Document:

exv10w43

Exhibit 10.43

AMENDED AND RESTATED

PURCHASE AGREEMENT

(BUILDING 8)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1
	 	Additional Definitions
	 	 	2	 
	 
	 	“97-1/Default (100%)”
	 	 	2	 
	 
	 	“Adjusted Lease Balance”
	 	 	3	 
	 
	 	“Applicable Purchaser”
	 	 	3	 
	 
	 	“Balance of Unpaid Construction Period Losses”
	 	 	3	 
	 
	 	“BNPPLC’s Actual Out of Pocket Costs”
	 	 	4	 
	 
	 	“Break Even Price”
	 	 	5	 
	 
	 	“Committed Price”
	 	 	5	 
	 
	 	“Conditions to NAI’s Initial Remarketing Rights”
	 	 	5	 
	 
	 	“Contingent Losses”
	 	 	5	 
	 
	 	“Decision Not to Sell at a Loss”
	 	 	5	 
	 
	 	“Deemed Sale”
	 	 	6	 
	 
	 	“Extended Remarketing Period”
	 	 	6	 
	 
	 	“Fair Market Value”
	 	 	6	 
	 
	 	“Final Sale Date”
	 	 	6	 
	 
	 	“Initial Remarketing Notice”
	 	 	6	 
	 
	 	“Initial Remarketing Price”
	 	 	6	 
	 
	 	“Lease Balance”
	 	 	7	 
	 
	 	“Make Whole Amount”
	 	 	7	 
	 
	 	“Maximum Remarketing Obligation”
	 	 	7	 
	 
	 	“Must Sell Price”
	 	 	8	 
	 
	 	“NAI’s Extended Remarketing Right”
	 	 	8	 
	 
	 	“NAI’s Initial Remarketing Rights”
	 	 	8	 
	 
	 	“NAI’s Target Price”
	 	 	8	 
	 
	 	“Notice of Sale”
	 	 	8	 
	 
	 	“Proposed Sale”
	 	 	8	 
	 
	 	“Proposed Sale Date”
	 	 	8	 
	 
	 	“Purchase Option”
	 	 	8	 
	 
	 	“Put Option”
	 	 	8	 
	 
	 	“Qualified Sale”
	 	 	8	 
	 
	 	“Sale Closing Documents”
	 	 	9	 
	 
	 	“Supplemental Payment”
	 	 	9	 
	 
	 	“Supplemental Payment Obligation”
	 	 	9	 
	 
	 	“Valuation Procedures”
	 	 	10	 
	 
	 	 	 	 	 	 
	2
	 	NAI’s Options and Obligations on the Designated Sale Date
	 	 	10	 
	 
	 	(A)     Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation
	 	 	10	 
	 
	 	(B)     Designation of the Purchaser
	 	 	12	 
	 
	 	(C)     Delivery of Property Related Documents If BNPPLC Retains the Property
	 	 	12	 
	 
	 	(D)     Effect of the Purchase Option and NAI’s Initial Remarketing Rights on	 	 	 	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 
	Subsequent Title
Encumbrances	 	 	12	 
	 

	 	(E)      
Security for NAI’s Purchase Option
	 	 	13	 
	 
	 	 	 	 	 	 
	3

	 	NAI’s Rights, Options and Obligations After the Designated Sale Date
	 	 	13	 
	 

	 	(A)     
 NAI’s Right to Buy During the Thirty Days After the Designated Sale Date
	 	 	13	 
	 

	 	(B)      NAI’s Obligation to Buy if Certain Conditions are Satisfied
	 	 	13	 
	 

	 	(C)     
NAI’s Extended Right to Remarket
	 	 	14	 
	 

	 	(D)     
Deemed Sale On the Second Anniversary of the Designated Sale Date
	 	 	15	 
	 

	 	(E)     
NAI’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale
	 	 	15	 
	 
	 	 	 	 	 	 
	4

	 	Transfers By BNPPLC After the Designated Sale Date
	 	 	16	 
	 

	 	(A)     
BNPPLC’s Right to Sell 
	 	 	16	 
	 

	 	(B)     
Survival of NAI’s Rights and the Supplemental Payment Obligation
	 	 	16	 
	 

	 	(C)     
Easements and Other Transfers in the Ordinary Course of Business 
	 	 	16	 
	 
	 	 	 	 	 	 
	5

	 	Terms of Conveyance Upon Purchase
	 	 	17	 
	 

	 	(A)     
Tender of Sale Closing Documents
	 	 	17	 
	 

	 	(B)       Delivery of Escrowed
Proceeds 
	 	 	17	 
	 
	 	 	 	 	 	 
	6

	 	Survival and Termination of the Rights and Obligations of NAI and BNPPLC
	 	 	17	 
	 

	 	(A)     
Status of this Agreement Generally
	 	 	17	 
	 

	 	(B)      Election by NAI to Terminate the Supplemental Payment Obligation Prior to the
Completion Date 
	 	 	18	 
	 

	 	(C)      Automatic Termination of NAI’s Rights
	 	 	19	 
	 

	 	(D)      Payment Only to BNPPLC
	 	 	19	 
	 

	 	(E)      Preferences and Voidable Transfers 
	 	 	19	 
	 

	 	(F)      Remedies Under the Other Operative Documents
	 	 	19	 
	 
	 	 	 	 	 	 
	7

	 	Certain Remedies Cumulative
	 	 	20	 
	 
	 	 	 	 	 	 
	8

	 	Attorneys’ Fees and Legal Expenses
	 	 	20	 
	 
	 	 	 	 	 	 
	9

	 	Successors and Assigns
	 	 	20	 
	 
	 	 	 	 	 	 
	10

	 	Amendment and Restatement of Prior Purchase Agreement
	 	 	20	 

(ii)

 

TABLE OF CONTENTS
(Continued)

Exhibits and Schedules

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

(iii)

 

AMENDED AND RESTATED

PURCHASE AGREEMENT

(BUILDING 8)

     This AMENDED AND RESTATED PURCHASE AGREEMENT (BUILDING 8) (this “Agreement”), dated as of
November 29, 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 an
Amended and Restated Common Definitions and Provisions Agreement (Building 8) dated as of the
Effective Date (the “Common Definitions and Provisions Agreement”), which by this reference is
incorporated into and made a part of this Agreement for all purposes. As used in this Agreement,
capitalized terms defined in the Common Definitions and Provisions Agreement and not otherwise
defined in this Agreement are intended to have the respective meanings assigned to them in the
Common Definitions and Provisions Agreement.

     Contemporaneously with this Agreement, BNPPLC is executing and accepting an Amended and
Restated Ground Lease (Building 8) dated as of the Effective Date (the “Ground Lease”) from NAI,
pursuant to which BNPPLC is acquiring a leasehold estate in the Land described in Exhibit A
and any existing Improvements on the Land.

     Also contemporaneously with this Agreement, BNPPLC and NAI are executing an Amended and
Restated Construction Agreement (Building 8) dated as of the Effective Date (the“Construction
Agreement”) and an Amended and Restated Lease Agreement (Building 8) dated as of the Effective Date
(the “Lease”). Pursuant to the Construction Agreement, BNPPLC is agreeing to provide funding for
the construction of new Improvements. When the term of the Lease commences, the Lease will cover
all Improvements on the Land described in Exhibit A. (As used herein, “Property” means (i)
all of BNPPLC’s interests, including those created by the Ground Lease, in the Land and in the
Improvements and in all other real and personal property from time to time covered or to be covered
by the Lease and included within the “Property” as defined therein, and (ii) BNPPLC’s interest in
any Escrowed Proceeds yet to be applied as a Qualified Prepayment or to the cost of repairs to the
Improvements or other property covered by the Lease; except that, for purposes of this Agreement,
the Property will not include any condemnation or insurance proceeds included in Escrowed Proceeds
as a result of any Pre-lease Force Majeure Event, nor will it include any right to receive any such
condemnation or insurance proceeds in the future, unless NAI itself or one of its Affiliates
purchases the Property from BNPPLC as provided in subparagraphs 2(A)(1), 3(A) or 3(B) below.)

     NAI and BNPPLC have agreed on the terms and conditions upon which NAI may

 

 

purchase or
arrange for the purchase of the Property, and by this Agreement they desire to confirm all such
terms and conditions.

AGREEMENTS

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

     “97-1/Default (100%)” means a Default that is or results from any of the following:

     (A) a failure of NAI to make any payment required by any Operative Document, including
(i) any 97-10/Prepayment payable as provided in Paragraph 9 of the Construction
Agreement, (ii) any other amounts payable under the Construction Agreement because of
Covered Construction Period Losses, (iii) any payment of Rent required by the Lease or (iv)
any Supplemental Payment required by this Agreement;

     (B) any Hazardous Substance Activities on or about the Land;

     (C) any failure of NAI after the Completion Date to insure, maintain, operate or repair
the Property in accordance with all terms and conditions of the Lease;

     (D) any failure of NAI to apply insurance or condemnation proceeds received by NAI as
required by the Construction Agreement or the Lease, as applicable;

     (E) any breach by NAI of the Ground Lease;

     (F) any bankruptcy or insolvency proceeding involving NAI or any of its Subsidiaries,
as the debtor, or any of the events or circumstances described in clauses (G), (H) or (I) of
the definition of Event of Default in the Common Definitions and Provisions Agreement;

     (G) any breach by NAI of the financial covenants in subparagraph 3(C) of the Closing
Certificate that occurs or continues after the Completion Date;

     (H) a failure of NAI or any of its Subsidiaries, which occurs or continues after
the Completion Date, to pay when due a regularly scheduled payment of the principal of or
premium or interest on any of its Indebtedness which is outstanding in a principal amount of
at least $25,000,000, as described in clause (F) of the definition of Event of Default in

Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

the Common Definitions and Provisions Agreement;

     (I) a failure of NAI or any of its Subsidiaries, which occurs or continues after the
Completion Date, to pay any judgment or order for the payment of money rendered against it
in an amount (not covered by insurance) which exceeds $25,000,000, as described in clause
(J) of the definition of Event of Default in the Common Definitions and Provisions
Agreement;

     (J) 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 (including any contractor working
for NAI) that occurs prior to the Completion Date; or

     (K) subject to the proviso at the end of Exhibit B, any breach by NAI of the
provisions set forth in Exhibit B.

Except as provided in subparagraph 3(B), the characterization of any Default as a
97-1/Default (100%) will not affect the rights or remedies available to BNPPLC because of
the Default.

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

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

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

	 	 	 	enforcement of the Operative Documents, (D) the making of Funding Advances, (E) the
Construction Project, (F) the breach by NAI of this Agreement or any other Operative
Document or any other document executed by NAI in connection herewith, (G) any
failure of the Property or NAI itself to comply with Applicable Laws, (H) Permitted
Encumbrances, (I) Hazardous Substance Activities, including those occurring prior to
Effective Date, (J) any obligations of BNPPLC under the Ground Lease or the Closing
Certificate, or (K) any bodily or personal injury or death or property damage
occurring in or upon or in the vicinity of the Property through any cause
whatsoever; plus

	 	(2)	 	interest accruing at the Default Rate, compounded annually, on each payment of
any such Losses by BNPPLC or any other Interested Party from the date such payment was
made to the Designated Sale Date.

