Document:

exv10w39

Exhibit
10.39

AMENDED AND RESTATED

CLOSING CERTIFICATE

AND AGREEMENT

(BUILDING 8)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1	 	Representations, Covenants and Acknowledgments of NAI Concerning the Property	 	 	2	 
	 
	 	(A)	 	Prior Inspections and Investigations Concerning the Property	 	 	2	 
	 
	 	(B)	 	Title	 	 	2	 
	 
	 	(C)	 	Compliance with Covenants and Laws	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2	 	Representations and Covenants by NAI	 	 	2	 
	 
	 	(A)	 	Concerning NAI and the Operative Documents	 	 	2	 
	 
	 	 	 	(1)                                 Entity Status	 	 	2	 
	 
	 	 	 	(2)                                 Authority	 	 	3	 
	 
	 	 	 	(3)                                 Solvency	 	 	3	 
	 
	 	 	 	(4)                                 Financial Reports	 	 	3	 
	 
	 	 	 	(5)                                 Pending Legal Proceedings	 	 	3	 
	 
	 	 	 	(6)                                 No Default or Violation	 	 	4	 
	 
	 	 	 	(7)                                 Use of Proceeds	 	 	4	 
	 
	 	 	 	(8)                                 Enforceability	 	 	4	 
	 
	 	 	 	(9)                                 Pari Passu	 	 	4	 
	 
	 	 	 	(10)                                Conduct of Business and Maintenance of Existence	 	 	4	 
	 
	 	 	 	(11)                                Investment Company Act, etc	 	 	4	 
	 
	 	 	 	(12)                                Not a Foreign Person	 	 	5	 
	 
	 	 	 	(13)                                ERISA	 	 	5	 
	 
	 	 	 	(14)                                Compliance With Laws	 	 	5	 
	 
	 	 	 	(15)                                Payment of Taxes Generally	 	 	5	 
	 
	 	 	 	(16)                                Maintenance of Insurance Generally	 	 	6	 
	 
	 	 	 	(17)                                Franchises, Licenses, etc	 	 	6	 
	 
	 	 	 	(18)                                Patents, Trademarks, etc	 	 	6	 
	 
	 	 	 	(19)                                Labor	 	 	6	 
	 
	 	 	 	(20)                                Title to Properties Generally	 	 	7	 
	 
	 	 	 	(21)                                Books and Records	 	 	7	 
	 
	 	(B)	 	Further Assurances	 	 	7	 
	 
	 	(C)	 	Syndication	 	 	7	 
	 
	 	(D)	 	Financial Statements; Required Notices; Certificates	 	 	7	 
	 
	 	(F)	 	OFAC	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3	 	Financial Covenants and Negative Covenants of NAI	 	 	10	 
	 
	 	(B)	 	Negative Covenants	 	 	19	 
	 
	 	 	 	(1)                                 Subsidiary Indebtedness	 	 	20	 
	 
	 	 	 	(2)                                 Liens	 	 	21	 
	 
	 	 	 	(3)                                 Fundamental Changes and Asset Sales	 	 	23	 
	 
	 	 	 	(4)                                 Speculative Swap Agreements	 	 	24	 
	 
	 	 	 	(5)                                 Transactions with Affiliates	 	 	24	 
	 
	 	 	 	(6)                                 Restrictive Agreements	 	 	24	 

 

 

TABLE
OF CONTENTS 
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	(C)	 	Financial Covenants	 	 	25	 
	 
	 	 	 	(1)                                 Maximum Leverage Ratio	 	 	25	 
	 
	 	 	 	(2)                                 Minimum Liquidity	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4	 	Limited Representations and Covenants of BNPPLC	 	 	25	 
	 
	 	(A)	 	Concerning Accounting Matters	 	 	25	 
	 
	 	(B)	 	Other Limited Representations	 	 	27	 
	 
	 	 	 	(1)                                 Entity Status	 	 	27	 
	 
	 	 	 	(2)                                 Authority	 	 	27	 
	 
	 	 	 	(3)                                 Solvency	 	 	28	 
	 
	 	 	 	(4)                                 Pending Legal Proceedings	 	 	28	 
	 
	 	 	 	(5)                                 No Default or Violation	 	 	28	 
	 
	 	 	 	(6)                                 Enforceability	 	 	28	 
	 
	 	 	 	(7)                                 Conduct of Business and Maintenance of Existence	 	 	29	 
	 
