Document:

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                                                                   EXHIBIT 10.63

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                                PLEDGE AGREEMENT
                            (PHASE V - IMPROVEMENTS)

                                      AMONG

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                       BANQUE NATIONALE DE PARIS, AS AGENT

                                    ("AGENT")

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                                       AND

                        PARTICIPANTS AS DESCRIBED HEREIN

                                  MARCH 1, 2000

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                                TABLE OF CONTENTS

<TABLE>
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<S>                                                                                       <C>
Article I DEFINITIONS AND INTERPRETATION....................................................1
        1.1       Capitalized Terms Used But Not Defined in This Agreement..................1
        1.2       Definitions...............................................................2
        1.3       Attachments...............................................................7
        1.4       Amendment of Defined Instruments..........................................7
        1.5       References and Titles.....................................................7

Article II SECURITY INTEREST................................................................8
        2.1       Pledge and Grant of Security Interest.....................................8
        2.2       Return of Collateral After the Secured Obligations are Satisfied in
                  Full......................................................................8

Article III DESIGNATION OF MINIMUM COLLATERAL PERCENTAGE....................................8
        3.1       Determination of Minimum Collateral Percentage Generally..................8
        3.2       Limitations on NAI's Right to Lower the Collateral Percentage.............9
        3.3       Mandatory Collateral Periods..............................................9

Article IV PROVISIONS CONCERNING DEPOSIT TAKERS.............................................9
        4.1       Qualification of Deposit Takers Generally.................................9
        4.2       Existing Deposit Takers..................................................10
        4.3       Replacement of Participants Proposed by NAI..............................10
        4.4       Mandatory Substitution for Disqualified Deposit Takers...................11
        4.5       Voluntary Substitution of Deposit Takers.................................11
        4.6       Delivery of Notice of Security Interest by NAI and Agent.................11
        4.7       Constructive Possession of Collateral....................................11
        4.8       Attempted Setoff by Deposit Takers.......................................12
        4.9       Deposit Taker Losses.....................................................12
        4.10      Losses Resulting from Failure of Deposit Taker to Comply with this
                  Agreement................................................................12

Article V DELIVERY AND MAINTENANCE OF CASH COLLATERAL......................................12
        5.1       Delivery of Funds by NAI.................................................12
        5.2       Transition Account.......................................................13
        5.3       Allocation of Cash Collateral Among Deposit Takers.......................13
        5.4       Issuance and Redemption of Certificates of Deposit.......................13
        5.5       Status of the Accounts Under the Reserve Requirement Regulations.........14
        5.6       Acknowledgment by NAI that Requirements of this Agreement are
                  Commercially Reasonable..................................................14

Article VI WITHDRAWAL OF CASH COLLATERAL...................................................15
        6.1       Withdrawal of Collateral Prior to the Designated Sale Date...............15
        6.2       Withdrawal and Application of Cash Collateral to Reduce or Satisfy
                  the Secured Obligations to the Participants..............................15
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<TABLE>
<S>                                                                                       <C>
        6.3       Withdrawal and Application of Cash Collateral to Reduce or Satisfy
                  the Secured Obligations to BNPLC.........................................16
        6.4       Withdrawal of Cash Collateral From Accounts Maintained by
                  Disqualified Deposit Takers..............................................16

Article VII REPRESENTATIONS AND COVENANTS OF NAI...........................................16
        7.1       Representations of NAI...................................................16
        7.2       Covenants of NAI.........................................................17

Article VIII AUTHORIZED ACTION BY AGENT....................................................19
        8.1       Power of Attorney........................................................19

Article IX DEFAULT AND REMEDIES............................................................19
        9.1       Remedies.................................................................19

Article X OTHER RECOURSE...................................................................20
        10.1      Recovery Not Limited.....................................................20

Article XI PROVISIONS CONCERNING AGENT.....................................................20
        11.1      Appointment and Authority................................................20
        11.2      Exculpation, Agent's Reliance, Etc.......................................21
        11.3      Participant's Credit Decisions...........................................21
        11.4      Indemnity................................................................21
        11.5      Agent's Rights as Participant and Deposit Taker..........................22
        11.6      Investments..............................................................22
        11.7      Benefit of Article XI....................................................22
        11.8      Resignation..............................................................23

Article XII MISCELLANEOUS..................................................................23
        12.1      Provisions Incorporated From Other Operative Documents...................23
        12.2      Cumulative Rights, etc...................................................23
        12.3      Survival of Agreements...................................................23
        12.4      Other Liable Party.......................................................23
        12.5      Termination..............................................................24
</TABLE>

Attachment 1......................................Form of Certificate of Deposit

Attachment 2.............Supplement to Pledge Agreement (Phase V - Improvements)

Attachment 3........Notice of NAI's Election to Change the Collateral Percentage

Attachment 4.........................................Notice of Security Interest

Attachment 5............................................Examples of Calculations

Attachment 6......Notice of NAI's Requirement to Withdraw Excess Cash Collateral

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Attachment 7......Notice of NAI's Requirement of Direct Payments to Participants

Attachment 8......Notice of NAI's Requirement of Direct Payments to Participants

Attachment 9.........................Notice of NAI's Requirement of a Withdrawal
                            of Cash Collateral from a Disqualified Deposit Taker

Schedule 1............................Financial Covenants and Negative Covenants

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                                PLEDGE AGREEMENT
                            (PHASE V - IMPROVEMENTS)

        This PLEDGE AGREEMENT (PHASE V - IMPROVEMENTS) (this "AGREEMENT") is
made as of March 1, 2000 (the "EFFECTIVE DATE"), by NETWORK APPLIANCE, INC., a
California corporation ("NAI"); BNP LEASING CORPORATION, a Delaware corporation
("BNPLC"); BANQUE NATIONALE DE PARIS ("BNPLC'S PARENT"), as a "PARTICIPANT"; and
BANQUE NATIONALE DE PARIS, acting in its capacity as agent for BNPLC and the
Participants (in such capacity, "AGENT"), is made and dated as of the Effective
Date.

                                    RECITALS

        A. NAI and BNPLC are parties to: (i) a Common Definitions and Provisions
Agreement (Phase V - Improvements) dated as of the Effective Date (the "COMMON
DEFINITIONS AND PROVISIONS AGREEMENT (PHASE V - IMPROVEMENTS)"); and (ii) a
Purchase Agreement (Phase V - Improvements) dated as of the Effective Date (the
"PURCHASE AGREEMENT"), pursuant to which NAI has agreed to make a "SUPPLEMENTAL
PAYMENT" or "ISSUE 97-10 PREPAYMENT" (both as defined in the Common Definitions
and Provisions Agreement (Phase V - Improvements)), in consideration of the
rights granted to NAI by the Purchase Agreement.

        B. Pursuant to a Participation Agreement dated the date hereof (the
"PARTICIPATION AGREEMENT"), BNPLC's Parent has agreed with BNPLC to participate
in the risks and rewards to BNPLC of the Purchase Agreement and other Operative
Documents (as defined in the Common Definitions and Provisions Agreement (Phase
V - Improvements)), and the parties to this Agreement anticipate that other
financial institutions may become parties to the Participation Agreement as
Participants, agreeing to participate in the risks and rewards to BNPLC of the
Purchase Agreement and other Operative Documents.

        C. NAI may from time to time deliver cash collateral for its obligations
to BNPLC under the Purchase Agreement and for BNPLC's corresponding obligations
to Participants under the Participation Agreement. This Agreement sets forth the
terms and conditions governing such cash collateral.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the above recitals and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

        1.1 Capitalized Terms Used But Not Defined in This Agreement. All
capitalized terms used in this Agreement which are defined in Article I of the
Common Definitions and Provisions Agreement (Phase V - Improvements) and not
otherwise defined herein shall have the

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same meanings herein as set forth in the Common Definitions and Provisions
Agreement (Phase V - Improvements). All terms used in this Agreement which are
defined in the UCC and not otherwise defined herein shall have the same meanings
herein as set forth therein, except where the context otherwise requires.

        1.2 Definitions. When used in this Agreement, the following terms shall
have the following respective meanings:

        "ACCOUNT" shall mean any deposit account maintained by a Deposit Taker
into which Cash Collateral may be deposited at any time, excluding the
Transition Account.

        "ACCOUNT OFFICE" shall mean, with respect to any Account maintained by
any Deposit Taker, the office of such Deposit Taker in California or New York at
which such Account is maintained as specified in the applicable Deposit Taker's
Acknowledgment and Agreement.

        "AGENT" shall have the meaning given to that term in the introductory
paragraph hereof.

        "BNPLC" shall have the meaning given to that term in the introductory
paragraph hereof.

        "BNPLC'S CORRESPONDING OBLIGATIONS TO PARTICIPANTS" shall mean BNPLC's
obligations under the Participation Agreement to pay Participants their
respective Percentages of (or amounts equal to their respective Percentages of)
sums "actually received by BNPLC" (as defined in the Participation Agreement) in
satisfaction of NAI's Purchase Agreement Obligations; provided, however, any
modification of the Participation Agreement executed after the date hereof
without NAI's written consent shall not be considered for purposes of
determining BNPLC's Corresponding Obligations to Participants under this
Agreement.

        "CASH COLLATERAL" shall mean (i) all money of NAI which NAI has
delivered to Agent for deposit with a Deposit Taker pursuant to this Agreement,
and (ii) any additional money delivered to Agent as Collateral pursuant to
Section 4.9.

        "CERTIFICATE OF DEPOSIT" shall mean a certificate of deposit issued by a
Deposit Taker as required by Section 4.9 below to evidence an Account into which
Cash Collateral has been deposited pursuant to this Agreement. Each Certificate
of Deposit shall be issued in an amount equal to the Value of the Account which
it evidences and shall otherwise be in the form set forth as ATTACHMENT 1.

        "COLLATERAL" shall have the meaning given to that term in Section 2.1
hereof.

        "COLLATERAL IMBALANCE" shall mean on any date prior to the Designated
Sale Date that the Value (without duplication) of Accounts maintained by and
Certificates of Deposit issued by the Deposit Taker for any Participant (other
than a Disqualified Deposit Taker) does not equal such Participant's Percentage,
multiplied by the lesser of (1) the Minimum Collateral Value in effect on such
date, or (2) the aggregate Value of all Collateral subject to this Agreement on
such date. For purposes of determining whether a Collateral Imbalance exists,
the Value of any Accounts maintained by a bank that is acting as Deposit Taker
for two or more Participants will be deemed to be held for them in proportion to
their respective Percentages, and the Value of any

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Accounts maintained by a bank as Deposit Taker for both a Participant and BNPLC
(as in the case of BNPLC's Parent acting as Deposit Taker for itself, as a
Participant, and for BNPLC) will be deemed to be held for the Participant only
to the extent necessary to prevent or mitigate a Collateral Imbalance and
otherwise for BNPLC.

        "COLLATERAL PERCENTAGE" shall mean the percentage designated by NAI or
required during a Mandatory Collateral Period pursuant to Part III of Schedule
1.

        "DEFAULT" means any Event of Default and any default, event or condition
which would, with the giving of any requisite notices and the passage of any
requisite periods of time, constitute an Event of Default.

        "DEPOSIT TAKER" for BNPLC shall mean BNPLC's Parent and for each
Participant shall mean the Participant itself; provided, that each of BNPLC and
the Participants, for itself only, may from time to time designate another
Deposit Taker as provided in Section 4.4 and 4.4 below.

        "DEPOSIT TAKER LOSSES" shall mean the Value of any Cash Collateral
delivered to a Deposit Taker, but that the Deposit Taker will not (because of
the insolvency of the Deposit Taker, offsets by the Deposit Taker in violation
of the Deposit Taker's Acknowledgment and Agreement, or otherwise) return to NAI
or return to Agent for disposition or application as provided herein or as
required by applicable law.

        "DEPOSIT TAKER'S ACKNOWLEDGMENT AND AGREEMENT" shall have the meaning
given to that term in subsection 4.1.2 hereof.

        "DISQUALIFIED DEPOSIT TAKER" shall mean any Deposit Taker with whom
Agent may decline to deposit Collateral pursuant to Section 4.1.

        "EVENT OF DEFAULT" shall mean the occurrence of any of the following:

               (a) the failure by NAI to pay all or any part of NAI's Purchase
        Agreement Obligations when due, after giving effect to any applicable
        notice and grace periods expressly provided for in the Purchase
        Agreement;

               (b) the failure by NAI to provide funds as and when required by
        Section 5.1 of this Agreement, if within seven Business Days after such
        failure commences NAI does not (1) cure such failure by delivering the
        funds required by Section 5.1, and (2) pay to BNPLC as additional Rent
        under the Improvements Lease an amount equal to interest at the Default
        Rate (as defined in the Improvements Lease) on such funds for the period
        from which they were first due to the date of receipt by Agent;

               (c) the failure of the pledge or security interest contemplated
        herein in the Transition Account or any Account, Certificate of Deposit
        or Cash Collateral to be a Qualified Pledge (regardless of the
        characterization of the Transition Account or any Accounts, Certificates
        of Deposit or Cash Collateral as deposit accounts, instruments or
        general intangibles under the UCC), if within five Business Days after
        NAI becomes aware of such failure, NAI does not (1) notify Agent, BNPLC
        and the Participants of

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        such failure, and (2) cure such failure, and (3) to the extent required
        by Section 7.2.9, pay to BNPLC any additional Base Rent that has accrued
        under the Improvements Lease because of (or that would have accrued if
        BNPLC had been aware of) such failure, together with interest at the
        Default Rate on any such additional Base Rent;

               (d) the failure of any representation herein by NAI to be true
        (other than a failure described in another clause of this definition of
        Event of Default), if such failure is not cured within thirty days after
        NAI receives written notice thereof from Agent;

               (e) the failure of any representation made by NAI in subsection
        7.1.1 to be true, if within fifteen (15) days after NAI becomes aware of
        such failure, NAI does not (1) notify Agent, BNPLC and the Participants
        of such failure, and (2) cure such failure, and (3) pay to BNPLC any
        additional Base Rent that has accrued under the Improvements Lease
        because of (or that would have accrued if BNPLC had been aware of) such
        failure, and (4) pay to BNPLC interest at the Default Rate on any such
        additional Base Rent;

               (f) the failure by NAI timely and properly to observe, keep or
        perform any covenant, agreement, warranty or condition herein required
        to be observed, kept or performed (other than a failure described in
        another clause of this definition of Event of Default), if such failure
        is not cured within thirty days after NAI receives written notice
        thereof from Agent; and

               (g) the failure by BNPLC to pay when due on or after the
        Designated Sale Date any of BNPLC's Corresponding Obligations to
        Participants, after giving effect to any applicable notice and grace
        periods expressly provided for in the Participation Agreement.

Notwithstanding the foregoing, if ever the aggregate Value of Cash Collateral
held by Agent and the Deposit Takers EXCEEDS the Minimum Collateral Value then
in effect, a failure of the pledge or security interest contemplated herein in
SUCH EXCESS Cash Collateral to be a valid, perfected, first priority pledge or
security interest shall not constitute an Event of Default under this Agreement.
Accordingly, to provide a cure as required to avoid an Event of Default under
clauses (d) or (e) of this definition, NAI could deliver additional Cash
Collateral - the pledge of which or security interest in which created by this
Agreement is a Qualified Pledge - sufficient in amount to cause the aggregate
Value of the Cash Collateral then held by Agent and the Deposit Takers subject
to a Qualified Pledge hereunder to equal or exceed the Minimum Collateral Value.

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

        "INITIALLY QUALIFIED DEPOSIT TAKER" means (1) Banque Nationale de Paris,
acting through any branch, office or agency that can lawfully maintain an
Account as a Deposit Taker hereunder, and (2) any of the fifty largest (measured
by total assets) U.S. banks, or one of the one hundred largest (measured by
total assets) banks in the world, with debt ratings of at least (i) A- (in the
case of long term debt) and A-1 (in the case of short term debt) or the
equivalent thereof

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by Standard and Poor's Corporation, and (ii) A3 (in the case of long term debt)
and P-2 (in the case of short term debt) or the equivalent thereof by Moody's
Investor Service, Inc. The parties believe it improbable that the ratings
systems used by Standard and Poor's Corporation and by Moody's Investor Service,
Inc. will be discontinued or changed, but if such ratings systems are
discontinued or changed, NAI shall be entitled to select and use a comparable
ratings systems as a substitute for the S&P Rating or the Moody Rating, as the
case may be, for purposes of determining the status of any bank as an Initially
Qualified Deposit Taker.

        "LIEN" shall mean, with respect to any property or assets, any right or
interest therein of a creditor to secure indebtedness of any kind which is owed
to him or any other arrangement with such creditor which provides for the
payment of such indebtedness out of such property or assets or which allows him
to have such indebtedness satisfied out of such property or assets prior to the
general creditors of any owner thereof, including any lien, mortgage, security
interest, pledge, deposit, production payment, rights of a vendor under any
title retention or conditional sale agreement or lease substantially equivalent
thereto, tax lien, mechanic's or materialman's lien, or any other charge or
encumbrance for security purposes, whether arising by law or agreement or
otherwise, but excluding any right of setoff which arises without agreement in
the ordinary course of business. "Lien" also means any filed financing
statement, any registration with an issuer of uncertificated securities, or any
other arrangement which would serve to perfect a Lien described in the preceding
sentence, regardless of whether such financing statement is filed, such
registration is made, or such arrangement is undertaken before or after such
Lien exists.

        "MATERIAL LEASE DEFAULT" shall mean any of the following:

               (1) any "Event of Default" under and as defined in the
        Improvements Lease, including any such Event of Default consisting of a
        failure of NAI to comply with the requirements of Exhibit I attached to
        the Improvements Lease; and

               (2)(a) any failure of NAI to make any payment required by and
        when first due under the Improvements Lease, regardless of whether any
        period provided in the Improvements Lease for the cure of such failure
        by NAI shall have expired, and (b) any other default, event or condition
        which would, with the giving of any requisite notices and the passage of
        any requisite periods of time, constitute an "Event of Default" under
        and as defined in the Improvements Lease, if such other default, event
        or failure involves a material noncompliance with Applicable Law. (For
        purposes of this definition, "material" noncompliance with Applicable
        Law will include any noncompliance, the correction of which has been
        requested by a governmental authority, or because of which a threat of
        action against the Property or BNPLC has been asserted by a governmental
        authority.)

        "MANDATORY COLLATERAL PERIOD" shall mean any period, as determined in
accordance with Part III of Schedule 1, during which NAI is required to maintain
a Collateral Percentage of one hundred percent (100%) pursuant to Section 3.2.

        "MINIMUM COLLATERAL VALUE" shall mean (1) as of the Designated Sale Date
or any prior date, an amount equal to the Collateral Percentage multiplied by
the Stipulated Loss Value

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determined as of that date in accordance with the Improvements Lease; and (2) as
of any date after the Designated Sale Date, an amount equal to the Break Even
Price plus any unpaid interest accrued on past due amounts payable pursuant to
Paragraph 1(a) of the Purchase Agreement.

        "NAI" shall have the meaning given to that term in the introductory
paragraph hereof.

        "NAI'S PURCHASE AGREEMENT OBLIGATIONS" shall mean all of NAI's
obligations under the Purchase Agreement, including (i) NAI's obligation to pay
any Supplemental Payment as required under subparagraph 1(A) of the Purchase
Agreement, (ii) NAI's obligation to pay any Issue 97-10 Prepayment as required
by subparagraph 4(C) of the Purchase Agreement, and (iii) any damages incurred
by BNPLC because of (A) NAI's breach of the Purchase Agreement or (B) the
rejection by NAI of the Purchase Agreement in any bankruptcy or insolvency
proceeding.

        "NOTICE OF SECURITY INTEREST" shall have the meaning given to that term
in subsection 4.1.1 hereof.

        "OTHER LIABLE PARTY" shall mean any Person, other than NAI, who may now
or may at any time hereafter be primarily or secondarily liable for any of the
Secured Obligations or who may now or may at any time hereafter have granted to
Agent a pledge of or security interest in any of the Collateral.

        "PARTICIPANTS" shall mean BNPLC's Parent and any other financial
institutions which may hereafter become parties to (i) this Agreement by
completing, executing and delivering to NAI and Agent a Supplement, and (ii) the
Participation Agreement.

        "PARTICIPATION AGREEMENT" shall have the meaning given to such term in
Recital B hereof.

        "PERCENTAGE" shall mean with respect to each Participant and the Deposit
Taker for such Participant, such Participant's "Percentage" under and as defined
in the Participation Agreement for purposes of computing such Participant's
right thereunder to receive payments of (or amounts equal to a percentage of)
any sales proceeds or Supplemental Payment received by BNPLC under the Purchase
Agreement. Percentages may be adjusted from time to time as provided in the
Participation Agreement or as provided in supplements thereto executed as
provided in the Participation Agreement.

        "QUALIFIED PLEDGE" means a pledge or security interest that constitutes
a valid, perfected, first priority pledge or security interest.

        "SECURED OBLIGATIONS" shall mean and include both NAI's Purchase
Agreement Obligations and BNPLC's Corresponding Obligations to Participants.

        "SUPPLEMENT" shall mean a supplement to this Agreement in the form of
ATTACHMENT 2.

        "TRANSACTION DOCUMENTS" shall mean, collectively, this Agreement, the
Improvements Lease, the Purchase Agreement and the Participation Agreement.

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        "TRANSITION ACCOUNT" shall have the meaning given it in Section 5.2.

        "UCC" shall mean the Uniform Commercial Code as in effect in the State
of California from time to time, and the Uniform Commercial Code as in effect in
any other jurisdiction which governs the perfection or non-perfection of the
pledge of and security interests in the Collateral created by this Agreement.

        "VALUE" shall mean with respect to any Account, Certificate of Deposit
or Cash Collateral on any date, a dollar value determined as follows (without
duplication):

               (a) cash shall be valued at its face amount on such date;

               (b) an Account shall be valued at the principal balance thereof
        on such date; and

               (c) a Certificate of Deposit shall be valued at the face amount
        thereof.

        1.3 Attachments. All attachments to this Agreement are a part hereof for
all purposes.

        1.4 Amendment of Defined Instruments. Unless the context otherwise
requires or unless otherwise provided herein, references in this Agreement to a
particular agreement, instrument or document (including references to the
Improvements Lease, Purchase Agreement and Participation Agreement) also refer
to and include all valid renewals, extensions, amendments, modifications,
supplements or restatements of any such agreement, instrument or document;
provided that nothing contained in this Section shall be construed to authorize
any Person to execute or enter into any such renewal, extension, amendment,
modification, supplement or restatement.

        1.5 References and Titles. All references in this Agreement to
Attachments, Articles, Sections, subsections, and other subdivisions refer to
the Attachments, Articles, Sections, subsections and other subdivisions of this
Agreement unless expressly provided otherwise. Titles appearing at the beginning
of any subdivision are for convenience only and do not constitute any part of
any such subdivision and shall be disregarded in construing the language
contained in this Agreement. The words "this Agreement", "herein", "hereof",
"hereby", "hereunder" and words of similar import refer to this Agreement as a
whole and not to any particular subdivision unless expressly so limited. The
phrases "this Article," "this Section" and "this subsection" and similar phrases
refer only to the Articles, Sections or subsections hereof in which the phrase
occurs. The word "or" is not exclusive, and the word "including" (in all of its
forms) means "including without limitation". Pronouns in masculine, feminine and
neuter gender shall be construed to include any other gender, and words in the
singular form shall be construed to include the plural and vice versa unless the
context otherwise requires.