	 	 	For purposes of computing the Balance of Unpaid Construction Period Losses, Losses as
described in clause (1) of this definition will include each reduction (if any) (i) in the
Carrying Costs added to the Outstanding Construction Allowance as provided in the
Construction Agreement, or (ii) in the Base Rent payable to BNPPLC as provided in the Lease,
that results from Pre-lease Force Majeure Losses. In other words, the Losses described in
clause (1) will include the additional (if any) Carrying Costs and Base Rent that would have
accrued if Pre-lease Force Majeure Losses were set at zero dollars ($0.00) in the formulas
set forth in the Construction Agreement and in the Lease for calculating Carrying Costs and
Base Rent, respectively.
	 
	 	 	Notwithstanding the foregoing, however, none of the following will be included in the
Balance of Unpaid Construction Period Losses: (i) amounts included in or paid by BNPPLC with
the proceeds of the Initial Advance (including Transaction Expenses); (ii) Losses paid or
reimbursed from Construction Advances (including Local Impositions, insurance premiums and
amounts paid by NAI prior to the Completion Date and reimbursed to it through Construction
Advances made pursuant to the Construction Agreement, and also including costs and
expenditures incurred or paid by or on behalf of BNPPLC after any Owner’s Election to
Continue Construction, to the extent that such costs and expenditures are considered to be
Construction Advances as provided in the Construction Agreement); (iii) any other Losses
which NAI has paid prior to the Designated Sale Date or for which NAI remains fully
obligated to pay pursuant to the other Operative Documents (including Covered Construction
Period Losses paid or payable by NAI pursuant to the Construction Agreement); and (iv) any
decline in the value of the Property, including any such decline that is attributable solely
to a Pre-lease Force Majeure Event and thus constitutes a Pre-lease Force Majeure Loss.
	 
	 	 	“BNPPLC’s Actual Out of Pocket Costs” means the out-of-pocket costs and expenses,

Amended and Restated Purchase Agreement (Building 8) – Page 4

 

 

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

	 	 	“Break Even Price” means an amount equal to:

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

	 	 	If, however, the Balance of Unpaid Construction Period Losses includes Contingent Losses,
then for purposes of computing the Break Even Price applicable to any proposed sale on the
Designated Sale Date, NAI may elect to exclude such Contingent Losses from the Break Even
Price by providing to BNPPLC, for the benefit of BNPPLC and other Interested Parties, a
written agreement to indemnify and defend BNPPLC and other Interested Parties against the
excluded Losses. However, to be effective for purposes of reducing the Break Even Price,
any such written indemnity must be fully executed and delivered by NAI on or prior to the
Designated Sale Date, must include provisions comparable to subparagraphs 5(C)(1), (2),
(3), (4) and (5) of the Lease and otherwise must be in form and substance reasonably
satisfactory to BNPPLC.
	 
	 	 	“Committed Price” has the meaning indicated in subparagraph 3(C)(4).
	 
	 	 	“Conditions to NAI’s Initial Remarketing Rights” has the meaning indicated in
subparagraph 2(A)(2)(a).
	 
	 	 	“Contingent Losses” means any Losses that consist of claims asserted against BNPPLC or
another Interested Party prior to the Designated Sale Date, but that are not liquidated or
paid on or prior to the Designated Sale Date. Any Contingent Losses included in the Unpaid
Balance of Construction Period Losses, and thus which are relevant to the computation of the
Break Even Price, will equal the sum as reasonably estimated by BNPPLC of (i) all Attorneys’
Fees and other costs that will be incurred to defend against such claims, and (ii) the
amount for which BNPPLC or the other Interested Party can settle or satisfy such claims.

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

Amended and Restated Purchase Agreement (Building 8) – Page 5

 

 

	 	 	subparagraph 2(A)(2),
despite NAI’s satisfaction of the Conditions to NAI’s Initial Remarketing Rights.
	 
	 	 	“Deemed Sale” has the meaning indicated in subparagraph 3(D).
	 
	 	 	“Extended Remarketing Period” means a period beginning on the Designated Sale Date and
ending on the Final Sale Date.
	 
	 	 	“Fair Market Value” has the meaning indicated in Exhibit B.
	 
	 	 	“Final Sale Date” means the earliest of:

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

	 	 	“Initial Remarketing Notice” means a notice delivered to BNPPLC by NAI prior to the
Designated Sale Date in which NAI confirms NAI’s decision to exercise NAI’s Initial
Remarketing Rights and the amount of the Initial Remarketing Price. (Once given, any such
notice may not be rescinded or modified without BNPPLC’s consent.)
	 
	 	 	“Initial Remarketing Price” means the cash price set forth in an Initial Remarketing Notice
delivered by NAI to BNPPLC as the price for which NAI has arranged a sale of the Property on
the Designated Sale Date to an Applicable Purchaser which is not an Affiliate of NAI. Such
price may be any price negotiated by the Applicable Purchaser in

Amended and Restated Purchase Agreement (Building 8) – Page 6

 

 

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

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

     (1) the amount (if any) by which the Lease Balance on the Designated Sale Date exceeds
the following, as applicable: (a) all 97-10/Prepayments (if any) which were actually paid
to BNPPLC on or before the Designated Sale Date, or (b) any Supplemental Payment which was
actually paid to BNPPLC on the Designated Sale Date; together with interest on such excess
computed at the Default Rate for the period commencing on the Designated Sale Date and
ending on the Final Sale Date; plus

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

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

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

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

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

	 	•	 	85% of the Adjusted Lease Balance; less
	 
	 	•	 	any Fixed Rate Settlement Amount that NAI is required to pay pursuant to the

Amended and Restated Purchase Agreement (Building 8) – Page 7

 

 

	 	 	 	Lease
because of any acceleration of the Designated Sale Date which causes it to occur prior
to the date upon which the Term of the Lease is scheduled to expire (as such date is
confirmed in clause (1) of the definition of Designated Sale Date in the Common
Definitions and Provisions Agreement).

	 	 	“Must Sell Price” means, with respect to any Proposed Sale arranged by NAI pursuant to
subparagraph 3(C), a cash price to BNPPLC equal to the Make Whole Amount, computed as of the
Proposed Sale Date applicable to such Proposed Sale, plus all reimbursements or payments by
BNPPLC to NAI that will be required by clause (4) of subparagraph 3(E) in connection with
the Proposed Sale.
	 
	 	 	“NAI’s Extended Remarketing Right” has the meaning indicated in subparagraph 3(C).
	 
	 	 	“NAI’s Initial Remarketing Rights” has the meaning indicated in subparagraph 2(A)(2).
	 
	 	 	“NAI’s Target Price” means the cash purchase price that, according to NAI, should reasonably
be expected for the Property during the Extended Remarketing Period if the parties make a
reasonable marketing effort to sell the Property, as such price is set forth in a notice
given by NAI to BNPPLC after the Designated Sale Date. Once established by any such notice,
the amount of NAI’s Target Price will not be increased, although nothing in this definition
will be construed to prevent NAI from arranging a sale of the Property pursuant to this
Agreement at a price higher than NAI’s Target Price. After providing a notice of NAI’s
Target Price to BNPPLC, NAI may later decrease NAI’s Target Price by another notice to
BNPPLC, but only if the decrease is justified by a material adverse change in the physical
condition of the Property (e.g., significant damage to the Property by fire or other
casualty).
	 
	 	 	“Notice of Sale” has the meaning indicated in subparagraph 3(C)(4).
	 
	 	 	“Proposed Sale” has the meaning indicated in subparagraph 3(C).
	 
	 	 	“Proposed Sale Date” has the meaning indicated in subparagraph 3(C)(4).
	 
	 	 	“Purchase Option” has the meaning indicated in subparagraph 2(A)(1).
	 
	 	 	“Put Option” has the meaning indicated in subparagraph 3(B).
	 
	 	 	“Qualified Sale” means any (1) Deemed Sale as described in subparagraph 3(D), or (2) actual
sale (prior to any such Deemed Sale) of all or substantially all of the Property to an
Applicable Purchaser that occurs after the thirty day period specified in subparagraph 3(A)
and that:

Amended and Restated Purchase Agreement (Building 8) – Page 8

 

 

	 	•	 	results from NAI’s exercise of NAI’s Extended Remarketing Right as described in
subparagraph 3(C); or
	 
	 	•	 	is approved in advance as a Qualified Sale by NAI; or
	 
	 	•	 	is to a third party which is not an Affiliate of BNPPLC and, if it is completed
by a conveyance from BNPPLC prior to eighteen months after the Designated Sale Date, is
for a price not less than the least of the following amounts:

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

	 	 	NAI acknowledges that BNPPLC’s own marketing efforts after the Designated Sale Date will
depend upon the minimum price required for a Qualified Sale, and such efforts could be
hampered if NAI’s Target Price is too high. Thus, after receipt of any notice of NAI’s
Target Price from NAI, BNPPLC may (but will not be obligated to) invoke the Valuation
Procedures in order to determine the minimum price permitted under clause (c) preceding.
	 
	 	 	“Sale Closing Documents” means the following documents, which BNPPLC must tender pursuant to
Paragraph 5(A) to consummate any sale of the Property pursuant to this Agreement: (1)
documents in the forms required by Exhibit C, including either a
termination of or an assignment of the Ground Lease and other rights and interests of BNPPLC
in the Property, (2) a Secretary’s Certificate in the form attached as Exhibit D and
(3) a certificate concerning tax withholding in the form attached as Exhibit E.
	 
	 	 	“Supplemental Payment” has the meaning indicated in subparagraph 2(A)(3).
	 
	 	 	“Supplemental Payment Obligation” has the meaning indicated in

Amended and Restated Purchase Agreement (Building 8) – Page 9

 

 

	 	 	subparagraph 2(A)(3).

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

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

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

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

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

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

     (b) Second, if BNPPLC completes a sale of the Property to an Applicable
Purchaser on the Designated Sale Date pursuant to subparagraph 2(A)(2)(a) and the
price paid by the Applicable Purchaser for the

Amended and Restated Purchase Agreement (Building 8) – Page 10

 

 

Property (i.e., the Initial
Remarketing Price) is greater than the Break Even Price, then BNPPLC will pay the
excess to NAI or as otherwise required by Applicable Law.

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

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

     (b) the Maximum Remarketing Obligation.