	 	 	 	(8)                                 Not a Foreign Person	 	 	29	 
	 
	 	(C)	 	Further Assurances	 	 	29	 
	 
	 	(D)	 	Actions Permitted by NAI Without BNPPLC's Consent	 	 	33	 
	 
	 	(E)	 	Waiver of Landlord's Liens	 	 	33	 
	 
	 	(F)	 	Estoppel Letters	 	 	34	 
	 
	 	(G)	 	No Implied Representations or Promises by BNPPLC	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5	 	Usury Savings Provision	 	 	34	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6	 	Obligations of NAI Under Other Operative Documents Not Limited by this Certificate	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7	 	Obligations of NAI Hereunder Not Limited by Other Operative Documents	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8	 	Waiver of Jury Trial	 	 	35	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9	 	Amendment and Restatement of Prior Certificate	 	 	36	 

(ii)

 

TABLE OF CONTENTS

(Continued)

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Legal Description
	 
	 	 
	Exhibit B

	 	Quarterly Certificate
	 
	 	 
	Exhibit C

	 	Form of Disclosure Letter
	 
	 	 
	Exhibit D

	 	Certificate to be Provided by BNPPLC Re: Accounting

(iii)

 

AMENDED AND RESTATED

CLOSING CERTIFICATE AND AGREEMENT

(BUILDING 8)

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

RECITALS

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

     Also contemporaneously with this Certificate, BNPPLC is executing and accepting an Amended and
Restated Ground Lease (Building 8) from NAI (the “Ground Lease”), pursuant to which BNPPLC is
acquiring a leasehold estate in the Land described in Exhibit A and any existing
Improvements on the Land.

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

     Also contemporaneously with this Certificate, BNPPLC and NAI are executing an Amended and
Restated Purchase Agreement (Building 8) (the “Purchase Agreement”), pursuant to which NAI may
purchase or arrange for the purchase of the Property and BNPPLC may collect a Supplemental Payment
from NAI sufficient to cover all or a substantial portion of the Lease Balance not otherwise repaid
to BNPPLC from the proceeds of any sale of the Property.

     As a condition to BNPPLC’s execution of the other Operative Documents, BNPPLC requires the
representations and covenants of NAI set out below.

AGREEMENTS

 

 

     In consideration of the premises and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

1 Representations, Covenants and Acknowledgments 
of NAI Concerning the Property. To induce BNPPLC to enter into the Ground Lease, and to
enter into this Certificate and the other Operative Documents, NAI represents, covenants and
acknowledges as follows:

     (A) Prior Inspections and Investigations Concerning the Property. NAI has thoroughly
inspected, investigated and evaluated the condition of and title to the Property and Applicable
Laws which will govern the construction, use and operation of the Property required or permitted by
the Operative Documents, as necessary to make the representations concerning the Property set forth
in this Certificate and other Operative Documents.

     (B) Title. Good and indefeasible title to the Land and any existing Improvements
thereon is currently vested in NAI, subject only to the rights of BNPPLC under the Ground Lease,
the Permitted Encumbrances and any Liens Removable by BNPPLC. Neither the construction
contemplated by the Construction Agreement, nor the lease of property contemplated by the Ground
Lease or by the Lease, nor any assignment or transfer contemplated by the Purchase Agreement, will
violate any Permitted Encumbrance or invoke any purchase option, right of first refusal or other
preferential purchase right contained in any Permitted Encumbrance. So long as NAI has any rights
under the Construction Agreement, the Lease or the Purchase Agreement, NAI will not permit any
Person to acquire rights of the landlord under the Ground Lease other than NAI itself or a
corporation that controls, is controlled by or under common control with NAI.

     (C) Compliance with Covenants and Laws. The construction contemplated by the
Construction Agreement and use of the Property permitted by the Lease comply, or will comply after
NAI obtains readily available permits (either as the construction manager under the Construction
Agreement or as the tenant under the Lease), in all material respects with all Applicable Laws.
NAI has obtained or can and will promptly obtain all utility, building, health and operating
permits required by any governmental authority or municipality having jurisdiction over the
Property for the construction contemplated in the Construction Agreement and the use of the
Property permitted by the Lease.

2 Representations and Covenants by NAI. NAI also represents and covenants to BNPPLC as
follows:

     (A) Concerning NAI and the Operative Documents.

     (1) Entity Status. NAI is a corporation duly incorporated and validly existing

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 2

 

 

in the State of Delaware and is authorized to do business in and is in good standing under
the laws of California.

