subrogation:
	 	As required in Part B.1.C above.

Annex 4 - Page 6

 

     4. Umbrella/Excess Liability Insurance. Throughout the period from the Effective
Date to the Completion Date, NAI will maintain umbrella/excess liability insurance in accordance
with the following requirements:

A. Coverage: Such insurance will be excess over and be no less broad than
all coverages
described in the preceding subsections 1, 2 and 3 and will include a drop-down provision if
commercially available.

B. Form: This policy will have the same inception and expiration dates as the
commercial general liability insurance required above or a nonconcurrency endorsement.

C. Amount of Insurance: Coverage will be provided with a limit of not less than
$10,000,000 per occurrence and in the aggregate.

     5. Builders Risk Insurance. Throughout the period from the Effective Date to the
Completion Date, NAI will maintain or cause to be maintained property insurance (Builders Risk
Insurance) in accordance with the following requirements:

A. Insureds: Protection will extend to BNPPLC as a Named Insured or Additional
Named Insured as its interest may appear; and the policy will be modified if necessary so
that the protection afforded to BNPPLC is not reduced or impaired by acts or omissions of
NAI or any other beneficiary or insured. (Such modification of the policy may be by
endorsement comparable to a standard mortgagee clause; not limited, however, by its terms to
BNPPLC’s rights “as a mortgagee” and not conditioned upon rights of the insurer to be
subrogated to BNPPLC’s rights under the Operative Documents in the event of a payment of
insurance proceeds to BNPPLC.)

B. Covered Property: Such insurance will cover:

	 	i.	 	Improvements and any equipment made or to be made a permanent part of the
Property;
	 
	 	ii.	 	structure(s) under construction;
	 
	 	iii.	 	property including materials and supplies on site for installation;
	 
	 	iv.	 	property including materials and supplies at other locations but intended for
use at the site;
	 
	 	v.	 	property including materials and supplies in transit to the site for
installation; and

Annex 4 - Page 7

 

	 	vi.	 	temporary structures (e.g., scaffolding, falsework, and temporary buildings)
located at the site.

C. Form: Coverage will be on an “all risk” form, will include theft and flood, and
be written on a completed-value basis with no co-insurance provision. No protective
safeguard warranty will be permitted.

D. Amount of Insurance: Real property coverage will be provided in an amount
equal at all times to the full replacement value, exclusive of land, foundation, footings,
excavations and grading.

E. Deductibles. Deductibles applicable to the Builder’s Risk Policy will not exceed
the following:

	 	 	 	 	 
	i.

	 	All Risks of Direct Damage, Per Occurrence,
except flood or water damage
	 	 $50,000
	 
	 	 	 	 
	ii.

	 	Delayed Opening Waiting Period
	 	 30 Days
	 
	 	 	 	 
	iii

	 	Water Damage (including flood), Per Occurrence
	 	 $100,000; or (in the
case of flood) excess of
NFIP if in Flood Zone A

F. Termination of Coverage: The termination of coverage provision will be endorsed
to permit occupancy of the covered property being constructed. Further, NAI will maintain
or cause the insurance to be maintained in effect, unless otherwise provided for the
Operative Documents, until the earliest of the following dates:

	 	i.	 	the date on which all persons and organizations who are insureds under the
policy agree that it is terminated;
	 
	 	ii.	 	any termination or expiration of the Lease upon the Designated Sale Date, which
is the date upon which final payment is expected under the Operative Documents; or
	 
	 	iii.	 	the date on which the insurable interests in the Covered Property of all
insureds other than NAI have ceased.

G. Required Endorsements and Minimum Sublimits:

Annex 4 - Page 8

 

	 	 	 	 	 
	i.

	 	Additional Expenses Due To Delay
In Completion Project, including but
not limited to financing costs including
interest expenses, insurance expenses,
professional fees and taxes;
	 	Included with specific
sublimits (based on an
estimated 12 period of
indemnity) as follows:

$1,900,000 — construction
financing interest.

$380,000 — real estate taxes

$204,000 — insurance
premiums
	 
	 	 	 	 
	ii.

	 	Agreed Value;
	 	No coinsurance
	 
	 	 	 	 
	iii.

	 	Boiler & Machinery on
a Comprehensive Basis;
	 	Included without sublimit
	 
	 	 	 	 
	iv.

	 	Damage Resulting From
or Arising From Error, Omission
or Deficiency In Design,
Specifications, Workmanship
or Materials, Including Collapse;
	 	Included without sublimit
	 
	 	 	 	 
	v.

	 	Debris Removal Additional
Limit; Debris Removal
	 	 $4,000,000 sublimit
	 
	 	 	 	 
	vi.

	 	[intentionally deleted]	 	 
	 
	 	 	 	 
	vii.

	 	Expediting Expenses;
	 	 $ 50,000 sublimit
	 
	 	 	 	 
	viii.

	 	Flood or other Water
Damage — Annual Aggregate
	 	 $10,000,000 sublimit
	 
	 	 	 	 
	ix.

	 	Freezing;
	 	 $100,000 sublimit
	 
	 	 	 	 
	x.

	 	Notice of Cancellation
or Reduction;
	 	Consistent with Part
B.1.E.5 above
	 
	 	 	 	 

Annex 4 - Page 9

 

	 	 	 	 	 
	xi.

	 	Occupancy Clause;
	 	Consistent with Part B.5.F
above
	 
	 	 	 	 
	xii.

	 	Demolition /Increased Cost of
Cost of Construction — Per Occurrence
	 	 $1,000,000 sublimit
	 
	 	 	 	 
	xiii.

	 	Pollutant Clean-Up
and Removal, provided that
such condition
ensues following
a loss from a covered peril;
	 	Included in Debris
Removal sublimit
	 
	 	 	 	 
	xiv.

	 	Preservation of Property;
	 	Included without sublimit
	 
	 	 	 	 
	xv.

	 	Repair, Replace or Re-erect Valuation
Clause;
	 	Included without sublimit
	 
	 	 	 	 
	xvi.

	 	Testing;
	 	Included without sublimit
	 
	xvii.

	 	Waiver of Subrogation.
	 	As required in Part
B.1.C above

     6. Evidence of Insurance. NAI will provide confirmation of the insurance required
prior to the Completion Date in accordance with the following:

A. Provision of Evidence. Evidence of the insurance coverage required to be
maintained by NAI, represented by certificates of insurance or policies and endorsements
issued by the insurance company or its legal agent, must be furnished to BNPPLC prior to the
Effective Date. New certificates of insurance or policies and endorsements will be provided
to BNPPLC prior to or concurrent with the termination date of the current certificates of
insurance or policies and endorsements.

B. Form:

	 	i.	 	The Builders Risk Insurance will be evidenced by ACORD form 28,
“Evidence of Property Insurance”, completed in a manner satisfactory to BNPPLC
to show compliance with the requirements of this Annex. To the extent
requested by BNPPLC, copies of endorsements to such insurance must be attached
to such form.
	 
	 	ii.	 	All liability insurance required herein will be evidenced by
ACORD form 25, “Certificate of Insurance”, in each case completed in a manner
satisfactory to BNPPLC to show compliance with the requirements of this

Annex 4 - Page 10

 

	 	 	 	Annex.
To the extent requested by BNPPLC, copies of endorsements to this insurance
must be attached to such form.

C. Specifications: Such certificates of insurance or policies and endorsements will
specify:

	 	i.	 	BNPPLC as a certificate holder with correct mailing address as
provided by BNPPLC.
	 
	 	ii.	 	Insured’s name, which must match that on the Agreement to which this
Annex is attached.
	 
	 	iii.	 	Insurance companies affording each coverage, policy number of
each coverage, policy dates of each coverage, all coverages and limits
described herein, and signature of authorized representative of insurance
company.
	 
	 	iv.	 	Producer of the certificate with correct address and phone
number listed.
	 
	 	v.	 	Additional or named insured status of BNPPLC as required by
this Annex.
	 
	 	vi.	 	Aggregate limits per location (except as to the umbrella
liability insurance) required by this Annex.
	 
	 	vii.	 	Amount of any deductibles and/or retentions.
	 
	 	viii.	 	Cancellation, nonrenewal and reduction in coverage
notification consistent with Part B.1.E.5 above. Additionally, NAI
will endeavor in good faith to cause any insurer issuing to BNPPLC a
certificate on ACORD form 25 to delete the words “endeavor to” and “but failure
to mail such notice shall impose no obligation or liability of any kind upon
Company, it agents or representatives” from the cancellation provision of such
form.
	 
	 	ix.	 	Primary status as required by this Annex.
	 
	 	x.	 	Waivers of subrogation as required by this Annex.

D. Required Endorsements. A copy of each required endorsement will, if and as
requested by BNPPLC from time to time, also be provided.

Annex 4 - Page 11

 

E. Commencement of Construction. Commencement of construction without provision of
the required certificate of insurance and/or required policies and endorsements, or without
compliance with any other provision of this Annex or the Agreement to which it is attached,
will not constitute a waiver by BNPPLC of any rights. BNPPLC will have the right, but not
the obligation, of prohibiting NAI or any Contractor from performing any work until such
certificate of insurance and/or required policies and endorsements are received by BNPPLC.

     7. Contractor’s Insurance: To the extent, if any, necessary to preserve or
provide liability coverage for BNPPLC and other Interested Parties with regard to operations
performed
on or about the Property prior to the Completion Date, NAI will require Contractors to provide
(or will provide the coverage on behalf of Contractors) similar to that required of NAI by the
foregoing provisions of this Annex. In the event NAI requires any Contractor to maintain
Construction Period Policies necessary to comply with these insurance requirements, NAI will also
require such Contractor to provide and maintain certificates of insurance containing provisions as
described herein (modified to recognize the Contractor, rather than NAI, as named insured)
enumerating, among other things, the waivers of subrogation, additional or named insured status,
and primary liability as required herein; and in such event NAI will cause the Contractor to make
those insurance certificates available to BNPPLC upon request.

C. PROVISIONS APPLICABLE AFTER THE COMPLETION DATE.

     1. Liability Insurance: After the Completion Date and throughout the Term of the
Lease, NAI must maintain commercial general liability insurance against claims for bodily injury,
death, advertising injury and property damage occurring in or upon or resulting from any occurrence
in or upon the Property under one or more insurance policies, all in such amounts, with such
insurance companies and upon such terms and conditions (including self-insurance, whether by
deductible, retention, or otherwise) as are consistent with NAI’s normal insurance practices in the
United States. In any event, policies under which NAI maintains such liability insurance must
provide, by endorsement or otherwise, that BNPPLC and other Interested Parties are also insured
thereunder against such claims with coverage that is not limited by any negligence or allegation of
negligence on their part and with coverage that is primary, not merely excess over or contributory
with the other commercial general liability coverage they may themselves maintain.

     2. Property Insurance: After the Completion Date and throughout the Term of the Lease,
NAI must keep all Improvements (including all alterations, additions and changes made to the
Improvements) insured against fire and other casualty under one or more property insurance
policies, all in such amounts, with such insurance companies and upon such terms and conditions
(including self-insurance, whether by deductible, retention, or otherwise) as are

Annex 4 - Page 12

 

consistent with
NAI’s normal insurance practices in the United States. In any event, policies under which NAI
maintains such insurance must:

	 	i.	 	show BNPPLC as an additional insured as its interest may appear; and
	 
	 	ii.	 	provide that the protection afforded to BNPPLC thereunder is primary (such that
any policies maintained by BNPPLC itself will be excess, secondary and noncontributing)
and is not to be reduced or impaired by acts or omissions of NAI or any other
beneficiary or insured.