	 	 	 	Without limiting the generality of the foregoing, NAI must (unless excused by
subparagraph 6(B) below) make the Supplemental Payment even if BNPPLC does not sell the
Property to NAI or an Applicable Purchaser on the Designated Sale Date because of (A) a
Decision Not to Sell at a Loss, or (B) a failure of NAI to exercise, or a decision by NAI
not to exercise, the Purchase Option or NAI’s Initial Remarketing Rights, or (C) a failure
of NAI or any Applicable Purchaser to tender the price required by the forgoing provisions
on the Designated Sale Date following any exercise of or attempt by NAI to exercise the
Purchase Option or NAI’s Initial Remarketing Rights.
	 
	 	 	 	NAI acknowledges that it is undertaking the Supplemental Payment Obligation in consideration
of the rights afforded to it by this Agreement, but that such obligation is not contingent
upon any exercise by NAI of such rights or upon any purchase of the Property by NAI or an
Applicable Purchaser. If any Supplemental Payment due according to this
subparagraph 2(A)(3) is not actually paid to BNPPLC on the Designated Sale Date, then NAI
must pay interest on the past due amount computed at the Default Rate. However, NAI will be
entitled to a credit against the interest required by the preceding sentence
equal to the Base Rent, if any, actually paid by NAI pursuant to the Lease for any period
after the Designated Sale Date.

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

Amended and Restated Purchase Agreement (Building 8) – Page 11

 

 

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 12

 

 

     (E) Security for NAI’s Purchase Option. If (contrary to the intent of the
parties as expressed in subparagraph 4(C) of the Lease) it is determined that NAI is not,
under applicable state law as applied to the Operative Documents, the equitable owner of the
Property and the borrower from BNPPLC in a financing arrangement, but rather is a tenant under the
Lease with an option to purchase from BNPPLC as provided in subparagraph 2(A)(1), then the parties
intend that the Purchase Option be secured by a lien and security interest against the Property.
Accordingly, BNPPLC does hereby grant to NAI a lien and security interest against the Property,
including all rights, title and interests of BNPPLC from time to time in and to the Land and
Improvements, in order to secure (1) BNPPLC’s obligation to convey the Property to NAI or an
Affiliate designated by it if NAI exercises the Purchase Option and tenders payment of the Break
Even Price to BNPPLC on the Designated Sale Date as provided herein, and (2) NAI’s right to recover
any damages from BNPPLC caused by a breach of such obligation, including any such breach caused by
a rejection or termination of this Agreement in any bankruptcy or insolvency proceeding instituted
by or against BNPPLC, as debtor. NAI may enforce such lien and security interest judicially after
any such breach by BNPPLC, but not otherwise.

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

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

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 13

 

 

Sale Date; and

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

Further, and without limiting the foregoing, if any Event of Default occurs as described in clauses
(G), (H) or (I) of the definition Event of Default in the Common Definitions and Provisions
Agreement because of any bankruptcy proceeding instituted by or against NAI, as debtor, under Title
11 of the United States Code, then NAI will be obligated (without any further act or notice or
demand by BNPPLC) to pay to BNPPLC the Make Whole Amount and purchase the Property, as if (i)
BNPPLC had exercised the Put Option, and (ii) the second Business Day after the commencement of
such Event of Default was the Final Sale Date.

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

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

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

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 14

 

 

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

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

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

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

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

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

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 15

 

 

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

4 Transfers By BNPPLC After the Designated Sale Date.

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

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

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

Amended and Restated Purchase Agreement (Building 8) – Page 16

 

 

Remarketing Period as to BNPPLC’s
remaining interest in the Land and the Improvements.

5 Terms of Conveyance Upon Purchase.

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

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

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

     (A) Status of this Agreement Generally. Except as expressly provided in the
next

Amended and Restated Purchase Agreement (Building 8) – Page 17

 

 

subparagraph or other provisions of this Agreement, this Agreement will not terminate; nor
will NAI have any right to terminate this Agreement; nor will NAI be entitled to any reduction (by
setoff or otherwise) of the Break Even Price, the Make Whole Amount or any payment required under
this Agreement; nor will any of the obligations of NAI to BNPPLC under Paragraph 2 or Paragraph 3
be excused by reason of (i) any damage to or the destruction of all or any part of the Property
from whatever cause, (ii) the taking of the Property or any portion thereof by eminent domain or
otherwise for any reason, (iii) the prohibition, limitation or restriction of NAI’s use or
development of all or any portion of the Property or any interference with such use by governmental
action or otherwise, (iv) any eviction of NAI or of anyone claiming through or under NAI, (v) any
default on the part of BNPPLC under this Agreement or any other Operative Document or any other
agreement to which BNPPLC and NAI are parties, (vi) the inadequacy in any way whatsoever of the
design, construction, assembly or installation of any improvements, fixtures or tangible personal
property included in the Property (it being understood that BNPPLC has not made, does not make and
will not make any representation express or implied as to the adequacy thereof), (vii) any latent
or other defect in the Property or any change in the condition thereof or the existence with
respect to the Property of any violations of Applicable Laws, or (viii) NAI’s prior acquisition or
ownership of any interest in the Property, or (ix) any other cause, whether similar or dissimilar
to the foregoing, any existing or future law to the contrary notwithstanding. It is the intention
of the parties hereto that the obligations of NAI under this Agreement (including the obligation to
make any Supplemental Payment as provided in Paragraph 2) be separate from and independent of
BNPPLC’s obligations under this Agreement or any other agreement between BNPPLC and NAI; however,
nothing in this subparagraph will be construed as a waiver by NAI of any right NAI may have at law
or in equity to the following remedies, whether because of BNPPLC’s failure to remove a Lien
Removable by BNPPLC or because of any other default by BNPPLC under this Agreement: (A) the
recovery of monetary damages, (B) injunctive relief in case of the violation, or attempted or
threatened violation, by BNPPLC of any of the express covenants, agreements, conditions or
provisions of this Agreement which are binding upon BNPPLC, or (C) a decree compelling performance
by BNPPLC of any of the express covenants, agreements, conditions or provisions of this
Agreement which are binding upon BNPPLC.

     (B) Election by NAI to Terminate the Supplemental Payment Obligation Prior to the
Completion Date. By delivery of a notice to BNPPLC in the form attached as Exhibit F,
NAI may terminate its Supplemental Payment Obligation, but only prior to the Completion Date and
only if at the time of such exercise (1) NAI has given (and not rescinded) a Notice of NAI’s Intent
to Terminate as provided in the Construction Agreement, or (2) BNPPLC has given any FOCB Notice as
provided in the Construction Agreement. (If for any reason BNPPLC does not receive a notice
terminating the Supplemental Payment Obligation as described in the preceding sentence prior to the
Completion Date, then without any notice or other action by the parties to this Agreement, NAI will
cease to have any right to terminate the Supplemental Payment Obligation.) If NAI does send a
notice to BNPPLC in the form attached as Exhibit F, such notice will (as

Amended and Restated Purchase Agreement (Building 8) – Page 18

 

 

provided therein)
constitute an irrevocable and absolute waiver by NAI of NAI’s rights to purchase the Property or to
cause any of its Affiliates to purchase the Property pursuant to this Agreement. However, no such
notice will terminate BNPPLC’s right to exercise the Put Option, which BNPPLC may exercise if NAI
fails to make a 97-10/Permitted Prepayment required by the Construction Agreement.

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

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

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

     (F) Remedies Under the Other Operative Documents. No repossession of or
re-entering upon the Property or exercise of any other remedies available to BNPPLC under the other
Operative Documents will terminate NAI’s rights or obligations under this Agreement, all of which
will survive BNPPLC’s exercise of remedies under the other Operative Documents. NAI acknowledges
that the consideration for this Agreement is separate from and independent of the consideration for
the Construction Agreement, the Lease, the Closing Certificate and other

Amended and Restated Purchase Agreement (Building 8) – Page 19

 

 

agreements executed by the
parties, and NAI’s obligations under this Agreement will not be affected or impaired by any event
or circumstance that would excuse NAI from performance of its obligations under such other
Operative Documents.

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

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

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

10 Amendment and Restatement of Prior Purchase Agreement. This Agreement amends, restates
and replaces entirely the Prior Purchase Agreement. Without limiting the rights and obligations of
NAI under this Agreement, NAI acknowledges that any and all rights or interest of NAI in and to the
Land or other Property under the Prior Purchase Agreement are now made subject to the terms and
conditions of this Agreement; and all rights and interests of BNPPLC in and to the Land or other
Property under the Prior Purchase Agreement are renewed and extended (rather than terminated) by
this Agreement.

[The signature pages follow.]

Amended and Restated Purchase Agreement (Building 8) – Page 20

 

 

     IN WITNESS WHEREOF, this Amended and Restated Purchase Agreement (Building 8) is executed to
be effective as of November 29, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	/s/
Lloyd G. Cox	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

Amended and Restated Purchase Agreement (Building 8) – Signature Page

 

 

[Continuation of signature pages for Amended and Restated Purchase Agreement (Building 8) dated as
of November 29, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware 

corporation
	 	 	 
	 	By:  	/s/ Ingemar Lanevi	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

Amended and Restated Purchase Agreement (Building 8) – Signature Page

 

 

Exhibit A

Legal Description

Proposed Parcel 8, and (except to the extent within a different platted Parcel as currently shown
in the Map Records of the County of Santa Clara, California) proposed Parcel 12, and the Additional
Leased Premises as defined below, (collectively, the “Building 8 Ground Lease Premises”) as shown
on that certain Vesting Tentative Parcel Map provided to BNP Paribas Leasing Corporation (“BNPPLC”)
by Network Appliance, Inc. (“NAI”) attached hereto and made a part hereof (the “Tentative Map”),
which has received preliminary approval from the City of Sunnyvale, California, but not yet been
filed for record in the office of the recorder of the County of Santa Clara, State of California.
As used herein, “Additional Leased Premises” means the parking lots, driveways and other areas
shaded in gray on the Tentative Map attached hereto within the larger area designated as Common Lot
A (consisting of 30.46 Acres, more or less) on the Tentative Map. The southern boundary of the
Additional Leased Premises is a line that runs North 75 degrees, 07 minutes, 58 seconds equidistant
from the southern boundary of Parcel 8 and the northern boundary of Parcel 7, both as shown on the
Tentative Map. The eastern boundary of the Additional Leased Premises runs along the same line as
the eastern boundary of Common Lot A, as shown on the Tentative Map. The western boundary of the
Additional Leased Premises runs along the same line as the western boundary of Parcel 8 and Parcel
7, as shown on the Tentative Map. The northern boundary of the Additional Leased Premises runs
along the center of an existing or proposed driveway which is situated between Parcel 8 and
Parcel 9, as shown on the Tentative Map.

TOGETHER WITH, easements appurtenant to the Building 8 Ground Lease Premises as described in
Exhibit A attached to the Ground Lease.