     (2) Authority. The Constituent Documents of NAI permit the execution, delivery and
performance of the Operative Documents by NAI, and all actions and approvals necessary to
bind NAI under the Operative Documents have been taken and obtained. Without limiting the
foregoing, the Operative Documents will be binding upon NAI when signed on behalf of NAI by
Ingemar Lanevi, Vice President and Corporate Treasurer of NAI. NAI has all requisite power
and all governmental certificates of authority, licenses, permits and qualifications to
carry on its business as now conducted and contemplated to be conducted and to perform the
Operative Documents.

     (3) Solvency. NAI is not “insolvent” on the Effective Date (that is, the sum of NAI’s
absolute and contingent liabilities — including the obligations of NAI under the Operative
Documents — does not exceed the fair market value of NAI’s assets), and NAI has no
outstanding liens, suits, garnishments or court actions which could render NAI insolvent or
bankrupt. NAI’s capital is adequate for the businesses in which NAI is engaged and intends
to be engaged. NAI has not incurred (whether by the Operative Documents or otherwise), nor
does NAI intend to incur or believe that it will incur, debts which will be beyond its
ability to pay as such debts mature. No petition or answer has been filed by or, to NAI’s
knowledge, against NAI in bankruptcy or other legal proceedings that seeks an assignment for
the benefit of creditors, the appointment of a receiver, trustee, custodian or liquidator
with respect to NAI or any significant portion of NAI’s property, a reorganization,
arrangement, rearrangement, composition, extension, liquidation or dissolution of NAI or
similar relief under the federal Bankruptcy Code or any state law.

     (4) Financial Reports. All reports, financial statements and other data furnished by
NAI to BNPPLC in connection with the agreements set forth in the Operative Documents are
true and correct in all material respects and do not omit to state any fact or circumstance
necessary to make the statements contained therein not misleading. No material adverse
change has occurred since the dates of such reports, statements and other data in the
financial condition of NAI.

     (5) Pending Legal Proceedings. No judicial or administrative investigations, actions,
suits or proceedings are pending or, to the knowledge of NAI, threatened against or
affecting NAI by or before any court or other Governmental Authority that have or could
reasonably be expected to have a Material Adverse Effect. NAI is not in default with
respect to any order, writ, injunction, decree or demand of any court or other Governmental
Authority in a manner that has or could reasonably be expected to have a Material Adverse
Effect.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 3

 

 

     (6) No Default or Violation. The execution and performance by NAI of the
Operative Documents do not and will not contravene or result in a breach of or default
under any other agreement to which NAI is a party or by which NAI is bound or which affects
any assets of NAI. Such execution and performance by NAI do not contravene any law, order,
decree, rule or regulation to which NAI is subject. Further, such execution and performance
by NAI will not result in the creation or imposition of (or the obligation to create or
impose) any lien, charge or encumbrance on, or security interest in, any property of NAI
pursuant to the provisions of any such other agreement.

     (7) Use of Proceeds. In no event will the funds from any Funding Advance be used
directly or indirectly for personal, family, household or agricultural purposes or for the
purpose, whether immediate, incidental or ultimate, of purchasing, acquiring or carrying any
“margin stock” or any “margin securities” (as such terms are defined in Regulation U
promulgated by the Board of Governors of the Federal Reserve System) or to extend credit to
others directly or indirectly for the purpose of purchasing or carrying any such margin
stock or margin securities. NAI represents that NAI is not engaged principally, or as one of
NAI’s important activities, in the business of extending credit to others for the purpose of
purchasing or carrying such margin stock or margin securities.

     (8) Enforceability. The Operative Documents constitute the legal, valid and binding
obligations of NAI enforceable in accordance with their terms, subject to the effect of
bankruptcy, insolvency, reorganization, receivership and other similar laws affecting the
rights of creditors generally.

     (9) Pari Passu. The claims of BNPPLC against NAI under the Operative Documents rank at
least pari passu with the claims of all its other unsecured creditors, except those whose
claims are preferred solely by any laws of general application having effect in relation to
bankruptcy, insolvency, liquidation or other similar events.

     (10) Conduct of Business and Maintenance of Existence. So long as any obligations of
NAI under the Operative Documents remain outstanding, NAI will continue to engage in
business of the same general type as now conducted by it and will preserve, renew and keep
in full force and effect its corporate existence and its rights, privileges and franchises
necessary or desirable in the normal conduct of business.