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                                   ARTICLE II

                                SECURITY INTEREST

        2.1 Pledge and Grant of Security Interest. As security for the Secured
Obligations, NAI hereby pledges and assigns to Agent (for the ratable benefit of
BNPLC and the Participants) and grants to Agent (for the ratable benefit of
BNPLC and the Participants) a continuing security interest and lien in and
against all right, title and interest of NAI in and to the following property,
whether now owned or hereafter acquired by NAI (collectively and severally, the
"COLLATERAL"):

               (a) All Cash Collateral, all Accounts, the Transition Account and
        all Certificates of Deposit issued from time to time and general
        intangibles arising therefrom or relating thereto (however, "general
        intangibles" as used in this clause shall not include any general
        intangibles not related to Cash Collateral, Accounts, the Transition
        Account or Certificates of Deposit issued from time to time, and thus
        will not include, without limitation, any intellectual property of NAI);
        and all documents, instruments and agreements evidencing the same; and
        all extensions, renewals, modifications and replacements of the
        foregoing; and any interest or other amounts payable in connection
        therewith; and

               (b) All proceeds of the foregoing (including whatever is
        receivable or received when Collateral or proceeds is invested, sold,
        collected, exchanged, returned, substituted or otherwise disposed of,
        whether such disposition is voluntary or involuntary, including rights
        to payment and return premiums and insurance proceeds under insurance
        with respect to any Collateral, and all rights to payment with respect
        to any cause of action affecting or relating to the Collateral).

The pledge, assignment and grant of a security interest made by NAI hereunder is
for security of the Secured Obligations only; the parties to this Agreement do
not intend that NAI's delivery of the Collateral to Agent as herein provided
will constitute an advance payment of any Secured Obligations or liquidated
damages, nor do the parties intend that the Collateral increase the dollar
amount of the Secured Obligations.

        2.2 Return of Collateral After the Secured Obligations are Satisfied in
Full. If any proceeds of Collateral remain after all Secured Obligations have
been paid in full, Agent will deliver or direct the Deposit Takers to deliver
such proceeds to NAI or other Persons entitled thereto by law.

                                   ARTICLE III

                  DESIGNATION OF MINIMUM COLLATERAL PERCENTAGE

        3.1 Determination of Minimum Collateral Percentage Generally. Effective
as of the date of this Agreement, and until a new Collateral Percentage becomes
effective, the Collateral Percentage is zero percent (0%). Subject to the
provisions of this Article III, NAI may from time to time designate a new
Collateral Percentage between 0% and 100% by written notice delivered to Agent,
BNPLC and the Participants in the form of ATTACHMENT 3. Any new Collateral

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Percentage so designated shall not become effective, however, until the
commencement of the later of (A) the first Base Rent Period to commence on or
after the first Business Day of September, 2001, or (B) the next following Base
Rent Period which is at least ten Business Days after the receipt of such notice
by Agent, BNPLC and the Participants. Further, after the first change in the
Collateral Percentage resulting from a designation by NAI of a Collateral
Percentage greater than zero percent (0%), any subsequent change resulting from
NAI's designation of a new Collateral Percentage shall not become effective
before the first Business Day of the first Base Rent Period that commences at
least ninety days after the effective date of the last preceding change in the
Collateral Period. In any event, if NAI provides more than one notice of a
change in the Collateral Percentage to be effective on a particular Base Rent
Date, then the latest such notice from NAI which satisfies the requirements of
this Section (and of Sections 3.2 and 3.3) will control. After any Collateral
Percentage becomes effective as provided in this Article, it shall remain in
effect until a different Collateral Percentage becomes effective as provided in
this Article.

        3.2 Limitations on NAI's Right to Lower the Collateral Percentage.
Notwithstanding the foregoing, no designation by NAI of a new Collateral
Percentage will be effective to reduce the Collateral Percentage if the
designation is given, or the reduction would otherwise become effective, on or
after the Designated Sale Date or when any of the following shall have occurred
and be continuing:

               3.2.1 any Material Lease Default;

               3.2.2 any Event of Default under and as defined in this
        Agreement; or

               3.2.3 any Default under and as defined in this Agreement -
        excluding, however, any such Default limited to a failure of NAI
        described in clause or clause (e) of the definition of Event of Default
        above, with respect to which the time for cure specified in clause (c)
        or clause (e), as applicable, has not expired.

        3.3 Mandatory Collateral Periods. NOTWITHSTANDING ANYTHING TO THE
CONTRARY HEREIN CONTAINED, THE COLLATERAL PERCENTAGE DURING ANY MANDATORY
COLLATERAL PERIOD SHALL BE ONE HUNDRED PERCENT (100%). No later than five
Business Days prior to any Failed Collateral Test Date, NAI shall notify Agent,
BNPLC and the Participants of the conditions set forth in Part III of Schedule 1
that NAI will be unable to satisfy on the Failed Collateral Test Date.

                                   ARTICLE IV

                      PROVISIONS CONCERNING DEPOSIT TAKERS

        4.1 Qualification of Deposit Takers Generally. Agent may decline to
deposit or maintain Collateral hereunder with any Person designated as a Deposit
Taker, if such Person has failed to satisfy or no longer satisfies the following
requirements:

               4.1.1 Such Person must have received from Agent and NAI a
        completed, executed Notice of Security Interest in the form of
        ATTACHMENT 4 (a "NOTICE OF

                                      -9-
<PAGE>   14

        SECURITY INTEREST") which specifically identifies any and all Accounts
        in which such Person shall hold Cash Collateral delivered to it pursuant
        to this Agreement and which designates Account Offices with respect to
        all such Accounts in New York or California.

               4.1.2 Such Person must have executed the Acknowledgment and
        Agreement at the end of such Notice of Security Interest (the "DEPOSIT
        TAKER'S ACKNOWLEDGMENT AND AGREEMENT") and returned the same to Agent.
        Further, such Person must have complied with the Deposit Taker's
        Acknowledgment and Agreement, and the representations set forth therein
        with respect to such Person must continue to be true and correct.

               4.1.3 Such Person must be a commercial bank, organized under the
        laws of the United States of America or a state thereof or under the
        laws of another country which is doing business in the United States of
        America; must be authorized to maintain deposit accounts for others
        through Account Offices in New York or California (as specified in the
        Deposit Taker's Acknowledgment and Agreement); and must be an Affiliate
        of BNPLC or the Participant for whom such Person will act as Deposit
        Taker or must have a combined capital, surplus and undivided profits of
        at least $500,000,000.

               4.1.4 Such Person must have complied with the provisions in this
        Agreement applicable to Deposit Takers, including the provisions of
        Section 5.4 concerning the issuance and redemption of Certificates of
        Deposit.

        4.2 Existing Deposit Takers. BNPLC's Parent (as Deposit Taker for itself
and for BNPLC) has received a Notice of Security Agreement dated the Effective
Date and has responded to such a notice with a Deposit Taker's Acknowledgment
and Agreement dated the Effective Date, as contemplated in subsections 4.1.1 and
4.1.2.

        4.3 Replacement of Participants Proposed by NAI. So long as no Event of
Default has occurred and is continuing, BNPLC shall not unreasonably withhold
its approval for a substitution under the Participation Agreement of a new
Participant proposed by NAI for any Participant, the Deposit Taker for whom
would no longer meet the requirements for an Initially Qualified Deposit Taker;
provided, however, that (A) the proposed substitution can be accomplished
without a release or breach by BNPLC of its rights and obligations under the
Participation Agreement; (B) the new Participant will agree (by executing a
Supplement and a supplement to the Participation Agreement as contemplated
therein and by other agreements as may be reasonably required by BNPLC and NAI)
to become a party to the Participation Agreement and to this Agreement, to
designate an Initially Qualified Deposit Taker as the Deposit Taker for it under
this Agreement and to accept a Percentage under the Participation Agreement
equal to the Percentage of the Participant to be replaced; (C) the new
Participant (or NAI) will provide the funds required to pay the termination fee
by Section 6.4 of the Participation Agreement to accomplish the substitution;
(D) NAI (or the new Participant) agrees in writing to indemnify and defend BNPLC
for any and all Losses incurred by BNPLC in connection with or because of the
substitution, including the cost of preparing supplements to the Participation
Agreement and this Agreement and including any cost of defending and paying any
claim asserted by the Participant to be replaced because of the substitution
(but not including any liability of BNPLC to such Participant for damages caused
by BNPLC's bad faith or gross negligence in the performance of BNPLC's
obligations under the Participation Agreement prior

                                      -10-
<PAGE>   15

to the substitution); (E) the new Participant shall be a reputable financial
institution having a net worth of no less than seven and one half percent (7.5%)
of total assets and total assets of no less than $10,000,000,000.00 (all
according to then recent audited financial statements); and (F) in no event will
BNPLC be required to approve a substitution pursuant to this Section 4.3 which
will replace a Participant that is an Affiliate of BNPLC. BNPLC shall attempt in
good faith to assist (and cause BNPLC's Parent to attempt in good faith to
assist) NAI in identifying a new Participant that NAI may propose to substitute
for an existing Participant pursuant to this Section, as NAI may reasonably
request from time to time. However, in no event shall BNPLC itself, or any of
its Affiliates, be required to take the Percentage of any Participant to be
replaced.

        4.4 Mandatory Substitution for Disqualified Deposit Takers. If any
Deposit Taker shall cease to satisfy the requirements set forth in Section 4.1,
the party for whom such Disqualified Deposit Taker has been designated as
Deposit Taker (i.e., BNPLC or the applicable Participant) shall promptly (1)
provide notice thereof to Agent and NAI, and (2) designate a substitute Deposit
Taker and cause the substitute to satisfy the requirements set forth in Section
4.1. Pending the designation of the substitute and the satisfaction by it of the
requirements set forth in Section 4.1, Agent may withdraw Collateral held by the
Disqualified Deposit Taker and deposit such Collateral with other Deposit
Takers, subject to Section 5.3 below.

        4.5 Voluntary Substitution of Deposit Takers With the written approval
of Agent, which approval will not be unreasonably withheld, BNPLC or any
Participant may at any time designate for itself a new Deposit Taker (in
replacement of any prior Deposit Taker acting for it hereunder); provided, the
Person so designated has satisfied the requirements set forth in Section 4.1;
and, provided further, unless the designation of a new Deposit Taker is required
by Section 4.4 to replace a Disqualified Deposit Taker, at the time of the
replacement such Person must be an Initially Qualified Deposit Taker.

        4.6 Delivery of Notice of Security Interest by NAI and Agent. To the
extent required for the designation of a new Deposit Taker by BNPLC or any
Participant pursuant to Section 4.5, or to permit the substitution or
replacement of a Deposit Taker for BNPLC or any Participant as provided in
Sections 4.4 and 4.5, NAI and Agent shall promptly execute and deliver any
properly completed Notice of Security Interest requested by BNPLC or the
applicable Participant.

        4.7 Constructive Possession of Collateral. The possession by a Deposit
Taker of any deposit accounts, money, instruments, chattel paper or other
property constituting Collateral or evidencing Collateral shall be deemed to be
possession by Agent or a person designated by Agent, for purposes of perfecting
the security interest granted to Agent hereunder pursuant to the UCC or other
Applicable Law; and notifications to a Deposit Taker by other Persons holding
any such property, and Acknowledgments, receipts or confirmations from any such
Persons delivered to a Deposit Taker, shall be deemed notifications to, or
Acknowledgments, receipts or confirmations from, financial intermediaries,
bailees or agents (as applicable) of such Deposit Taker for the benefit of Agent
for the purposes of perfecting such security interests under Applicable Law.

        4.8 Attempted Setoff by Deposit Takers. By delivery of a Deposit Taker's
Acknowledgment and Agreement, each Deposit Taker shall be required to agree not
to setoff or

                                      -11-
<PAGE>   16

attempt a setoff, WITHOUT IN EACH CASE FIRST OBTAINING THE PRIOR WRITTEN
AUTHORIZATION OF AGENT, Secured Obligations owed to it against any Collateral
held by it from time to time. Further, by delivery of a Deposit Taker's
Acknowledgment and Agreement, each Deposit Taker shall be required to agree not
to setoff or attempt a setoff, WITHOUT IN EACH CASE FIRST OBTAINING THE PRIOR
WRITTEN AUTHORIZATION OF BOTH NAI AND AGENT, obligations owed to it other than
Secured Obligations against any Collateral held by it from time to time. Any
Deposit Taker for BNPLC or a Participant shall not be permitted by BNPLC or the
applicable Participant, as the case may be, to violate such agreements. However,
NAI acknowledges and agrees (without limiting its right to recover damages from
a Deposit Taker that violates such agreements) that Agent shall not be
responsible for, or be deemed to have taken any action against NAI because of,
any Deposit Taker's violation of such agreements; and, neither BNPLC nor any
Participant shall be responsible for, or be deemed to have taken any action
against NAI because of, any violation of such agreements by a Deposit Taker for
another party.

        4.9 Deposit Taker Losses. Agent shall not be responsible for any Deposit
Taker Losses. However, Deposit Taker Losses with respect to a Deposit Taker for
a particular Participant shall reduce the amount of BNPLC's Corresponding
Obligations to Participants which are payable to such Participant as provided in
Section 2.2 of the Participation Agreement. Further, when Deposit Taker Losses
with respect to a Deposit Taker for a particular Participant are incurred in
excess of the payments of Secured Obligations that such Participant would then
have been entitled to receive under the Participation Agreement but for such
Deposit Taker Losses, such Participant must immediately pay the excess to Agent
as additional Collateral hereunder, failing which NAI may recover any damages
suffered by it because of the Deposit Taker Losses from such Deposit Taker or
such Participant.

        4.10 Losses Resulting from Failure of Deposit Taker to Comply with this
Agreement. Any Participant, the Deposit Taker for whom has failed to comply with
the requirements of this Agreement or any Notices of Security Interest and any
Deposit Taker's Acknowledgments and Agreements (the "RESPONSIBLE PARTICIPANT")
must defend, indemnify, and hold harmless BNPLC, Agent and the other
Participants from and against any Losses resulting from such failure. Without
limiting the foregoing, if the failure of a Deposit Taker for a Responsible
Participant to comply strictly with the terms of this Agreement (including,
without limitation, the provisions of Section 5.4 concerning the issuance and
redemption of Certificates of Deposit and the requirement that any cash deposits
be held in a deposit account located in either New York or California) causes,
in whole or in part, the security interest of Agent in the Collateral held by
such Deposit Taker to be unperfected, then any and all Losses suffered as a
result of such nonperfection shall be borne solely by the Responsible
Participant and shall not be shared by BNPLC, Agent or the other Participants.

                                    ARTICLE V

                   DELIVERY AND MAINTENANCE OF CASH COLLATERAL

        5.1 Delivery of Funds by NAI. On each Base Rent Date, NAI must deliver
to Agent, subject to the pledge and security interest created hereby, funds as
Cash Collateral then needed (if any) to cause the Value of the Collateral to be
no less than the Minimum Collateral Value. Each delivery of funds required by
the preceding sentence must be received by Agent no later

                                      -12-
<PAGE>   17

than 12:00 noon (San Francisco time) on the date it is required; if received
after 12:00 noon it will be considered for purposes of the Improvements Lease as
received on the next following Business Day. At least five Business Days prior
to any Base Rent Date upon which it is expected that NAI will be required to
deliver additional funds pursuant to this Section, NAI shall notify BNPLC, Agent
and each of the Participants thereof and of the amount NAI expects to deliver to
Agent as Cash Collateral on the applicable Base Rent Date. In addition to
required deliveries of Cash Collateral as provided in the foregoing provisions,
NAI may on any date (whether or not a Base Rent Date) deliver additional Cash
Collateral to Agent as necessary to prevent any Default from becoming an Event
of Default. Upon receipt of any funds delivered to it by NAI as Cash Collateral,
Agent shall immediately deposit the same with the Deposit Takers in accordance
with the requirements of Sections 5.3 and 5.4 below.

        5.2 Transition Account. Pending deposit in the Accounts or other
application as provided herein, all Cash Collateral received by Agent shall be
credited to and held by Agent in an account (the "TRANSITION ACCOUNT") styled
"NAI Collateral Account, held for the benefit of BNP Leasing Corporation and the
Participants," separate and apart from all other property and funds of NAI or
other Persons, and no other property or funds shall be deposited in the
Transition Account. The books and records of Agent shall reflect that the
Transition Account and all Cash Collateral on deposit therein are owned by NAI,
subject to a pledge and security interest in favor of Agent for the benefit of
BNPLC and Participants.

        5.3 Allocation of Cash Collateral Among Deposit Takers. Funds received
by Agent from NAI as Cash Collateral will be allocated for deposit among the
Deposit Takers as follows:

        first, to the extent possible the funds will be allocated as required to
        rectify and prevent any Collateral Imbalance; and

        second, the funds will be allocated to the Deposit Taker for BNPLC,
        unless the Deposit Taker for BNPLC has become a Disqualified Deposit
        Taker, in which case the funds will be allocated to other Deposit Takers
        who are not Disqualified Deposit Takers as Agent deems appropriate.

Further, if for any reason a Collateral Imbalance is determined by Agent to
exist, Agent shall, as required to rectify or mitigate the Collateral Imbalance,
promptly reallocate Collateral among Deposit Takers by withdrawing Cash
Collateral from some Accounts and redepositing it in other Accounts. (If any
party to this Agreement believes that the Value of the Accounts held by a
particular Deposit Taker causes a Collateral Imbalance to exist, that party will
promptly notify BNPLC, NAI and Agent.) Subject to the foregoing, and provided
that Agent does not thereby create or exacerbate a Collateral Imbalance, Agent
may withdraw and redeposit Cash Collateral in order to reallocate the same among
Deposit Takers from time to time as Agent deems appropriate. For purposes of
illustration only, examples of the allocations required by this Section are set
forth in ATTACHMENT 5.

        5.4 Issuance and Redemption of Certificates of Deposit. Upon the receipt
of any deposit of Cash Collateral from Agent, each Deposit Taker shall issue a
Certificate of Deposit evidencing the Account into which such deposit is made
and deliver such Certificate of Deposit to Agent for the benefit of BNPLC and
the Participants. Each Certificate of Deposit shall be

                                      -13-
<PAGE>   18

issued in an amount equal to the Value of the Account which it evidences and
shall otherwise be in the form set forth as ATTACHMENT 1 to this Agreement. Upon
depositing any Cash Collateral into an Account that is already evidenced by an
outstanding Certificate of Deposit, Agent will surrender the outstanding
Certificate of Deposit, and in exchange the Deposit Taker receiving the deposit
will issue a new Certificate of Deposit, evidencing the total amount of Cash
Collateral in the Account after the deposit. A Deposit Taker that has issued a
Certificate of Deposit may require the surrender of the Certificate of Deposit
as a condition to a withdrawal from the Account evidenced thereby, including any
withdrawal required or permitted by this Agreement. Upon surrender of a
Certificate of Deposit in connection with a withdrawal of less than all of the
Cash Collateral in the Account evidenced thereby, the applicable Deposit Taker
will concurrently issue a new Certificate of Deposit to Agent, evidencing the
balance of the Cash Collateral remaining on deposit in the Account after the
withdrawal. Notwithstanding the foregoing, if any Certificate of Deposit held by
Agent shall be destroyed, lost or stolen, the Deposit Taker that issued the
Certificate, upon the written request of Agent, shall issue a new Certificate of
Deposit to Agent in lieu of and in substitution for the Certificate of Deposit
so destroyed, lost or stolen. However, as applicant for the substitute
Certificate of Deposit, Agent must indemnify (at no cost to NAI) the applicable
Deposit Taker against any liability on the Certificate of Deposit destroyed,
lost or stolen, and Agent shall furnish to the Deposit Taker an affidavit of an
officer of Agent setting forth the fact of destruction, loss or theft and
confirming the status of Agent as holder of the Certificate of Deposit
immediately prior to the destruction, loss or theft. If any Certificate of
Deposit held by Agent shall become mutilated, the Deposit Taker that issued the
Certificate, upon the written request of Agent, shall issue a new Certificate of
Deposit to Agent in exchange and substitution for the mutilated Certificate of
Deposit. Agent shall hold all Certificates of Deposit for the benefit of BNPLC
and the Participants, subject to the pledge and security interest created
hereby.

        5.5 Status of the Accounts Under the Reserve Requirement Regulations.
Deposit Takers shall be permitted to structure the Accounts as nonpersonal time
deposits under 12 C.F.R., Part II, Chapter 204 (commonly known as "Regulation
D"). Accordingly, each Deposit Taker may require at least seven days advance
notice of any withdrawal or transfer of funds from Accounts it maintains and may
limit the number of withdrawals or transfers from such Accounts to no more than
six in any calendar month, notwithstanding anything to the contrary herein or in
any deposit agreement that NAI and any Deposit Taker may enter into with respect
to any Account. As necessary to satisfy the seven days notice requirement with
respect to withdrawals by Agent when required by NAI pursuant to the provisions
below, Agent shall notify Deposit Takers promptly after receipt of any notice
from NAI described in subsection 6.1.2 or 6.2.1 or in Section 6.3.

        5.6 Acknowledgment by NAI that Requirements of this Agreement are
Commercially Reasonable. NAI acknowledges and agrees that the requirements set
forth herein concerning receipt, deposit, withdrawal, allocation, application
and distribution of Cash Collateral by Agent, including the requirements and
time periods set forth in the next Article, are commercially reasonable.

                                      -14-
<PAGE>   19

                                   ARTICLE VI

                          WITHDRAWAL OF CASH COLLATERAL

NAI may not withdraw Cash Collateral, except as follows:

        6.1 Withdrawal of Collateral Prior to the Designated Sale Date. NAI may
require Agent to present Certificates of Deposit for payment and withdraw Cash
Collateral from Accounts on any date prior to the Designated Sale Date and to
deliver such Cash Collateral to NAI (which delivery shall be free and clear of
all liens and security interests hereunder); provided, however, that in each
case:

               6.1.1 Such withdrawal and delivery of the Cash Collateral to NAI
        will not cause the Value of the remaining Collateral to be less than the
        Minimum Collateral Value.

               6.1.2 by a notice in the form of ATTACHMENT 6, NAI must give
        Agent, BNPLC and the Participants notice of the required withdrawal at
        least ten days prior to the date upon which the withdrawal is to occur.

               6.1.3 No Default or Event of Default shall have occurred and be
        continuing at the time NAI gives the notice required by the preceding
        subsection or on the date upon which the withdrawal is required.

               6.1.4 NAI must pay to Agent any and all costs incurred by Agent
        in connection with the withdrawal.

               6.1.5 Agent shall determine the Accounts from which to make any
        withdrawal required by NAI pursuant to this Section as necessary to
        prevent or mitigate any Collateral Imbalance.

        6.2 Withdrawal and Application of Cash Collateral to Reduce or Satisfy
the Secured Obligations to the Participants. To reduce the "Break Even Price" or
"Supplemental Payment" required under (and as defined in) the Purchase Agreement
(and, thus, to reduce the Secured Obligations), NAI may require Agent to
withdraw Cash Collateral then held by or for Agent pursuant to this Agreement on
the Designated Sale Date and to deliver the same on the Designated Sale Date or
on any date thereafter prior to an Event of Default (which delivery shall be
free and clear of all liens and security interests hereunder) directly to the
Participants in proportion to their respective rights to payment of BNPLC's
Corresponding Obligations to Participants and for application thereto or the
reduction thereof pursuant to Section 2.2 of the Participation Agreement;
provided, that:

               6.2.1 by a notice in the form of ATTACHMENT 7, NAI must have
        notified Agent, BNPLC and each of the Participants of the required
        withdrawal and payment to Participants at least ten days prior to the
        date upon which it is to occur;

               6.2.2 the required withdrawal shall be made as determined by
        Agent, first, from the Accounts maintained by the Deposit Takers for the
        Participants, and then (to the extent necessary) from the Accounts
        maintained by the Deposit Taker for BNPLC; and

                                      -15-
<PAGE>   20

               6.2.3 in any event, no withdrawals or payments directly to
        Participants shall be required by this Section 6.2 (or permitted over
        the objection of BNPLC) in excess of those required to satisfy BNPLC's
        Corresponding Obligations to Participants or to reduce such obligations
        to zero under the Participation Agreement.