     3. Evidence of Insurance. NAI will provide confirmation of the insurance required
after the Completion Date in accordance with the following:

A. Provision of Evidence. Evidence of the insurance coverage required to be
maintained by NAI, represented by certificates of insurance, evidence of insurance, and
endorsements issued by the insurance company or its legal agent, must be furnished to BNPPLC
prior to the Completion Date. New certificates of insurance, evidence of insurance, and
endorsements will be provided to BNPPLC prior to or concurrent with the termination date of
the current certificates of insurance, evidence of insurance, and endorsements.

B. Form:

	 	i 	 	The property insurance will be evidenced by ACORD form 28,
“Evidence of Property Insurance”, completed in a manner reasonably satisfactory
to BNPPLC to show compliance with the requirements of this Annex.
	 
	 	ii.	 	The liability insurance will be evidenced by ACORD form 25,
“Certificate of Insurance”, in each case completed in a manner reasonably
satisfactory to BNPPLC to show compliance with the requirements of this Annex.
To the extent requested by BNPPLC, copies of endorsements giving additional
insured status to BNPPLC and other Interested Parties must be attached to such
form.

C. Specifications: Such certificates of insurance or policies and endorsements will
specify:

	 	i.	 	BNPPLC as a certificate holder with correct mailing address as
provided by BNPPLC.

Annex 4 - Page 13

 

	 	ii.	 	Insured’s name, which must match that on the Agreement to which
this Annex is attached.
	 
	 	iii.	 	Insurance companies affording each coverage, policy number of
each coverage, policy dates of each coverage, all coverages and limits
described herein, and signature of authorized representative of insurance
company.
	 
	 	iv.	 	Producer of the certificate with correct address and phone
number listed.
	 
	 	v.	 	Additional or named insured status of BNPPLC as required by
this Annex.
	 
	 	vi.	 	Aggregate limits.
	 
	 	vii.	 	Amount of any deductibles and/or retentions.

viii. Primary status as required by this Annex.
	 
	 	ix.	 	Waivers of subrogation as required by this Annex.

Annex 4 - Page 14

 

Annex 5

Participation Agreement Form

Attached to and made a part of this Annex is a form of Participation Agreement that may be used by
BNPPLC to share risks and rewards of the Operative Documents with other parties.

 

PARTICIPATION AGREEMENT

BETWEEN

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

AND

Banks or Other Financial Institutions

Designated as Participants in this Agreement

(“Participants”)

                    , 200___

Annex
5 - Page 2

 

 

PARTICIPATION AGREEMENT

     This PARTICIPATION AGREEMENT (this “Agreement”), dated as of ___, 200___, is
made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a Delaware corporation, and the
banks or other financial institutions designated as Participants in the signature pages to this
Agreement (whether one or more, “Participants”).

RECITALS

     Contemporaneously with the execution of this Agreement, BNPPLC and Network Appliance, Inc.
(“NAI”), a Delaware corporation, are executing a Common Definitions and Provisions Agreement dated
as of ___, 200___(the “Original Effective Date”) (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.

     At the request of NAI, BNPPLC is executing a Ground Lease to acquire from NAI a leasehold
estate of 99 years in the Land and any existing Improvements on the Land contemporaneously with the
execution of this Agreement.

     Also contemporaneously with the execution of this Agreement, BNPPLC and NAI are executing a
Construction Agreement (the “Construction Agreement”), a Lease Agreement (the “Lease”) and a
Closing Certificate and Agreement (the “Closing Certificate”), all dated as of the Original
Effective Date. 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 Original Effective Date (the “Purchase
Agreement”) between BNPPLC and NAI, NAI will have the right to purchase, among other things,
BNPPLC’s leasehold estate under the Ground Lease on and subject to the terms and conditions set
forth in the Purchase Agreement.

     By this Agreement, the parties desire to evidence the Participants’ agreement to
participate with BNPPLC in certain of the risks and rewards to BNPPLC of the Common Definitions and
Provisions Agreement, the Ground Lease, the Construction Agreement, the Lease, the Closing
Certificate and the Purchase Agreement (collectively, the “Operative Documents”), which
participation is to be accomplished through the exchange of promises to

Annex
5 - Page 3

 

 

make payments
computed by reference to the sums paid or received by BNPPLC from time to time pursuant to the
Operative Documents, all as more particularly provided below.

AGREEMENTS

     Participants agree to participate with BNPPLC in, and BNPPLC agrees to share with the
Participants, the risks and rewards of the Operative Documents upon and subject to the following
terms, provisions, covenants, agreements and conditions:

6 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:

     (A) “Anticipated Advances” means (1) the Initial Funding Advance and other amounts (other than
Commitment Fees and Carrying Costs) that are added to the Outstanding Construction Allowance from
time to time pursuant to Paragraph 3 of the Construction Agreement, and (2) advances of
funds by or on behalf of BNPPLC to or on behalf of NAI pursuant to Paragraph 4 of the
Construction Agreement. Any other amounts paid out-of-pocket by BNPPLC from time to time that
BNPPLC is entitled to treat as Construction Advances pursuant to the express terms of the
Construction Agreement (see subparagraphs 2(G)(2) and 8(A) of the Construction
Agreement) will constitute Protective Advances, not Anticipated Advances, for purposes of this
Agreement.

     (B) “Back to Back Construction-Period Indemnity Claim” means a claim by BNPPLC against NAI for
payment of a Covered Construction Period Loss that BNPPLC may assert under the Construction
Agreement in order to cover or reimburse a claim made against BNPPLC itself by another Interested
Party because of Uncovered Construction-Period Participant Losses suffered by the other Interested
Party.

     (C) “Back to Back Construction-Period Indemnity Payment” means a payment made to BNPPLC by or
on behalf of NAI in satisfaction of a Back to Back Construction-Period Indemnity Claim.

     (D) “Bank Specific Charges” means payments made to BNPPLC by or on behalf of NAI for the
account of a
Participant or any other Interested Party under subparagraph 5(B) or 5(C) of the
Lease. Bank Specific Charges include, for example, payments made to compensate a Participant for
an increase in costs related to advances made by the Participant hereunder and attributable to a
Banking Rules Change.

Annex
5 - Page 4

 

 

     (E) “Base Rent” means amounts payable as Base Rent under and as defined in the Lease,
except that each such amount payable for any period during which a Fixed Rate Lock remains in
effect will be adjusted, for purposes of calculating the payments required under this Agreement, to
equal the Base Rent that would have been required for such period under the Lease if such Fixed
Rate Lock had not been in effect and a one month LIBOR Period Election had been in effect. In no
event, however, will any Fixed Rate Settlement Amounts be included in or deducted from amounts that
constitute Base Rent for purposes of this Agreement.

     (F) “Critical Event” means any of the following:

     (1) any failure by NAI to pay Base Rent which continues for 10 days; or

     (2) any failure by NAI to pay any Supplemental Payment on the Designated Sale Date
required by the Purchase Agreement; or

     (3) any failure by NAI to purchase BNPPLC’s interest in the Property on any date a
purchase is required by subparagraph 3(A) of the Purchase Agreement; or

     (4) any 97-10/Meltdown Event; or

     (5) any delivery by NAI of a Pre-lease Force Majeure Event Notice; or

     (6) any Termination of NAI’s Work which may occur as provided in the Construction
Agreement prior to the Completion Date.

     (G) “Critical Remedy” means BNPPLC’s right to do any of the following: (a) file a lawsuit
against NAI to enforce the Operative Documents; (b) send a notice to terminate NAI’s rights and
obligations to continue Work as provided in subparagraph 7(C) of the Construction
Agreement; or (c) make the election to accelerate the Designated Sale Date as described in the
definition thereof in the Common Definitions and Provisions Agreement.

     (H) “Defaulting Participant” means any Participant that has failed to make a payment when due
to BNPPLC
equal to the Participant’s Percentage of an Anticipated Advance as required by subparagraph
3(B) below.

     (I) “Deferred Construction-Period Compensation” means any additional amount paid to
BNPPLC pursuant to the Purchase Agreement only because of — and which BNPPLC would not have been
paid or allowed to retain but for — Losses that are included in any Balance of Unpaid Construction
Period Losses, but that do not qualify as Protective Advances hereunder and do not consist of
reductions in Carrying Costs or Base Rent resulting from a Pre-lease Force

Annex
5 - Page 5

 

 

Majeure Loss. (Should
the Property not be sold by BNPPLC until after NAI no longer has any right to purchase or arrange a
purchase by an Applicable Purchaser pursuant to the Purchase Agreement, sales proceeds — net of
sales expenses — will nevertheless be allocated for purposes of this Agreement among Net Sales
Proceeds, Deferred Construction-Period Compensation and Unrecovered Protective Advances as if NAI
had arranged the sale pursuant to the Purchase Agreement.)

     (J) “Distributable Payments” means any payments actually received by BNPPLC under the
Operative Documents as (or in satisfaction of NAI’s obligations for) any of the following or
interest on past due amounts thereof:

     (1) Base Rent;

     (2) Qualified Prepayments;

     (3) 97-10/Prepayments;

     (4) Bank Specific Charges;

     (5) Back to Back Construction-Period Indemnity Payments;

     (6) any Supplemental Payment; and

     (7) Net Sales Proceeds and any Deferred Construction-Period Compensation that BNPPLC
excluded from sales proceeds received by it for purposes of calculating Net Sales Proceeds.

     (K) “Late Payment Rate” means (a) for each day (other than as set forth in clause (b) of this
sentence) the Fed Funds Rate or (b) for the purpose of computing interest on past due payments for
each day following the fifth day after such payments first became due, a rate of two percent (2%)
per annum in excess of the Prime Rate then in effect; except that the Late Payment Rate will not,
notwithstanding anything to the contrary herein contained, exceed the maximum rate of interest
permitted by applicable law.

     (L) “Majority” means, at the time any determination thereof is required, any of the
Participants and BNPPLC, the aggregate Percentages of which equal or exceed sixty-seven percent
(67%) of the Percentages of BNPPLC and of all the Participants then entitled to vote under
subparagraph 6(A).

     (M) “Net Cash Flow” means payments actually received by BNPPLC under the Operative
Documents as (or in satisfaction of NAI’s obligations for) Base Rent, Qualified

Annex
5 - Page 6

 

 

Prepayments,
97-10/Prepayments or a Supplemental Payment or as interest on past due Base Rent, Qualified
Prepayments, 97-10/Prepayments or a Supplemental Payment; except that the following will be
deducted or excluded from such payments for purposes of calculating Net Cash Flow: (a) any Deferred
Construction-Period Compensation included in any Supplemental Payment; and (b) any Unrecovered
Protective Advances for which any Participant has not fully reimbursed its Percentage to BNPPLC as
provided in subparagraph 3(C). By deducting any Unrecovered Protective Advance in the calculation
of Net Cash Flow, BNPPLC will be considered to have “recovered” such Protective Advance for
purposes of calculating “Excess Reimbursements” under and as defined in subparagraph 3(C). Further,
if BNPPLC deducts Unrecovered Protective Advances in the calculation of Net Cash Flow, but later
receives payment from NAI (in excess of other amounts then due from NAI) for the same Protective
Advances, such payment to BNPPLC by NAI will also constitute Net Cash Flow for purposes of this
Agreement.