     (11) Investment Company Act, etc. NAI is not and will not become, by reason of
the Operative Documents or any business or transactions in which it participates
voluntarily, (a) an “investment company” or a company “controlled” by an “investment
company” (as each of the quoted terms is defined or used in the Investment Company Act of
1940, as amended), or (b) subject to regulation under the Federal Power Act, or any foreign,
federal or local statute or regulation limiting NAI’s ability to incur or guarantee

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 4

 

 

indebtedness or obligations, or to pledge its assets to secure indebtedness or obligations,
as contemplated by any of the Operative Documents.

     (12) Not a Foreign Person. NAI is not a “foreign person” within the meaning of Sections
1445 and 7701 of the Code (i.e. NAI is not a non-resident alien, foreign corporation,
foreign partnership, foreign trust or foreign estate as those terms are defined in the Code
and regulations promulgated thereunder).

     (13) ERISA. NAI is not and will not become an “employee benefit plan” (as defined in
Section 3(3) of ERISA) which is subject to Title I of ERISA. The assets of NAI do not and
will not in the future constitute “plan assets” of one or more such plans within the meaning
of 29 C.F.R. Section 2510.3-101. NAI is not and will not become a “governmental plan” within
the meaning of Section 3(32) of ERISA. Transactions by or with NAI are not subject to state
statutes regulating investments of and fiduciary obligations with respect to governmental
plans. No ERISA Termination Event has occurred with respect to any Plan, and NAI and its
Subsidiaries are in compliance with ERISA. Neither NAI nor its Subsidiaries are required to
contribute to, or has any other absolute or contingent liability in respect of, any
Multiemployer Plan. As of the Effective Date no “accumulated funding deficiency” (as
defined in Section 412(a) of the Code) exists with respect to any Plan, whether or not
waived by the Secretary of the Treasury or his delegate, and there are no Unfunded Benefit
Liabilities with respect to any Plan.

     (14) Compliance With Laws. NAI and its Subsidiaries comply and will comply with all
Applicable Laws (including environmental laws and ERISA and the rules and regulations
thereunder), except when the necessity of compliance is contested in good faith by
appropriate proceedings which do not have and could not reasonably be expected to have a
Material Adverse Effect. Neither NAI nor its Subsidiaries have received any notice
asserting or describing a material failure on the part of NAI or any Subsidiary to comply
with Applicable Laws, other than failures that have been fully rectified by NAI or the
Subsidiary, as the case may be, in a manner approved or accepted by Governmental Authorities
responsible for the enforcement of the Applicable Laws.

     (15) Payment of Taxes Generally. Except when the failure to do so does not have
and could not reasonably be expected to have a Material Adverse Effect (taking into account
any appropriate contest of taxes), NAI and its Subsidiaries have filed and will file all tax
declarations, reports and returns which are required by (and in the form required by)
Applicable Laws and have paid and will pay all taxes or other charges shown to be due and
payable on such declarations, reports and returns and all assessments made against it or its
assets by any Governmental Authority; and no liens have been filed or established by any
Governmental Authority against NAI or its assets or against any Subsidiary or its assets to
secure the payment of taxes or assessments that are past due or

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 5

 

 

claimed to be past due.

     (16) Maintenance of Insurance Generally. Except when the failure to do so does not
have and could not reasonably be expected to have a Material Adverse Effect, NAI and its
Subsidiaries have maintained and will maintain insurance with respect to its properties and
businesses, with financially sound and reputable insurers, having coverages against losses
or damages of the kinds customarily insured against by reputable companies in the same or
similar businesses, such insurance being the types, and in amounts no less than the amounts,
which are customary for such companies under similar circumstances.

     (17) Franchises, Licenses, etc. Except when the failure to do so does not have and
could not reasonably be expected to have a Material Adverse Effect, NAI and its Subsidiaries
have and comply with, and will have and will comply with, all franchises, certificates,
licenses, permits and other authorizations from Governmental Authorities that are necessary
for the ownership, maintenance and operation of its properties and assets.

     (18) Patents, Trademarks, etc. Except when the failure to do so does not have and
could not reasonably be expected to have a Material Adverse Effect, NAI and its Subsidiaries
have and will have and maintain in full force and effect all patents, trademarks, service
marks, trade names, copyrights, licenses and other such rights, free from burdensome
restrictions, which are necessary for the operation of its businesses. Without limiting the
foregoing, to the knowledge of NAI, no product, process, method, service or other item
presently sold by or employed by NAI or any Subsidiary in connection with its business as
presently conducted infringes any patents, trademark, service mark, trade name, copyright,
license or other right owned by any other Person. No claim or litigation is presently
pending, or to the knowledge of NAI, threatened against or affecting NAI or any Subsidiary
that contests its right to sell or use any such product, process, method, substance or other
item and that has or could reasonably be expected to have a Material Adverse Effect.