        6.3 Withdrawal and Application of Cash Collateral to Reduce or Satisfy
the Secured Obligations to BNPLC. To satisfy NAI's Purchase Agreement
Obligations, NAI may require Agent to withdraw any Cash Collateral held by the
Deposit Taker for BNPLC pursuant to this Agreement on the Designated Sale Date
and to deliver the same on the Designated Sale Date or on any date thereafter
prior to an Event of Default (which delivery shall be free and clear of all
liens and security interests hereunder) directly to BNPLC as a payment on behalf
of NAI of amounts due under the Purchase Agreement; provided, that by a notice
in the form of ATTACHMENT 8, NAI must have notified Agent and BNPLC of the
required withdrawal and payment to BNPLC at least ten days prior to the date
upon which it is to occur.

        6.4 Withdrawal of Cash Collateral From Accounts Maintained by
Disqualified Deposit Takers. NAI may from time to time prior to the Designated
Sale Date (regardless of the existence of any Default or Event of Default)
require Agent to withdraw any or all Cash Collateral from any Account maintained
by a Disqualified Deposit Taker and deposit it, still subject to the pledge and
grant of security interest hereunder, with other Deposit Takers who are not
Disqualified Deposit Takers (in accordance with the requirements of Sections 5.3
and 5.4) on any date prior to the Designated Sale Date; provided, that by a
notice in the form of ATTACHMENT 9, NAI must have notified Agent, BNPLC and each
of the Participants of the required withdrawal at least ten days prior to the
date upon which it is to occur.

                                   ARTICLE VII

                      REPRESENTATIONS AND COVENANTS OF NAI

        7.1 Representations of NAI. NAI represents to BNPLC, Agent and the
Participants as follows:

               7.1.1 NAI is the legal and beneficial owner of the Collateral
        (or, in the case of after-acquired Collateral, at the time NAI acquires
        rights in the Collateral, will be the legal and beneficial owner
        thereof). No other Person has (or, in the case of after-acquired
        Collateral, at the time NAI acquires rights therein, will have) any
        right, title, claim or interest (by way of Lien, purchase option or
        otherwise) in, against or to the Collateral, except for rights created
        hereunder.

               7.1.2 Agent has (or in the case of after-acquired Collateral, at
        the time NAI acquires rights therein, will have) a valid, first
        priority, perfected pledge of and security interest in the Collateral,
        regardless of the characterization of the Collateral as deposit
        accounts, instruments or general intangibles under the UCC, but assuming
        that the representations of each Deposit Taker in its Deposit Taker's
        Acknowledgment and Agreement are true.

                                      -16-
<PAGE>   21

               7.1.3 NAI has delivered to Agent, together with all necessary
        stock powers, endorsements, assignments and other necessary instruments
        of transfer, the originals of all documents, instruments and agreements
        evidencing Accounts, Certificates of Deposit or Cash Collateral.

               7.1.4 NAI's chief executive office is located at the address of
        NAI set forth in Article II of the Common Definitions and Provisions
        Agreement (Phase V - Improvements) or at another address in California
        specified in a notice that NAI has given to Agent as required by Section
        7.2.4.

               7.1.5 To the knowledge of NAI, neither the ownership or the
        intended use of the Collateral by NAI, nor the pledge of Accounts or the
        grant of the security interest by NAI to Agent herein, nor the exercise
        by Agent of its rights or remedies hereunder, will (i) violate any
        provision of (a) Applicable Law, (b) the articles or certificate of
        incorporation, charter or bylaws of NAI, or (c) any agreement, judgment,
        license, order or permit applicable to or binding upon NAI, or (ii)
        result in or require the creation of any Lien, charge or encumbrance
        upon any assets or properties of NAI except as expressly contemplated in
        this Agreement. Except as expressly contemplated in this Agreement, to
        the knowledge of NAI no consent, approval, authorization or order of,
        and no notice to or filing with any court, governmental authority or
        third party is required in connection with the pledge or grant by NAI of
        the security interest contemplated herein or the exercise by Agent of
        its rights and remedies hereunder.

        7.2 Covenants of NAI. NAI hereby agrees as follows:

               7.2.1 NAI, at NAI's expense, shall promptly procure, execute and
        deliver to Agent all documents, instruments and agreements and perform
        all acts which are necessary, or which Agent may reasonably request, to
        establish, maintain, preserve, protect and perfect the Collateral, the
        pledge thereof to Agent or the security interest granted to Agent
        therein and the first priority of such pledge or security interest or to
        enable Agent to exercise and enforce its rights and remedies hereunder
        with respect to any Collateral. Without limiting the generality of the
        preceding sentence, NAI shall (A) procure, execute and deliver to Agent
        all stock powers, endorsements, assignments, financing statements and
        other instruments of transfer requested by Agent, (B) deliver to Agent
        promptly upon receipt all originals of Collateral consisting of
        instruments, documents and chattel paper, (C) cause the security
        interest of Agent in any Collateral consisting of securities to be
        recorded or registered in the books of any financial intermediary or
        clearing corporation requested by Agent, and (D) reimburse Agent upon
        request for any legal opinion Agent may elect to obtain from a
        nationally recognized commercial law firm authorized to practice in New
        York concerning the enforceability, first priority and perfection of
        Agent's security interest in any Collateral maintained in New York, if
        BNPLC or any Participant should at any time elect to use a Deposit Taker
        that will maintain one or more Accounts in New York.

               7.2.2 NAI shall not use or consent to any use of any Collateral
        in violation of any provision of the this Agreement or any other
        Transaction Document or any Applicable Law.

                                      -17-
<PAGE>   22

               7.2.3 NAI shall pay promptly when due all taxes and other
        governmental charges, all Liens and all other charges now or hereafter
        imposed upon, relating to or affecting any Collateral.

               7.2.4 Without thirty days' prior written notice to Agent, NAI
        shall not change NAI's name or place of business (or, if NAI has more
        than one place of business, its chief executive office).

               7.2.5 NAI shall appear in and defend, on behalf of Agent, any
        action or proceeding which may affect NAI's title to or Agent's interest
        in the Collateral.

               7.2.6 Subject to the express rights of NAI under Article VI, NAI
        shall not surrender or lose possession of (other than to Agent or a
        Deposit Taker pursuant hereto), sell, encumber, lease, rent, option, or
        otherwise dispose of or transfer any Collateral or right or interest
        therein, and NAI shall keep the Collateral free of all Liens.

               7.2.7 NAI will not take any action which would in any manner
        impair the value or enforceability of Agent's pledge of or security
        interest in any Collateral, nor will NAI fail to take any action which
        is required to prevent (and which NAI knows is required to prevent) an
        impairment of the value or enforceability of Agent's pledge of or
        security interest in any Collateral.

               7.2.8 NAI shall pay (and shall indemnify and hold harmless Agent
        from and against) all Losses incurred by Agent in connection with or
        because of (A) the interest acquired by Agent in any Collateral pursuant
        to this Agreement, or (B) the negotiation or administration of this
        Agreement, whether such Losses are incurred at the time of execution of
        this Agreement or at any time in the future. Costs and expenses included
        in such Losses may include, without limitation, all filing and recording
        fees, taxes, UCC search fees and Attorneys' Fees incurred by Agent with
        respect to the Collateral.

               7.2.9 Without limiting the foregoing, within five Business Days
        after NAI becomes aware of any failure of the pledge or security
        interest contemplated herein in the Transition Account or any Account,
        Certificate of Deposit or Cash Collateral to be a valid, perfected,
        first priority pledge or security interest (regardless of the
        characterization of the Transition Account or any Accounts, Certificates
        of Deposit or Cash Collateral as deposit accounts, instruments or
        general intangibles under the UCC), NAI shall notify Agent, BNPLC and
        the Participants of such failure. In addition, if the failure would not
        exist but for NAI's delivery of Cash Collateral to Agent subject to
        prior Liens or other claims by one or more third parties, or but for the
        grant by NAI itself of any Lien or other interest in the Collateral to
        one or more third parties, then, in addition to any other remedies
        available to BNPLC or Agent under the circumstances, NAI must pay to
        BNPLC any additional Base Rent that has accrued under the Improvements
        Lease because of (or that would have accrued if BNPLC had been aware of)
        the failure, together with interest at the Default Rate on any such
        additional Base Rent.

                                      -18-
<PAGE>   23

                                  ARTICLE VIII

                           AUTHORIZED ACTION BY AGENT

        8.1 Power of Attorney. NAI hereby irrevocably appoints Agent as NAI's
attorney-in-fact for the purpose of authorizing Agent to perform (but Agent
shall not be obligated to and shall incur no liability to NAI or any third party
for failure to perform) any act which NAI is obligated by this Agreement to
perform, and to exercise, consistent with the other provisions of this
Agreement, such rights and powers as NAI might exercise with respect to the
Collateral during any period in which a Default or Event of Default has occurred
and is continuing, including the right to (a) collect by legal proceedings or
otherwise and endorse, receive and receipt for all dividends, interest,
payments, proceeds and other sums and property now or hereafter payable on or on
account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit,
surrender, accept, hold or apply other property in exchange for the Collateral;
(c) insure, process, preserve and enforce the Collateral; (d) make any
compromise or settlement, and take any action it deems advisable, with respect
to the Collateral; (e) pay any indebtedness of NAI relating to the Collateral;
and (f) execute UCC financing statements and other documents, instruments and
agreements required hereunder. NAI agrees that such care as Agent gives to the
safekeeping of its own property of like kind shall constitute reasonable care of
the Collateral when in Agent's possession; provided, however, that Agent shall
not be obligated to NAI to give any notice or take any action to preserve rights
against any other Person in connection with the Secured Obligations or with
respect to the Collateral.

                                   ARTICLE IX

                              DEFAULT AND REMEDIES

        9.1 Remedies. In addition to all other rights and remedies granted to
Agent, BNPLC or the Participants by this Agreement, the Improvements Lease, the
Purchase Agreement, the Participation Agreement, the UCC and other Applicable
Laws, Agent may, upon the occurrence and during the continuance of any Event of
Default, exercise any one or more of the following rights and remedies, all of
which will be in furtherance of its rights as a secured party under the UCC:

               (a) Agent may collect, receive, appropriate or realize upon the
        Collateral or otherwise foreclose or enforce the pledge of or security
        interests in any or all Collateral in any manner permitted by Applicable
        Law or in this Agreement; and

               (b) Agent may notify any or all Deposit Takers to pay all or any
        portion of the Collateral held by such Deposit Taker(s) directly to
        Agent.

Agent shall distribute the proceeds of all Collateral received by Agent after
the occurrence of an Event of Default to BNPLC and the Participants for
application to the Secured Obligations. If any proceeds of Collateral remain
after all Secured Obligations have been paid in full, Agent will deliver or
direct the Deposit Takers to deliver such proceeds to NAI or other Persons
entitled

                                      -19-
<PAGE>   24

thereto. In any case where notice of any sale or disposition of any Collateral
is required, NAI hereby agrees that seven (7) Business Days notice of such sale
or disposition is reasonable.

                                    ARTICLE X

                                 OTHER RECOURSE

        10.1 Recovery Not Limited. To the fullest extent permitted by applicable
law, NAI waives any right to require that Agent, BNPLC or the Participants
proceed against any other Person, exhaust any Collateral or other security for
the Secured Obligations, or to have any Other Liable Party joined with NAI in
any suit arising out of the Secured Obligations or this Agreement, or pursue any
other remedy in their power. NAI waives any and all notice of acceptance of this
Agreement. NAI further waives notice of the creation, modification,
rearrangement, renewal or extension for any period of any of the Secured
Obligations of any Other Liable Party from time to time and any defense arising
by reason of any disability or other defense of any Other Liable Party or by
reason of the cessation from any cause whatsoever of the liability of any Other
Liable Party. Until all of the Secured Obligations shall have been paid in full,
NAI shall have no right to subrogation, reimbursement, contribution or indemnity
against any Other Liable Party and NAI waives the right to enforce any remedy
which Agent, BNPLC or any Participant has or may hereafter have against any
Other Liable Party, and waives any benefit of and any right to participate in
any other security whatsoever now or hereafter held by Agent, BNPLC or any
Participant. NAI authorizes Agent, BNPLC and the Participants, without notice or
demand and without any reservation of rights against NAI and without affecting
NAI's liability hereunder or on the Secured Obligations, from time to time to
(a) take or hold any other property of any type from any other Person as
security for the Secured Obligations, and exchange, enforce, waive and release
any or all of such other property, (b) after any Event of Default, apply or
require the application of the Collateral (in accordance with this Agreement) or
such other property in any order they may determine and to direct the order or
manner of sale thereof as they may determine, (c) renew, extend for any period,
accelerate, modify, compromise, settle or release any of the obligations of any
Other Liable Party with respect to any or all of the Secured Obligations or
other security for the Secured Obligations, and (d) release or substitute any
Other Liable Party.

                                   ARTICLE XI

                           PROVISIONS CONCERNING AGENT

        In the event of any conflict between the following and other provisions
in this Agreement, the following will control:

        11.1 Appointment and Authority. BNPLC and each Participant hereby
irrevocably authorizes Agent, and Agent hereby undertakes, to take all actions
and to exercise such powers under this Agreement as are specifically delegated
to Agent by the terms hereof, together with all other powers reasonably
incidental thereto. The relationship of Agent to the Participants is only that
of one commercial bank acting as collateral agent for others, and nothing herein
shall be construed to constitute Agent a trustee or other fiduciary for any
Participant or anyone claiming

                                      -20-
<PAGE>   25

through or under a Participant nor to impose on Agent duties and obligations
other than those expressly provided for in this Agreement. With respect to any
matters not expressly provided for in this Agreement and any matters which this
Agreement places within the discretion of Agent, Agent shall not be required to
exercise any discretion or take any action, and it may request instructions from
BNPLC and Participants with respect to any such matter, in which case it shall
be required to act or to refrain from acting (and shall be fully protected and
free from liability to all Participants in so acting or refraining from acting)
upon the instructions of the Majority, as defined in the Participation
Agreement, including itself as a Participant and BNPLC; provided, however, that
Agent shall not be required to take any action which exposes it to a risk of
personal liability that it considers unreasonable or which is contrary to this
Agreement or the other documents referenced herein or to Applicable Law.

        11.2 Exculpation, Agent's Reliance, Etc. Neither Agent nor any of its
directors, officers, agents, attorneys, or employees shall be liable for any
action taken or omitted to be taken by any of them under or in connection with
this Agreement, INCLUDING THEIR NEGLIGENCE OF ANY KIND, EXCEPT THAT EACH SHALL
BE LIABLE FOR ITS OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. Without limiting
the generality of the foregoing, Agent (1) may treat the rights of any
Participant under its Participation Agreement as continuing until Agent receives
written notice of the assignment or transfer of those rights in accordance with
such Participation Agreement, signed by such Participant and in form
satisfactory to Agent; (2) may consult with legal counsel (including counsel for
NAI), independent public accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts, unless the
action taken or omitted constitutes misconduct; (3) makes no warranty or
representation and shall not be responsible for any statements, warranties or
representations made in or in connection with this Agreement or the other
documents referenced herein; (4) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of the Transaction Documents on the part of any party thereto, or to
inspect the property (including the books and records) of any party thereto; (5)
shall not be responsible to any Participant for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Transaction
Document or any instrument or document furnished in connection therewith; (6)
may rely upon the representations and warranties of NAI, Participants and
Deposit Takers in exercising its powers hereunder; and (7) shall incur no
liability under or in respect of the Transaction Documents by acting upon any
notice, consent, certificate or other instrument or writing (including any
telecopy, telegram, cable or telex) believed by it to be genuine and signed or
sent by the proper Person or Persons.

        11.3 Participant's Credit Decisions. Each Participant acknowledges that
it has, independently and without reliance upon Agent or any other Participant,
made its own analysis of NAI and the transactions contemplated hereby and its
own independent decision to enter into the Transaction Documents to which it is
a party. Each Participant also acknowledges that it will, independently and
without reliance upon Agent or any other Participant and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Transaction
Documents.

        11.4 Indemnity. Each Participant agrees to indemnify Agent (to the
extent not reimbursed by NAI within ten days after demand) from and against such
Participant's Percentage

                                      -21-
<PAGE>   26

of any and all Losses of any kind or nature whatsoever which to any extent (in
whole or in part) may be imposed on, incurred by, or asserted against Agent
growing out of, resulting from or in any other way associated with any of the
Collateral, the Transaction Documents and the transactions and events (including
the enforcement thereof) at any time associated therewith or contemplated
therein. THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LOSSES
ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR
THEORY OF STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT
ACT OR OMISSION OF ANY KIND BY AGENT, PROVIDED ONLY THAT NO PARTICIPANT SHALL BE
OBLIGATED UNDER THIS SECTION TO INDEMNIFY AGENT FOR THAT PORTION, IF ANY, OF ANY
LOSS WHICH IS PROXIMATELY CAUSED BY AGENT'S OWN INDIVIDUAL GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT, AS DETERMINED IN A FINAL JUDGMENT RENDERED AGAINST AGENT.
Cumulative of the foregoing, each Participant agrees to reimburse Agent promptly
upon demand for such Participant's Percentage share of any costs and expenses to
be paid to Agent by NAI hereunder to the extent that Agent is not timely
reimbursed by NAI as provided in subsection 7.2.8. As used in this Section the
term "Agent" shall refer not only to the Person designated as such in the
introductory paragraph of this Agreement, but also to each director, officer,
agent, attorney, employee, representative and Affiliate of such Person.

        11.5 Agent's Rights as Participant and Deposit Taker. In its capacity as
a Participant, Banque Nationale de Paris shall have the same rights and
obligations as any Participant and may exercise such rights as though it were
not Agent. In its capacity as a Deposit Taker, Banque Nationale de Paris shall
have the same rights and obligations as any Deposit Taker and may exercise such
rights as though it were not Agent. Banque Nationale de Paris and any of its
Affiliates may accept deposits from, lend money to, act as Trustee under
indentures of, and generally engage in any kind of business with NAI or its
Affiliates, all as if Banque Nationale de Paris were not designated as the Agent
hereunder and without any duty to account therefor to any other Participant.

        11.6 Investments. Whenever Agent in good faith determines that it is
uncertain about how to distribute any funds which it has received hereunder, or
whenever Agent in good faith determines that there is any dispute among BNPLC
and Participants about how such funds should be distributed, Agent may choose to
defer distribution of the funds which are the subject of such uncertainty or
dispute. If Agent in good faith believes that the uncertainty or dispute will
not be promptly resolved, or if Agent is otherwise required to invest funds
pending distribution, Agent shall invest such funds pending distribution, all
interest on any such investment shall be distributed upon the distribution of
such investment and in the same proportion and to the same Persons as such
investment. All moneys received by Agent for distribution to BNPLC or
Participants shall be held by Agent pending such distribution solely as Agent
hereunder, and Agent shall have no equitable title to any portion thereof.

        11.7 Benefit of Article XI. The provisions of this Article (other than
the following Section 11.8) are intended solely for the benefit of Agent, BNPLC
and Participants, and NAI shall not be entitled to rely on any such provision or
assert any such provision in a claim or defense against Agent, BNPLC or any
Participant. Agent, BNPLC and Participants may waive or amend such provisions as
they desire without any notice to or consent of NAI.

                                      -22-
<PAGE>   27

        11.8 Resignation. Agent may resign at any time by giving written notice
thereof to BNPLC, Participants and NAI. Upon any such resignation the Majority
(as defined in the Participation Agreement) shall have the right to appoint a
successor Agent, subject to NAI's consent, such consent not to be unreasonably
withheld. A successor must be appointed for any retiring Agent, and such Agent's
resignation shall become effective when such successor accepts such appointment.
If, within thirty days after the date of the retiring Agent's resignation, no
successor Agent has been appointed and has accepted such appointment, then the
retiring Agent may appoint a successor Agent, which shall be a commercial bank
organized or licensed to conduct a banking or trust business under the laws of
the United States of America or of any state thereof. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, the retiring Agent shall be
discharged from its duties and obligations under this Agreement. After any
retiring Agent's resignation hereunder, the provisions of this Article 10.1,
10.1 shall continue to inure to its benefit as to any actions taken or omitted
to be taken by it while it was Agent.

                                   ARTICLE XII

                                  MISCELLANEOUS

        12.1 Provisions Incorporated From Other Operative Documents. Reference
is made to the Common Definitions and Provisions Agreement (Phase V -
Improvements), to the Purchase Agreement and to the Participation Agreement for
a statement of the terms thereof. Without limiting the generality of the
foregoing, the provisions of Article II of the Common Definitions and Provisions
Agreement (Phase V - Improvements) are incorporated into this Agreement for all
purposes as if set forth in this Article.

        12.2 Cumulative Rights, etc. Except as herein expressly provided to the
contrary, the rights, powers and remedies of Agent, BNPLC and the Participants
under this Agreement shall be in addition to all rights, powers and remedies
given to them by virtue of any Applicable Law, any other Transaction Document or
any other agreement, all of which rights, powers, and remedies shall be
cumulative and may be exercised successively or concurrently without impairing
their respective rights hereunder. NAI waives any right to require Agent, BNPLC
or any Participant to proceed against any Person or to exhaust any Collateral or
to pursue any remedy in Agent's, BNPLC's or such Participant's power.

        12.3 Survival of Agreements. All representations and warranties of NAI
herein, and all covenants and agreements herein shall survive the execution and
delivery of this Agreement, the execution and delivery of any other Transaction
Documents and the creation of the Secured Obligations and continue until
terminated or released as provided herein.

        12.4 Other Liable Party. Neither this Agreement nor the exercise by
Agent or the failure of Agent to exercise any right, power or remedy conferred
herein or by law shall be construed as relieving any Other Liable Party from
liability on the Secured Obligations or any deficiency thereon. This Agreement
shall continue irrespective of the fact that the liability of any Other Liable
Party may have ceased or irrespective of the validity or enforceability of any
other agreement evidencing or securing the Secured Obligations to which NAI or
any Other Liable Party may be a party, and notwithstanding the reorganization,
death, incapacity or

                                      -23-
<PAGE>   28

bankruptcy of any Other Liable Party, or any other event or proceeding affecting
any Other Liable Party.

        12.5 Termination. Following the Designated Sale Date, upon satisfaction
in full of all Secured Obligations and upon written request for the termination
hereof delivered by NAI to Agent, (i) this Agreement and the pledge and security
interest created hereby shall terminate and all rights to the Collateral shall
revert to NAI and (ii) Agent will, upon NAI's request and at NAI's expense
execute and deliver to NAI such documents as NAI shall reasonably request to
evidence such termination and release.

                          [The signature pages follow.]

                                      -24-
<PAGE>   29

        IN WITNESS WHEREOF, NAI, BNPLC, Agent and the Participants whose
signatures appear below have caused this Pledge Agreement (Phase V -
Improvements) to be executed as of March 1, 2000.

                                   "NAI"

                                   NETWORK APPLIANCE, INC.