     (N) “Net Sales Proceeds” means, subject to the deductions and exclusions described below in
this definition:

     (1) all payments actually received by BNPPLC under the Purchase Agreement as (or in
satisfaction of NAI’s or an Applicable Purchaser’s obligations for) the purchase price for
BNPPLC’s interest in Property or in Escrowed Proceeds; and

     (2) if the Property is not sold pursuant to the Purchase Agreement on the Designated
Sale Date, then all rents and sales, condemnation and insurance proceeds actually received
by BNPPLC (other than sales proceeds paid or to be paid by BNPPLC to NAI pursuant to
Paragraph 3(E) of the Purchase Agreement) from any sale or lease after the
Designated Sale Date of any interest in, or because of any subsequent taking or damage to,
the Property.

For purposes of calculating Net Sales Proceeds, the following will be deducted or excluded
from such payments (without duplication of any item): (i) any excess sales proceeds that BNPPLC is
required by the Purchase Agreement to pay over to NAI; (ii) any Deferred Construction-Period
Compensation; (iii) any amounts applied by BNPPLC to pay, or received by BNPPLC as reimbursement
for, bona fide costs of a sale of the Property; and (iv) any other Unrecovered Protective Advances
for which any Participant has not fully reimbursed its Percentage to
BNPPLC as provided in subparagraph 3(C). Without limiting the foregoing, after any Designated Sale
Date upon which neither NAI nor an Applicable Purchaser purchases BNPPLC’s interest in the
Property, BNPPLC may deduct the following as Unrecovered Protective Advances: (x) ad valorem taxes,
(y) insurance premiums; and (z) other Losses of every kind suffered or incurred by BNPPLC (other
than general overhead) with respect to the ownership, operation or maintenance of the Property
after the Designated Sale Date, other than Unrecovered Protective Advances for which all
Participants have paid BNPPLC their respective

Annex
5 - Page 7

 

 

Percentages thereof as required by subparagraph
3(C). By deducting any Unrecovered Protective Advances in the calculation of Net Sales Proceeds,
BNPPLC will be considered to have “recovered” such Protective Advances for purposes of calculating
Excess Reimbursements under and as defined in subparagraph 3(C). Also, if BNPPLC deducts
Unrecovered Protective Advances in the calculation of Net Sales Proceeds, but later receives
payment from NAI (in excess of other amounts then due from NAI) for the same Protective Advances,
such payment to BNPPLC by NAI will constitute Net Sales Proceeds for purposes of this Agreement.

     (O) “Participants” means each of the undersigned parties designated as Participants in the
signature pages to this Agreement, and any other financial institutions which may hereafter become
parties to this Agreement by joining with BNPPLC in completing and executing a Participation
Agreement Supplement.

     (P) “Participation Agreement Supplement” means a Participation Agreement Supplement in
substantially the form attached hereto as Exhibit A, completed and executed by BNPPLC and a
Participant, adding the Participant as a party to this Agreement, changing a Participant’s
Percentage or removing a Participant as a party to this Agreement.

     (Q) “Participation Amount” of BNPPLC or any Participant means the outstanding balance from
time to time of the total investment made by BNPPLC under the Operative Documents or by the
applicable Participant hereunder, as determined by BNPPLC. The Participation Amount of BNPPLC and
each Participant will equal its share of the outstanding principal balance that would be due from
NAI from time to time if BNPPLC had made a loan (and the Participants had participated in the loan)
to NAI for NAI’s construction of improvements authorized by the Construction Agreement, instead of
BNPPLC’s having acquired the Property itself and having leased the same to NAI as provided in the
Operative Documents. Absent a failure by any Participant to make a payment required by
subparagraph 3(B) or some other unexpected occurrence, it is expected that (a) the Participation
Amounts of BNPPLC and the Participants will always be in proportion to their respective Percentages
set forth in Schedule 1, and (b) the total Participation Amounts of BNPPLC and all Participants on
and prior to the Designated Sale Date will equal the Lease Balance computed from time to time as
described in the Common Definitions and Provisions Agreement.

     (R) “Percentage” of each Participant means, subject to change as provided in subparagraph 4(A)
and to change by a Participation Agreement Supplement, the percentage designated as the
Participant’s “Percentage” in Schedule 1. “Percentage” of BNPPLC means a percentage that, at the
time a determination of such Percentage is required hereunder, is equal to 100% less the sum of the
Percentages of all the Participants.

     (S) “Protective Advances” means any payments, other than of Anticipated Advances or
Excluded Taxes, made by or on behalf of BNPPLC at any time or from time to time because

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of, arising
out of or related to, in whole or in part: (1) the Property or the construction, protection,
preservation, operation, ownership or sale thereof; (2) any of the Operative Documents or the
transactions contemplated therein; or (3) anything done by BNPPLC to enforce the obligations of NAI
under the Operative Documents (whether done upon BNPPLC’s own initiative or upon the direction of
the Majority). Protective Advances will include any and all payments by BNPPLC (including those
paid to attorneys, accountants, experts and other advisors) for which NAI is obligated to indemnify
or reimburse BNPPLC by Paragraph 5 of the Lease or would be so obligated if the Term of
Lease had commenced.

     (T) “Uncovered Construction-Period Participant Loss” means a Loss incurred or suffered by a
Participant (1) for which, if BNPPLC must pay or reimburse such Loss to the Participant, BNPPLC can
in turn require payment or reimbursement from NAI under the indemnity against Covered Construction
Period Losses set forth in the Construction Agreement (e.g., Losses arising because of fraud,
misapplication of funds, illegal acts, or willful misconduct on the part of the NAI or its
employees or agents or any other party for whom NAI is responsible), and (2) for which the
Participant is not otherwise indemnified directly by or compensated by NAI or by insurance
maintained by NAI.

     (U) “Unrecovered Protective Advances” means Protective Advances that have not been repaid to
BNPPLC by or on behalf of NAI and have not otherwise been previously recovered by BNPPLC through
deductions from Net Cash Flow or Net Sales Proceeds as provided in the definitions of those terms
above.

7 Payments From BNPPLC to Each Participant.

     (A) Payments Computed by Reference to Net Cash Flow and Net Sales Proceeds. Upon the
actual receipt of any Net Cash Flow, Net Sales Proceeds or interest
thereon, BNPPLC will pay each Participant an amount equal to such Participant’s Percentage
times such Net Cash Flow, Net Sales Proceeds or interest, as the case may be.

     (B) Payments Computed by Reference to Bank Specific Charges. If BNPPLC actually
receives any Bank Specific Charges (or interest thereon) for the account of a particular
Participant, then BNPPLC promises to promptly make a payment to such Participant equal to such Bank
Specific Charges (or interest thereon). If requested by any Participant, BNPPLC will make a demand
upon NAI for, and will endeavor in good faith to collect, payment of any Bank Specific Charges due
for the account of such Participant; provided, however, as an alternative to making any effort to
collect any Bank Specific Charge for any Participant, BNPPLC may instead assign to such Participant
the right to collect such Bank Specific Charge directly from NAI.

     (C) Payments Computed by Reference to Back to Back Construction-Period Indemnity
Payments. If BNPPLC actually receives any Back to Back Construction-Period

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Indemnity Payment
(or interest thereon) in satisfaction of a Back to Back Construction-Period Indemnity Claim
asserted for Losses for which BNPPLC is obligated to a particular Participant, then BNPPLC promises
to make a payment to such Participant equal to such Back to Back Construction-Period Indemnity
Payment (or interest thereon). If a Participant incurs or suffers an Uncovered Construction-Period
Participant Loss, BNPPLC must compensate such Participant for the Uncovered Construction-Period
Participant Loss; subject to the condition, however, that BNPPLC’s obligation to so compensate a
Participant will be satisfied only from any Back to Back Construction-Period Indemnity Payments
received by BNPPLC on account of such obligation, it being understood that BNPPLC will have no
personal liability for any such obligation.

     (D) Payments Computed by Reference to Deferred Construction-Period Compensation. If
BNPPLC actually receives any Deferred Construction-Period Compensation, and if any Participant
suffered Losses included in the Balance of Unpaid Construction Period Losses for which such
Deferred Construction-Period Compensation was paid, BNPPLC promises to pay such Participant a
fraction of such Deferred Construction-Period Compensation. The numerator of the fraction will
equal the Losses suffered by such Participant (and interest thereon) that are included in the
Balance of Unpaid Construction-Period Losses as of the Designated Sale Date, and the denominator
will equal the total Losses (and interest thereon) — other than Protective Advances and reduced
Carrying Costs or Commitment Fees (and interest thereon) — which are included in the Balance of
Unpaid Construction Period Losses as of the Designated Sale Date.

     (E) Timing; Manner of Payment. Each payment required of BNPPLC by this Article 2 must
be made prior to 1:00 P.M., New York time, on the same day that BNPPLC actually receives the
corresponding Distributable Payment (in good funds), if BNPPLC’s receipt of the corresponding
Distributable Payment occurs prior to 11:00 A.M., New York time; if, however, BNPPLC’s receipt of
the Distributable Payment (in good funds) occurs on any day after 11:00 A.M., New York time, the
payments required from BNPPLC to the Participants will not be considered past due until 12:00 noon,
New York time, on the next Business Day. All payments from BNPPLC to the Participants will be by
transfer of federal funds pursuant to the wiring instructions set forth in Schedule 1. Each
payment owing to a Participant by BNPPLC will bear interest from the date it is due until it is
paid by BNPPLC at the Late Payment Rate calculated on the basis of a 360-day year. Any payment by
BNPPLC to a Participant after the time of day specified herein for such payment will be deemed not
paid until the next following Business Day for purposes of this Agreement.

     (F) Meaning of Actually Received. As used herein with respect to payments,
“actually received” and words of like effect will include not only payments made directly from NAI
or any Applicable Purchaser, but also amounts paid by others on NAI’s behalf, amounts realized by
way of setoff, amounts realized upon the disposition of collateral under any

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documents that may be
given from time to time to secure NAI’s obligations under the Lease or Purchase Agreement (net of
the costs of disposition and further net of any amounts that must be returned to NAI or any third
party having an interest in such collateral), and the fair market value of any property or services
accepted in lieu of a cash payment (though it is understood that nothing herein contained will
require BNPPLC to accept property or services in lieu of a cash payment required by the Operative
Documents and that BNPPLC will not agree to accept property or services in lieu of any cash
Distributable Payment without the Participants’ prior written consent). Also, with respect to Base
Rent included in the definition of Net Cash Flow, any Base Rent that BNPPLC receives as calculated
in the Lease during a Fixed Rate Lock Period will be deemed the “actual receipt” of Base Rent as
adjusted in accordance with the definition of “Base Rent” set forth above. The phrase “actually
received” will not, however, include amounts received by BNPPLC from any of the Participants or
from any affiliate of BNPPLC unless the context otherwise indicates. Finally, if payments due to
BNPPLC from NAI are reduced only because of credits attributable to a reduction of BNPPLC’s taxes
not subject to indemnification by NAI, as described in subparagraph 4(C)(4) of the Lease,
then the payments that BNPPLC would have received but for the credits will be considered as having
been actually received by BNPPLC for purposes of this Agreement.