     (19) Labor. Neither NAI nor any of its Subsidiaries has experienced strikes,
labor disputes, slow downs or work stoppages due to labor disagreements that currently have
or could reasonably be expected to have a Material Adverse Effect, and to the knowledge of
NAI there are no such strikes, disputes, slow downs or work stoppages threatened against it
or against any Subsidiary. The hours worked and payment made to employees of NAI and its
Subsidiaries have not been in violation in any material respect of the Fair Labor Standards
Act or any other Applicable Laws dealing with such matters. All material payments due on
account of wages or employee health and welfare insurance and other benefits from NAI or
from any Subsidiary have been paid or accrued as

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 6

 

 

liabilities on its books.

     (20) Title to Properties Generally. Except when the failure to do so does not have and
could not reasonably be expected to have a Material Adverse Effect, NAI and its Subsidiaries
have and will have and maintain good and indefeasible fee simple title to or valid leasehold
interests in all of its real property and good title to or a valid leasehold interest in all
of its other material assets, as such properties and assets are reflected in the most recent
financial statements delivered to BNPPLC, other than properties or assets disposed of in the
ordinary course of business since such date; subject, however, in the case of the Property,
to Permitted Encumbrances and Liens created by the Operative Documents. NAI enjoys peaceful
and undisturbed possession under all of its leases.

     (21) Books and Records. NAI will keep proper books of record and account, containing
complete and accurate entries of all its financial and business transactions.

     (B) Further Assurances. NAI will, upon the reasonable request of BNPPLC, (i) execute,
acknowledge, deliver and record or file such further instruments and do such further acts as may be
necessary, desirable or proper to carry out more effectively the purposes of the Operative
Documents and to subject to any of the Operative Documents any property intended by the terms
thereof to be covered thereby, including specifically, but without limitation, any renewals,
additions, substitutions, replacements or appurtenances to the Property; (ii) execute, acknowledge,
deliver, procure and record or file any document or instrument deemed advisable by BNPPLC to
protect its rights in and to the Property against the rights or interests of third persons; and
(iii) provide such certificates, documents, reports, information, affidavits and other instruments
and do such further acts as may be necessary, desirable or proper in the reasonable determination
of BNPPLC to enable BNPPLC to comply with the requirements or requests of any agency or authority
having jurisdiction over it.

     (C) Syndication. Without limiting the foregoing, NAI will cooperate with BNPPLC as
reasonably required to allow BNPPLC to induce banks not affiliated with BNPPLC to become
Participants. Such cooperation will include the execution of any modification proposed by BNPPLC to
any of the Operative Documents at the request of a prospective Participant; subject, however, to
the conditions that (i) in no event will NAI be required to approve or accept an increase in the
Spread or other modifications that change the economics of the transactions contemplated by the
Operative Documents to NAI, and (ii) in other respects the form and substance of any such
modification agreement must not be reasonably objectionable to NAI.

     (D) Financial Statements; Required Notices; Certificates. Prior to the Completion
Date and throughout the Term of the Lease, NAI will deliver to BNPPLC and to each Participant of
which NAI has been notified:

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 7

 

 

     (1) as soon as available and in any event within 45 days after the end of each
of the first three fiscal quarters of each fiscal year of NAI, the unaudited
consolidated balance sheet of NAI and its Subsidiaries as of the end of such quarter and
consolidated unaudited statements of income, stockholders’ equity and cash flow of NAI and
its Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, setting forth in comparative form figures for the
corresponding period in the preceding fiscal year, in the case of such statements of income,
stockholders’ equity and cash flow, and figures for the preceding fiscal year in the case of
such balance sheet, all in reasonable detail, in accordance with GAAP, and certified in a
manner acceptable to BNPPLC by a Responsible Financial Officer of NAI (subject to normal
year-end adjustments); provided, that so long as NAI is a company subject to the periodic
reporting requirements of Section 12 of the Securities Exchange Act of 1934, as amended, NAI
will be deemed to have satisfied its obligations under this clause (1) if NAI delivers to
BNPPLC the same quarterly reports, certified by a Responsible Financial Officer of NAI
(subject to year-end adjustments), that NAI delivers to its shareholders;