                                   By:
                                      ------------------------------------------
                                      Jeffrey R. Allen, Chief Financial Officer

                                      -25-
<PAGE>   30

[Continuation of signature pages to Pledge Agreement (Phase V - Improvements)
dated to be effective as of March 1, 2000]

                                  "BNPLC"

                                  BNP LEASING CORPORATION

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

                                      -26-
<PAGE>   31

[Continuation of signature pages to Pledge Agreement (Phase V - Improvements)
dated to be effective as of March 1, 2000]

                                        "AGENT"

                                        BANQUE NATIONALE DE PARIS

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                        "PARTICIPANT"

                                        BANQUE NATIONALE DE PARIS

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                      -27-
<PAGE>   32

                                  ATTACHMENT 1
                               TO PLEDGE AGREEMENT

                             CERTIFICATE OF DEPOSIT

                                 (No. _________)

                               [---------, -----]

[NAME OF THE ISSUING
DEPOSIT TAKER AND THE
ADDRESS OF ITS APPLICABLE
ACCOUNT OFFICE]

PAYABLE TO
THE ORDER OF:                   BANQUE NATIONALE DE PARIS, as Agent under the
                                Pledge Agreement (Phase V - Improvements) dated
                                March 1, 2000, among Network Appliance, Inc.,
                                BNP Leasing Corporation, Banque Nationale de
                                Paris and any other financial institutions which
                                are from time to time Participants under such
                                Pledge Agreement (Phase V - Improvements) and
                                Banque Nationale de Paris, acting in its
                                capacity as agent for BNPLC and the Participants

                                                                         Dollars
--------------------------------------------------------------------------------
in current funds, without interest, seven days after presentment of this
certificate properly endorsed.

        The bank issuing this certificate acknowledges and certifies that on the
date indicated above the payee deposited the dollar amount indicated above, and
that such amount shall be payable as provided above.

                                        ----------------------------------------
                                        Authorized Signature

                                       -1-
<PAGE>   33

                                  ATTACHMENT 2
                               TO PLEDGE AGREEMENT

                         SUPPLEMENT TO PLEDGE AGREEMENT

                               [----------, ----]

Banque Nationale de Paris
-----------------------
-----------------------
-----------------------

Network Appliance, Inc.
-----------------------
-----------------------
-----------------------

        1. Reference is made to the Pledge Agreement (Phase V - Improvements)
(the "PLEDGE AGREEMENT") dated March 1, 2000 among Network Appliance, Inc.
("NAI"), BNP Leasing Corporation ("BNPLC"), Banque Nationale de Paris and any
other financial institutions which are from time to time Participants under such
Pledge Agreement (collectively, the "PARTICIPANTS") and Banque Nationale de
Paris, acting in its capacity as agent for BNPLC and the Participants (in such
capacity, "AGENT"). Unless otherwise defined herein, all capitalized terms used
in this Supplement have the respective meanings given to those terms in the
Pledge Agreement.

        2. The undersigned hereby certifies to Agent and NAI that the
undersigned has become a party to the Participation Agreement by executing a
supplement as provided therein and that its Percentage thereunder is ______%.

        3. The undersigned, by executing and delivering this Supplement to NAI
and Agent, hereby agrees to become a party to the Pledge Agreement and agrees to
be bound by all of the terms thereof applicable to Participants. The Deposit
Taker for the undersigned shall be _________________, until such time as another
Deposit Taker for the undersigned shall be designated in accordance with
Sections 4.4 or 4.5 of the Pledge Agreement. The undersigned certifies to Agent
and NAI that such Deposit Taker is an Initially Qualified Deposit Taker and
satisfies the requirements for a Deposit Taker set forth in Section 4.1 of the
Pledge Agreement.

                                      -1-
<PAGE>   34

        IN WITNESS WHEREOF, the undersigned has executed this Supplement as of
the day and year indicated above.

                                        [______________________________________]

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

                                      -2-
<PAGE>   35

                                  ATTACHMENT 3
                               TO PLEDGE AGREEMENT

          NOTICE OF NAI'S ELECTION TO CHANGE THE COLLATERAL PERCENTAGE

                               [---------, -----]

Banque Nationale de Paris
[address of BNP]

               Re:    Pledge Agreement (Phase V - Improvements) (the "PLEDGE
                      AGREEMENT") dated March 1, 2000 among Network Appliance,
                      Inc., BNP Leasing Corporation, Banque Nationale de Paris
                      and any other financial institutions which are from time
                      to time Participants under such Pledge Agreement and
                      Banque Nationale de Paris, acting in its capacity as agent
                      for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement referenced above. This letter
constitutes notice to you, as Agent under the Pledge Agreement, that pursuant to
Section 3.1 of the Pledge Agreement, NAI elects to change the Collateral
Percentage to:

                           __________ percent (___%),

on the following Base Rent Date:

                                ----------, ----

        NAI expects that multiplying the new Collateral Percentage specified
above against Stipulated Loss Value of:

               ____________________________ Dollars ($__________),

will result in an expected new Minimum Collateral Value of:

               ____________________________ Dollars ($__________).

                                      -1-
<PAGE>   36

[NOTE: THE NEXT PARAGRAPH WILL BE INCLUDED ONLY IN A NOTICE OF AN INCREASE IN
THE COLLATERAL PERCENTAGE, BECAUSE OF WHICH NAI WILL BE REQUIRED TO DELIVER
ADDITIONAL CASH COLLATERAL TO SATISFY THE MINIMUM COLLATERAL VALUE REQUIREMENTS
IN SECTION 5.1 OF THE PLEDGE AGREEMENT:

        Because of the increase in the Collateral Percentage which will result
from this notice and the corresponding increase in the Minimum Collateral Value,
NAI will deliver additional Cash Collateral to you as required by Section 5.1 of
the Pledge Agreement no later than 12:00 noon (San Francisco time) on the Base
Rent Date specified above, in the amount of:

              ____________________________ Dollars ($__________).]

        To assure you that NAI has satisfied the conditions to its right to
change the Collateral Percentage as provided in this notice, and to induce you
to rely upon this notice in discharging your responsibilities under the Pledge
Agreement, NAI certifies to you that:

               1. NAI is giving this notice to you, BNPLC and the Participants
        at least ten Business Days prior to the Base Rent Date specified above,
        and such Base Rent Date is the commencement of a Base Rent Period.

               2. No Event of Default or other event or circumstance that would,
        pursuant to Section 3.2 of the Pledge Agreement, preclude NAI from
        designating the new Collateral Percentage above has occurred and is
        continuing, and NAI does not anticipate that on the Base Rent Date
        specified above there will have occurred and be continuing any such
        Event of Default or other event or circumstance.

               3. No Mandatory Collateral Period shall be in effect as of the
        effective date specified above.

NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE STATEMENTS ABOVE ARE
NOT CORRECT. HOWEVER, WE ASK THAT YOU NOTIFY NAI IMMEDIATELY IF FOR ANY REASON
YOU BELIEVE THIS NOTICE IS DEFECTIVE.

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc BNPLC and all Participants]

                                      -2-
<PAGE>   37

                                  ATTACHMENT 4
                               TO PLEDGE AGREEMENT

                           NOTICE OF SECURITY INTEREST

                               [---------, -----]

[Name of Deposit Taker]
[Address of Deposit Taker]

        1. Reference is made to the Pledge Agreement (Phase V - Improvements)
(the "PLEDGE AGREEMENT") dated March 1, 2000 among Network Appliance, Inc.
("NAI"), BNP Leasing Corporation ("BNPLC"), Banque Nationale de Paris and any
other financial institutions which are from time to time Participants under such
Pledge Agreement (collectively, the "PARTICIPANTS") and Banque Nationale de
Paris, acting in its capacity as agent for BNPLC and the Participants (in such
capacity, "AGENT"). Unless otherwise defined herein, all capitalized terms used
in this Notice have the respective meanings given to those terms in the Pledge
Agreement.

        2. NAI has informed Agent that NAI has established with the addressee of
this Notice (the "DEPOSIT TAKER") the following non-interest bearing Account(s)
to be maintained at the following Account Office(s):

<TABLE>
<CAPTION>
                 Account Type               Account Office       Account Number
                 ------------               --------------       --------------
<S>                                         <C>                  <C>
                 Time Deposit                 ________             ________
                 Time Deposit                 ________             ________
                 Time Deposit                 ________             ________
</TABLE>

NAI has further informed Agent that NAI intends to maintain Cash Collateral in
such Account(s), and that to evidence such Account(s) and the amount of Cash
Collateral held therein from time to time, NAI has authorized the Deposit Taker
to issue Certificates of Deposit payable to the order of Agent as provided in
the Pledge Agreement.

        3. NAI and Agent hereby notify Deposit Taker that, pursuant to the
Pledge Agreement, NAI has granted to Agent, for the ratable benefit of BNPLC and
the Participants as security for the Secured Obligations, a pledge of and
security interest in all Accounts and other Collateral maintained by NAI with
Deposit Taker, including the Account(s) described in Section 2 above.

                                      -1-
<PAGE>   38

        4. In furtherance of such grant, NAI and Agent hereby authorize and
direct Deposit Taker to:

               (a) hold all Collateral for Agent and as Agent's bailee, separate
        and apart from all other property and funds of NAI and all other Persons
        and to permit no other funds to be deposited or credited to the
        Account(s);

               (b) make a notation in its books and records of the interest of
        Agent in the Collateral and that the Account(s) and all deposits therein
        or sums credited thereto are subject to a pledge and security interest
        in favor of Agent;

               (c) issue and redeem Certificates of Deposit evidencing the
        Account(s), as directed by Agent pursuant to the Pledge Agreement;

               (d) take such other steps as Agent may reasonably request to
        record, maintain, validate and perfect its pledge of and security
        interest in the Collateral; and

               (e) upon receipt of notice from Agent that an Event of Default
        has occurred, transfer and deliver to Agent or its nominee, together
        with all necessary endorsements, all or such portion of the Collateral
        held by Deposit Taker as Agent shall direct; provided, however, that in
        connection therewith the Deposit Taker may require compliance by Agent
        with the provisions in Section 5.4 of the Pledge Agreement for
        redemption of any outstanding Certificates of Deposit which evidence the
        Account(s).

        5. NAI and Agent agree that (a) the possession by Deposit Taker of all
money, instruments, chattel paper and other property constituting Collateral
shall be deemed to be possession by Agent or a person designated by Agent, for
purposes of perfecting the security interest granted to Agent hereunder pursuant
to Section 9305, 8313 or 8213 of the UCC (as the case may be), and (b)
notifications by Deposit Taker to other Persons holding any such property, and
Acknowledgments, receipts or confirmations from such Persons delivered to
Deposit Taker, shall be deemed notifications to, or Acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Deposit Taker for the benefit of Agent for the purposes of perfecting
such security interests under applicable law.

        6. As contemplated by the Pledge Agreement, please acknowledge Deposit
Taker's receipt of, and consent to, this notice and confirm the representations
and agreements set forth in the Acknowledgment and Agreement attached hereto by
executing the same and returning this letter to Agent. For your files, a copy of
this letter is enclosed which you may retain. The authorizations and directions
set forth herein may not be revoked or modified without the written consent of
Agent.

                                      -2-
<PAGE>   39

                                        "AGENT"

                                        BANQUE NATIONALE DE PARIS

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        "NAI"

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                      -3-
<PAGE>   40

                          ACKNOWLEDGMENT AND AGREEMENT
                                OF DEPOSIT TAKER

        Deposit Taker hereby acknowledges receipt of, and consents to, the above
notice, acknowledges that it will hold the Collateral for Agent and as Agent's
bailee, agrees to comply with the authorizations and directions set forth above
and represents to and agrees with NAI and Agent as follows:

               (a) Deposit Taker is a commercial bank, organized under the laws
        of the United States of America or a state thereof or under the laws of
        another country which is doing business in the United States of America.
        Deposit Taker is authorized to maintain deposit accounts for others
        through the Account Offices specified in the above notice, and Deposit
        Taker will not move the accounts described in the above notice to other
        offices without the prior written authorization of Agent and NAI.

               (b) Deposit Taker has a combined capital, surplus and undivided
        profits of at least $500,000,000.

               (c) The information set forth above regarding the Account(s) is
        accurate. Such Account(s) is (are) currently open and Deposit Taker has
        no prior notice of any other pledge, security interest, Lien, adverse
        claim or interest in such Account(s).

               (d) Deposit Taker shall promptly notify NAI and Agent if the
        representations made by Deposit Taker above cease to be true and
        correct.

               (e) Deposit Taker shall not (i) allow the withdrawal of funds
        from any Account by any Person other than Agent, or (ii) WITHOUT IN EACH
        CASE FIRST OBTAINING THE PRIOR WRITTEN AUTHORIZATION OF AGENT, setoff or
        attempt to setoff any Secured Obligations owed to Deposit Taker against
        any Collateral held from time to time by Deposit Taker, or (iii) WITHOUT
        IN EACH CASE FIRST OBTAINING THE PRIOR WRITTEN AUTHORIZATION OF BOTH NAI
        AND AGENT, setoff or attempt to setoff any obligations owed to Deposit
        Taker other than Secured Obligations, against any Collateral held from
        time to time by Deposit Taker.

                                        [______________________________________]

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                        [Date]

<PAGE>   41

                                  ATTACHMENT 5
                               TO PLEDGE AGREEMENT

                        EXAMPLES OF CALCULATIONS REQUIRED
                         TO AVOID A COLLATERAL IMBALANCE

        The examples below are provided to illustrate the calculations required
for allocations of Cash Collateral in a manner that will avoid a Collateral
Imbalance. The examples are not intended to reflect actual numbers under this
Agreement or actual Percentages of BNPLC or any of the Participants; nor are the
examples intended to provide a formula for the allocations that would be
appropriate in every case. The examples also reflect adjustments that would be
appropriate if the Collateral Percentage were adjusted from time to time from
and after the Base Rent Commencement Date, although this Agreement provides that
such percentage is not to increase above zero until eighteen months after the
Effective Date (expected to be after the Base Rent Commencement Date), except in
a Mandatory Collateral Period, during which such percentage would be 100%.

                                  EXAMPLE NO. 1

Assumptions:

1.      Two Participants ("Participant A" and "Participant B") are parties to
        the Participation Agreement with BNPLC. Participant A's Percentage is
        50% and Participant B's Percentage is 45%, leaving BNPLC with a
        Percentage of 5%.

2.      On the Base Rent Commencement Date, Funding Advances (including those to
        cover Carrying Costs under the Improvements Lease) totaled $12,000,000,
        resulting in a Stipulated Loss Value of $12,000,000, allocable as
        follows:

        A.     BNPLC's Parent (providing BNPLC's share) (5%)........   $600,000
        B.     Participant A (50%)..................................  6,000,000
        C.     Participant B (45%)..................................  5,400,000
                                                                    -----------
               TOTAL................................................$12,000,000

3.      The Minimum Collateral Value on the Base Rent Commencement Date was
        $7,200,000 (reflecting a Collateral Percentage of 60% times Stipulated
        Loss Value).

4.      On the Base Rent Commencement Date, NAI had delivered to Agent Cash
        Collateral of $7,200,000, equal to the Minimum Collateral Value, as
        required by Section 5.1 of this Agreement.

                                      -1-
<PAGE>   42

Allocation of Cash Collateral Required: To avoid a Collateral Imbalance under
these assumptions, Agent would be required to allocate the $7,200,000 to the
Deposit Takers for BNPLC and the Participants as follows:

<TABLE>
<S>            <C>                                                                  <C>
        A.     BNPLC's Deposit Taker (5% of Minimum Collateral Value)..............   $360,000
        B.     Participant A's Deposit Taker (50% of Minimum Collateral Value).....  3,600,000
        C.     Participant B's  Deposit Taker (45% of Minimum Collateral Value)....  3,240,000
                                                                                    ----------
               TOTAL............................................................... $7,200,000
</TABLE>

                                 EXAMPLE NO. 2

Assumptions: Assume the same facts as in Example No. 1, and in addition assume
that:

1.      Effective as of the first Base Rent Date, NAI increased its Collateral
        Percentage from 60% to 80%, raising the Minimum Collateral Value to
        $9,600,000. Because of such increase, NAI also delivered an additional
        $2,400,000 as Cash Collateral to Agent on the first Base Rent Date,
        bringing the total of all Cash Collateral delivered by NAI to $9,600,000
        as required by Section 5.1 of this Agreement.

2.      Also effective as of the first Base Rent Date, a new Participant
        approved by NAI ("Participant C") became a party to this Agreement and
        the Participation Agreement, taking a Percentage of 20%. Simultaneously,
        Participant A and Participant B entered into supplements to the
        Participation Agreement which reduced their Percentages to 40% and 35%,
        respectively.

Allocation of Cash Collateral Required: To avoid a Collateral Imbalance under
these assumptions, Agent would be required to allocate the Cash Collateral as
required to leave the Deposit Takers for BNPLC and the Participants with the
following amounts:

<TABLE>
<S>            <C>                                                                  <C>
        A.     BNPLC's Deposit Taker (5% of Minimum Collateral Value)..............   $480,000
        B.     Participant A's Deposit Taker (40% of Minimum Collateral Value).....  3,840,000
        C.     Participant B's Deposit Taker (35% of Minimum Collateral Value).....  3,360,000
        D.     Participant C's  Deposit Taker (20% of Minimum Collateral Value)....  1,920,000
                                                                                   -----------

               TOTAL............................................................... $9,600,000
</TABLE>

Thus, to prevent a Collateral Imbalance, Agent would have to allocate the
$2,400,000 of additional Cash Collateral it received on the first Base Rent Date
as follows:

<TABLE>
<S>            <C>                                                                           <C>
        A.     BNPLC's Deposit Taker ($480,000 less $360,000 already on deposit) .............$120,000
        B.     Participant A's Deposit Taker ($3,840,000 less $3,600,000 already on deposit)...240,000
        C.     Participant B's Deposit Taker ($3,360,000 less $3,240,000 already on deposit)...120,000
</TABLE>

                                      -2-
<PAGE>   43

<TABLE>
<S>            <C>                                                                           <C>
        D.     Participant C's  Deposit Taker ($1,920,000 less $0 already on deposit)........1,920,000
                                                                                             ---------
               TOTAL........................................................................$2,400,000
</TABLE>

                                 EXAMPLE NO. 3

Assumptions:  Assume the same facts as in Example No. 2, except that:

1.      Instead of increasing its Collateral Percentage from 60% to 80%, NAI
        increased its Collateral Percentage to 70% on the first Base Rent Date,
        raising the Minimum Collateral Value to $8,400,000. Because of such
        increase, NAI delivered an additional $1,200,000 as additional Cash
        Collateral to Agent on the first Base Rent Date, bringing the total of
        all Cash Collateral delivered by NAI to $8,400,000 as required by
        Section 5.1 of this Agreement.

Allocation of Cash Collateral Required: To avoid a Collateral Imbalance under
these assumptions, Agent would be required to allocate the Cash Collateral as
required to leave the Deposit Takers for BNPLC and the Participants with the
following amounts:

<TABLE>
<S>            <C>                                                                 <C>
        A.     BNPLC's Deposit Taker (5% of Minimum Collateral Value)..............   $420,000
        B.     Participant A's Deposit Taker (40% of Minimum Collateral Value).....  3,360,000
        C.     Participant B's Deposit Taker (35% of Minimum Collateral Value).....  2,940,000
        D.     Participant C's  Deposit Taker (20% of Minimum Collateral Value)....  1,680,000
                                                                                   -----------
               TOTAL............................................................... $8,400,000
</TABLE>

Thus, to prevent a Collateral Imbalance, Agent would have to allocate the
$1,200,000 of additional Cash Collateral it received on the first Base Rent Date
as follows:

<TABLE>
<S>            <C>                                                                            <C>
        A.     BNPLC's Deposit Taker ($420,000 less $360,000 already on deposit) ...............$60,000
        B.     Participant A's Deposit Taker ($3,360,000 less $3,600,000 already on deposit)..(240,000)
        C.     Participant B's Deposit Taker ($2,940,000 less $3,240,000 already on deposit)..(300,000)
        D.     Participant C's  Deposit Taker ($1,680,000 less $0 already on deposit).........1,680,000
                                                                                              ---------
               TOTAL.........................................................................$1,200,000
</TABLE>

NOTE: THE NEGATIVE AMOUNTS (IN PARENTHESIS) ABOVE REPRESENT REQUIRED WITHDRAWALS
RATHER THAN DEPOSITS. AS EXAMPLE NO. 3 ILLUSTRATES, TO AVOID A COLLATERAL
IMBALANCE AGENT MAY FROM TIME TO TIME HAVE TO WITHDRAW CASH COLLATERAL HELD BY
THE DEPOSIT TAKER FOR ONE PARTICIPANT AND DEPOSIT IT IN AN ACCOUNT MAINTAINED BY
A DEPOSIT TAKER FOR ANOTHER PARTICIPANT.

                                      -3-
<PAGE>   44

                                  ATTACHMENT 6
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT TO
                         WITHDRAW EXCESS CASH COLLATERAL

                               [---------, -----]

Banque Nationale de Paris
[address of BNP]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice to you, as Agent
under the Pledge Agreement, that pursuant to Section 6.1 of the Pledge
Agreement, NAI requires you to withdraw from the Accounts and return to NAI the
following amount:

               ____________________________ Dollars ($__________)

on the following date:

                                ----------, ----

        To assure you that NAI has satisfied the conditions to its right to
require such withdrawal, and to induce you to comply with this notice, NAI
certifies to you that:

               1. Your withdrawal and delivery of the amount specified above to
        NAI will not cause the Value of the remaining Collateral to be less than
        the Minimum Collateral Value. After giving effect to such withdrawal,
        the Collateral remaining in the Accounts maintained by the Deposit
        Takers will be:

               ____________________________ Dollars ($__________),

                                      -1-
<PAGE>   45

and the Minimum Collateral Value on the date specified above will equal:

               ____________________________ Dollars ($__________).

Such Minimum Collateral Value equals the Collateral Percentage of:

                           __________ percent (___%),

times the Stipulated Loss Value of:

               ____________________________ Dollars ($__________).

               2. NAI is giving this notice to you, BNPLC and the Participants
        at least ten days prior to the Base Rent Date specified above.

               3. No Default or Event of Default has occurred and is continuing
        as of the date of this notice, and NAI does not anticipate that any
        Default or Event of Default will have occurred and be continuing on the
        date upon which the withdrawal is required.

               4. NAI agrees that you may determine the Accounts from which to
        make any withdrawal required by NAI pursuant to this Section as
        necessary to prevent or mitigate any Collateral Imbalance.

NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE STATEMENTS ABOVE ARE
NOT CORRECT OR IF THE DATE FOR WITHDRAWAL SPECIFIED ABOVE IS LESS THAN TEN DAYS
AFTER YOUR RECEIPT OF THIS NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY NAI
IMMEDIATELY IF FOR ANY REASON YOU BELIEVE THIS NOTICE IS DEFECTIVE.

        Please remember that the express terms of Certificates of Deposit issued
pursuant to the Pledge Agreement require presentment of the Certificates of
Deposit seven days before Cash Collateral is to be withdrawn from the Accounts
they evidence. Accordingly, you must present Certificates of Deposit to Deposit
Takers seven days prior to the withdrawal of Cash Collateral required by this
notice. For your convenience, we have attached a letter as Annex 1 to this
notice that you might execute and send to Deposit Takers to advise them of your
intent to withdraw and of your presentment of Certificates of Deposit as
required in connection therewith. The attached letter also sets forth the
amounts NAI believes you must withdraw from each Account to avoid a Collateral
Imbalance.