 

 

Exhibit A to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

Exhibit B

Valuation Procedures

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

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

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

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

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

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

 

 

Ground Lease 1 ; and

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

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

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

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

     (b) If the appraiser appointed by NAI and the appraiser appointed by BNPPLC agree
in writing upon the Fair Market Value (an “Appraiser’s Agreement As To Value”), such agreement
will be binding upon NAI and BNPPLC. Both NAI and BNPPLC will instruct their respective appraisers
to attempt in good faith to quickly reach an Appraiser’s Agreement As To Value. Neither appraiser
will be required to produce a formal appraisal prior to reaching an Appraiser’s Agreement As To
Value.

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

 

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

Exhibit B to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

must
act promptly, reasonably and in good faith to try to reach agreement upon the third appraiser. If,
however, the two appraisers fail to reach agreement upon a third appraiser within ten days after
the Third Appraisal Notice is delivered:

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

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

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

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

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

5. Criteria For Selecting Appraisers; Cost of Appraisals. All appraisers selected
for the

Exhibit B to Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

appraisal process set out in this Exhibit will be disinterested, reputable, qualified
appraisers with the designation of MAI or equivalent and with at least five years experience in
appraising commercial properties comparable to the Property. NAI and BNPPLC will each bear the
expense of the appraiser appointed by it, and the expense of the third appraiser and of any officer
of the California Bar Association who participates in the appraisal process described above will be
shared equally by NAI and BNPPLC.

6. Time is of the Essence; Defaults.

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

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

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

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

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

     (2) Any breach or default by NAI under this Exhibit will be deemed rectified
if, within such five day period, NAI offers BNPPLC an unqualified written agreement
that all determinations of Fair Market Value required by this Agreement will, if made by the
appraiser appointed by BNPPLC as hereinabove provided, be binding upon BNPPLC and NAI. (It
is understood that following the delivery of any such agreement by NAI, no further input
from NAI’s appraiser or from any official of the California bar association or from a third
appraiser will be required for any required determination of Fair Market Value.)

Exhibit B to Amended and Restated Purchase Agreement (Building 8) – Page 4

 

 

Exhibit C

Requirements Re: Forms to Accomplish Assignment and Conveyance

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

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

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

 

 

Exhibit C-1

RECORDING REQUESTED BY AND,

WHEN RECORDED, RETURN TO:

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

AGREEMENT CONCERNING GROUND LEASE

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

RECITALS

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

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

     (1) Amended and Restated Ground Lease (Building 8) dated as of November 29, 2007 and
recorded (or referenced in a memorandum thereof recorded) in the official records of Santa
Clara County, California (the “Official Records”) on or about November 29, 2007 as
Instrument Number                      (as the same may have been modified, the “Ground Lease”), whereby
NAI, as ground lessor, ground leased to BNPPLC, as ground lessee, that certain land more
particularly described in Annex A, attached hereto and incorporated herein by this reference
(herein the “Land”); and

     (2) Amended and Restated Lease Agreement (Building 8) dated as of November 29, 2007 (as
the same may have been modified, the “Sublease”), which was the subject of that certain
Short Form of Sublease, dated as of November 29, 2007, recorded in the Official Records on
or about November 29, 2007 as Instrument Number                      (the “Short Form of Sublease”),
whereby BNPPLC, as sublessor, leased to NAI, as sublessee, its ground leasehold interest in
the Land and all of the improvements located thereon (collectively the “Subleased
Premises”); and

     (3) Amended and Restated Purchase Agreement (Building 8) dated as of November 29, 2007
(has the same may have been modified, the “Purchase Agreement”), which was the subject of
that certain Memorandum of Purchase Agreement, dated as of November 29, 2007, recorded in
the Official Records on or about November 29, 2007 as
Instrument Number                     .

 

 

     (4) Amended and Restated Common Definitions and Provisions Agreement
(Building 8) dated as of November 29, 2007 Date (as the same may have been modified, the
“Common Definitions and Provisions Agreement”). As used in this Agreement, capitalized terms
defined in the Common Definitions and Provisions Agreement and not otherwise defined in this
Agreement are intended to have the respective meanings assigned to them in the Common
Definitions and Provisions Agreement.

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

AGREEMENT

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

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

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

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

provided, however, that excluded from this conveyance and reserved to BNPPLC are any rights
or privileges of BNPPLC under the following are expressly reserved and retained by BNPPLC:
(i) the indemnities set forth in the Sublease and the Ground Lease, whether such rights are

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

presently known or unknown, including rights of BNPPLC to be indemnified against environmental
claims of third parties, as provided in the Ground Lease which may not presently be known; and (ii)
provision in the Sublease that establish the right of BNPPLC to recover any accrued unpaid rent
under the Sublease which may be outstanding as of the date hereof; and (iii) agreements between
BNPPLC and BNPPLC’s Parent or any Participant, or any modification or extension thereof.

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

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

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

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

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

instrument.

[Signature pages follow.]

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 4

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION,
a 

Delaware corporation  
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	STATE OF                    	 	)	 	 	 
	 	 	)	 	SS	 
	COUNTY OF                     	 	)	 	 	 

On
                    , 200___, before me
                                        
, a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.
	 	 
	 	 	 
	 

	 	 

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 5

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware 

corporation  
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	STATE OF                     	 	)	 	 	 
	 	 	)	 	SS	 
	COUNTY OF                     	 	)	 	 	 

On                     , 200___, before me
                                        
, a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.
	 	 
	 	 	 
	 

	 	 

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 6

 

 

Annex A

Legal Description

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

Proposed Parcel 8, and (except to the extent within a different platted Parcel as currently shown
in the Map Records of the County of Santa Clara, California) proposed Parcel 12, and the Additional
Leased Premises as defined below, (collectively, the “Building 8 Ground Lease Premises”) as shown
on that certain Vesting Tentative Parcel Map provided to BNP Paribas Leasing Corporation (“BNPPLC”)
by Network Appliance, Inc. (“NAI”) attached hereto and made a part hereof (the “Tentative Map”),
which has received preliminary approval from the City of Sunnyvale, California, but not yet been
filed for record in the office of the recorder of the County of Santa Clara, State of California.
As used herein, “Additional Leased Premises” means the parking lots, driveways and other areas
shaded in gray on the Tentative Map attached hereto within the larger area designated as Common Lot
A (consisting of 30.46 Acres, more or less) on the Tentative Map. The southern boundary of the
Additional Leased Premises is a line that runs North 75 degrees, 07 minutes, 58 seconds equidistant
from the southern boundary of Parcel 8 and the northern boundary of Parcel 7, both as shown on the
Tentative Map. The eastern boundary of the Additional Leased Premises runs along the same line as
the eastern boundary of Common Lot A, as shown on the Tentative Map. The western boundary of the
Additional Leased Premises runs along the same line as the western boundary of Parcel 8 and Parcel
7, as shown on the Tentative Map. The northern boundary of the Additional Leased Premises runs
along the center of an existing or proposed driveway which is situated between Parcel 8 and
Parcel 9, as shown on the Tentative Map.

TOGETHER WITH, easements appurtenant to the Building 8 Ground Lease Premises as described in
Exhibit A attached to the Ground Lease.

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 7

 

 

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 8

 

 

Annex B

Permitted Encumbrances

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

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

1. Taxes and assessments for the year 200___and subsequent years, which are not yet due and
payable.

2. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section
75 of the California Revenue and Taxation Code, resulting from changes of ownership or completion
of construction on or after the date hereof.

3. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 
	 	Purpose	: Slope Easement
	 	In favor of	: City of Sunnyvale
	 	Recorded
	: October 9, 1964 in Book 6695, page 430, Official Records
	 	Affects
	: Easterly 18 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey
for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

4.
EASEMENT for the purposes stated herein and incidents thereto

	 	 	 
	 	Purpose	: Public utilities easement
	 	In favor of	: City of Sunnyvale

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 9

 

 

	 	Recorded	October 9, 1964 in Book 6695, page 450, Official Records
	 	Affects	: Easterly 7 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

5. Covenants, Conditions and Restrictions in the Declaration of Protective Covenants — Moffett
Industrial Park No. 2) recorded December 23, 1971 in Book 9640, page 443, Official Records; which
provide that a violation thereof shall not defeat or render invalid the lien of any Mortgage or
Deed of Trust made in good faith and for value. Said Covenants, Conditions and Restrictions do not
provide for reversion of title in the event of a breach thereof. Restrictions, if any, based upon
race, color, religion, sex, handicap, familial status, or national origin are deleted, unless and
only to the extent that said covenant (a) is exempt under Chapter 42, Section 3607, of the United
States Code, or (b) related to handicap but does not discriminate against handicapped persons.

     ASSIGNMENT AND ASSUMPTION of the rights, powers, duties, obligations, and reservations of
Moffett Park Associates, in favor of The Prudential Insurance Company of America, recorded February
8, 1977 in Book C583, page 685, Official Records.

6. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 
	 	Purpose	: Public utilities
	 	Granted to	: City of Sunnyvale
	 	Recorded	: November 16, 1976 in Book C414, page 105, Official Records
	 	Affects	: Southerly 10 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey
for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

7. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but deleting any
covenant, condition or restriction indicating a preference, limitation or discrimination based on
race, color, religion, sex, handicap, familial status, or national origin to the extent such
covenants, conditions or restrictions violate 42 USC 3604(c), contained in the document recorded
February 5, 1980 in Book F122, page 460, Official Records.

Exhibit C-1 to Amended and Restated Purchase Agreement (Building 8) – Page 10

 

 

Exhibit C-2

Form of Assignment of Ground Lease and Improvements

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

	 	 	 	 	 	 	 
	NAME:	 	[NAI or the Applicable Purchaser]	 	 
	ADDRESS:
	 	 	 	 	 	 
	ATTN:
	 	 	 	 	 	 
	CITY:
	 	 	 	 	 	 
	STATE:
	 	 	 	 	 	 
	Zip:
	 	 	 	 	 	 

ASSIGNMENT OF GROUND LEASE AND IMPROVEMENTS

(Covering Improvements and Leasehold Estate in Land)

     BNP Paribas Leasing Corporation (“Assignor”), a Delaware corporation, for and in consideration
of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Assignor by [NAI or the
Applicable Purchaser] (hereinafter called “Assignee”), the receipt and sufficiency of which are
hereby acknowledged, does hereby GRANT, SELL, CONVEY, ASSIGN and DELIVER to Assignee (1) the
leasehold estate created by an Amended and Restated Ground Lease (Building 8) from NAI to Assignor
dated as of November 29, 2007, which covers the land described in Annex A attached hereto and
hereby made a part hereof, and (2) all other rights, titles and interests of Assignor in and to (a)
such land, (b) the buildings and other improvements situated on such land, (c) any fixtures and
other property affixed thereto and (d) the adjacent streets, alleys and rights-of-way (all of the
property interests conveyed hereby being hereinafter collectively referred to as the “Property”);
however, this conveyance is made by Assignor and accepted by Assignee subject to the terms and
conditions of the aforementioned Ground Lease and to all zoning and other ordinances affecting the
Property, all general or special assessments due and payable after the date hereof, all
encroachments, variations in area or in measurements, boundary line disputes, roadways and other
matters not of record which would be disclosed by a current survey and inspection of the Property,
and the encumbrances listed in Annex B attached hereto and made a part hereof (collectively, the
“Permitted Encumbrances”).