8 Payments From the Participants to BNPPLC.

     (A) Initial Funding Advance. Each of the original Participants joining in the
execution of this Agreement promises to pay to BNPPLC, contemporaneously with the execution of this
Agreement, an initial payment
as set forth below such Participant’s name on Schedule 1, equal to the Participant’s
Percentage times the outstanding Lease Balance as of the date hereof.

[***DRAFTING NOTE: This provision assumes that the effective date of this
Agreement will coincide with the first day of a new Base Rent Period or Construction
Period. If that assumption is not correct, an adjustment should be made to address
accrued Base Rent not yet paid or Carrying Costs not yet capitalized.]

BNPPLC will have no obligation hereunder to any of the original Participants that fails to pay
such initial payment. Such initial payment will be due no later than 11:00 A.M., New York time, on
the effective date of this Agreement.

     (B) Future Advances. In the event any remaining Anticipated Advances may be made
pursuant to the Construction Agreement after the date of this Agreement:

     (1) General. Subject to the limitation set forth in subparagraph 3(B)(3), each
Participant promises to make payments to BNPPLC equal to such Participant’s

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Percentage (as
such Percentage may be adjusted from time to time pursuant to subparagraph 4(A)) times the
total amount of each such Anticipated Advance.

     (2) Timing. Before 11:00 A.M., New York time, on the third Business
Day prior to any date on which BNPPLC expects to make a payment of an Anticipated Advance as
provided in Paragraphs 3 or 4 of the Construction Agreement, BNPPLC will notify the
Participants of the amount of such payment, and each Participant must pay to BNPPLC such
Participant’s Percentage times such amount prior to 11:00 A.M., New York time, on such date.
The failure of any Participant to make a payment required by this subparagraph 3(B) will,
for purposes of this Agreement, be deemed to continue until the Participant actually pays
all past due amounts required by this subparagraph 3(B), together with interest thereon at
the Late Payment Rate.

     (3) Limitation on Advances by Participant. Notwithstanding anything herein to
the contrary or any adjustment to any Participant’s Percentage pursuant to subparagraph
4(A), the total of all payments required of any Participant to BNPPLC by this subparagraph
3(B) (excluding interest on past due payments required by subparagraph 3(B)(2)) because of
Anticipated Advances (in contrast to Protective Advances) will not exceed the amount that
would cause such Participant’s Participation Amount to exceed the Participation Amount
specified for such Participant in Schedule 1.

     (C) Protective Advances.

     (1) General. If NAI fails to pay or reimburse any Protective Advance
to BNPPLC within ten days after BNPPLC makes a demand or request therefor, BNPPLC may notify
the Participants of such failure. Promptly after receipt of any such notice, each
Participant must pay to BNPPLC an amount equal to such Participant’s Percentage times the
Protective Advance described in the notice, EVEN IF THE PROTECTIVE ADVANCE WOULD NOT HAVE
BEEN PAID BUT FOR ANY ACTUAL OR ALLEGED NEGLIGENCE OF BNPPLC OR ITS AFFILIATES OR
REPRESENTATIVES AND EVEN IF THE PROTECTIVE ADVANCE WOULD NOT HAVE BEEN PAID BUT FOR ANY
ENVIRONMENTAL LOSSES OR OTHER MATTERS OR CIRCUMSTANCES FOR WHICH BNPPLC MAY BE STRICTLY
LIABLE. After any Participant has paid its respective Percentage times the Protective
Advance to BNPPLC, BNPPLC must pay to such Participant an amount equal to its Adjusted
Percentage (as defined below) times any subsequent Excess Reimbursement (as defined below)
or interest thereon actually received by BNPPLC for such Protective Advance. As used in
this Agreement, the “Adjusted Percentage” of any Participant will equal (i) such
Participant’s Percentage, divided by (ii) the sum of BNPPLC’s Percentage and the Percentages
of all Participants who have paid BNPPLC their respective shares of the Protective Advance
at issue. As used in this Agreement, the term “Excess Reimbursement” will mean, for the
Protective Advance at issue, (A)

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amounts reimbursed or paid by NAI to (or otherwise
recovered by) BNPPLC on account of such Protective Advance (except to the extent included in
Net Cash Flow or Net Sales Proceeds as provided in the definitions of those terms in
Paragraph 1), less (B) (i) the total amount of such Protective Advance, times (ii) the
Percentages of any Participants that have not paid BNPPLC their respective Percentages of
such Protective Advance.

     (2) Exceptions. Notwithstanding the foregoing, no Participant will be required
to make any payment pursuant to this subparagraph 3(C) related to a Protective Advance that
is paid only because of a transfer or assignment by BNPPLC of its right to receive
Distributable Payments or its rights and interests in and to the Property, the Operative
Documents or this Agreement to BNPPLC’s Affiliates. Further, nothing in this subparagraph
3(C) will be construed to require a payment by a Participant for that portion or percentage,
if any, of a Protective Advance required only because of (and attributed by any applicable
principles of comparative fault to): (a) conduct of BNPPLC or a Representative of BNPPLC
that has been determined to constitute gross negligence or wilful misconduct in or as a
necessary element of a final judgment rendered against BNPPLC or such Representative by a
court with jurisdiction to make such determination; (b) any representation made by
BNPPLC in the Operative Documents that is false in any material respect and that BNPPLC
knew was false at the time of BNPPLC’s execution of the Operative Documents; (c) Liens
Removable by BNPPLC; or (d) any claim made by any Participant against BNPPLC because of any
breach of this Agreement by BNPPLC. As used in this Agreement, “gross negligence” of BNPPLC
will not include any negligent failure of BNPPLC to act when the duty to act would not have
been imposed but for BNPPLC’s status as owner of the Property or as a party to the Operative
Documents or this Agreement.

     (D) Method of Payment. All payments made by the Participants to BNPPLC will be made
by transfer of federal funds to BNPPLC pursuant to the wiring instructions for BNPPLC set forth on
Schedule 1. Each payment owing to BNPPLC by any Participant must be paid to BNPPLC on the date
specified herein or, if not specified, on demand and will bear interest from the date due until the
date paid by the Participant at the Late Payment Rate calculated on the basis of a 360-day year.
Any payment by a Participant to BNPPLC after the time of day specified herein for such payment will
be deemed not paid until the next following Business Day for purposes of this Agreement.

9 Other Adjustments, Deductions and Investments.

     (A) Defaulting Participants.

     (1) Adjustments Because of Defaulting Participants. If any Anticipated
Advances made after the date of this Agreement, with respect to which any Defaulting

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Participant fails to make the payment required by subparagraph 3(B), the other Participants
will nonetheless be required to make the payments to BNPPLC required by subparagraph 3(B).
Further, in such event:

     (a) BNPPLC may reduce any Defaulting Participant’s Percentage as needed to
prevent the Defaulting Participant from receiving a share of Net Cash Flow or Net
Sales Proceeds that is in excess of the percentage computed by dividing the
Participation Amount of such Defaulting Participant by the total Participation
Amounts of BNPPLC and all Participants collectively from time to time. Such
reduction in the Defaulting Participant’s Percentage will not cure such
Participant’s default hereunder nor constitute BNPPLC’s sole remedy for such
default, it being understood that other remedies provided herein or available at law
or in equity will be in addition to any such reduction.

     (b) Without limiting BNPPLC’s other remedies hereunder, for purposes of
computing payments that would otherwise be required to a Defaulting
Participant because of BNPPLC’s receipt of Net Cash Flow, BNPPLC may deduct
from any Net Cash Flow actually received by BNPPLC the amount by which such Net Cash
Flow was increased by Commitment Fees that accrued after the date the Defaulting
Participant failed to make any payment required by subparagraph 3(B) and before the
date upon the Defaulting Participant completely cured any such failure.

          (2) Defaulting Participant’s Cure. After a failure to make a payment required
by subparagraph 3(B), a Defaulting Participant may cure such failure by paying to BNPPLC all
or part of such payment and interest thereon at the Late Payment Rate. In no event,
however, will any such failure by a Defaulting Participant be considered cured before BNPPLC
has effectively recovered the payment, together with such interest, either by reason of
payments made to BNPPLC by the Defaulting Participant or by BNPPLC’s exercise of other
remedies as provided in subparagraph 4(A)(1)(a) or subparagraph 4(B).

     (B) Setoff. In the event that one party to this Agreement has failed to pay to a
second party hereto any amount when due hereunder, the second party may deduct such amount and
interest thereon at the Late Payment Rate from any payments due from it under this Agreement to the
first party. Without limitation, BNPPLC may setoff amounts owed to it by any Defaulting
Participant against any termination fee payable to such Defaulting Participant pursuant to
subparagraph 6(D) below if BNPPLC elects to reduce such Defaulting Participant’s Percentage to zero
as provided in subparagraph 6(D).

     (C) Sharing of Payments. Each Participant agrees that if for any reason it
obtains a payment made by or for NAI that reduces any Distributable Payment, and if such payment
will

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cause such Participant to receive more than it would have received had such payment been made
instead to BNPPLC and generated the payments from BNPPLC to Participants contemplated in this
Agreement, then (1) such Participant must promptly purchase interests in the rights of other
parties to this Agreement as necessary to cause BNPPLC and all Participants to share payments as
they otherwise would have done under this Agreement, and (2) such other adjustments will be made
from time to time as is equitable to ensure that BNPPLC and all Participants share all payments of
(or that operate to reduce) Distributable Payments as they otherwise would have done under this
Agreement. If, however, the payment received by the purchasing Participant or any part thereof is
later recovered from the purchasing Participant, the purchase provided for in this subparagraph
will be rescinded, and the price paid by the purchasing Participant to other parties will be repaid
by them to the purchasing Participant to the extent of such recovery. Also, if the purchasing
Participant is required by court order to pay interest on the payment so recovered, then amounts
repaid to the purchasing Participant by the other parties will be repaid with interest, computed in
the same manner as the interest required by the court order. Nothing in this subparagraph will in
any way
affect the right of BNPPLC or any Participant to obtain payment (whether by exercise of rights
of banker’s lien, set-off or counterclaim or otherwise) of indebtedness or obligations other than
those established by this Agreement or by any of the Operative Documents.

     (D) Withholding Taxes. BNPPLC may deduct any United States withholding tax required
on payments to a Participant hereunder from such payments, and the Participant must reimburse
BNPPLC for any such taxes BNPPLC is required to pay and that BNPPLC has not deducted. If BNPPLC is
uncertain whether United States withholding tax is required, BNPPLC may, after notice to the
applicable Participant, deduct the withholding tax except during any period when BNPPLC is excused
from such withholding because of the Participant’s delivery to BNPPLC of (i) a statement in
duplicate conforming to the requirements of United States Treasury Regulation Section 1.1441-5(b)
or (ii) two duly completed copies of Internal Revenue Service Form W-8BEN or any successor form
thereto (“Form W-8BEN”) relating to the Participant and claiming complete exemption from
withholding tax on all amounts to be received by the Participant pursuant to this Agreement or
(iii) a valid United States Internal Revenue Service Form W-8ECI or any successor form thereto
(“Form W-8ECI”) relating to the Participant and claiming complete exemption from withholding tax on
all amounts to be received by the Participant pursuant to this Agreement. Any Participant will, if
requested by BNPPLC, deliver to BNPPLC subsequent statements with respect to such Treasury
Regulation or two additional copies of Form W-8BEN or Form W-8ECI, or the applicable replacement
forms, on or before the date that any prior such delivered statements or forms expire or become
obsolete. If any such statement or form delivered by a Participant to BNPPLC becomes invalid or
inapplicable as to such Participant, such Participant must promptly inform BNPPLC. The obligations
of each Participant pursuant to this subparagraph 4(D) will survive the termination of this
Agreement.