                                      -2-
<PAGE>   46

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc BNPLC and all Participants]

                                      -3-
<PAGE>   47

                                     Annex 1
                        TO NAI'S NOTICE OF REQUIREMENT TO
                         WITHDRAW CASH EXCESS COLLATERAL

                               [---------, -----]

Deposit Takers on the
Attached Distribution List

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice from the
undersigned, as Agent under the Pledge Agreement, that pursuant to Section 6.1
of the Pledge Agreement, NAI requires Agent to withdraw from the Accounts and
return to NAI the amounts listed below on the following date:

                                ----------, ----

        Accordingly, on such date, the undersigned intends to withdraw the
following amounts from the following Accounts, and with this letter the
undersigned is presenting Certificates of Deposit as required in connection with
such withdrawal:

Deposit Taker                     Account No.                     Amount
-------------                     -----------                     ------
1.                              ________________               $___________

2.                              ________________               $___________

3.                              ________________               $___________

4.                              ________________               $___________

                                TOTAL WITHDRAWALS:             $___________

                                       -4-
<PAGE>   48

                                        BANQUE NATIONALE DE PARIS, AS AGENT

                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
[cc BNPLC and NAI]

                                      -5-
<PAGE>   49

                                  ATTACHMENT 7
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                         DIRECT PAYMENTS TO PARTICIPANTS

                               [---------, -----]
Banque Nationale de Paris
[address of BNP]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice to you, as Agent
under the Pledge Agreement, that pursuant to Section 6.2 of the Pledge
Agreement, NAI requires you to withdraw from the Accounts and pay directly to
the Participants (in proportion to their respective Percentages) the following
amount:

               ____________________________ Dollars ($__________)

on the following date (which, NAI acknowledges, must be the Designated Sale Date
or a date thereafter prior to an Event of Default):

                                ----------, ----

        The amount specified above equals the following percentage (equal to the
aggregate of all Participant's Percentages):

                           __________ percent (___%),

                                       -1-
<PAGE>   50

times the total of all Cash Collateral presently pledged under the Pledge
Agreement:

               ____________________________ Dollars ($__________).

        To assure you that NAI has satisfied the conditions to its right to
require such withdrawal, and to induce you to comply with this notice, NAI
certifies to you that NAI is giving this notice to you, BNPLC and the
Participants at least ten days prior to the date of required withdrawal and
payment specified above.

        Please remember that the express terms of Certificates of Deposit issued
pursuant to the Pledge Agreement require presentment of the Certificates of
Deposit seven days before Cash Collateral is to be withdrawn from the Accounts
they evidence. Accordingly, you must present Certificates of Deposit to Deposit
Takers seven days prior to the withdrawal of Cash Collateral required by this
notice. For your convenience, we have attached a letter as Annex 1 to this
notice that you might execute and send to Deposit Takers to advise them of your
intent to withdraw and of your presentment of Certificates of Deposit as
required in connection therewith. The attached letter also sets forth the
amounts NAI believes you must withdraw from each Account to comply with
subsection 6.2.2 of the Pledge Agreement.

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc BNPLC and all Participants]

                                      -2-
<PAGE>   51

                                     ANNEX 1
                        TO NAI'S NOTICE OF REQUIREMENT TO
                          WITHDRAW CASH COLLATERAL FOR
                         DIRECT PAYMENTS TO PARTICIPANTS

                               [---------, -----]

Deposit Takers on the
Attached Distribution List

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice from the
undersigned, as Agent under the Pledge Agreement, that pursuant to Section 6.2
of the Pledge Agreement, NAI requires Agent to withdraw from the Accounts and
pay to the Participants (in proportion to their respective Percentages) the
amounts listed below on the following date:

                                ----------, ----

        Accordingly, on such date, the undersigned intends to withdraw the
following amounts from the following Accounts, and with this letter the
undersigned is presenting Certificates of Deposit as required in connection with
such withdrawal:

Deposit Taker                     Account No.                     Amount
-------------                     -----------                     ------
1.                              ________________               $___________

2.                              ________________               $___________

3.                              ________________               $___________

4.                              ________________               $___________

                                TOTAL WITHDRAWALS:             $___________

                                       -3-
<PAGE>   52

                                        BANQUE NATIONALE DE PARIS, AS AGENT

                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
[cc BNPLC and NAI]

                                      -4-
<PAGE>   53

                                  ATTACHMENT 8
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                             DIRECT PAYMENT TO BNPLC

                               [---------, -----]

Banque Nationale de Paris
[address of BNP]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice to you, as Agent
under the Pledge Agreement, that pursuant to Section 6.3 of the Pledge
Agreement, NAI requires you to withdraw from the Account maintained by the
Deposit Taker for BNPLC and pay directly to BNPLC on behalf of NAI as a payment
required by the Purchase Agreement the following amount:

               ____________________________ Dollars ($__________)

on the following date (which, NAI acknowledges, must be the Designated Sale Date
or a date thereafter prior to an Event of Default):

                                ----------, ----

        To assure you that NAI has satisfied the conditions to its right to
require such withdrawal, and to induce you to comply with this notice, NAI
certifies to you that NAI is giving this notice to you and BNPLC at least ten
days prior to the date of required withdrawal and payment specified above.

        Please remember that the express terms of Certificates of Deposit issued
pursuant to the Pledge Agreement require presentment of the Certificates of
Deposit seven days before Cash Collateral is to be withdrawn from the Accounts
they evidence. Accordingly, you must present

                                       -1-
<PAGE>   54

Certificates of Deposit to the Deposit Taker for BNPLC seven days prior to the
withdrawal of Cash Collateral required by this notice. For your convenience, we
have attached a letter as Annex 1 to this notice that you might execute and send
to the Deposit Taker for BNPLC to advise it of your intent to withdraw and of
your presentment of Certificates of Deposit as required in connection therewith.
The attached letter also sets forth the amount NAI believes you must withdraw to
comply with Section 6.3 of the Pledge Agreement.

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc BNPLC]

                                      -2-
<PAGE>   55

                                     Annex 1
                        TO NAI'S NOTICE OF REQUIREMENT OF
                             DIRECT PAYMENT TO BNPLC

                               [---------, -----]

[Name of the Deposit Taker for BNPLC]
[Address of such Deposit Taker]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice from the
undersigned, as Agent under the Pledge Agreement, that pursuant to Section 6.3
of the Pledge Agreement, NAI requires Agent to withdraw from the Account
maintained by you, as Deposit Taker for BNPLC, the sum of:

               ____________________________ Dollars ($__________)

and pay the same to BNPLC as a payment required by the Purchase Agreement on the
following date:

                                ----------, ----

                                      -3-
<PAGE>   56

        Accordingly, on such date, the undersigned intends to withdraw such
amount from the following Account maintained by you as Deposit Taker for BNPLC,
and with this letter the undersigned is presenting Certificate(s) of Deposit as
required in connection with such withdrawal.

                                        BANQUE NATIONALE DE PARIS, AS AGENT

                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
[cc BNPLC and NAI]

                                      -4-
<PAGE>   57

                                  ATTACHMENT 9
                               TO PLEDGE AGREEMENT

                   NOTICE OF NAI'S REQUIREMENT OF A WITHDRAWAL
                             OF CASH COLLATERAL FROM
                          A DISQUALIFIED DEPOSIT TAKER

                               [---------, -----]

Banque Nationale de Paris
[address of BNP]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice to you, as Agent
under the Pledge Agreement, that pursuant to Section 6.4 of the Pledge
Agreement, NAI requires you to withdraw from the following Account maintained by
the following Deposit Taker:

                   Deposit Taker                        Account No.
        -----------------------------------        ---------------------

        -----------------------------------        ---------------------

Cash Collateral in the following amount:

               ____________________________ Dollars ($__________)

and to deposit such Cash Collateral with other Deposit Takers who are not
Disqualified Deposit Takers no later than ten days after the date upon which you
receive this notice.

        To assure you that NAI has the right to require such withdrawal, and to
induce you to comply with this notice, NAI certifies to you that the Deposit
Taker specified above has become a Disqualified Deposit Taker because it no
longer satisfies the requirements listed in Section 4.1

                                       -1-
<PAGE>   58

of the Pledge Agreement. Specifically, such Deposit Taker no longer satisfies
the following requirements:

[NAI MUST INSERT HERE A DESCRIPTION OF WHICH REQUIREMENTS THE DEPOSIT TAKER NO
LONGER SATISFIES AND HOW NAI HAS DETERMINED THAT THE REQUIREMENTS ARE NO LONGER
SATISFIED, ALL IN SUFFICIENT DETAIL TO PERMIT THE PARTICIPANT FOR WHOM SUCH
DEPOSIT TAKER HAS BEEN MAINTAINING AN ACCOUNT TO RESPOND IF IT BELIEVES THAT NAI
IS IN ERROR.]

        Please remember that the express terms of Certificates of Deposit issued
pursuant to the Pledge Agreement require presentment of the Certificates of
Deposit seven days before Cash Collateral is to be withdrawn from the Accounts
they evidence. Accordingly, you must present Certificates of Deposit to the
Deposit Taker specified above seven days prior to the withdrawal of Cash
Collateral required by this notice. For your convenience, we have attached a
letter as Annex 1 to this notice that you might execute and send to such Deposit
Taker to advise it of your intent to withdraw and of your presentment of
Certificates of Deposit as required in connection therewith. The attached letter
also sets forth the amount NAI believes you must withdraw to comply with Section
6.4 of the Pledge Agreement.

                                        Network Appliance, Inc.

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc BNPLC]

                                      -2-
<PAGE>   59

                                     Annex 1
                 TO NAI'S NOTICE OF REQUIREMENT OF A WITHDRAWAL
                             OF CASH COLLATERAL FROM
                          A DISQUALIFIED DEPOSIT TAKER

                               [---------, -----]

[Name of the Deposit Taker for BNPLC]
[Address of such Deposit Taker]

               Re:    Pledge Agreement (Phase V - Improvements) dated March 1,
                      2000 among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase V -
                      Improvements) and Banque Nationale de Paris, acting in its
                      capacity as agent for BNPLC and the Participants

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Pledge Agreement (Phase V - Improvements) referenced
above (the "PLEDGE AGREEMENT"). This letter constitutes notice from the
undersigned, as Agent under the Pledge Agreement, that pursuant to Section 6.4
of the Pledge Agreement, NAI has advised Agent that you are a Disqualified
Deposit Taker, and NAI requires Agent to withdraw from the Account maintained by
you, as a Deposit Taker under the Pledge Agreement, the sum of:

               ____________________________ Dollars ($__________)

no later than the following date:

                                ----------, ----

                                      -3-
<PAGE>   60

        Accordingly, on such date, the undersigned intends to withdraw such
amount from the Account maintained by you as Deposit Taker (Account No.
__________), and with this letter the undersigned is presenting Certificate(s)
of Deposit as required in connection with such withdrawal.

                                        BANQUE NATIONALE DE PARIS, AS AGENT

                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------
[cc BNPLC and NAI]

                                      -4-
<PAGE>   61

                                   Schedule 1

                   Financial Covenants and Negative Covenants

        This Schedule 1 is attached to and made a part of (a) the Lease
Agreement (Phase V - Improvements) (the "IMPROVEMENTS LEASE") dated to be
effective as of March 1, 2000 (the "EFFECTIVE DATE"), between BNP Leasing
Corporation, a Delaware corporation ("BNPLC") and Network Appliance, Inc., a
California corporation ("NAI"), (b) the Lease Agreement (Phase V - Land) (the
"LAND LEASE" and, together with the Improvements Lease, the "LEASES") dated to
be effective as of the Effective Date, between BNPLC and NAI, (c) the Pledge
Agreement (Phase V - Improvements) (the "PLEDGE AGREEMENT (IMPROVEMENTS)") dated
to be effective as of the Effective Date, among BNPLC, NAI, and Banque Nationale
de Paris, as a Participant and as agent for any financial institutions that
become Participants thereunder from time to time, and (d) the Pledge Agreement
(Phase V - Land) (collectively with the Pledge Agreement (Improvements), the
"PLEDGE AGREEMENTS") dated to be effective as of the Effective Date, among
BNPLC, NAI, and Banque Nationale de Paris, as a Participant and as agent for any
financial institutions that become Participants thereunder from time to time.

                             PART I - DEFINED TERMS

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

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

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

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

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

                                       -1-
<PAGE>   62

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

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

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

        "MANDATORY COLLATERAL PERIOD" means any period during which,
        notwithstanding any contrary designation of a Collateral Percentage by
        NAI under the Pledge Agreements, the

                                       -2-
<PAGE>   63

        Collateral Percentage for purposes of the Pledge Agreements shall be one
        hundred percent (100%), determined as set forth in Part III of this
        Schedule 1.

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

        "QUICK RATIO" means the ratio of:

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

                             (B) the sum (without duplication of any item) of
               (1) all liabilities of NAI and its Subsidiaries (determined on a
               consolidated basis) treated as current liabilities in accordance
               with GAAP, plus (2) other obligations included in total Debt of
               NAI and its Subsidiaries (determined on a consolidated basis),
               the payment of which is due on demand or will become due within
               one year after the date on which the applicable determination of
               Quick Ratio is required hereunder.

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

                          PART II - FINANCIAL COVENANTS

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

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

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

                                       -3-
<PAGE>   64

        NAI or its Subsidiaries (other than sales to NAI or its Subsidiaries)
        after October 30, 1998; less (d) Permitted Non-Cash Charges for any
        period after October 30, 1998.

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

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

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

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

                PART III - TESTS FOR MANDATORY COLLATERAL PERIODS

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

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

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

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

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

                                       -4-
<PAGE>   65

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

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

                            PART IV - OTHER COVENANTS

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

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

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

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

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

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

                                       -5-
<PAGE>   66

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

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

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

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

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

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

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

                                       -6-
<PAGE>   67

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

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

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

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

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

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

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

                                      -7-<PAGE>   1

                                                                   EXHIBIT 10.64

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

                        CONSTRUCTION MANAGEMENT AGREEMENT
                            (PHASE V - IMPROVEMENTS)

                                     BETWEEN

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                                       AND

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                                  MARCH 1, 2000

                             (SUNNYVALE, CALIFORNIA)

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

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----

<S>                                                                                        <C>
RECITALS.....................................................................................1

CONSENT AND AUTHORIZATION....................................................................1

GENERAL TERMS AND CONDITIONS.................................................................1

1.      Construction by NAI..................................................................1
        (A)    The Construction Project......................................................1
               (1)    Construction Approvals by BNPLC........................................1
                      (a)    Preconstruction Approvals by BNPLC..............................1
                      (b)    Definition of Scope Change......................................2
                      (c)    Approval of Scope Changes.......................................2
               (2)    NAI's Right to Control and Responsibility for Construction.............2
                      (a)    Performance of the Work.........................................3
                      (b)    Third Party Contracts...........................................3
                      (c)    Third Party Estoppels...........................................4
                      (d)    Adequacy of Drawings, Specifications and Budgets................4
                      (e)    Existing Condition of the Land and Improvements.................4
                      (f)    Correction of Defective Work....................................5
                      (g)    Clean Up........................................................5
                      (h)    No Damage for Delays............................................5
                      (i)    No Fee For Construction Management..............................5
               (3)    Quality of Work........................................................5
        (B)    Completion Notices............................................................5

2.      Construction Advances................................................................5
        (A)    Costs Subject to Reimbursement Through Construction Advances..................5
        (B)    Exclusions From Reimbursable Construction-Period Costs........................7
        (C)    Conditions to NAI's Right to Receive Construction Advances....................8
               (1)    Construction Advance Requests..........................................8
               (2)    Amount of the Advances.................................................8
                      (a)    Limit Dependent Upon the Maximum Construction Allowance.........8
                      (b)    Limit Dependent Upon Costs Previously Incurred by NAI...........8
                      (c)    Limit During CMA Suspension Period..............................9
                      (d)    Restrictions Imposed for Administrative Convenience.............9
               (3)    No Advances After Certain Dates.......................................10
        (D)    Breakage Costs for Construction Advances Requested But Not Taken.............10
        (E)    No Third Party Beneficiaries.................................................10
        (F)    No Waiver....................................................................10
        (G)    Funding by Participants......................................................10
</TABLE>

                                      (i)
<PAGE>   3

<TABLE>
<S>                                                                                        <C>
3.      Normal Tenant Improvements..........................................................12
        (A)    Definition of Normal Tenant Improvements.....................................12
        (B)    Advances for Normal Tenant Improvements......................................12
        (C)    Tenant's Obligation to Construct Normal Tenant Improvements..................12

4.      Cost overruns.......................................................................12
        (A)    Definition of Projected Cost Overruns........................................12
        (B)    Notice of Projected Cost Overruns............................................12
        (C)    Election to Make a Voluntary NAI Construction Contribution...................13

5.      Suspension and Termination..........................................................13
        (A)    CMA Suspension Events........................................................13
               (1)    Projection of Cost Overruns...........................................13
               (2)    Interruption of Construction..........................................13
               (3)    Failure of NAI to Correct Defective Work..............................14
               (4)    Failure of NAI to Provide Evidence of Costs and Expenses..............14
        (B)    FOCB Notices, Preemptive Notices and CMA Termination Events..................14
        (C)    Rights and Obligations of NAI During a CMA Suspension Period.................15
        (D)    Election by NAI to Terminate.................................................15
        (E)    BNPLC's Right to Terminate...................................................15
        (F)    Rights and Obligations Surviving Termination.................................16
        (G)    Cooperation by NAI Following any Termination.................................16
</TABLE>

                                    EXHIBITS

Exhibit A......................................................Legal Description

Exhibit B......Description of the Construction Project (With Site Plan Attached)

Exhibit C............................................Form of Contractor Estoppel

Exhibit D...................................Form of Design Professional Estoppel

Exhibit E................Notice Requesting Advance to Cover Insurance Deductible

Exhibit F......................................Construction Advance Request Form

Exhibit G.............................Notice of Voluntary NAI Funding Commitment

Exhibit H...............................................Preemptive Notice by NAI

Exhibit I...........................................Notice of Termination by NAI

                                      (ii)
<PAGE>   4

                        CONSTRUCTION MANAGEMENT AGREEMENT
                            (PHASE V - IMPROVEMENTS)

        This CONSTRUCTION MANAGEMENT AGREEMENT (PHASE V - IMPROVEMENTS) (this
"AGREEMENT"), by and between BNP LEASING CORPORATION, a Delaware corporation
("BNPLC"), and NETWORK APPLIANCE, INC., a California corporation ("NAI"), is
made and dated as of March 1, 2000, the Effective Date. ("EFFECTIVE DATE" and
other capitalized terms used and not otherwise defined in this Agreement are
intended to have the meanings assigned to them in the Common Definitions and
Provisions Agreement (Phase V - Improvements) executed by BNPLC and NAI
contemporaneously with this Agreement. By this reference, the Common Definitions
and Provisions Agreement (Phase V - Improvements) is incorporated into and made
a part of this Agreement for all purposes.)

                                    RECITALS

        Pursuant to the Lease Agreement (Phase V - Improvements) executed by
BNPLC and NAI contemporaneously the this Agreement (the "IMPROVEMENTS LEASE"),
which covers the Improvements on the Land described in Exhibit A, BNPLC is
leasing the Improvements and any appurtenances thereto to NAI.

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

                            CONSENT AND AUTHORIZATION

        Subject to the terms and conditions set forth in this Agreement and in
the Improvements Lease, BNPLC does hereby grant its consent and authorization to
NAI for the construction by NAI of the Construction Project on the Land and for
the management by NAI of such construction; provided, however, all rights of NAI
against BNPLC hereunder are expressly made subject and subordinate to the
Permitted Encumbrances and to any other claims or encumbrances affecting the
Land or the Property that may be asserted by third parties and that do not
constitute Liens Removable by BNPLC.

                          GENERAL TERMS AND CONDITIONS

        1. Construction by NAI.

            (A) The Construction Project.

               (1) Construction Approvals by BNPLC.

                      (a) Preconstruction Approvals by BNPLC. NAI submitted and
               obtained BNPLC's approval of the site plan and descriptions of
               the Construction Project referenced in Exhibit B. Also set forth
               in Exhibit B is a general

<PAGE>   5

               description of the Construction Project. The Construction
               Project, as constructed by NAI pursuant to this Agreement, and
               all construction contracts and other agreements executed or
               adopted by NAI in connection therewith, shall be not materially
               inconsistent with the plans or other items referenced in Exhibit
               B, except to the extent otherwise provided by any Scope Change
               (as defined below) approved by BNPLC and except as otherwise
               provided in subparagraph 6(d) of the Improvements Lease if BNPLC
               should make a Landlord's Election to Continue Construction after
               any termination of this Agreement.

                      (b) Definition of Scope Change. As used herein, "SCOPE
               CHANGE" means a change to the Construction Project that, if
               implemented, will make the quality, function or capacity of the
               Improvements "materially different" (as defined below in this
               subparagraph) than as described or inferred by site plan, plans
               and renderings referenced in Exhibit B. The term "SCOPE CHANGE"
               is not intended to include the mere refinement, correction or
               detailing of the site plan, plans or renderings submitted to
               BNPLC by NAI. As used in this subparagraph, a "material
               difference" means a difference that could reasonably be expected
               to (a) after completion of the Construction Project and the
               funding of all Construction Advances required in connection
               therewith, significantly reduce any excess of the market value of
               the Property over Stipulated Loss Value or significantly increase
               any excess of Stipulated Loss Value over the market value of the
               Property, (b) change the general character of the Improvements
               from that needed to accommodate the uses permitted by
               subparagraph 2(a) of the Improvements Lease, or (c) result in
               Projected Cost Overruns (as defined below).

                      (c) Approval of Scope Changes. Before making a Scope
               Change, NAI shall provide to BNPLC a reasonably detailed written
               description of the Scope Change, a revised construction budget
               for the Construction Project and a copy of any changes to the
               drawings, plans and specifications for the Improvements required
               in connection therewith, all of which must be approved in writing
               by BNPLC (or by any inspecting architect appointed by BNPLC from
               time to time) before the Scope Change is implemented. BNPLC's
               approval shall not in any event constitute a waiver of
               subparagraph 1(A)(3) or of any other provision of this Agreement
               or the Improvements Lease.

               (2) NAI's Right to Control and Responsibility for Construction.
        Subject to the terms and conditions set forth in this Agreement and in
        the Improvements Lease, and prior to any termination of this Agreement
        as provided in subparagraphs 5(D) and 5(E), NAI shall have the sole
        right to control and the sole responsibility for the design and
        construction of the Construction Project, including the means, methods,
        sequences and procedures implemented to accomplish such design and
        construction. Although title to all Improvements will pass directly to
        BNPLC (as more particularly provided in Paragraph 7 of the Improvements
        Lease), BNPLC's obligation with respect to the Construction Project
        shall be limited to the making of advances under and subject to the
        conditions set forth in this Agreement and in Paragraph 6 of the
        Improvements Lease. Without limiting the foregoing, NAI acknowledges and
        agrees that:

                                       2
<PAGE>   6

                      (a) Performance of the Work. Except as provided in
               subparagraphs 5(C) and 5(F), NAI must, using its best skill and
               judgment and in an expeditious and economical manner not
               inconsistent with the interests of BNPLC, perform or cause to be
               performed all work required, and will provide or cause to be
               provided all supplies and materials required, to design and
               complete construction of the Construction Project (collectively
               "WORK"). The Work will include obtaining all necessary building
               permits and other governmental approvals required in connection
               with the design and construction of the Construction Project,
               including the design and construction of Normal Tenant
               Improvements (as defined below), or required in connection with
               the use and occupancy thereof (e.g., final certificates of
               occupancy). The Work will also include any repairs or restoration
               required because of damage to Improvements by fire or other
               casualty prior to the Base Rent Commencement Date (a
               "PRE-COMMENCEMENT CASUALTY"); however, the cost of any such
               repairs or restoration will be subject to reimbursement not only
               through Construction Advances made on and subject to the terms
               and conditions of this Agreement, but also through the
               application of Escrowed Proceeds as provided in the Improvements
               Lease. NAI will carefully schedule and supervise all Work, will
               check all materials and services used in connection with all Work
               and will keep full and detailed accounts as may be necessary to
               document expenditures made or expenses incurred for the Work.
               Subject to delays beyond the reasonable control of NAI, NAI shall
               cause all Work to be completed on or before the first Business
               Day of September, 2001.