     (2) as soon as available and in any event within ninety days after the end of each
fiscal year of NAI, the consolidated balance sheet of NAI and its Subsidiaries as of the end
of such fiscal year and consolidated statements of income, stockholders’ equity and cash
flow of NAI and its Subsidiaries for the period commencing at the end of the previous fiscal
year and ending with the end of such fiscal year, setting forth in comparative form figures
for the preceding fiscal year, all in reasonable detail, in accordance with GAAP, and
certified in a manner acceptable to BNPPLC by independent public accountants of recognized
national standing reasonably acceptable to BNPPLC; provided, that so long as NAI is a
company subject to the periodic reporting requirements of Section 12 of the Securities
Exchange Act of 1934, as amended, NAI will be deemed to have satisfied its obligations under
this clause (ii) if NAI delivers to BNPPLC the same annual report and report and opinion of
accountants that NAI delivers to its shareholders;

     (3) in each case if requested in writing by BNPPLC, together with the financial
statements furnished in accordance with subparagraph 2(D)(1) and 2(D)(2), a certificate of a
Responsible Financial Officer of NAI in the form of certificate attached hereto as
Exhibit B (a) representing that no Event of Default or material Default by NAI has
occurred (or, if an Event of Default or material Default by NAI has occurred, stating the
nature thereof and the action which NAI has taken or proposes to take to rectify it),
(b) stating that the representations and warranties by NAI contained herein are true and
complete in all material respects on and as of the date of such certificate as though made
on and as of such date, and (c) setting forth calculations which show whether NAI is
complying with financial covenants set forth in subparagraph 3(C);

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 8

 

 

     (4) as soon as possible and in any event within five days after the occurrence
of each Event of Default or material Default known to a Responsible Financial Officer
of NAI, a statement of NAI setting forth details of such Event of Default or material
Default and the action which NAI has taken and proposes to take with respect thereto;

     (5) promptly after the sending or filing thereof, copies of all such financial
statements, proxy statements, notices and reports which NAI or any Subsidiary sends to its
public stockholders, and copies of all reports and registration statements (without
exhibits) which NAI or any Subsidiary files with the Securities and Exchange Commission (or
any governmental body or agency succeeding to the functions of the Securities and Exchange
Commission) or any national securities exchange;

     (6) as soon as practicable and in any event within thirty days after a Responsible
Financial Officer of NAI knows or has reason to know that any ERISA Termination Event with
respect to any Plan has occurred, a statement of a Responsible Financial Officer of NAI
describing such ERISA Termination Event and the action, if any, which NAI proposes to take
with respect thereto;

     (7) upon request by BNPPLC, a statement in writing certifying that the Operative
Documents are unmodified and in full effect (or, if there have been modifications, that the
Operative Documents are in full effect as modified, and setting forth such modifications)
and either stating that no Default exists under the Operative Documents or specifying each
such Default; it being intended that any such statement by NAI may be relied upon by any
prospective purchaser or mortgagee of the Property or any prospective Participant; and

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

Reports and financial statements required to be delivered pursuant to paragraphs (1), (2) and (5)
of this subparagraph 2(D) shall be deemed to have been delivered on the date on which such reports,
or reports containing such financial statements, are posted for downloading (in a “PDF” or other
readily available format) on one of NAI’s internet websites at www.netapp.com or
www.investors.netapp.com or on the SEC’s internet website at www.sec.gov; provided, however, that
after being posted they remain available for downloading at the applicable website for at least 90
days.

BNPPLC is hereby authorized to deliver a copy of any information or certificate delivered to
it pursuant to this subparagraph 2(D) to any Participant and to any regulatory body having

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 9

 

 

jurisdiction over BNPPLC, BNPPLC’s Parent or any Participant that requires or requests it.

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

     (F) OFAC. None of NAI or any subsidiary or affiliate of NAI: (i) is a person named on
the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of
the Treasury’s Office of Foreign Assets Control available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from time to
time; or (ii) is (A) an agency of the government of a country, (B) an organization controlled by a
country, or (C) a person resident in a country that is subject to a sanctions program identified on
the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published from time
to time, as such program may be applicable to such agency, organization or person; or (iii) derives
more than 15% of its assets or operating income from investments in or transactions with any such
country, agency, organization or person. Further, none of the proceeds from the Initial Advance or
any Construction Advance will be used to finance any operations, investments or activities in, or
make any payments to, any such country, agency, organization, or person.