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

 

 

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

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

[Signature pages follow.]

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION,
a 

Delaware corporation  
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF                     

	 	 	)	 	 	 	 	 

On                     , 200___, before me
                                        
, a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.

	 	 
	 
	 	 
	 

	 	 

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

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

[NAI or the Applicable Purchaser]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF                     

	 	 	)	 	 	 	 	 

On                     , 200___, before me
                                        
, a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.

	 	 
	 
	 	 
	 

	 	 

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 4

 

 

Annex A

LEGAL DESCRIPTION

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

Proposed Parcel 8, and (except to the extent within a different platted Parcel as currently shown
in the Map Records of the County of Santa Clara, California) proposed Parcel 12, and the Additional
Leased Premises as defined below, (collectively, the “Building 8 Ground Lease Premises”) as shown
on that certain Vesting Tentative Parcel Map provided to BNP Paribas Leasing Corporation (“BNPPLC”)
by Network Appliance, Inc. (“NAI”) attached hereto and made a part hereof (the “Tentative Map”),
which has received preliminary approval from the City of Sunnyvale, California, but not yet been
filed for record in the office of the recorder of the County of Santa Clara, State of California.
As used herein, “Additional Leased Premises” means the parking lots, driveways and other areas
shaded in gray on the Tentative Map attached hereto within the larger area designated as Common Lot
A (consisting of 30.46 Acres, more or less) on the Tentative Map. The southern boundary of the
Additional Leased Premises is a line that runs North 75 degrees, 07 minutes, 58 seconds equidistant
from the southern boundary of Parcel 8 and the northern boundary of Parcel 7, both as shown on the
Tentative Map. The eastern boundary of the Additional Leased Premises runs along the same line as
the eastern boundary of Common Lot A, as shown on the Tentative Map. The western boundary of the
Additional Leased Premises runs along the same line as the western boundary of Parcel 8 and Parcel
7, as shown on the Tentative Map. The northern boundary of the Additional Leased Premises runs
along the center of an existing or proposed driveway which is situated between Parcel 8 and
Parcel 9, as shown on the Tentative Map.

TOGETHER WITH, easements appurtenant to the Building 8 Ground Lease Premises as described in
Exhibit A attached to the Ground Lease.

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 5

 

 

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 6

 

 

Annex B

Permitted Encumbrances

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

     This conveyance is subject to all encumbrances not constituting a “Lien Removable by BNPPLC”
(as defined in the Amended and Restated Common Definitions and Provisions Agreement (Building 8)
incorporated by reference into the Amended and Restated Lease Agreement (Building 8) referenced in
the last item of the list below), including the following matters to the extent the same are still
valid and in force:

1. Taxes and assessments for the year 200___ and subsequent years, which are not yet due and
payable.

2. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section
75 of the California Revenue and Taxation Code, resulting from changes of ownership or completion
of construction on or after the date hereof.

3. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 	 
	 
	Purpose
	 	: Slope Easement
	 
	In favor of
	 	: City of Sunnyvale
	 
	Recorded
	 	 : October 9, 1964 in Book 6695, page 430, Official Records
	 
	Affects
	 	: Easterly 18 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey for : Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

4. EASEMENT for the purposes stated herein and incidents thereto

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 7

 

 

	 	 	 	 
	 
	Purpose
	 	: Public utilities easement
	 
	In favor of
	 	: City of Sunnyvale
	 
	Recorded
	 	: October 9, 1964 in Book 6695, page 450, Official Records
	 
	Affects
	 	: Easterly 7 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey for : Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16. 

5. Covenants, Conditions and Restrictions in the Declaration of Protective Covenants — Moffett
Industrial Park No. 2) recorded December 23, 1971 in Book 9640, page 443, Official Records; which
provide that a violation thereof shall not defeat or render invalid the lien of any Mortgage or
Deed of Trust made in good faith and for value. Said Covenants, Conditions and Restrictions do not
provide for reversion of title in the event of a breach thereof. Restrictions, if any, based upon
race, color, religion, sex, handicap, familial status, or national origin are deleted, unless and
only to the extent that said covenant (a) is exempt under Chapter 42, Section 3607, of the United
States Code, or (b) related to handicap but does not discriminate against handicapped persons.

     ASSIGNMENT AND ASSUMPTION of the rights, powers, duties, obligations, and reservations of
Moffett Park Associates, in favor of The Prudential Insurance Company of America, recorded February
8, 1977 in Book C583, page 685, Official Records.

6. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 	 
	 
	Purpose
	 	: Public utilities
	 
	In favor of
	 	: City of Sunnyvale
	 
	Recorded
	 	: November 16, 1976 in Book C414, page 105, Official Records
	 
	Affects
	 	: Southerly 10 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey for : Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

7. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but deleting any
covenant, condition or restriction indicating a preference, limitation or discrimination based on
race, color, religion, sex, handicap, familial status, or national origin to the extent such
covenants, conditions or restrictions violate 42 USC 3604(c), contained in the document recorded
February 5, 1980 in Book F122, page 460, Official Records.

Exhibit C-2 to Amended and Restated Purchase Agreement (Building 8) – Page 8

 

 

Exhibit C-3

BILL OF SALE AND ASSIGNMENT

     Reference is made to: (1) that certain Amended and Restated Purchase Agreement (Building 8)
dated as of November 29, 2007, (the “Purchase Agreement”) between BNP Paribas Leasing Corporation
(“Assignor”), a Delaware corporation, and Network Appliance, Inc. , a Delaware corporation, and (2)
that certain Amended and Restated Lease Agreement dated as of November 29, 2007 (the “Lease”)
between Assignor, as landlord, and Network Appliance, Inc. , a Delaware corporation, as tenant.
(Capitalized terms used and not otherwise defined in this document are intended to have the
meanings assigned to them in the Amended and Restated Common Definitions and Provisions Agreement
(Building 8) incorporated by reference into both the Purchase Agreement and Lease.)

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

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

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

 

 

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

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

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

[Signature pages follow.]

Exhibit C-3 to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, 

a Delaware
corporation  
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF                     

	 	 	)	 	 	 	 	 

On                     , 200___, before me
                                        
, a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.
	 	 
	 
	 	 
	 

	 	 

Exhibit C-3 to Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

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

[NAI or the Applicable Purchaser]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF                     

	 	 	)	 	 	 	 	 

On           
        
  , 200___, before me    
            
           
              , a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.

	 	 
	 
	 	 
	 

	 	 

Exhibit C-3 to Amended and Restated Purchase Agreement (Building 8) – Page 4

 

 

Exhibit C-4

ACKNOWLEDGMENT OF DISCLAIMER

OF REPRESENTATIONS AND WARRANTIES

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

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

     Notwithstanding any provision contained in the Conveyancing Documents to the contrary,
Assignee acknowledges that Assignor makes no representations or warranties of any nature or kind,
whether statutory, express or implied, with respect to environmental matters or the physical
condition of the Subject Property, and Assignee, by acceptance of the Conveyancing Documents,
accepts the Subject Property “AS IS,” “WHERE IS,” “WITH
ALL FAULTS” and without any such representation or warranty by Grantor as to
environmental matters, the physical condition of the Subject Property, compliance with subdivision
or platting requirements or construction of any improvements. Without limiting the generality of
the foregoing, Assignee hereby further acknowledges and agrees that warranties of merchantability
and fitness for a particular purpose are excluded from the transaction contemplated by the
Conveyancing Documents, as are any warranties arising from a course of dealing or usage of trade.
Assignee hereby assumes all risk and liability (and agrees that Assignor will not be liable for any
special, direct, indirect, consequential, or other damages) resulting or arising from or relating
to the ownership, use, condition, location, maintenance, repair, or operation of the Subject
Property, except for damages proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of Assignor. As used in the preceding sentence,
“Established Misconduct” is intended to have, and be limited to, the meaning given to it in the
Amended and Restated Common Definitions and Provisions Agreement (Building 8) incorporated by
reference into the Amended and Restated Purchase Agreement (Building 8) dated as of
November 29, 2007 between Assignor and Network Appliance, Inc., pursuant to which Amended and
Restated Purchase Agreement Assignor is delivering the Conveyancing Documents.

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

[Signature page follows.]

 

 

Exhibit C-4
to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

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

[NAI or the Applicable Purchaser]

	 	 	 	 	 
	By:
	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF                     

	 	 	)	 	 	 	 	 

On         
           
 , 200___, before me    
           
          
            
    , a Notary Public in and for the
County and State aforesaid, personally appeared
                                        
, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her authorized capacity and that by his/her signature on such instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

	 	 	 
	WITNESS, my hand and official seal.

	 	 
	 
	 	 
	 

	 	 

Exhibit C-4 to Amended and Restated Purchase Agreement (Building 8) – Page 3

 

 

Exhibit D

SECRETARY’S CERTIFICATE

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

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

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

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

	 	 	 	 	 
	Name

	 	Title
	 	Signature
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 

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

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

 
 

[signature and title]

 

 

CORPORATE RESOLUTIONS OF

BNP PARIBAS LEASING CORPORATION

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

     WHEREAS, pursuant to that certain Amended and Restated Purchase Agreement (Building 8) (herein
called the “Purchase Agreement”) dated as of November 29, 2007, by and between BNP Paribas Leasing
Corporation (“BNPPLC”) and Network Appliance, Inc. (“NAI”) , BNPPLC agreed to sell and Purchaser
agreed to purchase or cause the Applicable Purchaser (as defined in the Purchase Agreement) to
purchase the Corporation’s interest in the property (the “Property”) located in Santa Clara County,
California, more particularly described therein.

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

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

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

Exhibit D to Amended and Restated Purchase Agreement (Building 8) – Page 2

 

 

Exhibit E

CERTIFICATION OF NON-FOREIGN STATUS

          Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person. Sections 18805, 18815 and 26131
of the California Revenue and Taxation Code, as amended, provide that a transferee of a California
real property interest must withhold income tax if the transferor is a nonresident seller.