                      (b) Third Party Contracts.

                             1) NAI shall not enter into any construction
                      contract or other agreement with a third party concerning
                      the Work or the Construction Project (a "THIRD PARTY
                      CONTRACT") in the name of BNPLC or otherwise purport to
                      bind BNPLC to any obligation to any third party.

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

                             3) As necessary to limit the total Reimbursable
                      Third Party Contract Termination Fees (as defined below)
                      for which BNPLC may be required to provide Construction
                      Advances to no more than $8,000,000 (the "MAXIMUM
                      PERMITTED TERMINATION FEES"), NAI shall reserve in every
                      significant Third Party Contract an absolute express right
                      to terminate such contract at any time, without cause.
                      Although any Third Party Contract (other than an
                      Affiliate's Contract) may require NAI to pay

                                       3
<PAGE>   7

                      a specified Termination Fee in the event of such a
                      termination, the specified Termination Fee must not exceed
                      the difference computed by subtracting (I) the aggregate
                      of all Termination Fees that have been paid or would
                      become payable by NAI if NAI terminated all other Third
                      Party Contracts, from (II) the Maximum Permitted
                      Termination Fees. Without limiting the foregoing, NAI will
                      manage and administer all Third Party Contracts as
                      necessary to ensure that, at any point in time, NAI can
                      terminate all such contracts without becoming liable for
                      Termination Fees in excess of the Maximum Permitted
                      Termination Fees.

                             4) As used in this Agreement, "TERMINATION FEE"
                      means any amount, however denominated, for which NAI will
                      be obligated under a Third Party Contract as a result of
                      any election or decision by NAI to terminate such Third
                      Party Contract, including demobilization costs; provided,
                      however, amounts payable for Prior Work [as defined below]
                      as of the date any such termination are not intended to be
                      characterized as Termination Fees for purposes of this
                      Agreement. If, as described in the preceding paragraph,
                      NAI reserves an absolute express right in a Third Party
                      Contract to terminate such contract at any time, without
                      cause, for a specified dollar amount, such dollar amount
                      will constitute a Termination Fee. If no such right is
                      reserved in a Third Party Contract, the Termination Fee
                      applicable to such contract for purposes of this Agreement
                      will be the amount of damages that NAI could be required
                      to pay (in addition to payments required for Prior Work)
                      upon an anticipatory repudiation of the Third Party
                      Contract by NAI.

                      (c) Third Party Estoppels. If requested by BNPLC with
               respect to any material general construction contract between NAI
               and a third party contractor for any part of the Work, NAI shall
               cause the contractor to execute and deliver to BNPLC an estoppel
               letter substantially in the form of Exhibit C. Similarly, if
               requested by BNPLC with respect to any material architectural or
               engineering contract between NAI and a third party professional
               or firm for any part of the Work, NAI shall cause the
               professional or firm thereunder to execute and deliver to BNPLC
               an estoppel letter substantially in the form of Exhibit D.

                      (d) Adequacy of Drawings, Specifications and Budgets.
               BNPLC has made and will make no representations as to the
               adequacy of any budgets, site plans, renderings, plans, drawings
               or specifications for the Construction Project, and no
               modification of any such budgets, site plans, renderings, plans,
               drawings or specifications that may be required from time to time
               will entitle NAI to any adjustment in the Construction Allowance.

                      (e) Existing Condition of the Land and Improvements. NAI
               is familiar with the conditions of the Land and any existing
               Improvements on the Land. NAI shall have no claim for damages
               against BNPLC or for an increase in the Construction Allowance by
               reason of any condition (concealed or otherwise) of or affecting
               the Land or Improvements.

                                       4
<PAGE>   8

                      (f) Correction of Defective Work. NAI will promptly
               correct all Work performed prior to any termination of this
               Agreement that does not comply with the requirements of this
               Agreement or that is otherwise defective (in either case,
               "DEFECTIVE WORK") at NAI's sole expense. If NAI fails to correct
               any Defective Work or fails to carry out Work in accordance with
               this Agreement, BNPLC may (but will not be required to) order NAI
               to stop all Work until the cause for such failure has been
               eliminated.

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

                      (h) No Damage for Delays. NAI shall have no claim for
               damages against BNPLC or for an increase in the Construction
               Allowance by reason of any delay in the performance of any Work.

                      (i) No Fee For Construction Management. NAI shall have no
               claim for any fee or other compensation or for any reimbursement
               of internal administrative or overhead expenses of NAI under this
               Agreement, it being understood that NAI is executing this
               Agreement in consideration of the rights expressly granted to it
               herein and in the Improvements Lease.

               (3) Quality of Work. NAI shall cause the Work undertaken and
        administered by it pursuant to this Agreement to be performed (a) in a
        safe and good and workmanlike manner, (b) in accordance with Applicable
        Laws, (c) in compliance with (i) the provisions of this Agreement and
        the Improvements Lease, (ii) the material provisions of the Permitted
        Encumbrances and (iii) the material provisions of the Development
        Documents, and (d) in a manner that, taken as a whole, enhances the
        value of the Property commensurate with any Construction Advances and
        Carrying Costs added to the Outstanding Construction Allowance in
        connection therewith.

        (B) Completion Notices. NAI shall provide a notice (a "COMPLETION NOTICE
(BUILDING 4)") to BNPLC promptly after renovation of the portion of the
Improvements designated by NAI as "Building 4" are substantially complete and
ready for occupancy by NAI. Such notice will include a determination by NAI of
the amount of Stipulated Loss Value (Building 4), as defined in the Common
Definitions and Provisions Agreement, and of Stipulated Loss Value (Building
4/Land), as defined in the other Common Definitions and Provisions Agreement. In
addition, NAI shall provide a notice (a "COMPLETION NOTICE (BUILDING 4)") to
BNPLC promptly after construction of the Construction Project is substantially
complete, advising BNPLC of the substantial completion.

        2. Construction Advances.

        (A) Costs Subject to Reimbursement Through Construction Advances.
Subject to the terms and conditions set forth herein, NAI shall be entitled to a
Construction Allowance, from

                                       5
<PAGE>   9

which BNPLC will make Construction Advances on Advance Dates from time to time
to pay or reimburse NAI for the following costs ("REIMBURSABLE
CONSTRUCTION-PERIOD COSTS") to the extent the following costs are not already
included in Transaction Expenses paid by BNPLC from the Initial Funding Advance:

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

               (2) the cost of title insurance or other out of pocket expenses
        described in subparagraph 5(c)(iii) of the Improvements Lease or of the
        Other Lease Agreement to the extent paid by NAI prior to the Base Rent
        Commencement Date;

               (3) Commitment Fees;

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

                        -       soft costs, such as architectural fees,
                                engineering fees and fees and costs paid in
                                connection with obtaining project permits and
                                approvals required by governmental authorities
                                or the Development Documents,

                        -       site preparation costs, and

                        -       costs of offsite and other public improvements
                                required as conditions of governmental approvals
                                for the Construction Project;

               (5) the cost of maintaining insurance required by (and consistent
        with the requirements of) the Improvements Lease and the Other Lease
        Agreement prior to the Base Rent Commencement Date, and costs of
        repairing any damage to the Improvements caused by a Pre-commencement
        Casualty to the extent such costs are not covered by Escrowed Proceeds
        made available to NAI as provided in the Improvements Lease and the
        Other Lease Agreement prior to the Base Rent Commencement Date
        ("REIMBURSABLE RESTORATION COSTS");

               (6) Impositions that accrue or become due under the Improvements
        Lease or the Other Lease Agreement prior to the Base Rent Commencement
        Date; and

               (7) except as otherwise provided in subparagraph 2(B) below,
        Termination Fees payable by NAI in connection with any Third Party
        Contract between NAI and a Person not an Affiliate of NAI because of any
        election by NAI to cancel or terminate such contract during a CMA
        Suspension Period (as defined below).

In addition to other Construction Advances required by this subparagraph 2(A),
but subject to the other terms and conditions hereof, a Construction Advance
will be provided by BNPLC on the Base Rent Commencement Date in the form of
additional Escrowed Proceeds (to be held and applied like other Escrowed
Proceeds pursuant to the Improvements Lease) equal to any

                                       6
<PAGE>   10

reduction in property insurance proceeds paid or payable with respect to the
Property because of a property insurance deductible permitted by Exhibit B
attached to the Improvements Lease, if:

                      (I) damage to the Improvements has been caused by a
               Pre-commencement Casualty and, despite the exercise of reasonable
               diligence by NAI, NAI has been unable to complete the repair of
               such damage sufficiently in advance of the Base Rent Commencement
               Date to allow the reimbursement to NAI hereunder of all
               Reimbursable Restoration Costs attributable to such property
               insurance deductible; and

                      (II) at least five Business Days before the Base Rent
               Commencement Date, NAI has requested such additional Construction
               Advance by a notice in the form attached hereto as Exhibit E.

        (B) Exclusions From Reimbursable Construction-Period Costs.
Notwithstanding anything herein to the contrary, BNPLC shall not be required to
make any Construction Advance to pay or to reimburse or compensate NAI for any
of the following or any Absolute NAI Construction Obligations required because
of or in connection with or arising out of any of the following:

               (1) Environmental Losses;

               (2) Losses that would not have been incurred but for any act or
        omission of NAI or of any NAI's contractors or subcontractors, which act
        or omission is contrary in any material respect to the other terms and
        conditions of this Agreement or to the terms and conditions of the other
        Operative Documents, during the period that this Agreement remains in
        force or during any other period that NAI remains in possession or
        control of the Construction Project pursuant to the Improvements Lease
        or otherwise;

               (3) Losses that would not have been incurred but for any fraud,
        misapplication of Construction Advances or other funds, illegal acts, or
        willful misconduct on the part of the NAI or its employees or agents or
        any other party for whom NAI is responsible;

               (4) Losses that would not have been incurred but for any
        bankruptcy proceeding involving NAI; and

               (5) costs of Normal Tenant Improvements (as defined below),
        except to the extent that BNPLC agrees to allow the reimbursement of
        such costs from the Construction Allowance as provided in subparagraph
        3(B).

For purposes of this subparagraph, "acts and omissions" described in clause (2)
preceding shall include (i) any decision by NAI to make any Scope Change without
the prior approval of BNPLC, (ii) any failure of NAI to maintain insurance
required by the Improvements Lease, the Other Lease Agreement or this Agreement,
(iii) any decision of NAI not to continue or complete Work because of a change
in NAI's facility needs or in NAI's plans to meet its facility needs (such as,
for example, a decision by NAI to lease or acquire another less expensive
facility as an alternative to the Improvements), (iv) any failure by NAI to
reserve termination rights in Third Party Contracts as required by subparagraph
1(A)(2)(b), and (v) any other material breach by NAI of this Agreement.

                                       7
<PAGE>   11

        (C) Conditions to NAI's Right to Receive Construction Advances. BNPLC's
obligation to provide Construction Advances to NAI from time to time under this
Agreement shall be subject to the following terms and conditions, all of which
terms and conditions are intended for the sole benefit of BNPLC, and none of
which terms and conditions shall limit in any way the right of BNPLC to treat
costs or expenditures incurred or paid by or on behalf of it as Construction
Advances pursuant to subparagraph 6(d) of the Improvements Lease:

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

               (2) Amount of the Advances.

                      (a) Limit Dependent Upon the Maximum Construction
               Allowance. NAI shall not be entitled to require any Construction
               Advance that would cause the Funded Construction Allowance to
               exceed the Maximum Construction Allowance.

                      (b) Limit Dependent Upon Costs Previously Incurred by NAI.
               NAI shall not be entitled to require any Construction Advance -
               other than a final additional Construction Advance required on
               the Base Rent Commencement Date because of a permitted property
               insurance deductible related to a Pre-commencement Casualty as
               described in subparagraph 2(A) above - that would cause the
               aggregate of all Construction Advances to exceed the sum of:

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

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

               As used in this Agreement, "PRIOR WORK" means all labor and
               services actually performed, and all materials actually delivered
               to the construction site, in accordance with this Agreement prior
               to the date in question as part of the Work, and "FUTURE WORK"
               means labor and services performed or to be performed, and
               materials delivered or to be delivered, after the date in
               question as part of the Work. For purposes of this Agreement, NAI
               and BNPLC intend to allocate Reimbursable Construction-Period
               Costs between Prior Work and Future Work in a manner that is
               generally consistent with the allocations expressed or implied in
               construction-related contracts negotiated in good faith between
               NAI and third

                                       8
<PAGE>   12

               parties not affiliated with NAI (e.g., a general contractor);
               however, in order to verify the amount of Reimbursable
               Construction-Period Costs actually paid or incurred by NAI and
               the proper allocation thereof between Prior Work and Future Work,
               BNPLC shall be entitled (but not required) to: (x) request,
               receive and review copies of such agreements between NAI and
               third parties and of draw requests, budgets or other supporting
               documents provided to NAI in connection with or pursuant to such
               agreements as evidence of the allocations expressed or implied
               therein, (y) from time to time engage one or more independent
               inspecting architects, certified public accountants or other
               appropriate professional consultants and, absent manifest error,
               rely without further investigation upon their reports and
               recommendations, and (z) without waiving BNPLC's right to
               challenge or verify allocations required with respect to future
               Construction Advances, rely without investigation upon the
               accuracy of NAI's own Construction Advance Requests.

                      (c) Limit During CMA Suspension Period. Without limiting
               the other terms and conditions imposed by this Agreement for the
               benefit of BNPLC with respect all Construction Advances, BNPLC
               shall have no obligation to make any Construction Advance during
               any CMA Suspension Period (as defined below) that would cause the
               aggregate of all Construction Advances to exceed the sum of:

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

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

               For purposes of computing the limits described in this
               subparagraph 2(C)(2)(c), Reimbursable Construction-Period Costs
               "other than for Work" shall include Termination Fees that qualify
               as Reimbursable Construction-Period Costs pursuant to
               subparagraph 2(A)(7) ("REIMBURSABLE THIRD PARTY CONTRACT
               TERMINATION FEES"). NAI acknowledges, however, that Termination
               Fees will not exceed the Maximum Permitted Termination Fees, so
               long as NAI complies with the requirements of subparagraph
               1(A)(2)(b). That is, but for an "act or omission of NAI" as such
               phrase is used in subparagraph 2(B)(2), the aggregate of all
               Termination Fees shall not exceed the Maximum Permitted
               Termination Fees. Accordingly, if the aggregate of any
               Termination Fees do exceed the Maximum Permitted Termination
               Fees, the excess shall not qualify as Reimbursable Third Party
               Contract Termination Fees.

                      (d) Restrictions Imposed for Administrative Convenience.
               NAI shall not request any Construction Advance (other than the
               final Construction Advance NAI intends to request) for an amount
               less than $500,000.

                                       9
<PAGE>   13

               (3) No Advances After Certain Dates. BNPLC shall have no
        obligation to make any Construction Advance (x) after the Base Rent
        Commencement Date, (y) on or after the Designated Sale Date, or (z) on
        or after the date of any termination of this Agreement pursuant to
        subparagraph 5(D) or subparagraph 5(E).

        (D) Breakage Costs for Construction Advances Requested But Not Taken. If
NAI requests but thereafter declines to accept any Construction Advance, or if
NAI requests a Construction Advance that it is not permitted to take because of
its failure to satisfy any of the conditions specified in subparagraph 2(C), NAI
shall pay upon demand any resulting Breakage Costs.

        (E) No Third Party Beneficiaries. No contractor or other third party
shall be entitled to require BNPLC to make advances as a third party beneficiary
of this Agreement or of the Improvements Lease or otherwise.

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

        (G) Funding by Participants. NAI acknowledges that, as provided in the
Participation Agreement, each Participant has agreed to pay to BNPLC a
Percentage (under and as defined in the Participation Agreement) of the
Construction Advances required by this Agreement. NAI also acknowledges that
BNPLC will not be responsible to NAI for any failure of any Participant to
provide advances required by the Participation Agreement. So long as any
Participant fails to provide its Percentage of any requested Construction
Advance, then the amount of the Construction Advance for which BNPLC shall be
obligated hereunder shall be reduced by the amount that the Participant should
have provided, but failed to provide, in accordance with the Participation
Agreement. No such reduction, however, of BNPLC's obligation hereunder shall
release or impair the obligation of the Participant directly to NAI, created by
NAI's status as a third party beneficiary of the Participant's commitment under
the Participation Agreement to provide the Participant's Percentage of
Construction Advances. Further, any such failure shall excuse BNPLC's obligation
to provide the requested Construction Advance only to the extent of the funds
that the applicable Participant or Participants should have advanced (but did
not advance) to BNPLC, and in the event of any such failure:

               (1) BNPLC will immediately notify NAI, but BNPLC will not in any
        event be liable to NAI for BNPLC's failure to do so.

               (2) BNPLC will to the extent possible postpone reductions of
        Construction Advances because of the failure by any one or more
        Participants ("DEFAULTING PARTICIPANTS") to make required advances under
        the Participation Agreement (a "PARTICIPANT DEFAULT") by adjusting (and
        readjusting from time to time, as required) the funding "Percentages" of
        other Participants, and by requesting the other Participants to make
        advances to BNPLC on the basis of such adjusted Percentages, in each
        case as provided in the Participation Agreement; however, so long as a
        Participant Default continues, no Construction Advance shall be required
        that would cause the Outstanding Construction Allowance to exceed (1)
        the Maximum Construction Allowance available

                                       10
<PAGE>   14

        under this Agreement, less (2) all amounts that should have been, but
        because of a continuing Participant Default have not been, advanced by
        any one or more of the Participants to BNPLC under the Participation
        Agreement with respect to Construction Advances.

               (3) Further, after a Participant Default, and so long as no CMA
        Termination Event (as defined below) has occurred and no Event of
        Default has occurred and is continuing, BNPLC shall do the following as
        reasonably requested by NAI, provided that nothing in this provision
        shall require BNPLC to take any action that would violate Applicable
        Laws, that would constitute a breach of BNPLC's obligations under the
        Participation Agreement, or that would require BNPLC to waive any rights
        or remedies it has under this Agreement or other Operative Documents:

                      (a) BNPLC shall promptly make a written demand upon the
               Defaulting Participants for the cure of the Participant Default
               and

                      (b) BNPLC shall not unreasonably withhold its approval for
               the substitution of any new participant proposed by NAI for
               Defaulting Participants, if (A) the proposed substitution does
               not require BNPLC to waive rights against the Defaulting
               Participants, (B) the new participant will agree (by executing
               supplement to the Participation Agreement as provided in the
               Participation Agreement) to provide funds to replace the payments
               that would otherwise be required of the Defaulting Participants
               with respect to future Construction Advances, (C) the new
               participant (or NAI) provides the funds (if any) needed to
               terminate the Defaulting Participants' rights to receive payments
               of "Net Cash Flow" (as defined in the Participation Agreement)
               that BNPLC will be required to pay the new participant under the
               terms of the substitution reasonably proposed by NAI, (D) the new
               participant (or NAI) provides and agrees in writing to provide
               funds needed to reimburse BNPLC for any and all Losses incurred
               by BNPLC in connection with or because of the substitution of the
               new participant for the Defaulting Participants, including any
               cost of defending and paying any claim asserted by Defaulting
               Participants because of the substitution (but not including any
               liability of BNPLC to the Defaulting Participants for damages
               caused by BNPLC's bad faith or gross negligence in the
               performance of BNPLC's obligations to the Defaulting
               Participants), (E) the obligations of BNPLC to the new
               participant per dollar of the new participant's "investment" (it
               being understood that such investment will be computed in a
               manner consistent with the examples set forth in Exhibit A to the
               Participation Agreement, but net of reimbursements to BNPLC under
               clause (D) preceding) shall not exceed the obligations per dollar
               of investment by the Defaulting Participants that BNPLC would
               have had to the Defaulting Participants if there had been no
               Participant Default, and (F) the new participant shall be a
               reputable financial institution having a net worth of no less
               than seven and one half percent (7.5%) of total assets and total
               assets of no less than $10,000,000,000.00 (all according to then
               recent audited financial statements).

                                       11
<PAGE>   15

3.      NORMAL TENANT IMPROVEMENTS.

        (A) Definition of Normal Tenant Improvements. As used herein, "NORMAL
TENANT IMPROVEMENTS" shall mean any "below-ceiling" interior finishes and
special fixtures or equipment to be constructed for NAI within the Improvements
as part of the Construction Project, BUT WILL NOT INCLUDE (1) costs of
structural elements of the Construction Project, or (2) equipment that would be
necessary for the use of the Improvements by any lessee (e.g., HVAC equipment,
elevators, standard electrical wiring).

        (B) Advances for Normal Tenant Improvements. Nothing herein shall be
construed as a commitment or an agreement by BNPLC to pay for Normal Tenant
Improvements, other than Normal Tenant Improvements contemplated in the
description of the Construction Project set forth in Exhibit B and the
attachments thereto. BNPLC does, however, acknowledge that incorporated into the
total Construction Allowance is an amount for contingencies (e.g., cost overruns
related to structural components of Improvements, HVAC equipment, elevators,
etc.), for which BNPLC shall be obligated to provide Construction Advances on
and subject to the terms and conditions set forth in Paragraph . To the extent,
if any, that NAI does not exhaust the Construction Allowance by using
Construction Advances for other costs (e.g., the actual costs incurred for
structural components of Improvements, HVAC equipment, elevators, etc.), BNPLC
will allow NAI to reimburse itself through Construction Advances funded on and
subject to the terms and conditions of Paragraph for the costs of any Normal
Tenant Improvements in addition to those contemplated in the description of the
Construction Project set forth in Exhibit B and the attachments thereto.
Otherwise, any such additional Normal Tenant Improvements will be paid for by
NAI.

        (C) Tenant's Obligation to Construct Normal Tenant Improvements. NAI
shall construct all Normal Tenant Improvements in a good and workmanlike manner
and in accordance with the same standards and requirements imposed by this
Agreement for other Work.

4.      COST OVERRUNS.

        (A) Definition of Projected Cost Overruns. As used in this Agreement,
"PROJECTED COST OVERRUNS" shall mean the excess (if any), calculated as of the
date of each Construction Advance Request, of (1) the total of projected
Reimbursable Construction-Period Costs yet to be incurred or for which NAI has
yet to be reimbursed hereunder (including projected Reimbursable
Construction-Period Costs for Future Work), over (2) the sum of a) any Voluntary
Construction Contribution NAI has committed to pay as provided in subparagraph
4(C), but has yet to pay, plus b) the balance of the remaining Construction
Allowance then projected to be available to cover such costs. The balance of the
remaining Construction Allowance then projected to be available will equal (i)
the amount (if any) by which the Maximum Construction Allowance exceeds the
Funded Construction Allowance, less (ii) the sum of (a) projected future
Carrying Costs, plus (b) any funds that should have been but were not advanced
to BNPLC by any Defaulting Participants under (and as defined in) the
Participation Agreement.