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     (E) Order of Application. For purposes of this Agreement, as between BNPPLC
and Participants, BNPPLC will be entitled (but not required) to apply payments received from NAI
under the Operative Documents or from any sale of the Property or any interest therein or portion
thereof to pay or reimburse then outstanding Unrecovered Protective Advances and Fixed Rate
Settlement Amounts (and interest thereon), if any, regardless of how NAI may otherwise have
designated such payments or may otherwise be entitled to characterize such payments. In addition,
BNPPLC may allocate any such payments to reduce various outstanding Unrecovered Protective Advances
in such order as BNPPLC deems appropriate.

     (F) Investments Pending Dispute Resolution; Overnight Investments. Whenever BNPPLC in
good faith determines that it does not have all information needed to determine how payments to the
Participants must be made on account of any Distributable Payments, or whenever BNPPLC in good
faith determines that there is any dispute among the
Participants about payments which must be made on account of Distributable Payments, BNPPLC
may choose to defer the payments to Participants which are the subject of such missing information
or dispute. However, to minimize any such deferral, BNPPLC must attempt diligently to obtain any
missing information needed to determine how payments to the Participants must be made. Also,
pending any such deferral, or if BNPPLC is otherwise required to invest funds pending distribution
to the Participants, BNPPLC must endeavor to invest the payments at issue. In addition, if BNPPLC
receives any Distributable Payment after 11:00 A.M., New York time, on any day and will not make
payments to Participants in connection therewith until the next Business Day pursuant to
subparagraph 2(E), then BNPPLC must endeavor to invest such payments overnight; however, BNPPLC
will have no liability to the Participants if BNPPLC is unable to make such investments.
Investments by BNPPLC will be in the overnight federal funds market pending distribution, and the
interest earned on each dollar of principal so invested will be paid to the Person entitled to
receive such dollar of principal when the principal is paid to such Person.

10 Nature of this Agreement.

     (A) No Conveyance. This Agreement is intended to create contractual rights
in favor of each Participant to receive payments from BNPPLC, but it is not intended to convey or
assign to the Participants any interest in the Property or in the Operative Documents or in the
payments to be made to BNPPLC thereunder. In no event will any Participant exercise or attempt to
exercise any right or remedy of BNPPLC under the Operative Documents. Nothing in this Agreement
will be construed to grant to the Participants any right to enforce NAI’s obligations under the
Operative Documents, nor is in anything in this Agreement to be construed to allow any Participant
to collect directly from NAI any payments due under the Operative Documents. Although BNPPLC’s
obligations for payments to the Participants hereunder will be computed by 

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reference to funds
actually received as Distributable Payments, this Agreement will not be construed as an assignment
of Distributable Payments themselves or any interest therein, it being understood that (without
limiting or expanding the dollar amount of such obligations) BNPPLC may satisfy such obligations
from other funds available to it, thereby reserving Distributable Payments for payment to other
creditors or for other purposes, as BNPPLC determines in its sole discretion.

     (B) Not a Partnership, Etc. Neither the execution of this Agreement, nor the
sharing of risks and rewards under the Operative Documents, nor any agreement to share in profits
or losses arising as a result of the transactions contemplated thereby, is intended to be or 

     to create, and the foregoing will be construed not to be or to create, any partnership,
joint venture, or other joint enterprise between BNPPLC and any Participant. Neither the execution
of this Agreement nor the management and administration of the Operative Documents or other related
documents by BNPPLC, nor any other right, duty or obligation of BNPPLC under or pursuant to this
Agreement is intended to be or to create any fiduciary relationship between BNPPLC and any
Participant.

11 Amendments; Waivers; Exercise of Rights and Remedies Against NAI.

     (A) Limitations Upon the Rights of BNPPLC. Subject to subparagraph 6(C), but
notwithstanding anything else to the contrary in this Agreement:

     (1) BNPPLC will not:

     (a) without the prior written consent of all Participants, execute any waiver,
modification or amendment of the Operative Documents that would: (1) increase the
Maximum Construction Allowance under the Operative Documents and thereby increase
the amounts the Participants may be required to pay to BNPPLC hereunder; (2) reduce
or postpone (or reasonably be expected to reduce or postpone) any payments that any
Participant would, but for such modification or amendment, be expected to receive
from BNPPLC hereunder (including any extension of the Designated Sale Date); or (3)
except as otherwise expressly contemplated in the Operative Documents, release
BNPPLC’s interest in all or a substantial part of the Property; or

     (b) over the written objection of a Majority, affirmatively make a Decision Not
to Sell at a Loss pursuant to the Purchase Agreement.

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However, this subparagraph 6(A)(1) will not limit BNPPLC’s right to forebear from
exercising rights against NAI to the extent BNPPLC determines in good faith that such
forbearance is appropriate and is permitted by the following subsections in this
subparagraph 6(A). Upon the direction of the Majority, BNPPLC will execute any waiver,
modification or amendment of the Operative Documents requested by NAI; subject to the
conditions, however, that: (A) the waiver, modification or amendment is not prohibited by
the foregoing provisions of this Agreement, (B) the waiver, modification or amendment does
not (1) increase the amount BNPPLC may be required to pay to NAI or anyone else, or (2)
reduce or postpone (and cannot reasonably be expected to reduce or
postpone) any payments that BNPPLC would, but for such modification or amendment, be
expected to receive, or (3) release BNPPLC’s interest in all or a substantial part of the
Property; and (C) BNPPLC is not excused from executing the waiver, modification or amendment
by subparagraph 6(C).

     (2) BNPPLC will, with reasonable promptness, provide the Participants with copies of
all default notices it sends or receives under the Operative Documents and notify the
Participants of any Event of Default or Critical Event of which BNPPLC is actually aware and
of any other matters known to BNPPLC which, in BNPPLC’s reasonable judgment, are likely to
materially affect the payments any Participant will be required to make or be entitled to
receive under this Agreement, but BNPPLC will not in any event be liable to any Participant
for BNPPLC’s failure to do so unless such failure constitutes gross negligence or wilful
misconduct on the part of BNPPLC.

     (3) Before exercising any Critical Remedy, or if requested in writing by any
Participant at any time when an Event of Default or Critical Event has occurred and is
continuing, BNPPLC will call a meeting with the Participants to discuss what action by
BNPPLC, if any, is appropriate under the Operative Documents and what direction, if any, a
Majority may give to BNPPLC. The meeting will be scheduled during regular business hours
in the offices of BNPPLC’s Parent in Dallas, Texas, or another appropriate location in
Dallas, Texas, not earlier than five and not later than twenty Business Days after BNPPLC’s
receipt of the written request from any Participant. BNPPLC will attempt in good faith and
with reasonable diligence to comply with the direction of a Majority if, when a Critical
Event or an Event of Default have occurred and be continuing, a Majority directs BNPPLC in
writing to do the following, as applicable under the circumstances: (a) send any default
notice to NAI required to establish an Event of Default, or (b) exercise any one or more
Critical Remedies. However, if BNPPLC is not a member of the Majority voting pursuant to
this subparagraph 6(A)(3) in favor of any such action, then BNPPLC may require that it first
receive the written agreement (in form reasonably acceptable to BNPPLC) of the members of
the Majority so voting to indemnify BNPPLC from and against all costs, liabilities and
claims that may be incurred by or asserted against BNPPLC because of the action the Majority
directs BNPPLC to take. In no event

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will any Participant instigate any suit or other action
directly against NAI with respect to the Operative Documents or the Property, even if the
Participant would, but for this Agreement, be entitled to do so as a party or third party
beneficiary under the Operative Documents or otherwise; provided, however, this provision
will not preclude any action by any Participant to enforce any right assigned to it by
BNPPLC as described in subparagraph 2(B) to collect any Bank Specific Charge from NAI.

     (4) In the event NAI (a) fails to make any 97-10/Prepayment required pursuant to
Paragraph 9 of the Construction Agreement following a termination of the
Supplemental Payment Obligation pursuant to subparagraph 6(B) of the Purchase
Agreement, or (b) fails to make any Supplemental Payment when required to do so pursuant to
the Purchase Agreement, then BNPPLC must, unless the Participants otherwise agree in
writing, bring suit against NAI to enforce the Operative Documents in such form as is
recommended by reputable counsel no later than sixty days after the expiration of any
applicable cure or grace period given NAI by the express terms of the Purchase Agreement or
other Operative Documents, and thereafter BNPPLC must prosecute the suit with reasonable
diligence in accordance with the advice of reputable counsel. If BNPPLC acquires the
interests of NAI in any of the Property as a result of such suit or otherwise, BNPPLC will
thereafter proceed with reasonable diligence to sell the Property in a commercially
reasonable manner to one or more bona fide third party purchasers and will in any event have
consummated the sale of the entire Property (through a single sale of the entire property or
a series of sales of parts) within five years following the date BNPPLC recovers possession
of the Property at the best price or prices BNPPLC believes are reasonably attainable within
such time. Further, after the Designated Sale Date and prior to BNPPLC’s sale of the entire
Property, BNPPLC will retain a property management company experienced in the area where the
Property is located to manage the operation of the Property and pursue the leasing of any
completed improvements which are part of the Property. BNPPLC will not retain an Affiliate
of BNPPLC to act as the property manager except under a bona fide, arms-length management
contract containing commercially reasonable terms. Further, after the Designated Sale Date
and until BNPPLC sells the Property, BNPPLC will (i) endeavor in good faith to maintain, or
will obtain the agreement of one or more tenants to maintain, the Property in good order and
repair, (ii) procure and maintain casualty insurance against risks customarily insured
against by owners of comparable properties, in amounts sufficient to eliminate the effects
of coinsurance, (iii) keep and allow the Participants to review accurate books and records
covering the operation of the Property, and (iv) pay prior to delinquency all taxes and
assessments lawfully levied against the Property.

Notwithstanding the foregoing, any Participants that have failed to fund any amount due hereunder,
including any Percentage of a Protective Advance, and that have not corrected such failure within
five Business Days after being notified thereof, will have no voting or consent

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rights under this
subparagraph 6(A) and no rights to require BNPPLC to call a meeting pursuant to subparagraph
6(A)(3) until such failure is corrected.

     (B) Rights of BNPPLC Generally. Subject to the limitations set forth in
subparagraph 6(A):

     (1) BNPPLC will have the exclusive right to take any action and to exercise any
available powers, rights and remedies to enforce the obligations of NAI under the
Operative Documents or to refrain from taking any such action or exercising any such
power, right or remedy.