     (G) U.S. Patriot Act. NAI acknowledges that BNPPLC, BNPPLC’s Parent and Participants
may be required, pursuant to the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Patriot Act”), to obtain, verify, record and disclose to law enforcement
authorities information that identifies the NAI, including the name and address of NAI. NAI will
provide to BNPPLC and Participants any such information they may request pursuant to the Patriot
Act, and NAI agrees that any of BNPPLC, BNPPLC’s Parent and Participants may disclose such
information to law enforcement authorities if the authorities make a request or demand for
disclosure pursuant to the Patriot Act. NAI also acknowledges that, in such event, none of BNPPLC,
BNPPLC’s Parent or Participants may be required or even permitted by the Patriot Act to notify NAI
of the request or demand for disclosure.

3 Financial Covenants and Negative Covenants of NAI. NAI represents and covenants as
follows:

     (A) Definitions Applicable in this Paragraph. As used in (and only for purposes of)
this Paragraph 3:

     “Accepted Contest Requirements” means, with respect to any Tax or other payment
due or claimed to be due from NAI or any Subsidiary or any demand for payment made upon NAI
or any Subsidiary, that (a) NAI or such Subsidiary must contest

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 10

 

 

the validity or amount
thereof in good faith by appropriate proceedings, (b) NAI or such Subsidiary has set aside
on its books adequate reserves with respect thereto in accordance
with GAAP and (c) the failure to make payment thereof pending such contest could not
reasonably be expected to result in a Material Adverse Effect.

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use)
real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

     “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities
Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as
in effect on the date hereof), of Equity Interests representing more than 40% of the
aggregate ordinary voting power represented by the issued and outstanding Equity Interests
of NAI; (b) occupation of a majority of the seats (other than vacant seats) on the board of
directors of NAI by Persons who were neither (i) nominated by the board of directors of NAI
nor (ii) appointed by directors so nominated; or (c) NAI ceasing to own, directly or
indirectly, 100% of the issued and outstanding Equity Interests of each Material Domestic
Subsidiary except in accordance with subparagraph 3(B)(3) below.

     “Consolidated Debt for Borrowed Money” means at any time (1) the sum, without
duplication, of (a) items that, in accordance with GAAP, would be classified as indebtedness
on the consolidated balance sheet of NAI and its Subsidiaries and (b) the capitalized
portion of any synthetic leases, minus (2) the then aggregate outstanding principal amount
of Indebtedness under NAI’s Secured Revolver and under that certain Loan Agreement dated as
of March 31, 2006 by and among Network Appliance Global Ltd. and JPMorgan Chase Bank,
National Association as initial lender and as administrative agent. (In clause (b) of this
definition, “capitalized portion” means, with respect to any synthetic lease, the price for
which the lessee can purchase the leased property or could purchase it if the synthetic
lease expired on the date of the applicable calculation of the Consolidated Debt for
Borrowed Money. Thus, for example, the “capitalized portion” of the transactions governed
by the Operative Documents will equal the Lease Balance.)

     “Consolidated EBITDA” means, with reference to any period, the sum of the
following: (a) Consolidated Net Income for such period, plus (b) without duplication and to
the extent deducted from revenues in determining such Consolidated Net Income, the

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 11

 

 

sum of (i) Consolidated Interest Expense for such period, (ii) expense for taxes paid or accrued
during such period, (iii) all amounts attributable to depreciation, (iv) amortization
during such period, (v) extraordinary non-cash charges incurred other than in the
ordinary course of business during such period, (vi) nonrecurring extraordinary non-cash
restructuring charges, and (vii) share-based non-cash compensation expense minus without
duplication and to the extent included in determining such Consolidated Net Income, (c)
interest income, (d) extraordinary non-cash gains realized other than in the ordinary course
of business and (e) any cash payments made during such period in respect of the item
described in clause (vii) above subsequent to the fiscal quarter in which the relevant
share-based non-cash compensation expense was incurred, all calculated for NAI and its
Subsidiaries in accordance with GAAP on a consolidated basis. For the purposes of
calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a
“Reference Period”), (i) if at any time during such Reference Period NAI or any Subsidiary
shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period
shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to
the property that is the subject of such Material Disposition for such Reference Period or
increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto
for such Reference Period, and (ii) if during such Reference Period NAI or any Subsidiary
shall have made a Material Acquisition, Consolidated EBITDA for such Reference Period shall
be calculated after giving pro forma effect thereto as if such Material Acquisition occurred
on the first day of such Reference Period. As used in this definition, “Material
Acquisition” means any acquisition of property or series of related acquisitions of property
that (a) constitutes (i) assets comprising all or substantially all or any significant
portion of a business or operating unit of a business, or (ii) all or substantially all of
the common stock or other Equity Interests of a Person, and (b) involves the payment of
consideration by NAI and its Subsidiaries in excess of $50,000,000; and “Material
Disposition” means any sale, transfer or disposition of property or series of related sales,
transfers, or dispositions of property that yields gross proceeds to NAI or any of its
Subsidiaries in excess of $50,000,000.