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

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

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

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

4. Transferor’s office address is:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

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

     Dated:                     , 20___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Exhibit F

Notice of Election to Terminate the Supplemental Payment Obligation

and Irrevocable Release and Waiver of the Right to Purchase

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

     Re: Amended and Restated Purchase Agreement (Building 8) dated as of November 29, 2007 (the
“Purchase Agreement”), between Network Appliance, Inc. (“NAI”), a Delaware corporation, and BNP
Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

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

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

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

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

 

 

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

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

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware 

corporation  
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

[cc all Participants]

Exhibit F to Amended and Restated Purchase Agreement (Building 8) – Page 2exv10w44

Exhibit 10.44

AMENDED AND RESTATED

GROUND LEASE

(BUILDING 8)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 	 	 	 
	RECITALS
	 	 	1	 
	GRANTING CLAUSES
	 	 	1	 
	GENERAL TERMS AND CONDITIONS
	 	 	3	 
	 
	 	 	 	 
	1 Additional Definitions
	 	 	3	 
	“Contingent Purchase Option”
	 	 	3	 
	“Fair Rental Value”
	 	 	3	 
	“Ground Lease Default”
	 	 	3	 
	“Ground Lease Rent”
	 	 	3	 
	“Ground Lease Term”
	 	 	3	 
	“Leasehold Mortgage”
	 	 	3	 
	“Leasehold Mortgagee”
	 	 	4	 
	“Turnover Date”
	 	 	4	 
	 
	 	 	 	 
	2 Ground Lease Term and Early Termination
	 	 	4	 
	 
	 	 	 	 
	3 Ground Lease Rent
	 	 	4	 
	 
	 	 	 	 
	4 Receipt and Application of Insurance and Condemnation Proceeds
	 	 	5	 
	 
	 	 	 	 
	5 No Lease Termination
	 	 	5	 
	 
	 	 	 	 
	6 The Lease and Other Operative Documents
	 	 	5	 
	 
	 	 	 	 
	7 Use of Leased Property
	 	 	5	 
	 
	 	 	 	 
	8 Assignment and Subletting; Pass Through of BNPPLC’s Liability Insurance and Indemnity
Rights 
	 	 	6	 
	 
	 	 	 	 
	9 Estoppel Certificate
	 	 	6	 
	 
	 	 	 	 
	10 Leasehold Mortgages
	 	 	7	 
	 
	 	 	 	 
	11 Other Representations, Warranties and Covenants of NAI
	 	 	9	 
	(A) Condition of the Property
	 	 	9	 
	(B) Environmental Representations 
	 	 	10	 
	(C) Current Status of Title to the Land
	 	 	10	 
	(D) Intentionally Deleted
	 	 	10	 
	(E) Title to Improvements
	 	 	10	 
	(F) Defense of Adverse Title Claims
	 	 	11	 
	(G) Prohibition Against Consensual Liens on the Leased Property
	 	 	12	 
	(H) Compliance With Permitted Encumbrances
	 	 	12	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 
	 	 	Page	 
	 	 	 	 
	(I) Compliance With Laws
	 	 	12	 
	(J)  Modification of Permitted Encumbrances
	 	 	12	 
	(K)
Performance and Preservation of the Permitted Encumbrances for the Benefit of BNPPLC
	 	 	13	 
	(L) Cooperation by NAI and its Affiliates
	 	 	13	 
	(M) Intentionally Deleted
	 	 	14	 
	(N) Omissions 
	 	 	14	 
	(O) Insurance and Casualty
	 	 	14	 
	(P) Condemnation 
	 	 	14	 
	(Q) Further Assurances
	 	 	15	 
	 	 	 	 	 
	12 Ground Lease Defaults
	 	 	15	 
	(A) Definition of Ground Lease Default
	 	 	15	 
	(B) Remedy
	 	 	16	 
	 	 	 	 	 
	13 Quiet Enjoyment
	 	 	16	 
	 	 	 	 	 
	14 Option to Purchase
	 	 	16	 
	 	 	 	 	 
	15 Miscellaneous
	 	 	16	 
	(A) No Merger
	 	 	16	 
	(B) Recording; Memorandum of Lease
	 	 	17	 
	 	 	 	 	 
	16 Certain Remedies Cumulative
	 	 	17	 
	 	 	 	 	 
	17 Attorney’s Fees and Legal Expenses
	 	 	17	 
	 	 	 	 	 
	18 Successors and Assigns
	 	 	17	 
	 	 	 	 	 
	19 Amendment and Restatement of Prior ground Lease
	 	 	17	 

(ii) 

 

TABLE OF CONTENTS

(Continued)

Exhibits and Schedules

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

(iii) 

 

AMENDED AND RESTATED

GROUND LEASE

(BUILDING 8)

     This AMENDED AND RESTATED GROUND LEASE (BUILDING 8) (this “Ground Lease”), dated as of
November 29, 2007 (the “Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION
(“BNPPLC”), a Delaware corporation, and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

     Contemporaneously with the execution of this Ground Lease, BNPPLC and NAI are executing an
Amended and Restated Common Definitions and Provisions Agreement (Building 8) dated as of the
Effective Date (the “Common Definitions and Provisions Agreement”), which by this reference is
incorporated into and made a part of this Ground Lease for all purposes. As used in this Ground
Lease, capitalized terms defined in the Common Definitions and Provisions Agreement and not
otherwise defined in this Ground Lease are intended to have the respective meanings assigned to
them in the Common Definitions and Provisions Agreement.

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

     Also contemporaneously with this Ground Lease, BNPPLC and NAI are executing an Amended and
Restated Construction Agreement (Building 8) (the“Construction Agreement”) and an Amended and
Restated Lease Agreement (Building 8) (the “Lease”). Pursuant to the Construction Agreement,
BNPPLC is agreeing to provide funding for the construction of new Improvements. When the term of
the Lease commences, the Lease will cover all Improvements on the Land.

     Pursuant to an Amended and Restated Purchase Agreement (Building 8) dated as of the Effective
Date (the “Purchase Agreement”) between BNPPLC and NAI, NAI will have the right to purchase, among
other things, BNPPLC’s leasehold estate under this Ground Lease on and subject to the terms and
conditions set forth therein.

GRANTING CLAUSES

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

 

 

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

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

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

     To the extent, but only to the extent, that assignable rights or interests in, to or under the
following have been or will be acquired by NAI as the owner of any interest in the Real Property,
NAI also hereby grants and assigns to BNPPLC for the term of this Ground Lease the right to use and
enjoy (and, in the case of contract rights, to enforce) such rights or interests of NAI:

     (A) the Permitted Encumbrances; and

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

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

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

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

Amended and Restated Ground Lease (Building 8) – Page 2

 

 

insurance proceeds in the event of any taking of or damage to the Improved Property.

GENERAL TERMS AND CONDITIONS

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

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

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

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

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

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

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

     “Leasehold Mortgage” means any mortgage, deed of trust (with or without a private

Amended and Restated Ground Lease (Building 8) – Page 3

 

 

power
of sale), security agreement or assignment executed by BNPPLC to secure an obligation to
repay borrowed money or other voluntary obligations, which covers BNPPLC’s leasehold estate
hereunder or any part thereof or any rents or other charges to be paid to BNPPLC pursuant to
any sublease.

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

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

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

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

     Prior to the Completion Date, BNPPLC must pay Ground Lease Rent to NAI on the first Business
Day of every calendar month for the preceding month. Consistent with the agreement of the parties
in Exhibit D that the initial Fair Rental Value is $600,000 per annum, and each such
required monthly payment prior to the Completion Date is $50,000. (Notwithstanding the forgoing,
as was agreed by the parties for administrative convenience at the time of the execution of the
Prior Ground Lease, BNPPLC has already prepaid all of the Ground Lease Rent expected to accrue
prior to the Completion Date, rather than pay it monthly on the first Business Day of each month.)

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

Amended and Restated Ground Lease (Building 8) – Page 4

 

 

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

5 No Lease Termination. Except as expressly provided herein, this Ground Lease will not
terminate, nor will NAI have any right to terminate this Ground Lease nor will the obligations of
NAI under this Ground Lease be excused, for any reason whatsoever, including without limitation any
of the following: (i) any damage to or the destruction of all or any part of the Leased Property
from whatever cause, (ii) the taking of the Leased Property or any portion thereof by eminent
domain or otherwise for any reason, (iii) any default on the part of BNPPLC under this Ground Lease
or under any other agreement to which NAI and BNPPLC are parties, or (iv) any other cause whether
similar or dissimilar to the foregoing, any existing or future law to the contrary notwithstanding.
Notwithstanding the foregoing, after any purchase by NAI of BNPPLC’s interest in the Improved
Property pursuant to the Purchase Agreement and payment to BNPPLC of the purchase price required by
the Purchase Agreement and all other sums dues under any of the other Operative Documents, NAI (as
the holder of both the lessor’s and lessee’s interests hereunder) may elect to terminate this
Ground Lease; and after a purchase by BNPPLC of the Land because of BNPPLC exercise of the
Contingent Purchase Option, BNPPLC (as the holder of both the lessor’s and lessee’s interests
hereunder) may elect to terminate this Ground Lease. It is the intention of the parties hereto
that the obligations of NAI hereunder will be separate and independent of the covenants and
agreements of BNPPLC. However, nothing in this Paragraph will be construed as a waiver by NAI of
any right NAI may have at law or in equity to recover monetary damages for any default under this
Ground Lease by BNPPLC.

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

7 Use of Leased Property. Subject to the Permitted Encumbrances and the terms
hereof, BNPPLC may use and occupy the Leased Property for any purpose permitted by Applicable Laws
and may construct, modify, renovate, replace and remove any Improvements on the Land from time to
time, subject only to the constraints that Applicable Laws would impose

Amended and Restated Ground Lease (Building 8) – Page 5

 

 

upon the owner of the Land
if the owner were constructing, modifying, renovating, replacing or removing Improvements. To
provide NAI an opportunity to file any applicable statutory notice of nonresponsibility, BNPPLC
will, before commencing the construction any major Improvements upon the Land after the Turnover
Date, endeavor to notify NAI that BNPPLC intends to commence such construction; provided, however,
BNPPLC will have no liability for its failure to provide such a notice.

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

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

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

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

9 Estoppel Certificate. NAI and BNPPLC will from time to time, within ten days
after receipt of request by the other party hereto, deliver a
statement in writing to such other party

Amended and Restated Ground Lease (Building 8) – Page 6

 

 

or other Person(s) designated by such party certifying:

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

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

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

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

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

NAI’s failure to deliver such statement within such time will constitute an admission by NAI (i)
that this Ground Lease is in full force and effect, without modification except as may be
represented by BNPPLC, and (ii) that there are no uncured defaults in BNPPLC’s performance
hereunder.

10 Leasehold Mortgages.

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

     (B) Any Leasehold Mortgagee or other party, including any corporation formed by a
Leasehold Mortgagee, may become the legal owner of the leasehold estate created by this Ground
Lease and of BNPPLC’s rights and interests in the improvements, equipment, fixtures and other
property assigned as additional security pursuant to a Leasehold Mortgage, by foreclosure of a

Amended and Restated Ground Lease (Building 8) – Page 7

 

 

Leasehold Mortgage or as a result of the assignment or conveyance in lieu of foreclosure. Further,
any such Leasehold Mortgagee or other party may itself, after becoming the legal owner and holder
of the leasehold estate created by this Ground Lease, or of any improvements, equipment, fixtures
and other property assigned as additional security pursuant to a Leasehold Mortgage, convey or
pledge the same without the consent of NAI.