     (2) BNPPLC may (i) give any consent, waiver or approval requested by NAI with respect
to any construction or other approval contemplated in the Construction Agreement, Lease or
other Operative Documents or (ii) waive or consent to any adverse title claims affecting the
Property, subject the condition that, in either case, BNPPLC believes in good faith that
such action will not have a material adverse effect upon the obligations or ability of NAI
to make the payments required under the Operative Documents or upon the rights and remedies,
taken as whole, of BNPPLC under the Operative Documents or upon the Participants hereunder.

     (C) Conflicts and Purchase Agreement Defaults. Notwithstanding anything to the
contrary herein contained, BNPPLC may, even over the objection of any Participant or the Majority,
(A) take any action recommended in writing by reputable counsel and believed in good faith by
BNPPLC to be required of BNPPLC by the Operative Documents or any law, rule or regulation to which
BNPPLC is subject, (B) refrain from taking any action if BNPPLC believes in good faith that the
action is prohibited by the Operative Documents or any law, rule or regulation to which BNPPLC is
subject, and if reputable counsel recommends in writing that BNPPLC refrain from taking the action,
and (C) after notice to the Participants, bring and prosecute a suit against NAI in the form
recommended by and in accordance with advice of reputable counsel at any time when a breach of the
Operative Documents by NAI has put BNPPLC (or any of its officers or employees) at risk of criminal
prosecution or significant liability to third parties or at any time after NAI or an Applicable
Purchaser fails to purchase the Property on the Designated Sale Date pursuant to the Purchase
Agreement. (If, however, BNPPLC takes any action or refrains from taking any action over the
objection of a Majority pursuant to the preceding sentence, BNPPLC must provide the Majority a
written explanation of the basis for BNPPLC’s conclusion that taking the action, or refraining from
taking the action, is permitted by the preceding sentence.) Further, nothing herein contained will
be construed to require BNPPLC to agree to modify the Operative Documents or to take any action or
refrain from taking any action in any manner that could increase BNPPLC’s liability to NAI or
others, that could reduce or postpone payments to which BNPPLC is entitled thereunder, or that
could

Annex
5 - Page 20

 

 

reduce the scope and coverage of the indemnities provided for BNPPLC’s benefit in the
Operative Documents.

     (D) Refusal to Give Consents; Failure to Fund. If any Participant declines to consent
to any amendment, modification, waiver, release or consent for which the Participant’s consent is
requested or required by reason of this Agreement, or if any Participant fails to pay any amount
owed by it hereunder, BNPPLC will have the right, but not the obligation and without limiting any
other remedy of BNPPLC, to reduce such Participant’s Percentage to zero and to terminate such
Participant’s rights to receive any further payments under Article 2 of this Agreement by paying to
such Participant a termination fee equal to the total amount it would be entitled to receive from
BNPPLC hereunder if the date of such payment were the Designated Sale Date and on such date NAI had
itself purchased BNPPLC’s interest in the Property pursuant to and in accordance with the Purchase
Agreement. No Participant’s rights to receive payments equal to such Participant’s Adjusted
Percentage of any Excess Reimbursement of a Protective Advance or interest thereon as provided in
subparagraph 3(C) will be impaired or affected by any termination contemplated in this subparagraph
6(D); accordingly, BNPPLC will not, as a condition to such a termination, be required to reimburse
a Participant for any payments the Participant has made in connection with Protective Advances
pursuant to subparagraph 3(C).

12 Required Repayments. Each Participant must repay to BNPPLC, upon written request or
demand by BNPPLC (i) any sums paid by BNPPLC to such Participant under this Agreement from, or that
were computed by reference to, any Distributable Payment or other amounts which BNPPLC is required
to return or pay over to another party, whether pursuant to any bankruptcy or insolvency law or
proceeding or otherwise and (ii) any interest or other amount that BNPPLC is also required to pay
to another party with respect to such sums. Such repayment by a Participant will not constitute a
release of such Participant’s right to receive payments from BNPPLC hereunder upon BNPPLC’s receipt
of any such Distributable Payment or other amount (or any interest thereon) that BNPPLC may later
recover. Without limiting the foregoing, this Paragraph will apply in the case of any
reimbursement by BNPPLC to NAI of all or any portion of any Supplemental Payment or
97-10/Prepayment as required by subparagraph 3(E)(4) of the Purchase Agreement in the event
of a Deemed Sale (as defined in the Purchase Agreement). Accordingly, in the event of any such
reimbursement required by reason of a Deemed Sale, each Participant must repay to BNPPLC the amount
previously received by it by reason of the Supplemental Payment or 97-10/Prepayment or portion
thereof so reimbursed.

13 NAI Information; Independent Analysis. Prior to the execution of this Agreement,
BNPPLC has provided to the Participants copies of the executed Operative Documents and of various
certificates, legal opinions and other documents delivered to BNPPLC by or on behalf of NAI with
respect to the Operative Documents. In the future, BNPPLC will provide (A) to all Participants
copies of all amendments of the Operative Documents and

Annex 5 -
Page 21 

 

 financial statements, compliance
certificates and other certificates and legal opinions, if any, delivered by or on behalf
of NAI in connection therewith, and (B) to any Participant, as reasonably required to comply with a
specific, reasonable written request for information made by the Participant, copies of other
information readily available to BNPPLC concerning NAI and the transactions contemplated in the
Operative Documents. However, BNPPLC will not be liable for its failure to provide the
Participants any of the foregoing documents unless such failure constitutes gross negligence or
wilful misconduct on BNPPLC’s part, and any Attorney’s Fees or other costs of collecting,
assembling and providing copies of information requested by a Participant pursuant to clause (B) of
the preceding sentence must be reimbursed to BNPPLC by the Participant. Each Participant has
entered into this Agreement without reliance upon representations made outside this Agreement by
BNPPLC or by any Affiliate, agent or attorney of BNPPLC and only after independently reviewing such
documents, independently making such inspections, independently consulting with counsel and
independently collecting and verifying such information, as the Participant determined to be
necessary or appropriate. Without limiting the foregoing, each Participant has independently
reviewed the Operative Documents and independently made such inquiries and investigations of NAI
and the Property as the Participant determined to be necessary or appropriate before executing this
Agreement.

14 Performance through Representatives. BNPPLC may perform any of its duties hereunder by
or through officers, directors, employees, attorneys or agents (collectively, “Representatives”),
and BNPPLC and its Representatives may rely, and will be fully protected in relying, upon any
communication or document believed by it or them to be genuine and correct and to have been signed
or made by the proper Person and, with respect to legal matters, upon the opinion of counsel
selected by BNPPLC. The Participants acknowledge that BNPPLC’s Parent may act as agent for BNPPLC
with respect to the administration of this Agreement, and to the extent it does so, it will be a
Representative of BNPPLC hereunder.

15 Duty of Care. Neither BNPPLC nor any of its Representatives will be liable or
responsible to any Participant or any other Person for any action taken or omitted to be taken by
BNPPLC or any of its Representatives under this Agreement or in relation to the Operative Documents
or the Property (even if negligent or related to a matter for which BNPPLC or any of its
Representatives may otherwise be strictly liable); except that this provision will not
excuse BNPPLC from liability for failing to make timely payments required of BNPPLC to the
Participants by the express provisions of Article 2 or subparagraph 3(C) or from liability for
actions taken or omitted to be taken by BNPPLC which constitute gross negligence or wilful
misconduct. Without limiting the generality of the foregoing, BNPPLC (1) may consult with legal
counsel (including counsel for NAI), independent public accountants and other experts selected by
it and will not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (2) makes no warranty or
representation to the Participants except as provided in Article 12 and will not be responsible to
the Participants

Annex 5 - Page 22 

 

for any statements, warranties or representations made in or in connection with
the Operative Documents; (3) will not
have any duty to the Participants to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of the Operative Documents or to inspect the Property or
the books and records of NAI; (4) will not be responsible to the Participants for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Operative
Documents or any instrument or document furnished in connection therewith; (5) may rely upon the
representations and warranties of NAI and the Participants in exercising its powers hereunder
unless BNPPLC has actual knowledge that such representations and warranties are untrue; and (6)
will incur no liability under or in respect of this Agreement or the Operative Documents by acting
in reliance upon any notice, consent, certificate or other instrument or writing (including any
telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent by the proper
Person or Persons.

16 Representations by Each Participant. Each Participant represents that as of the date
it became a party to this Agreement:

     (A) Nature of this Agreement. It is the type of financial institution set forth under
its name in Schedule 1, or in the Participation Agreement Schedule which made it a party to this
Agreement, and it is entering into this Agreement for its own account in respect of a commercial
transaction made in ordinary course of its business and not with a view to or in connection with
any subparticipation, sale or distribution to any Person (other than its Affiliates). Such
Participant does not consider the acceptance of the risk participation hereunder to constitute the
“purchase” or “sale” of a “security” within the meaning of any federal or state securities statute
or law, or any rule or regulations under any of the foregoing.

     (B) No Default or Violation. To such Participant’s knowledge, the execution, delivery
and performance of this Agreement do not and will not contravene, result in a breach of or
constitute a default under any material contract or agreement to which the Participant is a party
or by which the Participant is bound and do not violate or contravene any law, order, decree, rule
or regulation to which the Participant is subject.

     (C) No Suits. To such Participant’s knowledge, there are no judicial or
administrative actions, suits or proceedings involving the validity, enforceability or priority of
this Agreement and no such suits or proceedings are threatened.

     (D) Organization. Such Participant is duly incorporated
and legally existing under the laws of jurisdiction indicated in Schedule 1 or in the Participation
Agreement Schedule which made it a party to this Agreement. Such Participant has all requisite
power and all material governmental certificates of authority, licenses, permits, qualifications
and other documentation necessary to perform its obligations under this Agreement.

Annex 5 - Page 23 

 

     (E) Enforceability. This Agreement constitutes a legal, valid and binding obligation
of such Participant, enforceable in accordance with its terms, subject to bankruptcy and other laws
affecting creditors’ rights generally and general equitable principles. The execution and delivery
of, and performance under, this Agreement are within such Participant’s powers and have been duly
authorized by all requisite action and are not in contravention of the powers of the charter or
other corporate papers of the Participant.

     (F) No Funding With Plan Assets. Such Participant has not and will not provide
advances required by this Participation Agreement from the assets of any employee benefit plan (or
its related trust).

17 Representations by BNPPLC. BNPPLC represents to each Participant, as of the date such
Participant became a party to this Agreement, that:

     (A) No Default or Violation. To BNPPLC’s knowledge, its execution, delivery and
performance of this Agreement and the Operative Documents do not contravene, result in a breach of
or constitute a default under any material contract or agreement to which BNPPLC is a party or by
which BNPPLC is bound and do not violate or contravene any law, order, decree, rule or regulation
to which BNPPLC is subject.

     (B) No Suits. To BNPPLC’s knowledge, there are no judicial or administrative actions,
suits or proceedings involving the validity, enforceability or priority of this Agreement and no
such suits or proceedings are threatened.

     (C) Organization. BNPPLC is duly incorporated and legally existing under the laws of
Delaware. BNPPLC has all requisite power and all material governmental certificates of authority,
licenses, permits, qualifications and other documentation necessary to perform its obligations
under this Agreement.