        (B) Notice of Projected Cost Overruns. If for any reason (including any
damage to the Property by fire or other casualty or any taking of any part of
the Property by condemnation)

                                       12
<PAGE>   16

NAI believes (after taking into account any Voluntary NAI Construction
Contributions NAI has made or committed to make as provided in subparagraph
4(C)) that Projected Cost Overruns are more likely than not at the time NAI
submits any Construction Advance Request, NAI shall state such belief in the
Construction Advance Request and, if NAI can reasonably do so, NAI will estimate
the approximate amount of such Projected Cost Overruns.

        (C) Election to Make a Voluntary NAI Construction Contribution. As used
in this Agreement, "VOLUNTARY NAI CONSTRUCTION CONTRIBUTION" shall mean a
voluntary, nonrefundable payment made to BNPLC by NAI prior to the Base Rent
Commencement Date and delivered with or pursuant to a notice in the form of
Exhibit G, confirming that a Voluntary NAI Construction Contribution is being
paid or will be paid pursuant to this subparagraph. To prevent the occurrence of
or to cure any CMA Suspension Event described in subparagraph 5(A)(1), NAI shall
be entitled (but not obligated) to make or commit to make a Voluntary NAI
Construction Contribution in addition to (and, except as provided in the
definition of Issue 97-10 Prepayment in the Common Definitions and Provisions
Agreement (Phase V - Improvements), without reducing or excusing) any other
amounts then due from NAI to BNPLC pursuant to the Operative Documents. Like
other Qualified Prepayments, any Voluntary NAI Construction Contribution will
reduce the Outstanding Construction Allowance as described in the definition
thereof in the Common Definitions and Provisions Agreement (Phase V -
Improvements). In contrast, however, to other Qualified Prepayments, Voluntary
NAI Construction Contributions will be subtracted for purposes of calculating
the Funded Construction Allowance and, thus, will effectively increase the
subsequent Construction Advances available under the limit established by
subparagraph 2(C)(2)(a).

5.      SUSPENSION AND TERMINATION.

        (A) CMA Suspension Events. Each of the following events shall be a "CMA
SUSPENSION EVENT" under this Agreement:

               (1) Projection of Cost Overruns. Either (a) BNPLC shall receive
        any Construction Advance Request stating that NAI believes Projected
        Cost Overruns are more likely than not, as provided in subparagraph
        4(B), or (b) (i) BNPLC shall otherwise determine in good faith that
        significant Projected Cost Overruns are likely (taking into account any
        failure of a Defaulting Participant to provide funds to BNPLC as
        required by the Participation Agreement and any prior Voluntary NAI
        Construction Contributions NAI has made or committed to make as provided
        in subparagraph 4(C)), (ii) BNPLC shall notify NAI of such determination
        and the basis therefor, and (iii) NAI shall fail to give any notice
        pursuant to subparagraph 4(C) that, by committing NAI to make or
        increase Voluntary NAI Construction Contributions, effectively
        eliminates the likelihood of the Projected Cost Overruns on or before
        five Business Days after BNPLC's notice to NAI of such determination.

               (2) Interruption of Construction. The Construction Project shall,
        for any reason after Work commences (including any damage to the
        Property by fire or other casualty or any taking of any part of the
        Property by condemnation), no longer be substantially progressing (and
        shall not have progressed in any substantial way during the preceding
        forty-five days), in a good and workmanlike manner and substantially in

                                       13
<PAGE>   17

        accordance with Applicable Laws, with Permitted Encumbrances, with
        Development Documents and with the requirements of this Agreement.

               (3) Failure of NAI to Correct Defective Work. NAI shall fail to
        diligently pursue the correction of any Defective Work of which NAI has
        received notice.

               (4) Failure of NAI to Provide Evidence of Costs and Expenses.
        BNPLC shall have requested, and NAI shall have failed to provide within
        ten Business Days after receipt of the request, with respect to any
        Construction Advance: (1) invoices, requests for payment from
        contractors and other evidence reasonably establishing that the costs
        and expenses for which NAI has requested or is requesting reimbursement
        constitute actual Reimbursable Construction-Period Costs, and (2)
        canceled checks, lien waivers and other evidence reasonably establishing
        that all prior Construction Advances have been used by NAI to pay, and
        only to pay, the Reimbursable Construction-Period Costs for which the
        prior advances were requested and made.

        (B) FOCB Notices, Preemptive Notices and CMA Termination Events.

               (1) As used herein, "FOCB NOTICE" means a notice from BNPLC to
        NAI that BNPLC is considering a termination of this Agreement pursuant
        to subparagraph 5(E) below, provided that the notice is given prior to
        BNPLC's receipt from NAI of a Completion Notice and is given when:

                      (a) any Event of Default has occurred and is continuing;
               or

                      (b) any CMA Suspension Event shall have occurred, NAI
               shall have received notice of such CMA Suspension Event (a "CMA
               SUSPENSION NOTICE") and the CMA Suspension Event shall have
               continued for thirty days after NAI's receipt of such notice; or

                      (c) NAI shall have failed to maintain the following
               insurance, or to provide insurance certificates to BNPLC as
               required by the Improvements Lease with respect to the following
               insurance, and such failure shall have continued for a period of
               five Business Days after any notice to NAI thereof:

                             1) property insurance as required by the
                      Improvements Lease, including builder's completed value
                      risk insurance as BNPLC may require to protect BNPLC's and
                      NAI's interests in the Improvements under construction
                      against risks of physical loss, such insurance to be
                      maintained by NAI at all times until completion of the
                      Construction Project; and

                             2) commercial general liability insurance as
                      required by the Improvements Lease.

               (2) As used herein, "PREEMPTIVE NOTICE" means a notice from NAI
        to BNPLC in the form attached hereto as Exhibit H, given after BNPLC has
        given any FOCB Notice, but before NAI has made any Issue 97-10 Election,
        that is sufficient and effective under clause (2) of the definition of
        Designated Sale Date in the Common

                                       14
<PAGE>   18

        Definitions and Provisions Agreement (Phase V - Improvements) to
        accelerate the Designated Sale Date to a date that is less than ninety
        days after the date of BNPLC's FOCB Notice.

               (3) For purposes of this Agreement and the other Operative
        Documents, "CMA TERMINATION EVENT" shall mean:

                      (a) BNPLC's receipt of a Notice of NAI's Intent to
               Terminate (as defined below); or

                      (b) A failure of NAI for any reason whatsoever to deliver
               a duly executed, effective Preemptive Notice within thirty days
               after NAI's receipt of an FOCB Notice.

        (C) Rights and Obligations of NAI During a CMA Suspension Period. As
used herein, "CMA SUSPENSION PERIOD" shall mean any period (1) beginning with
the date of any CMA Suspension Notice, FOCB Notice or Notice of NAI's Intent to
Terminate, and (2) ending on the earlier of (a) the first date upon which (i) no
CMA Suspension Events shall be continuing, and (ii) no CMA Termination Events
shall have occurred, or (b) the effective date of any termination of this
Agreement as described in subparagraph 5(D) or subparagraph 5(E). During any CMA
Suspension Period, NAI shall have the right to suspend the Work; provided,
however, the obligations of NAI which are to survive any termination of this
Agreement shall also continue and survive during any such suspension of the
Work.

        (D) Election by NAI to Terminate. NAI may elect to terminate this
Agreement at any time prior to the Base Rent Commencement Date when NAI has
determined that (1) the Construction Advances to be provided to it hereunder
will not be sufficient to cover all Reimbursable Construction-Period Costs,
whether because the cost of the Work exceeds budgeted expectations (resulting in
Projected Cost Overruns), because of damage to the Property by fire or other
casualty (other than damage that would not have occurred, or been uninsured or
under-insured, but for an act or omission of NAI), because of a taking of any
part of the Property by condemnation, or because NAI can no longer satisfy
conditions to BNPLC's obligation to provide Construction Advances herein, or (2)
the Construction Project cannot be substantially completed before the Base Rent
Commencement Date for reasons other than a breach by NAI of this Agreement. To
be effective, however, any such election to terminate this Agreement must be
made by giving BNPLC and the Participants a notice thereof prior to the Base
Rent Commencement Date in the form of Exhibit I (a "NOTICE OF NAI'S INTENT TO
TERMINATE"), stating that NAI intends to terminate this Agreement pursuant to
this subparagraph on a date specified therein, which date is not less than
thirty days after the date of such notice. Unless terminated sooner pursuant to
subparagraph 5(E), this Agreement will automatically terminate on the effective
date so specified in any Notice of NAI's Intent to Terminate.

        (E) BNPLC's Right to Terminate. BNPLC shall be entitled to terminate
this Agreement at any time (x) more than ninety days after BNPLC has given an
FOCB Notice as described in subparagraph 5(B)(1) (regardless of whether at the
time of such termination by BNPLC an Event of Default or other event or
circumstance described in subparagraph 5(B)(1) is continuing), provided that
BNPLC shall not have received an effective Preemptive Notice within

                                       15
<PAGE>   19

thirty days after its delivery of the FOCB Notice to NAI, (y) after the
Designated Sale Date, or (z) after BNPLC's receipt of a Notice of NAI's Intent
to Terminate.

        (F) Rights and Obligations Surviving Termination. Following any
termination of this Agreement as provided in subparagraph 5(D) or in 5(E), NAI
shall have no obligation to continue or complete any Work; provided, however, no
termination of this Agreement shall reduce or excuse the following rights and
obligations of the parties, it being intended that all such rights and
obligations shall survive and continue after any such termination:

               (1) the rights and obligations of NAI and BNPLC under the other
        Operative Documents, including Absolute NAI Construction Obligations
        imposed upon NAI by the Improvements Lease; and

               (2) NAI's obligations described in the next subparagraph 5(G).

        (G) Cooperation by NAI Following any Termination. After any termination
of this Agreement as provided in subparagraph 5(D) or subparagraph 5(E), NAI
shall comply with the following terms and conditions, all of which shall survive
any such termination:

               (1) NAI shall promptly deliver copies to BNPLC of all Third Party
        Contracts and purchase orders made by NAI in the performance of or in
        connection with the Work, together with all plans, drawings,
        specifications, bonds and other materials relating to the Work in NAI's
        possession, including all papers and documents relating to governmental
        permits, orders placed, bills and invoices, lien releases and financial
        management under this Agreement. All such deliveries shall be made free
        and clear of any liens, security interests, or encumbrances, except such
        as may be created by the Operative Documents.

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

                                       16
<PAGE>   20

               (3) NAI will make every reasonable effort, as and to the extent
        requested by BNPLC, to secure the cancellation of any then existing
        Third Party Contract upon terms satisfactory to BNPLC. NAI shall bear
        any cancellation fees or other Losses resulting from any cancellation of
        a Third Party Contract after the effective date of a termination of this
        Agreement.

               (4) NAI will make every reasonable effort, as and to the extent
        requested by BNPLC, to secure any required consents or approvals for an
        assignment of any then existing Third Party Contract to BNPLC or its
        designee, upon terms satisfactory to BNPLC. To the extent assignable,
        any Third Party Contract will be assigned by NAI to BNPLC upon request.

               (5) If NAI has canceled any Third Party Contract before and in
        anticipation of a termination of this Agreement, NAI shall make every
        reasonable effort, as and to the extent requested by BNPLC, to secure a
        reinstatement of such Third Party Contract in favor of BNPLC and upon
        terms satisfactory to BNPLC.

               (6) For a period not to exceed ten days after the termination,
        NAI shall take such steps as are reasonably necessary to preserve and
        protect Work completed and in progress and to protect materials,
        equipment, and supplies at the Property or in transit.

                                       17
<PAGE>   21

IN WITNESS WHEREOF, NAI and BNPLC have caused this Construction Management
Agreement to be executed effective as of March 1, 2000.

                                      "NAI"

                                      NETWORK APPLIANCE, INC.

                                      By:
                                         ---------------------------------------
                                         Jeffry R. Allen, Chief Financial
                                         Officer

<PAGE>   22

[Continuation of signature pages to Construction Management Agreement
(Phase V - Improvements) dated to be effective March 1, 2000]

                                      "BNPLC"

                                      BNP LEASING CORPORATION

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

<PAGE>   23

                                    Exhibit A

                                LEGAL DESCRIPTION

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

All of Parcel 1 as shown upon that certain map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of Parcel 5, as shown on Map
recorded in Book 413 of Maps, at Page 53, Santa Clara County Records, City of
Sunnyvale, Santa Clara County, California," which Map was filed for record in
the office of the Recorder of the County of Santa Clara, State of California on
July 18, 1978 in Book 423 of Maps, at Page 13.

Excepting therefrom, the following described property granted to the Santa Clara
County Transit District March 28, 1997 under Series No. 13654560:

All of that certain real property situated in the City of Sunnyvale, County of
Santa Clara, State of California, and being a portion of Parcel 1, as said
Parcel 1 is shown on that certain Parcel Map filed in Book 423 of Maps, Page 13,
Records of Santa Clara County, California, and more particularly described as
follows:

Beginning at the point of intersection of the centerlines of Fair Oaks Avenue
and Crossman Road as said Avenue and Road are shown on said Parcel Map; thence
Northerly along said centerline of Crossman Road, North 18 degrees 37' 09" East
82.70 feet; thence Easterly at a right angle from said centerline of Crossman
Road, 71 degrees 22' 51" East 54.89 feet to a point on a curve on the Easterly
line of said Crossman Road; thence from a tangent bearing of South 9 degrees 32'
30" West along said Easterly line of Crossman Road and along said curve concave
Easterly with a radius of 108.99 feet through a central angle of 11 degrees 34'
1" in an arc length of 22.00 feet the true point of this description; thence
continuing Southerly and Southeasterly along said Easterly line of Crossman Road
the following four (4) described courses: (1) continuing along said curve (from
a tangent bearing of South 2 degrees 01' 41" East) concave Easterly with a
radius of 108.99 feet through a central angle of 23 degrees 25' 59" an arc
length of 44.58 feet; (2) South 25 degrees 27' 40" East 79.86 feet to a curve;
(3) Southeasterly along said curve concave Northeasterly with a radius of 108.99
feet, through a central angle of 9 degrees 00' 00" in an arc length of 17.12
feet; (4) South 34 degrees 27' 40" East 23.31 feet to the Northeasterly line of
said Fair Oaks Avenue; thence Southeasterly along said Northeasterly line of
Fair Oaks Avenue South 50 degrees 50' 59" East 139.04 feet; thence leaving said
Northeasterly line of Fair Oaks Avenue North 34 degrees 36' 17" West 57.40 feet;
thence North 50 degrees 50' 13" West 32.20 feet; thence North 34 degrees 36' 17"
West 205.73 feet to the true point of beginning.

<PAGE>   24

                                    Exhibit B

                     DESCRIPTION OF THE CONSTRUCTION PROJECT

        Subject to future Scope Changes, the Construction Project will be
substantially consistent with the general description set out in the excerpts
from an appraisal prepared for BNPLC which are attached to this Exhibit and with
the Site Plan which is attached to this Exhibit.

        In addition to the Site Plan, the following summarizes excerpts taken
from an appraisal prepared for BNPLC which summarizes information about the
Improvements:

        The improvements will consist of Phase V improvements, consisting of (a)
        the renovation of an existing one two-story office/research and
        development building, known as Building 4, containing approximately
        95,169 square feet, and (b) the construction of one three-story office
        building, known as Building 5, located on the northeast corner of
        Crossman Avenue and Java Drive, in the City of Sunnyvale, Santa Clara
        County, California, containing approximately 120,017 square feet,
        together with related parking and other facilities.

<PAGE>   25

                                    Exhibit C

                            ESTOPPEL FROM CONTRACTOR

                                _________, 200__

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

        Re:    Assignment of Construction Contract

Ladies and Gentlemen:

        The undersigned hereby represents to BNP LEASING CORPORATION, a Delaware
corporation ("BNPLC"), and covenants with BNPLC as follows:

        1. The undersigned has entered into that certain [Construction Contract]
(the "CONSTRUCTION CONTRACT") by and between the undersigned and Network
Appliance, Inc. ("NAI") dated , ____ for the construction of the improvements to
be constructed as part of NAI's Sunnyvale campus leased by NAI (the
"IMPROVEMENTS") on the land described in the Improvements Lease Documents
described below (the "LAND" and, together with the Improvements and any other
improvements now on or constructed in the future on the Land, the "PROJECT").

        2. The undersigned has been advised that, by a Lease Agreement (Phase II
- Improvements) and a Construction Management Agreement (Phase II -
Improvements), both dated as of March 1, 2000 (collectively, the "IMPROVEMENTS
LEASE DOCUMENTS"), BNPLC is leasing the Project to NAI and has agreed, subject
to the terms and conditions of the Improvements Lease Documents, to provide a
construction allowance for the design and construction of the Improvements. The
undersigned has also been advised that the Improvements Lease Documents
expressly provide that third parties (including the undersigned) are not
intended as beneficiaries of the Improvements Lease Documents and, thus, will
have no standing to enforce any obligations of NAI or BNPLC under the
Improvements Lease Documents, including any such obligation that BNPLC may have
to provide the construction allowance. The undersigned understands that the
Improvements Lease Documents expressly provide that NAI is not authorized to
enter into any construction contract or other agreement with any third party in
the name of BNPLC or to otherwise bind BNPLC to any contract with a third party.

        3. A complete and correct copy of the Construction Contract is attached
to this letter. The Construction Contract is in full force and effect and has
not been modified or amended, except as provided in any written modifications or
amendments which are also attached to this letter.

<PAGE>   26

BNP Leasing Corporation
_______________, 200___
Page 2

        4. The undersigned has not sent or received any notice of default or any
other notice for the purpose of terminating the Construction Contract, nor does
the undesigned have knowledge of any existing circumstance or event which, but
for the elapse of time or otherwise, would constitute a default by the
undersigned or by NAI under the Construction Contract.

        The undersigned acknowledges and agrees that:

        a) Title to all Improvements shall, when constructed on the Land, pass
directly to BNPLC, not to NAI. BNPLC shall not, however, be held liable for, and
the undersigned shall not assert, any claims, demands or liabilities against
BNPLC arising under or in any way relating to the Construction Contract;
provided, this paragraph will not (1) be construed as a waiver of any statutory
mechanic's or materialmen's liens against the interests of NAI in and to the
Land or the improvements thereon that may otherwise exist or arise in favor of
the undersigned, or (2) prohibit the undersigned from asserting any claims or
making demands against BNPLC under the Construction Contract if BNPLC elects in
writing, pursuant to paragraph b) below, to assume the Construction Contract in
the event NAI's right to possession of the Land is terminated, it being
understood that in the event of such an assumption BNPLC shall be liable for the
unpaid balance of the contract sum due for the work of the undersigned, payable
pursuant to (and subject to the terms and conditions set forth for the benefit
of the owner in) the Construction Contract, but in no event shall BNPLC
otherwise be personally liable for any acts or omissions on the part of NAI.

        b) Upon any termination of NAI's right to possession of the Project
under the Improvements Lease Documents, including any eviction of NAI resulting
from an Event of Default (as defined in the Improvements Lease Documents), BNPLC
shall be entitled (but not obligated), by notice to the undersigned and without
the necessity of the execution of any other document, to assume NAI's rights and
obligations under the Construction Contract, cure any defaults by NAI thereunder
and enforce the Construction Contract and all rights of NAI thereunder. Within
ten days of receiving notice from BNPLC that NAI's right to possession has been
terminated, the undersigned shall send to BNPLC a written estoppel letter
stating: (i) that the undersigned has not performed any act or executed any
other instrument which invalidates or modifies the Construction Contract in
whole or in part (or, if so, the nature of such modification); (ii) that the
Construction Contract is valid and subsisting and in full force and effect;
(iii) that there are no defaults or events of default then existing under the
Construction Contract and no event has occurred which with the passage of time
or the giving of notice, or both, would constitute such a default or event of
default (or, if there is a default, the nature of such default in detail); (iv)
that the construction contemplated by the Construction Contract is proceeding in
a satisfactory manner in all material respects (or if not, a detailed
description of all significant problems with the progress of construction); (v)
a reasonably detailed report of the then critical dates projected by the
undersigned for work and deliveries required to complete the Project; (vi) the
total amount received by the undersigned for construction through the date of
the letter; (vii) the estimated total cost of completing the undersigned's work
as of the date of the letter, together with a current draw schedule; and (viii)
any other information BNPLC may request to allow it to

                               Exhibit C - Page 2
<PAGE>   27

BNP Leasing Corporation
_______________, 200___
Page 3

decide whether to assume the Construction Contract. BNPLC shall have seven days
from receipt of such written certificate containing all such requested
information to decide whether to assume the Construction Contract. If BNPLC
fails to assume the Construction Contract within such time, the undersigned
agrees that BNPLC shall not be liable (and the undersigned shall not assert or
bring any action against BNPLC, except to enforce statutory lien rights, if any,
of the undersigned against the Land or improvements on the Land) for any damages
or other amounts resulting from the breach or termination of the Construction
Contract or under any other theory of liability of any kind or nature, but
rather the undersigned shall look solely to NAI (and statutory lien rights, if
any, of the undersigned against the Land and any improvements thereon) for the
recovery of any such damages or other amounts.

        c) If BNPLC notifies the undersigned that BNPLC shall not assume the
Construction Contract pursuant to the preceding paragraph following the
termination of NAI's right to possession of the Project under the Improvements
Lease Documents, the undersigned shall immediately discontinue the work under
the Construction Contract and remove its personnel from the Project, and BNPLC
shall be entitled to take exclusive possession of the Project. The undersigned
shall also, upon request by BNPLC, deliver and assign to BNPLC all plans and
specifications and other contract documents previously delivered to the
undersigned (except that the undersigned may keep an original set of the
Construction Contract and other contract documents executed by NAI), all other
material relating to the work which belongs to BNPLC or NAI, and all papers and
documents relating to governmental permits, orders placed, bills and invoices,
lien releases and financial management under the Construction Contract.
Notwithstanding the undersigned's receipt of any notice from BNPLC that BNPLC
declines to assume the Construction Contract, the undersigned shall for a period
not to exceed fifteen days after receipt of such notice take such steps, at
BNPLC's expense, as are reasonably necessary to preserve and protect work
completed and in progress and to protect materials, equipment and supplies at
the site or in transit.

        d) If the Construction Contract is terminated by NAI before BNPLC is
given the opportunity to elect whether or not to assume the Construction
Contract as provided herein, BNPLC shall nonetheless have the right hereunder to
assume the Construction Contract, as if it had not been terminated, upon any
termination of NAI's right to possession of the Project under the Improvements
Lease Documents; provided, however, that if the work of the undersigned under
the Construction Contract has been disrupted because of NAI's termination of the
Construction Contract, the undersigned shall be entitled to an equitable
adjustment to the price of the Construction Contract, following any assumption
thereof by BNPLC, for the additional costs incurred by the undersigned
attributable to the disruption; and, provided further, that if BNPLC does assume
the Construction Contract, BNPLC shall receive a credit against the price of the
Construction Contract for any consideration paid to the undersigned by NAI
because of NAI's prior termination of the Construction Contract (whether such
consideration is designated a termination fee, settlement payment or otherwise).