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

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

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

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

     (3) Notwithstanding the foregoing, if NAI receives requests to enter into a New
Ground Lease from more than one Leasehold Mortgagee because of the expiration or termination
of this Ground Lease, NAI will be required to enter into only one New

Amended and Restated Ground Lease (Building 8) – Page 8

 

 

Ground Lease, and the
New Ground Lease will be to the requesting Leasehold Mortgagee who holds the highest
priority lien or interest in BNPPLC’s leasehold estate in the Land. If the liens or
security interests of two or more such requesting Leasehold Mortgagees which shared the
highest priority just prior to the termination of this Ground Lease, the New Ground Lease
will name all such Leasehold Mortgagees as co-tenants thereunder.

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

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

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

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

     (A) Condition of the Property. The Land described in Exhibit A is the
same as the land described in the Title Policy and as shown on the plat included as part of the
survey prepared by December 2, 1999, prepared by Kier & Wright, Job No. 97208-16 (the “Survey”),
which survey was delivered to BNPPLC at the request of NAI. All material improvements on the Land
as of the Effective Date are as shown on the Survey, and except as shown on the Survey there are no
easements or encroachments encumbering or affecting the Improved Property. No
part of the Land is within a flood plain as designated by any governmental authority.
Existing Improvements, if any, are free from latent or patent defects or deficiencies that, either
individually or in the aggregate, could materially and adversely affect the use or occupancy of the
Improved Property as permitted by the Lease or could reasonably be anticipated to cause injury or
death to any person. When the construction contemplated by the Construction Agreement is complete
in accordance with plans approved as described therein, the Improved Property and use thereof
permitted by the Lease will comply in all material respects with all Applicable Laws,

Amended and Restated Ground Lease (Building 8) – Page 9

 

 

including
laws regarding access and use by disabled persons and local zoning ordinances. Adequate provision
has been made (or can be made at a cost that is reasonable in connection with future development of
the Land) for the Land to be served by electric, gas, storm and sanitary sewers, sanitary water
supply, telephone and other utilities required for the use thereof. All streets, alleys and
easements necessary to serve the Improved Property for the construction contemplated by the
Construction Agreement or uses permitted by the Lease have been completed and are serviceable or
will be completed and made serviceable as part of the construction contemplated by the Construction
Agreement. No extraordinary circumstances (including any use of the Land as a habitat for
endangered species) exist that would materially and adversely affect such construction or uses of
the Improved Property. The Improvements, when constructed as contemplated in the Construction
Agreement, will be useable for their intended purpose without the need to obtain any additional
easements, rights-of-way or concessions from any third party or parties.

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

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

     (D) Intentionally Deleted.

     (E) Title to Improvements. The leasehold estate created in favor of BNPPLC by
this
Ground Lease will extend to and include the rights to use and enjoy any and all Improvements
of whatever nature at any time and from time to time located on the Land. Thus, throughout the
term of this Ground Lease, BNPPLC and its sublessees, assignees, licensees and concessionaires will
be entitled to use and enjoy such Improvements — to the exclusion of NAI as the lessor hereunder,
but subject to NAI’s rights under the Operative Documents (including the Lease) so long as they
remain in effect — as if the lessee hereunder was the owner of the Improvements. Further, although
any Improvements which remain on the Land when this Ground Lease expires or is terminated will
revert to NAI, it is also understood and agreed that the lessee hereunder may

Amended and Restated Ground Lease (Building 8) – Page 10

 

 

at any time and from
time to time — after NAI ceases to have possession of the Leased Property pursuant to the
Construction Agreement or as tenant under the Lease and prior to the expiration or termination of
this Ground Lease — remove all or any Improvements from the Land without the consent of NAI and
without any obligation to NAI or its Affiliates to provide compensation or to construct other
Improvements on or about the Land. Any Improvements removed as provided in the preceding sentence
will be considered severed from the Land and thereupon become personal property of the lessee
hereunder.

     (F) Defense of Adverse Title Claims. If any encumbrance or title defect whatsoever
affecting the Improved Property, other than Permitted Encumbrances or Liens Removable by BNPPLC, is
claimed or discovered (including Liens against any part of or interest in the Improved Property
which are not Fully Subordinated or Removable) or if any legal proceedings are instituted with
respect to any such claimed or discovered encumbrance or title defect, NAI must give prompt notice
thereof to BNPPLC and at NAI’s own cost and expense will promptly remove any such encumbrance and
cure any such defect and will take all necessary and proper steps for the defense of any such legal
proceedings, including the employment of counsel, the prosecution or defense of litigation and the
release or discharge of all adverse claims. If NAI fails to promptly remove any encumbrance or
cure any title defect as required by the preceding sentence, BNPPLC (whether or not named as a
party to legal proceedings with respect thereto) may take such additional steps as in its judgment
may be necessary or proper to remove such encumbrance or cure such defect or for the defense of any
such attack or legal proceedings or the protection of BNPPLC’s leasehold or other interest in the
Improved Property, including the employment of counsel, the prosecution or defense of litigation,
the compromise or discharge of any adverse claims made with respect to the Improved Property, the
removal of prior liens or security interests, and all expenses (including Attorneys’ Fees) so
incurred of every kind and character will be a demand obligation owing by NAI.

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

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

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

Amended and Restated Ground Lease (Building 8) – Page 11

 

 

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

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

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

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

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

Amended and Restated Ground Lease (Building 8) – Page 12

 

 

consent
requested by NAI prior to the Designated Sale Date will be governed by subparagraph 4(C) of
the Closing Certificate.

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

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

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

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

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

     (L) Cooperation by NAI and its Affiliates.

     (1) After the Turnover Date, if neither NAI nor an Applicable Purchaser has
purchased BNPPLC’s interest in the Improved Property pursuant to the Purchase Agreement, and
if a use of the Improved Property by BNPPLC or any new Improvements or any removal or
modification of Improvements proposed by BNPPLC would violate any Permitted Encumbrance or
Applicable Law unless NAI or any of its Affiliates, as an

Amended and Restated Ground Lease (Building 8) – Page 13

 

 

owner of adjacent land or
otherwise, gave its consent or approval thereto or agreed to join in a modification of a
Permitted Encumbrance, then NAI must give and cause its Affiliates to give such consent or
approval or join in such modification.

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

     (3) NAI’s obligations under this subparagraph 11(L) will be binding upon any successor
or assign of NAI or its Affiliates with respect to the Land and other properties encumbered
or benefitted by the Permitted Encumbrances, and such obligations will survive (a) any sale
of the Improved Property by BNPPLC, other than to NAI or an Applicable Purchaser under the
Purchase Agreement, for the benefit of BNPPLC’s assignees, and (b) any sale of NAI’s
interest in the Leased Property to BNPPLC because of BNPPLC’s exercise of the Contingent
Purchase Option.

     (M) Intentionally Deleted.

     (N) Omissions. None of NAI’s representations or warranties contained in this Ground
Lease or in any other document, certificate or written statement furnished to BNPPLC by or on
behalf of NAI contains any untrue statement of a material fact or omits a material fact necessary
in order to make the statements contained herein or therein (when taken in their entireties) not
misleading.

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

     (P) Condemnation. All proceeds of condemnation awards or proceeds of sale in
lieu of condemnation with respect to the Leased Property and all judgments, decrees and awards for
injury or damage to the Leased Property will be paid to BNPPLC and applied as provided in

Amended and Restated Ground Lease (Building 8) – Page 14

 

 

Paragraph 4 above. BNPPLC is hereby authorized, in the name of NAI, to execute and deliver valid
acquittances for, and to appeal from, any such judgment, decree or award concerning condemnation of
any of the Leased Property. BNPPLC will not be, in any event or circumstances, liable or
responsible for failure to collect, or to exercise diligence in the collection of, any such
proceeds, judgments, decrees or awards.

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

12 Ground Lease Defaults.

     (A) Definition of Ground Lease Default. Each of the following events will be deemed
to be a “Ground Lease Default” by BNPPLC under this Ground Lease:

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

     (2) A failure by BNPPLC to comply with any term, provision or covenant of this
Ground Lease (other than as described in the other clauses of this subparagraph 13(A)) if
such failure is not cured prior to the earlier of (A) ninety days after notice thereof is
sent to BNPPLC, or (B) the date any writ or order is issued for the levy or sale of any
property owned by NAI or its Affiliates (including the leasehold created by this Ground
Lease) because of such failure or any criminal action is instituted against BNPPLC or any of
its directors, officers or employees because of such failure; provided, however, that so
long as no such writ or order is issued and no such criminal actions is instituted, if such
failure is susceptible of cure but cannot with reasonable diligence be cured within such
ninety day period, and if BNPPLC has promptly commenced to cure the same and thereafter
prosecutes the curing thereof with reasonable

Amended and Restated Ground Lease (Building 8) – Page 15

 

 

diligence, the period within which such
failure may be cured will be extended for such further period as is necessary to complete
the cure.

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

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

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

15 Miscellaneous.

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

Amended and Restated Ground Lease (Building 8) – Page 16

 

 

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

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

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

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

19 Amendment and Restatement of Prior ground Lease. This Lease amends, restates and
replaces entirely the Ground Lease dated as of December 14, 2006, between NAI (as lessor) and
BNPPLC (as lessee) (as previously amended, the “Prior Ground Lease”). Without limiting the rights
and obligations of the parties under this Ground Lease, NAI acknowledges that any and all rights or
interest of NAI in and to the Land or other Property under the Prior Ground Lease are now made
subject to the terms and conditions of this Ground Lease; and all rights and interests of BNPPLC in
and to the Land or other Property under the Prior Ground Lease are renewed and extended (rather
than terminated) by this Ground Lease.

[The signature pages follow.]

Amended and Restated Ground Lease (Building 8) – Page 17

 

 

     IN WITNESS WHEREOF, this Amended and Restated Ground Lease (Building 8) is executed to be
effective as of November 29, 2007.

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

	 	 	 	 	 	 	 
	STATE OF TEXAS	 	 	)	 	 	 
	 	 	 	)	 	 	SS
	COUNTY OF DALLAS	 	 	)	 	 	 

On November 27,
2007, before me Kathryn Hackett, a Notary Public in and for the
County and State aforesaid, personally appeared Lloyd G. Cox, Managing Director of BNP Paribas
Leasing Corporation, who is personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me
that he/she executed the same in his/her authorized capacity and that by his/her signature on such
instrument the person, or the entity upon behalf of which the person acted, executed the
instrument.

WITNESS, my hand and official seal.