     (D) Enforceability. This Agreement and the Operative Documents constitute legal,
valid and binding obligations of BNPPLC, enforceable in accordance with their respective terms,
subject to bankruptcy and other laws affecting creditors’ rights generally and general equitable
principles. BNPPLC’s execution and delivery of, and performance under, this Agreement and the
Operative Documents are within BNPPLC’s powers and have been duly authorized by all requisite
action and are not in contravention of the powers of the charter, by-laws or other corporate papers
of BNPPLC; except that BNPPLC makes no representation or warranty that conditions imposed by any
state or local Applicable Laws to the purchase, ownership, lease, financing or operation of the
Property have been satisfied.

Annex 5 - Page 24 

 

     (E) Liens Removable by BNPPLC. BNPPLC will not create or permit any Liens Removable
by BNPPLC not claimed by, through or under any of the Participants (other than BNPPLC’s Affiliates)
without NAI’s consent.

18 Assignments.

     (A) By the Participants Generally. Except as expressly provided below, no
Participant may assign or attempt to assign any interest in or rights under this Agreement without
the prior written consent of BNPPLC, which consent will not be unreasonably withheld so long as the
Participant requesting the approval is not in default hereunder; however, this provision will not
prevent a Participant from transferring its rights hereunder to its Affiliates or to any other
Participants who are already parties to this Agreement. Notwithstanding any permitted assignment
by a Participant, if the assignment is to any Person that does not qualify as a “Participant” for
purposes of the Operative Documents (which, as more particularly provided in the definition of
Participant in the Common Definitions and Provisions Agreement, may require the written approval of
such Person by NAI), then such Participant’s obligations under this Agreement will remain
unchanged, such Participant will remain primarily responsible for the performance of its
obligations hereunder, and BNPPLC may continue to deal solely and directly with such Participant in
connection with all rights and obligations under this Agreement. In the event, however, of a
permitted assignment by a Participant to a Person that does qualify as a “Participant” for purposes
of the Operative Documents, accomplished by the execution of appropriate Participation Agreement
Supplements as herein provided, the assigning Participant will not be liable for any failure by the
assignee to fulfill the obligations assumed hereunder by the assignee by reason of such assignment.

     (B) By BNPPLC. Except as expressly provided herein, BNPPLC may not assign or attempt
to assign any rights under or interest in the Operative Documents or this Agreement or any interest
in the Property without all of the Participants’ prior written consents, which consents will not be
unreasonably withheld. By a Participation Agreement Supplement, BNPPLC may, without the prior
written consent of any Participant, assign participations in the Operative Documents or the
payments required to BNPPLC thereunder to any then existing Participant and to other financial
institutions or Affiliates of financial institutions so long as BNPPLC has received any approval of
NAI required by the Lease. In addition, BNPPLC may assign its right to receive Distributable
Payments and its rights and interests in and to the Property, the Operative Documents and this
Agreement to Affiliates of BNPPLC or other Persons that do not become Participants, but in such
event BNPPLC’s obligations under this Agreement will remain unchanged, BNPPLC will remain primarily
responsible for the performance of its obligations hereunder, and all Distributable Payments
received by any such Affiliates or other Persons as assignee of BNPPLC will, for purposes of
computing payments required to any Participant hereunder, be considered as received by BNPPLC. In
addition, BNPPLC will be permitted to

Annex 5 - Page 25 

 

transfer any rights or interests as BNPPLC believes in good faith to be necessary to satisfy
the Operative Documents or Applicable Laws.

     (C) Execution of Participation Agreement Supplements. Promptly after the execution of
a Participation Agreement Supplement by BNPPLC and any Participant, BNPPLC will provide a copy
thereof to all other Participants, but the other Participants need not join in or approve the
Participation Agreement Supplement for it to be effective.

     (D) Regulation A. Notwithstanding subparagraphs 13(A) or 13(B), a Participant may
assign and pledge all or any portion of its rights under this Agreement to any Federal Reserve Bank
as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve
System and any Operating Circulars issued by such Federal Reserve Bank.

     (E) Costs. Each Participant must pay all costs incurred by BNPPLC in connection with
any permitted assignment by or through such Participant, including, but not limited to, reasonable
fees and disbursements of its counsel, and any transfer taxes or other taxes assessed because of
such assignment which NAI is not required to pay under the Lease.

19 GOVERNING LAW; SUBMISSION TO PROCESS; WAIVER OF JURY TRIAL. This Agreement will be
deemed a contract made under the laws of the State of Texas and will be construed and enforced in
accordance with and governed by the laws of the State of Texas and the laws of the United States of
America, without regard to principles of conflict of laws. Each of BNPPLC and the Participants
hereby irrevocably submits itself to the non-exclusive jurisdiction of the state and the federal
courts sitting in Dallas, Texas, and agrees and consents that service of process may be made upon
it in any legal proceeding relating to this Agreement by any means allowed under Texas or federal
law. Each of BNPPLC and the Participants hereby waives and agrees not to assert, by way of motion,
as a defense or otherwise, that any such proceeding which is brought in a court in Dallas, Texas is
brought in an inconvenient forum or that the venue thereof is improper. Each of BNPPLC and the
Participants, knowingly, voluntarily and intentionally waives any right to a jury trial of any
dispute relating to this agreement and agrees that any such dispute will be tried before a
judge sitting without a jury.

20 Termination. This Agreement will terminate on the first date on which all obligations
of NAI under the Operative Documents have been indefeasibly paid or otherwise satisfied or excused,
BNPPLC has ceased to have any rights in the Property and each party hereto has fully performed its
obligations hereunder to the other parties hereto. The agreements of BNPPLC and the Participants
in subparagraph 3(C) (which concerns payments by Participants of their respective Percentages of
Protective Advances) will survive the termination of this Agreement.

Annex 5 - Page 26 

 

Following any sale of the Property by BNPPLC pursuant to the Purchase Agreement and the payment to
any Participant of all amounts payable to it hereunder (including, without limitation, an amount
equal to such Participant’s Percentage of all Net Sales Proceeds paid by NAI or the Applicable
Purchaser on the Designated Sale Date), the Participant will, if asked to do so by BNPPLC or NAI,
execute and deliver a quitclaim and release (in recordable form) as to the Property in favor of NAI
or the Applicable Purchaser.

21 Miscellaneous.

     (A) Reliance by Others. None of the provisions of this Agreement will inure to the
benefit of any Person other than the Participants and BNPPLC and BNPPLC’s Representatives;
consequently, no Persons other than the Participants, BNPPLC and BNPPLC’s Representatives may rely
upon or raise as a defense, in any manner whatsoever, the failure of any Participant or BNPPLC to
comply with the provisions of this Agreement. None of the Participants nor BNPPLC will incur any
liability to any other Person for any act of omission of another.

     Notwithstanding the foregoing, however, NAI will be a third party beneficiary of each
Participant’s obligations to make advances as provided in subparagraph 3(B) above, of the
representations of each Participant in Paragraph 11, of each Participant’s agreement to provided a
release and quitclaim of the Property pursuant to the last sentence of Paragraph 15 and of each
Participant’s agreements in Paragraph 17. As a third party beneficiary of the obligations of the
Participants specified in the preceding sentence, NAI will have standing to exercise any remedies
available at law or in equity (including the recovery of monetary damages) against any Participant
in NAI’s own name if that Participant breaches such obligations. Further, BNPPLC may assign to NAI
any claims it may have against a Participant because of the Participant’s breach of any of the
provisions referenced in this paragraph or because of any adverse title claim made against the
Property by, through or under the Participant. Each Participant acknowledges that NAI will be
relying on the commitments of the Participant to make payments required by this Agreement to permit
funding of Anticipated Advances by BNPPLC under the Construction Agreement.

     (B) Waivers, Etc. No delay or omission by any party to exercise any right under this
Agreement will impair any such right, nor will it be construed to be a waiver thereof. No waiver
of any single breach or default under this Agreement will be deemed a waiver of any other breach or
default. Any waiver, consent, or approval under this Agreement must be in writing to be effective.

     (C) Severability. The illegality or unenforceability of any provision of this
Agreement will not in any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement.

Annex 5 - Page 27 

 

     (D) Notices. All notices, demands, approvals, consents and other communications to be
made hereunder to or by the parties hereto must, to be effective for purpose of this Agreement, be
in writing. Notices, demands and other communications required or permitted hereunder are to be
sent to the addresses set forth in Schedule 1 to this Agreement and must be given by any of the
following means: (A) personal service, with proof of delivery or attempted delivery retained; (B)
electronic communication, whether by telex, telegram or telecopying (if confirmed in writing sent
by United States first class mail, return receipt requested); or (C) registered or certified first
class mail, return receipt requested. Such addresses may be changed by notice to the other parties
given in the same manner as provided above. Any notice or other communication sent pursuant to
clause (A) or (C) hereof will be deemed received (whether or not actually received) upon first
attempted delivery at the proper notice address on any Business Day between 9:00 A.M. and 5:00
P.M., and any notice or other communication sent pursuant to clause (B) hereof will be deemed
received upon dispatch by electronic means.

     (E) Construction. Words of any gender used in this Agreement will be held and
construed to include any other gender, and words in the singular number will be held to include the
plural and vice versa, unless the context otherwise requires. References herein to Paragraphs,
subparagraphs or other subdivisions will refer to the corresponding Paragraph, subparagraphs or
subdivisions of this Agreement, unless specific reference is made to another document or
instrument. References herein to any Schedule or Exhibit will refer to the corresponding Schedule
or Exhibit attached hereto, which will be made a part hereof by such reference. All capitalized
terms used in this Agreement which refer to other documents will be deemed to refer to such other
documents as they may be renewed, extended, supplemented, amended or otherwise modified from time
to time so long as the documents are not renewed, extended or modified in breach of any provision
contained herein or therein or, in the case of any other document to which BNPPLC is a party or of
which BNPPLC is an intended beneficiary, without the consent of BNPPLC. All accounting terms used
but not specifically defined herein will be construed in accordance with GAAP. The words “this
Agreement”, “herein”, “hereof”, “hereby”, “hereunder” and words of similar import when used in this
Agreement refer to this Agreement as a whole and not to any particular subdivision unless expressly
so limited. The phrases “this Paragraph” and “this subparagraph” and “this subsection” and similar
phrases used herein refer only to the Paragraphs, subparagraphs or subsections hereof in which the
phrase occurs. As used herein the word “or” is not exclusive. As used herein the words “include”,
“including” and similar terms will be construed as if followed by “without limitation to”. The
rule of ejusdem generis will not be applied to limit the generality of a term in any of the
Operative Documents when followed by specific examples. When used to qualify any representation or
warranty made by a Person, the phrases “to the knowledge of [such Person]” or “to the best
knowledge of [such Person]” are intended to mean only that such Person does not have knowledge of
facts or circumstances which make the representation or warranty false or misleading in some
material respect; such phrases are not intended to suggest that the Person does indeed know the
representation or warranty is true.

Annex 5 - Page 28 

 

     (F) Headings. The paragraph and section headings contained in this Agreement
are for convenience only and will in no way enlarge or limit the scope or meaning of the various
and several provisions hereof.

     (G) Entire Agreement. This Agreement embodies the entire agreement between the
parties, supersedes all prior agreements and understandings between the parties, if any, relating
to the subject matter hereof, and may be amended only by an instrument in writing executed by an
authorized representative of each party to be bound by such amendment.