                               Exhibit C - Page 3
<PAGE>   28

BNP Leasing Corporation
_______________, 200___
Page 4

        e) No action taken by BNPLC or the undersigned with respect to the
Construction Contract shall prejudice any other rights or remedies of BNPLC or
the undersigned provided by law, by the Improvements Lease Documents, by the
Construction Contract or otherwise against NAI.

        f) The undersigned agrees promptly to notify BNPLC of any material
default or claimed material default by NAI under the Construction Contract of
which the undersigned is aware, describing with particularity the default and
the action the undersigned believes is necessary to cure the same. The
undersigned will send any such notice to BNPLC prominently marked "URGENT -
NOTICE OF NAI'S DEFAULT UNDER CONSTRUCTION AGREEMENT WITH NETWORK APPLIANCE,
INC. - SUNNYVALE, CALIFORNIA" at the address specified for notice below (or at
such other addresses as BNPLC shall designate in notice sent to the
undersigned), by certified or registered mail, return receipt requested.
Following receipt of such notice, the undersigned will permit BNPLC or its
designee to cure any such default within the time period reasonably required for
such cure, but in no event less than thirty days. If it is necessary or helpful
to take possession of all or any portion of the Project to cure a default by NAI
under the Construction Contract, the time permitted by the undersigned for cure
by BNPLC will include the time necessary to terminate NAI's right to possession
of the Project and evict NAI, provided that BNPLC commences the steps required
to exercise such right within sixty days after it is entitled to do so under the
terms of the Improvements Lease Documents and applicable law. If the undersigned
incurs additional costs due to the extension of the aforementioned cure period,
the undersigned shall be entitled to an equitable adjustment to the price of the
Construction Contract for such additional costs.

        g) Any notice or communication required or permitted hereunder shall be
given in writing, sent by (a) personal delivery or (b) expedited delivery
service with proof of delivery or (c) United States mail, postage prepaid,
registered or certified mail or (d) telegram, telex or telecopy, addressed as
follows:

To the undersigned:
-------------------                      ------------------------------
                                         ------------------------------
                                         ------------------------------
                                         Telecopy: (___) ___-_____

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

                               Exhibit C - Page 4
<PAGE>   29

BNP Leasing Corporation
_______________, 200___
Page 5

A copy of any such notice or communication will also be sent to NAI by (a)
personal delivery or (b) expedited delivery service with proof of delivery or
(c) United States mail, postage prepaid, registered or certified mail or (d)
telegram, telex or telecopy, addressed as follows:

                             Network Appliance, Inc.
                            Attn: Corporate Secretary
                           2770 San Thomas Expressway
                              Santa Clara, CA 95051
                            Telecopy: (___) ___-____

        h) The undersigned acknowledges that it has all requisite authority to
execute this letter. The undersigned further acknowledges that BNPLC has
requested this letter, and is relying on the truth and accuracy of the
representations made herein, in connection with BNPLC's decision to advance
funds for construction under the Improvements Lease Documents with NAI.

                                           Very truly yours,

                                           -------------------------------------

                                           By:
                                              ----------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                    ----------------------------

        NAI joins in the execution of this letter solely for the purpose of
evidencing its consent hereto, including its consent to the provisions that
would allow, but not require, BNPLC to assume the Construction Contract in the
event NAI is evicted from the Project.

                                           Network Appliance, Inc.

                                           By:
                                              ----------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                    ----------------------------

                               Exhibit C - Page 5
<PAGE>   30

                                    Exhibit D

                       ESTOPPEL FROM DESIGN PROFESSIONALS

                                _________, 200__

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

        Re:    Assignment of [Architect's Agreement/Engineering Contract]

Ladies and Gentlemen:

        The undersigned hereby represents to BNP LEASING CORPORATION, a Delaware
corporation ("BNPLC"), and covenants with BNPLC as follows:

        1. The undersigned has entered into that certain [Architect's
Agreement/Engineering Contract] (the "AGREEMENT") by and between the undersigned
and Network Appliance, Inc. ("NAI") dated _______, ____ for the
[design/engineering] of the improvements to be constructed as part of NAI's
Sunnyvale campus leased by NAI (the "IMPROVEMENTS") on the land described in the
Improvements Lease Documents described below (the "LAND" and, together with the
Improvements and any other improvements now on or constructed in the future on
the Land, the "PROJECT").

        2. The undersigned has been advised that, by a Lease Agreement
(Phase V - Improvements) and a Construction Management Agreement (Phase V -
Improvements), both dated as of March 1, 2000 (collectively, the "IMPROVEMENTS
LEASE DOCUMENTS"), BNPLC is leasing the Project to NAI and has agreed, subject
to the terms and conditions of the Improvements Lease Documents, to provide a
construction allowance for the design and construction of the Improvements. The
undersigned has also been advised that the Improvements Lease Documents
expressly provide that third parties (including the undersigned) are not
intended as beneficiaries of the Improvements Lease Documents and, thus, will
have no standing to enforce any obligations of NAI or BNPLC under the
Improvements Lease Documents, including any such obligation that BNPLC may have
to provide the construction allowance. The undersigned understands that the
Improvements Lease Documents expressly provide that NAI is not authorized to
enter into any Agreement or other agreement with any third party in the name of
BNPLC or to otherwise bind BNPLC to any contract with a third party.

        3. A complete and correct copy of the Agreement is attached to this
letter. The Agreement is in full force and effect and has not been modified or
amended, except as provided in any written modifications or amendments which are
also attached to this letter.

        4. The undersigned has not sent or received any notice of default or any
other notice for the purpose of terminating the Agreement, nor does the
undesigned have knowledge of any

<PAGE>   31

BNP Leasing Corporation
_______________, 200___
Page 2

existing circumstance or event which, but for the elapse of time or otherwise,
would constitute a default by the undersigned or by NAI under the Agreement.

        The undersigned acknowledges and agrees that:

        a) BNPLC shall not be liable for, and the undersigned shall not assert,
any claims, demands or liabilities against BNPLC arising under or in any way
relating to the Agreement; provided, this paragraph will not (1) be construed as
a waiver of any statutory mechanic's or materialmen's liens against the
interests of NAI in and to the Land or the improvements thereon that may
otherwise exist or arise in favor of the undersigned, or (2) prohibit the
undersigned from asserting any claims or making demands against BNPLC under the
Agreement if BNPLC elects in writing, pursuant to paragraph b) below, to assume
the Agreement in the event NAI's right to possession of the Land is terminated,
it being understood that in the event of such an assumption BNPLC shall be
liable for the unpaid balance of the fees for services of the undersigned,
payable pursuant to (and subject to the terms and conditions set forth for the
benefit of the owner in) the Agreement, but in no event shall BNPLC otherwise be
personally liable for any acts or omissions on the part of NAI.

        b) Upon any termination of NAI's right to possession of the Project
under the Improvements Lease Documents, including any eviction of NAI resulting
from an Event of Default (as defined in the Improvements Lease Documents), BNPLC
shall be entitled (but not obligated), by notice to the undersigned and without
the necessity of the execution of any other document, to assume NAI's rights and
obligations under the Agreement, cure any defaults by NAI thereunder and enforce
the Agreement and all rights of NAI thereunder. Within ten days of receiving
notice from BNPLC that NAI's right to possession has been terminated, the
undersigned shall send to BNPLC a written estoppel letter stating: (i) that the
undersigned has not performed any act or executed any other instrument which
invalidates or modifies the Agreement in whole or in part (or, if so, the nature
of such modification); (ii) that the Agreement is valid and subsisting and in
full force and effect; (iii) that there are no defaults or events of default
then existing under the Agreement and no event has occurred which with the
passage of time or the giving of notice, or both, would constitute such a
default or event of default (or, if there is a default, the nature of such
default in detail); (iv) that the services contemplated by the Agreement are
proceeding in a satisfactory manner in all material respects (or if not, a
detailed description of all significant problems with the progress of services);
(v) a reasonably detailed report of the then critical dates projected by the
undersigned for services required to complete the Project; (vi) the total amount
received by the undersigned for services through the date of the letter; (vii)
the estimated total cost of completing such services as of the date of the
letter, together with a current payment schedule; and (viii) any other
information BNPLC may request to allow it to decide whether to assume the
Agreement. BNPLC shall have seven days from receipt of such written certificate
containing all such requested information to decide whether to assume the
Agreement. If BNPLC fails to assume the Agreement within such time, the
undersigned agrees that BNPLC shall not be liable (and the undersigned shall not
assert or bring any action against BNPLC or, except to enforce statutory lien
rights, if any, of the undersigned

                               Exhibit D - Page 2
<PAGE>   32

BNP Leasing Corporation
_______________, 200___
Page 3

against the Land or improvements on the Land) for any damages or other amounts
resulting from the breach or termination of the Agreement or under any other
theory of liability of any kind or nature, but rather the undersigned shall look
solely to NAI (and statutory lien rights, if any, of the undersigned against the
Land and any improvements thereon) for the recovery of any such damages or other
amounts.

        c) If BNPLC notifies the undersigned that BNPLC shall not assume the
Agreement pursuant to the preceding paragraph following the termination of NAI's
right to possession of the Project under the Improvements Lease Documents, the
undersigned shall immediately deliver and assign to BNPLC the following: (1)
copies of all plans and specifications for the Project or any component thereof
previously generated by or delivered to the undersigned, (2) any other contract
documents previously delivered to the undersigned (except that the undersigned
may keep an original set of the Agreement and other contract documents executed
by NAI), (3) any other material relating to the services provided under the
Agreement, and (4) to the extent available to the undersigned all papers and
documents relating to governmental permits, orders placed, bills and invoices,
lien releases and financial management under the Agreement. Notwithstanding the
undersigned's receipt of any notice from BNPLC that BNPLC declines to assume the
Agreement, the undersigned shall for a period not to exceed thirty days after
receipt of such notice take such steps, at BNPLC's expense, as are reasonably
necessary to preserve the utility and value of services completed and in
progress and to protect plans and specifications and other materials described
in the preceding sentence.

        d) If the Agreement is terminated by NAI before BNPLC is given the
opportunity to elect whether or not to assume the Agreement as provided herein,
BNPLC shall nonetheless have the right hereunder to assume the Agreement, as if
it had not been terminated, upon any termination of NAI's right to possession of
the Project under the Improvements Lease Documents; provided, however, that if
the services of the undersigned under the Agreement has been disrupted because
of NAI's termination of the Agreement, the undersigned shall be entitled to an
equitable adjustment to the price of the Agreement, following any assumption
thereof by BNPLC, for the additional costs incurred by the undersigned
attributable to the disruption; and, provided further, that if BNPLC does assume
the Agreement, BNPLC shall receive a credit against the price of the Agreement
for any consideration paid to the undersigned by NAI because of NAI's prior
termination of the Agreement (whether such consideration is designated a
termination fee, settlement payment or otherwise).

        e) No action taken by BNPLC or the undersigned with respect to the
Agreement shall prejudice any other rights or remedies of BNPLC or the
undersigned provided by law, by the Improvements Lease Documents, by the
Agreement or otherwise against NAI.

        f) The undersigned agrees promptly to notify BNPLC of any material
default or claimed material default by NAI under the Agreement of which the
undersigned is aware, describing with particularity the default and the action
the undersigned believes is necessary to cure the same. The undersigned will
send any such notice to BNPLC prominently marked

                               Exhibit D - Page 3
<PAGE>   33

BNP Leasing Corporation
_______________, 200___
Page 4

"URGENT - NOTICE OF NAI'S DEFAULT UNDER DESIGN AGREEMENT WITH NETWORK APPLIANCE,
INC. - SUNNYVALE, CALIFORNIA" at the address specified for notice below (or at
such other addresses as BNPLC shall designate in notice sent to the
undersigned), by certified or registered mail, return receipt requested.
Following receipt of such notice, the undersigned will permit BNPLC or its
designee to cure any such default within the time period reasonably required for
such cure, but in no event less than thirty days.

        g) Any notice or communication required or permitted hereunder shall be
given in writing, sent by (a) personal delivery or (b) expedited delivery
service with proof of delivery or (c) United States mail, postage prepaid,
registered or certified mail or (d) telegram, telex or telecopy, addressed as
follows:

To the undersigned:
-------------------                      ------------------------------
                                         ------------------------------
                                         ------------------------------
                                         Telecopy: (___) ___-_____

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

A copy of any such notice or communication will also be sent to NAI by (a)
personal delivery or (b) expedited delivery service with proof of delivery or
(c) United States mail, postage prepaid, registered or certified mail or (d)
telegram, telex or telecopy, addressed as follows:

                             Network Appliance, Inc.
                             Attn: Corporate Secretary
                             2770 San Thomas Expressway
                             Santa Clara, CA 95051
                             Telecopy: (___) ___-____

                               Exhibit D - Page 4
<PAGE>   34

BNP Leasing Corporation
_______________, 200___
Page 5

        h) The undersigned acknowledges that it has all requisite authority to
execute this letter. The undersigned further acknowledges that BNPLC has
requested this letter, and is relying on the truth and accuracy of the
representations made herein, in connection with BNPLC's decision to advance
funds for design services under the Improvements Lease Documents with NAI.

                                          Very truly yours,

                                          --------------------------------------

                                          By:
                                             -----------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

        NAI joins in the execution of this letter solely for the purpose of
evidencing its consent hereto, including its consent to the provisions that
would allow, but not require, BNPLC to assume the Agreement in the event NAI is
evicted from the Project.

                                          Network Appliance, Inc.

                                          By:
                                             -----------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

                               Exhibit D - Page 5
<PAGE>   35

                                    Exhibit E

        NOTICE REQUESTING ADVANCE TO COVER PROPERTY INSURANCE DEDUCTIBLE

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

        Re:     Construction Management Agreement (Phase V - Improvements) dated
                as of March 1, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"),
                between Network Appliance, Inc. ("NAI") and BNP Leasing
                Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase V - Improvements) referenced in the
Construction Management Agreement. This letter shall constitute a request made
pursuant to subparagraph 2(A) of the Construction Management Agreement for a
final additional Construction Advance in the form of an addition to Escrowed
Proceeds equal to:

                            $______________________,

on the Base Rent Commencement Date, which will occur on:

                             ______________, 200_.

        To induce BNPLC to make such Construction Advance, NAI represents and
warrants as follows: (x) the dollar amount specified above equals the property
insurance deductible permitted under the insurance requirements set forth in the
Lease, (y) a Pre-commencement Casualty has resulted in damage to the
Improvements, for which the cost of repairs will because of such deductible -
exceed the Escrowed Proceeds paid or payable in connection with such damage
under the property insurance maintained by NAI in accordance with the insurance
requirements in the Improvements Lease, and (z) NAI has not and will not
otherwise receive a Construction Advance to reimburse such excess costs prior to
the expiration of BNPLC's obligation to make further Construction Advances as
provided in subparagraph 2(C)(3) of the Construction Management Agreement.

NAI ACKNOWLEDGES THAT IF ANY REPRESENTATION ABOVE IS NOT TRUE, THEN NAI'S
OBLIGATION TO INDEMNIFY AGAINST LOSSES SUSTAINED BY BNPLC OR ANY OTHER
INTERESTED PARTY BECAUSE OF ITS RELIANCE ON THIS LETTER SHALL CONSTITUTE
ABSOLUTE NAI CONSTRUCTION OBLIGATIONS UNDER THE CONSTRUCTION MANAGEMENT
AGREEMENT AND THE IMPROVEMENTS LEASE.

<PAGE>   36

        Executed this _____ day of ______________, 20___.

                                          NETWORK APPLIANCE, INC.

                                          Name:
                                               ---------------------------------
                                          Title:
                                                --------------------------------

[cc all Participants]

                               Exhibit E - Page 2
<PAGE>   37

                                    Exhibit F

                        CONSTRUCTION ADVANCE REQUEST FORM

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

        Re:     Construction Management Agreement (Phase V - Improvements) dated
                as of March 1, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"),
                between Network Appliance, Inc. ("NAI") and BNP Leasing
                Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase V - Improvements) referenced in the
Construction Management Agreement. This letter shall constitute a Construction
Advance Request, requesting a Construction Advance of:

                             $_____________________,

on the Advance Date that will occur on:

                               ___________, 200 .

Such total amount can be properly allocated between what we call "Building 4"
and "Building 5" as follows:

Building 4....................................................   $_____________
Building 5....................................................   $_____________
                             Total (as set forth above).......   $_____________

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

I.      CALCULATION OF LIMIT IMPOSED BY SUBPARAGRAPH 2(C)(2)(b) OF THE
        CONSTRUCTION MANAGEMENT AGREEMENT:

<TABLE>
<S>                                                                             <C>
(1) NAI has paid or incurred bona fide Reimbursable Construction-Period Costs
other than for Work (e.g., property taxes) of no less than..............        $____________
</TABLE>

<PAGE>   38

<TABLE>
<S>                                                                             <C>
(2) NAI has paid or incurred bona fide Reimbursable Construction-Period Costs
for Prior Work of no less than..........................................        $____________

(3) NAI has received prior Construction Advances of no more than........        $____________

                LIMIT (1 + 2  - 3)......................................        $____________
</TABLE>

II.     PROJECTED COST OVERRUNS:

NAI [CHECK ONE: _ DOES / _ DOES NOT ] believe that Projected Construction
Overruns are more likely than not. [If NAI does believe that Projected Cost
Overruns are more likely than not, and if NAI believes that the amount of such
Projected Construction Overruns can be reasonably estimated, NAI estimates the
same at $___________.]

        NOTE: The Construction Management Agreement defines Projected
        Construction Overruns as the excess, if any, of (1) the total of
        projected Reimbursable Construction-Period Costs yet to be incurred or
        for which NAI has yet to be reimbursed hereunder (including projected
        Reimbursable Construction-Period Costs for Future Work), over (2) the
        balance of the remaining Construction Allowance projected to be
        available to cover such costs.

III.    ABSENCE OF CERTAIN CMA SUSPENSION EVENTS:

        A. The Construction Project is progressing without significant
interruption in a good and workmanlike manner and substantially in accordance
with Applicable Laws, with Permitted Encumbrances, with Development Documents
and with the requirements of the Construction Management Agreement, except as
follows: (IF THERE ARE NO EXCEPTIONS, INSERT "NO EXCEPTIONS")

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

        B. If NAI has received notice of any Defective Work, NAI has promptly
corrected or is diligently pursuing the correction of such Defective Work,
except as follows: (IF THERE ARE NO EXCEPTIONS, INSERT "NO EXCEPTIONS")

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

NAI ACKNOWLEDGES THAT IF ANY REPRESENTATION ABOVE IS NOT TRUE, THEN NAI'S
OBLIGATION TO INDEMNIFY AGAINST LOSSES SUSTAINED BY BNPLC OR ANY OTHER
INTERESTED PARTY BECAUSE OF ITS RELIANCE ON THIS LETTER SHALL CONSTITUTE
ABSOLUTE NAI CONSTRUCTION

                               Exhibit F - Page 2
<PAGE>   39

OBLIGATIONS UNDER THE CONSTRUCTION MANAGEMENT AGREEMENT AND THE IMPROVEMENTS
LEASE.

        Executed this _____ day of ______________, 20___.

                                           NETWORK APPLIANCE, INC.

                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc all Participants]

                               Exhibit F - Page 3
<PAGE>   40

                                    Exhibit G

                NOTICE OF VOLUNTARY NAI CONSTRUCTION CONTRIBUTION

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

        Re:     Construction Management Agreement (Phase V - Improvements) dated
                as of March 1, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"),
                between Network Appliance, Inc. ("NAI") and BNP Leasing
                Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase V - Improvements) referenced in the
Construction Management Agreement. This letter shall constitute notice, given as
described in subparagraph 4(C) of the Construction Management Agreement, that
NAI is paying with this letter, or unconditionally and irrevocably committing to
pay as described below, a Voluntary NAI Construction Contribution in the amount
of $_____________________.

        Such payment by NAI will be in addition to any Voluntary NAI
Construction Contributions required by other notices given by NAI as described
in subparagraph 4(C) of the Construction Management Agreement.

        Further, if the Voluntary NAI Construction Contribution required by this
letter is not being delivered to BNPLC by NAI contemporaneously with this
letter, then at such time as BNPLC's obligation to fund additional Construction
Advances is excused by any of the terms and conditions set forth in the
Construction Management Agreement, NAI shall be obligated to deliver such
Voluntary NAI Construction Contribution as required to eliminate (or reduce to
the maximum extent possible) Projected Cost Overruns, including any Projected
Cost Overruns caused by the accrual of Carrying Costs under and as described in
the Improvements Lease referenced in the Construction Management Agreement.

        Executed this _____ day of ______________, 20___.

                                           NETWORK APPLIANCE, INC.

                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc all Participants]

<PAGE>   41

                                    Exhibit H

                            PREEMPTIVE NOTICE BY NAI

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

        Re:     Construction Management Agreement (Phase V - Improvements) dated
                as of March 1, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"),
                between Network Appliance, Inc. ("NAI") and BNP Leasing
                Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase V - Improvements) referenced in the
Construction Management Agreement. This letter is intended to constitute a
Preemptive Notice, given as described in subparagraph 5(B) of the Construction
Management Agreement. As provided in clause (2) of the definition of Designated
Sale Date in the Common Definitions and Provisions Agreement (Phase V -
Improvements), this letter shall constitute notice, given in accordance with
clause (2) of the definition of Common Definitions and Provisions Agreement
(Phase V - Improvements), that NAI designates the following date as the
Designated Sale Date:

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

        NAI acknowledges, however, that this notice will not be effective as a
Preemptive Notice if (1) such date is sooner than thirty days after the date of
this notice or later than ninety days after the date of any FOCB Notice
previously given by BNPLC under the Construction Management Agreement, or (2)
NAI has previously made any Issue 97-10 Election.

        NAI hereby unconditionally, unequivocally and irrevocably: (1) waives
any right to make any Issue 97-10 Election under any of the Operative Documents,
and (2) acknowledges and agrees that for purposes of calculating the
Supplemental Payment required by the Purchase Agreement, the Maximum Remarketing
Obligation will equal the Break Even Price under the Purchase Agreement.

        Executed this _____ day of ______________, 20___.

                                           NETWORK APPLIANCE, INC.

                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc all Participants]

<PAGE>   42

                                    Exhibit I

                          NOTICE OF TERMINATION BY NAI

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

        Re:     Construction Management Agreement (Phase V - Improvements) dated
                as of March 1, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"),
                between Network Appliance, Inc. ("NAI") and BNP Leasing
                Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement referenced above or in
the Common Definitions and Provisions Agreement (Phase V - Improvements)
referenced in the Construction Management Agreement.

        NAI has determined that (1) the Construction Advances to be provided to
it under the Construction Management Agreement will not be sufficient to cover
all Construction-Period Reimbursable Costs, whether because the cost of the Work
exceeds budgeted expectations (resulting in Projected Cost Overruns) or because
NAI can no longer satisfy conditions to BNPLC's obligation to provide
Construction Advances in the Construction Management Agreement, or (2) the
Construction Project cannot be substantially completed before the Base Rent
Commencement Date for reasons other than a breach by NAI of the Construction
Management Agreement. Accordingly, this letter shall constitute a Notice of
NAI's Election to Terminate the Construction Management Agreement, given as
provided in subparagraph 5(D) of the Construction Management Agreement.

        NAI irrevocably and unconditionally elects to terminate the Construction
Management Agreement effective as of the following date (which, as required by
subparagraph 5(D) thereof is a date not less than thirty days after the date
this notice is given):

                                _________, 200__

        NAI ACKNOWLEDGES THAT THE ELECTION MADE BY NAI DESCRIBED ABOVE
CONSTITUTES AN ISSUE 97-10 ELECTION UNDER AND AS DEFINED IN THE OPERATIVE
DOCUMENTS.

        Executed this _____ day of ______________, 20___.

                                           NETWORK APPLIANCE, INC.

                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------
[cc all Participants]

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