	 	 	 
	/s/ Kathryn Hackett 
	 	NOTARY PUBLIC

STATE OF TEXAS
KATHRYN HACKETT
MY COMMISSION EXPIRES

June 21, 2011

Amended and Restated Ground Lease (Building 8) – Signature Page

 

 

[Continuation of signature pages for Amended and Restated Ground Lease (Building 8) dated as of
November 29, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	/s/ Ingemar Lanevi 	 
	 	 	Ingemar Lanevi, Vice President and Corporate 	 
	 	 	Treasurer 	 
	 

	 	 	 	 	 	 	 
	STATE OF NORTH CAROLINA
	 	 	)	 	 	 
	 
	 	 	)	 	 	SS
	COUNTY OF WAKE
	 	 	)	 	 	 

On November 27th, 2007, before me Donna M. Marcotte, a Notary Public in and for the
County and State aforesaid, personally appeared Ingemar Lanevi, Vice President and Corporate
Treasurer of Network Appliance, Inc., who is personally known to me (or proved to me on the basis
of satisfactory evidence) to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized capacity and that by his/her
signature on such instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.

WITNESS, my hand and official seal.

	 	 	 	 	 
	/s/ Donna M. Marcotte	 	 

Amended and Restated Ground Lease (Building 8) – Signature Page

 

 

Exhibit A

Legal Description

Proposed Parcel 8, and (except to the extent within a different platted Parcel as currently shown
in the Map Records of the County of Santa Clara, California) proposed Parcel 12, and the Additional
Leased Premises as defined below, (collectively, the “Building 8 Ground Lease Premises”) as shown
on that certain Vesting Tentative Parcel Map provided to BNP Paribas Leasing Corporation (“BNPPLC”)
by Network Appliance, Inc. (“NAI”) attached hereto and made a part hereof (the “Tentative Map”),
which has received preliminary approval from the City of Sunnyvale, California, but not yet been
filed for record in the office of the recorder of the County of Santa Clara, State of California.
As used herein, “Additional Leased Premises” means the parking lots, driveways and other areas
shaded in gray on the Tentative Map attached hereto within the larger area designated as Common Lot
A (consisting of 30.46 Acres, more or less) on the Tentative Map. The southern boundary of the
Additional Leased Premises is a line that runs North 75 degrees, 07 minutes, 58 seconds equidistant
from the southern boundary of Parcel 8 and the northern boundary of Parcel 7, both as shown on the
Tentative Map. The eastern boundary of the Additional Leased Premises runs along the same line as
the eastern boundary of Common Lot A, as shown on the Tentative Map. The western boundary of the
Additional Leased Premises runs along the same line as the western boundary of Parcel 8 and Parcel
7, as shown on the Tentative Map. The northern boundary of the Additional Leased Premises runs
along the center of an existing or proposed driveway which is situated between Parcel 8 and
Parcel 9, as shown on the Tentative Map.

TOGETHER WITH, easements appurtenant to the Building 8 Ground Lease Premises (the “Appurtenant
Easements”) under, over and across adjacent parcels (“Adjacent Parcels”) which are owned by NAI for
the purposes described below and on and subject to the express terms and conditions set forth
below:

The Appurtenant Easements will be for the following purposes:

     1. The use, maintenance, repair, replacement expansion of utility lines under, over and
across the Adjacent Parcels and related equipment (including lines or equipment for water,
sanitary sewer, electricity, phone and gas) (collectively, the “Utility Lines”) to serve
improvements constructed from time to time on the Building 8 Ground Lease Premises.

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

     3. The encroachment, support, maintenance, repair and replacement of any buildings
constructed on Parcel 8 as shown on the Tentative Map during the period that
BNPPLC owns or leases Parcel 8.

 

 

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

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

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

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

     (3) any other Utility Lines reasonably necessary for the use of improvements
constructed by NAI (whether constructed for BNPPLC or otherwise) on the Building 8
Ground Lease Premises (and in the case of Utility Lines permitted only because of
this clause (3), such Utility Lines must be installed in a location that does not
run through or under any then existing building or structured garage on the Adjacent
Parcels); and

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

     B. Any Utility Line on any Adjacent Parcel may be relocated to another location on the
same Adjacent Parcel by the owner of such parcel and at its sole cost and expense, so long
as the relocation is done in a good and workmanlike manner that does not and will not impose
any significant or unexpected interruption of utility services or additional costs upon the
owner or occupants of the Building 8 Ground Lease Premises.

     C. The use of Driveways and Parking Areas by the owner of the Building 8 Ground
Lease Premises and its tenants and other invitees will not exceed that reasonably required
to provide buildings constructed on the Building 8 Ground Lease Premises with parking that
both (i) meets local zoning and other legal requirements, and (ii) when taken together with
any permanent, concrete parking spaces from time to time constructed on the Building 8
Ground Lease Premises, provides at least the minimum number of parking spaces for buildings
on the Building 8 Ground Lease Premises necessary to cause the parking ratio for buildings
on the Building 8 Ground Lease Premises to be not less than 1 parking space per 333 square
feet of interior building floor area (the “Minimum Parking Requirements”). However, for
purposes of computing the Minimum Parking Requirements, parking spaces from time to time
constructed on the Building 8 Ground Lease Premises which are made available for parking by
owners or occupants of any Adjacent Parcel pursuant to any easement which encumbers the
Building 8 Ground Lease Premises (or any leasehold estate therein) will be treated as if
they did not exist. In other
words, any such parking spaces available to owners or occupants of Adjacent Parcels
will

Exhibit A to Amended and Restated Ground Lease (Building 8) – Page 2

 

 

not be included in the numbers of parking spaces considered as available to owners or
occupants of the Building 8 Ground Lease Premises to satisfy the Minimum Parking
Requirements.

     D. NAI and its successors and assigns as the owners of Adjacent Parcels will always
maintain a number of parking spaces on the Adjacent Parcels which is no less than the sum of
(1) the spaces required to meet Minimum Parking Requirements for buildings on the Building 8
Ground Lease Premises, and (2) the spaces required to satisfy zoning or other parking
requirements for other buildings on or served by parking on the Adjacent Parcels.

     E. The Appurtenant Easement for parking on Adjacent Parcels will be subject to the
following condition subsequent: If a sufficient number of permanent, concrete parking spaces
in parking lots or structured garages are constructed on the Building 8 Ground Lease
Premises to satisfy Minimum Parking Requirements (computed as described above) without the
need for additional parking spaces on Adjacent Parcels, then the owners of Adjacent Parcels
may terminate such parking easement by notice to the owner of the Building 8 Ground Lease
Premises and by recording a copy of such notice in the real property deed records. (This
provision will not, however, be construed to require the construction of such lots or
garages on the Building 8 Ground Lease Premises.)

     F. Notwithstanding the foregoing, at any time when BNPPLC or any successor of BNPPLC
owns or leases (i) all or any part of the land shown on the Tentative Map as Parcel 7 and
adjacent parking lots, driveways and other areas within Common Lot A (collectively, the
“Building 7 Ground Lease Premises”) or (ii) all or any part of the land shown on the
Tentative Map as Parcel 9 and adjacent parking lots, driveways and other areas within Common
Lot A (collectively, the “Building 9 Ground Lease Premises”), BNPPLC may, at its sole option
and at any time or from time to time, cause all or any portion of the Building 7 Ground
Lease Premises and/or the Building 9 Ground Lease Premises to be released from all or any of
the Appurtenant Easements. Notwithstanding any such release, the Appurtenant Easements will
continue as to Adjacent Parcels other than the released portions of the Building 7 Ground
Lease Premises and/or the Building 9 Ground Lease Premises, as applicable. BNPPLC may
exercise such option by written notice recorded in the real property records of Santa Clara
County, California.

Exhibit A to Amended and Restated Ground Lease (Building 8) – Page 3

 

 

Exhibit A to Amended and Restated Ground Lease (Building 8) – Page 4

 

 

Exhibit B

Permitted Encumbrances

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

1. TAXES for the fiscal year 2006-2007, a lien not yet due or payable.

2. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section
75 of the California Revenue and Taxation Code, resulting from changes of ownership or completion
of construction on or after the date hereof.

3. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 	 	 
	 

	 	Purpose
	 	: Slope Easement
	 

	 	In favor of
	 	: City of Sunnyvale
	 

	 	Recorded
	 	: October 9, 1964 in Book 6695, page 430, Official Records
	 

	 	Affects
	 	: Easterly 18 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey
for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

4. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 	 	 
	 

	 	Purpose
	 	: Public utilities easement
	 

	 	In favor of
	 	: City of Sunnyvale
	 

	 	Recorded
	 	: October 9, 1964 in Book 6695, page 450, Official Records
	 

	 	Affects
	 	: Easterly 7 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey
for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

5. Covenants, Conditions and Restrictions in the Declaration of Protective Covenants — Moffett
Industrial Park No. 2) recorded December 23, 1971 in Book 9640, page 443, Official Records; which
provide that a violation thereof shall not defeat or render invalid the lien of any Mortgage or
Deed of Trust made in good faith and for value. Said Covenants, Conditions and Restrictions do not
provide for reversion of title in the event of a breach thereof. Restrictions, if any, based upon
race, color, religion, sex, handicap, familial status, or national origin are deleted, unless and
only to the extent that said covenant (a) is exempt under Chapter 42, Section 3607, of the United
States Code, or (b) related to handicap but does not discriminate against handicapped persons.

     ASSIGNMENT AND ASSUMPTION of the rights, powers, duties, obligations, and reservations of
Moffett Park Associates, in favor of The Prudential Insurance Company of

 

 

America, recorded February
8, 1977 in Book C583, page 685, Official Records.

6. EASEMENT for the purposes stated herein and incidents thereto

	 	 	 	 	 
	 

	 	Purpose
	 	: Public utilities
	 

	 	Granted to
	 	: City of Sunnyvale
	 

	 	Recorded
	 	: November 16, 1976 in Book C414, page 105, Official Records
	 

	 	Affects
	 	: Southerly 10 feet, as shown on a survey plat entitled ALTA/ACSM Land Title Survey
for: Network Appliance, 1345 Crossman Avenue, dated December 2, 1999, prepared by Kier
& Wright, Job No. 97208-16.

7. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but deleting any
covenant, condition or restriction indicating a preference, limitation or discrimination based on
race, color, religion, sex, handicap, familial status, or national origin to the extent such
covenants, conditions or restrictions violate 42 USC 3604(c), contained in the document recorded
February 5, 1980 in Book F122, page 460, Official Records.

Exhibit B to Amended and Restated Ground Lease (Building 8) – Page 2

 

 

Exhibit C

CONTINGENT PURCHASE OPTION

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

Exhibit C to Amended and Restated Ground Lease (Building 8) – Page 2

 

 

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

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

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

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

Exhibit C to Amended and Restated Ground Lease (Building 8) – Page 3

 

 

by the other appraiser (i.e., the notifying party’s appraiser) will be binding upon
NAI and BNPPLC.

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

Exhibit C to Amended and Restated Ground Lease (Building 8) – Page 4

 

 

Exhibit D

DETERMINATION OF FAIR RENTAL VALUE

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

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

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

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

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

     (c) If a third appraiser must be chosen under the procedure set out above, he or she
will be chosen on the basis of objectivity and competence, not on the basis of his

 

 

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

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

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

Exhibit D to Amended and Restated Ground Lease (Building 8) – Page 2

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