     (H) Further Assurances. Subject to any restriction in the Operative Documents, each
of BNPPLC and the Participants will promptly execute and deliver all further instruments and
documents and take all further action as any of them may reasonably request in order to evidence
the agreements made hereunder and otherwise to effect the purposes of this Agreement.

     (I) Impairment
of Operative Documents. Nothing herein
contained (including the provisions governing the application of payments in subparagraph 4(E) and
the provisions authorizing assignments by BNPPLC in subparagraph 13(B)) will impair or modify NAI’s
rights under the Operative Documents.

     (J) Books and Records. BNPPLC will keep accurate books and records in which full,
true and correct entries will be promptly made as to all payments made and received concerning the
Property and will permit all such books and records (excluding any information that would otherwise
be protected by BNPPLC’s attorney client privilege) to be inspected and copied by the Participants
and their duly accredited representatives at all times during reasonable business hours after five
Business Days advance notice. This subparagraph will not be construed as requiring BNPPLC to
regularly maintain separate books and records relating exclusively to the Property; however, upon
reasonable request of a Participant, BNPPLC will, at the requesting Participant’s expense,
construct or abstract from its regularly maintained books and records information required by this
subparagraph relating to the Property.

     (K) Definition of Knowledge. Representations and warranties made in this Agreement
but limited to the “knowledge” of BNPPLC or any Participant, as the case may be, will be limited to
the present actual knowledge of the officers or other employees of such party primarily responsible
for reviewing and negotiating this Agreement. Also, as used herein with respect to the existence
of any facts or circumstances after the date of this Agreement, “knowledge” of BNPPLC or a
Participant, as the case may be, will be limited to the present actual knowledge at the time in
question of the officers or other employees of such party primarily responsible for administering
this Agreement. However, none of the officers or employees of any party to this Agreement will be
personally liable for any representations or warranties made herein or for taking or failing to
take any action required hereby.

Annex 5 - Page 29 

 

     (L) Attorneys’ Fees. If any party to this Agreement commences any legal action or
other proceeding against another party hereto to enforce any of the terms of this Agreement, or
because of any breach of the other party or dispute hereunder, the successful or prevailing party
will be entitled to recover from the nonprevailing party all Attorneys’ Fees incurred in connection
therewith, whether or not such controversy, claim or dispute is prosecuted to a final judgment.
Any such Attorneys’ Fees incurred by any party 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.

     (M) Execution in Counterparts. To facilitate execution, this Agreement may be
executed in multiple identical counterparts. It will not be necessary that the signature of, or on
behalf of, each party, or that the signature of all persons required to bind any party, appear on
each counterpart. All counterparts, taken together, will collectively constitute a single
instrument. But it will not be necessary in making proof of any of this Agreement to produce or
account for more than a single counterpart containing the respective signatures of, or on behalf
of, each of the parties to this Agreement. Any signature page may be detached from one counterpart
and then attached to a second counterpart with identical provisions without impairing the legal
effect of the signatures on the signature page. Signing and sending a counterpart (or a signature
page detached from the counterpart) by facsimile or other electronic means to another party will
have the same legal effect as signing and delivering an original counterpart to the other party. A
copy (including a copy produced by facsimile or other electronic means) of any signature page that
has been signed by or on behalf of a party to this Agreement will be as effective as the original
signature page for the purpose of proving such party’s agreement to be bound.

Annex 5 - Page 30 

 

22 Confidentiality Concerning NAI’s Proprietary Information. Each Participant agrees to
use reasonable precautions to keep confidential any “proprietary information” of NAI (as defined in
the Lease) that such Participant may receive from BNPPLC or NAI or otherwise discover with respect
to NAI or NAI’s business as a result of Participant’s involvement with the transactions
contemplated in the Operative Documents, except for disclosures: (i) specifically and previously
authorized in writing by NAI; (ii) to any assignee of the Participant as to any interest hereunder
so long as such assignee has agreed in writing to use its reasonable efforts to keep such
information confidential in accordance with the terms of this Paragraph; (iii) to legal counsel,
accountants, auditors, environmental consultants and other professional advisors to the Participant
so long as the Participant informs such persons in writing (if practicable) of the confidential
nature of such information and directs them to treat such information confidentially; (iv) to
regulatory officials having jurisdiction over the Participant (although the disclosing party will
request confidential treatment of the disclosed information, if practicable); (v) as required by
legal process (although the disclosing party will request confidential treatment of the disclosed
information, if practicable); and (vi) of information which has previously become publicly
available through the actions or inactions of a person other than the Participant not, to the
Participant’s knowledge, in breach of an obligation of confidentiality to NAI. Further,
notwithstanding any other contrary provision contained in this Agreement or any related agreements
by which any Participant is bound, BNPPLC and Participants (and each of their respective employees,
representatives or other agents) may disclose, without limitation of any kind, the tax treatment
and tax structure of the transactions contemplated by this Agreement or the Operative Documents and
all materials of any kind (including opinions or other tax analyses) that are provided to such
party relating to such tax treatment and tax structure, other than any information for which
non-disclosure is reasonably necessary in order to comply with applicable securities laws.

[The signature pages follow.]

Annex 5 - Page 31 

 

     IN WITNESS WHEREOF, this Participation Agreement is executed to be effective as of
                                        
, 200___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING
CORPORATION, a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

Annex 5 - Page 32 

 

[Continuation of signature pages for Participation Agreement dated as of
                    , 200___.]

	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Name (print):	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title (print):	 	 
	 

	 	 	 	 	 	 

Annex 5 - Page 33 

 

SCHEDULE
1

A. BNPPLC: BNP PARIBAS LEASING CORPORATION,

     a Delaware corporation

	 	1.	 	Amount Retained:
$                              
          
	 
	 	2.	 	Initial Percentage:                     %
	 
	 	3.	 	Address for Notices:
	 
	 	 	 	BNP Paribas Leasing Corporation

12201 Merit Drive

Suite 860

Dallas, Texas 75251
	 
	 	 	 	Attention: Lloyd G. Cox
	 
	 	 	 	Telephone: (972) 788-9191

Facsimile: (972) 788-9140
	 
	 	4.	 	Payment Instructions:
	 
	 	 	 	Federal Reserve Bank of New York

ABA 026007689 BNP Paribas

/BNP/ BNP Houston

/AC/ 14334000176

/Ref/ NAI/                      Operating Lease
	 
	 	5.	 	Operations Contact:
	 
	 	 	 	BNP Paribas Leasing Corporation

12201 Merit Drive

Suite 860

Dallas, Texas 75251
	 
	 	 	 	Attention: Lloyd G. Cox
	 
	 	 	 	Telephone: (972) 788-9191

Facsimile: (972) 788-9140

Annex 5 - Page 34 

 

SCHEDULE
1

B. Participant:
                                        
                    

	 	1.	 	Amount of Participation:
$                                       
 	 
	 
	 	2.	 	Percentage:                     %	 
	 
	 	3.	 	Address for Notices:	 
	 
	 	 	 	                                       
 

                                        

                                        
	 
	 
	 	 	 	Telephone: (___) ___-___

Facsimile: (___) ___-___	 
	 
	 	4.	 	Payment Instructions:	 
	 
	 	 	 	                                       
                     

ABA
                                        

                                        

                                        
                    

/Ref/
                                        
	 
	 
	 	5.	 	Operations Contact:	 
	 
	 	 	 	                                       
 

                                        

                                        
	 
	 
	 	 	 	Telephone: (___) ___-___

Facsimile: (___) ___-___	 
	 
	 	6.	 	“Initial Payment” Due from

Participant to BNPPLC:       An amount equal to the Percentage specified above
times the Initial Funding Advance under the Construction
Agreement.
	 

Annex 5 - Page 35 

 

Exhibit A

SUPPLEMENT TO PARTICIPATION AGREEMENT

[       
         
               
         ,       
              ]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Gentlemen:

     Reference is made to the Participation Agreement dated as of
                                        
, 200___ (as
heretofore amended, the “Participation Agreement”) between BNP Paribas Leasing Corporation
(“BNPPLC”), a Delaware corporation,
                                        
                     and other banks or financial
institutions which have or may from time to time become Participants under and as defined in such
Participation Agreement (collectively, the “Participants”). Unless otherwise defined herein, all
capitalized terms used in this Supplement have the respective meanings given to those terms in the
Participation Agreement.

[NOTE: THE NEXT TWO PARAGRAPHS, AND THE ADDENDUM TO SCHEDULE 1 ATTACHED TO THIS EXHIBIT,
WILL BE INCLUDED ONLY AS PART OF A SUPPLEMENT THAT ADDS A NEW PARTICIPANT UNDER THE PARTICIPATION
AGREEMENT:

     The undersigned, by executing and delivering this Supplement to BNPPLC, hereby agrees to
become a party to the Participation Agreement referenced therein, in each case as a Participant and
agrees to be bound by all of the terms thereof applicable to Participants. The undersigned hereby
agrees that its Percentage under the Participation Agreement will be                      percent
(                    %), effective as of the date of this letter. Contemporaneously with the execution
of this letter, the undersigned is paying to BNPPLC the sum of
$                                       
                      in
consideration of the rights it is acquiring as a Participant under the Participation Agreement with
the foregoing Percentage.

     Schedule 1 attached to the Participation Agreement is amended by the addition of an Addendum
(concerning the undersigned) in the form attached to this Supplement.]

Annex 5 - Page 36 

 

[NOTE: THE NEXT PARAGRAPH WILL BE INCLUDED ONLY IN A SUPPLEMENT THAT REDUCES AN EXISTING
PARTICIPANT’S PERCENTAGE UNDER THE PARTICIPATION AGREEMENT:

     In consideration of the payment of
$                                       
  to the undersigned, the
receipt and sufficiency of which is hereby acknowledged by the undersigned, the undersigned hereby
agrees that its Percentage under the Participation Agreement is reduced to percent (                    ), effective as of the date of this
letter.]

[NOTE: THE NEXT PARAGRAPH WILL BE INCLUDED ONLY IN A SUPPLEMENT THAT INCREASES AN EXISTING
PARTICIPANT’S PERCENTAGE UNDER THE PARTICIPATION AGREEMENT:

     The undersigned hereby agrees that its Percentage under the Participation Agreement is
increased to
                                        
 percent (                    %), effective as of the date of
this letter. Contemporaneously with the execution of this letter, the undersigned is paying BNPPLC
the sum of $                     in consideration of such increase.]

     IN WITNESS WHEREOF, the undersigned has executed this Supplement as of the day and year
indicated above.

	 	 	 	 	 	 	 
	 

	 	[NAME]	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Printed Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Accepted and agreed:	 	 
	 
	 	 	 	 	 	 
	BNP PARIBAS LEASING CORPORATION	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Printed Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Annex 5 - Page 37 

 

Addendum to Schedule 1

Participant:          
           
                
              
                
             

	 	1.	 	Amount of Participation:
$                                  
      
	 
	 	2.	 	Percentage:                     %
	 
	 	3.	 	Address for Notices:
	 
	 	 	 	Attention:                    
	 
	 	 	 	Telephone:                                     
   

Facsimile:                                      
  

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	4.	 	 	Payment Instructions:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Bank:	 	 	 	 
	 

	 	 	 	 	 	Account:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Account No.:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	ABA No.:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Reference:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	5.	 	 	Operations Contact:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attention:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Telephone:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Annex 5 - Page 38

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