     “Consolidated Interest Expense” means, with reference to any period, the
interest expense (including without limitation interest expense under Capital Lease
Obligations that is treated as interest in accordance with GAAP) of NAI and its Subsidiaries
calculated on a consolidated basis for such period with respect to (a) all outstanding
Indebtedness of NAI and its Subsidiaries allocable to such period in accordance with GAAP
and (b) Swap Agreements (including, without limitation, all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers acceptance financing and
net costs under interest rate Swap Agreements to the extent such net costs are allocable to
such period in accordance with GAAP). In addition, for purposes of calculating the Leverage
Ratio only, rents payable for any period pursuant to NAI’s synthetic leases shall be
included in Consolidated Interest Expense for

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 12

 

 

such period; excluding, however, any amounts
(whether on not designated as rents) paid or to be paid as compensation for or reimbursement
of any Losses, and also excluding any
payments which reduce or will reduce the outstanding lease balance of any synthetic
lease. For example, Base Rents payable under the Lease will be included in Consolidated
Interest Expense, but not Additional Rents.

     “Consolidated Net Income” means, with reference to any period, the net income (or loss)
of NAI and its Subsidiaries calculated in accordance with GAAP on a consolidated basis
(without duplication) for such period.

     “Consolidated Total Assets” means, as of the date of any determination thereof, total
assets of NAI and its Subsidiaries calculated in accordance with GAAP on a consolidated
basis as of such date.

     “Disclosure Letter” means the disclosure letter (the form of which is attached to this
Certificate as Exhibit C) given by NAI to Chase Bank, National Association, as
Administrative Agent, in connection with NAI’s recently executed Credit Agreement dated as
of November 2, 2007, as amended or supplemented from time to time by NAI with the written
consent of BNPPLC.

     “Domestic Subsidiary” means any Subsidiary that is incorporated or organized under the
laws of the United States of America, any state thereof or in the District of Columbia.

     “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person, and any warrants, options or other rights entitling the
holder thereof to purchase or acquire any such equity interest.

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase (or to

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 13

 

 

advance or supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring the
owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided, that the term
Guarantee shall not include endorsements for collection or deposit in the ordinary course of
business.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person upon which
interest charges are paid or payable, (d) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such Person, (e)
all obligations of such Person in respect of the deferred purchase price of property or
services (excluding accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has been assumed,
(g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease
Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as
an account party in respect of letters of credit and letters of guaranty, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k)
the Net Mark-to Market Exposure of all Swap Obligations of such Person, and (l) any other
Off-Balance Sheet Liability. The Indebtedness of any Person shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to
the extent such Person is liable therefor as a result of such Person’s ownership interest in
or other relationship with such entity, except to the extent the terms of such Indebtedness
provide that such Person is not liable therefor.

     “Leverage Ratio” means the ratio, determined as of the end of each fiscal quarter of
NAI, of Consolidated Debt for Borrowed Money as of the end of such fiscal quarter to
Consolidated EBITDA for the period of 4 consecutive fiscal quarters ending with the end of
such fiscal quarter.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or other security interest in, on or of such asset and
(b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or any financing lease having substantially the same economic
effect as any of the foregoing) relating to such asset.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 14

 

 

     “Liquidity” means, with respect to NAI and its Subsidiaries as of any date of
determination, the sum of all unrestricted cash and unrestricted Permitted Investments
which are not subject to any Lien (other than Liens permitted under subparagraph 3(B)(2)(e))
and which would be included on the consolidated balance sheet of NAI and such Subsidiaries
in accordance with GAAP as of such date of determination.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations or condition, financial or otherwise, of NAI and its Subsidiaries taken as a
whole, or (b) the ability of NAI or any Material Domestic Subsidiary to perform any of its
obligations under any of the Operative Documents or (c) the rights of or benefits available
to BNPPLC under any of the Operative Documents.

     “Material Domestic Subsidiary” means each Material Subsidiary that is a Domestic
Subsidiary. The Material Domestic Subsidiaries on the Effective Date are identified as such
in Schedule 3.01 to the Disclosure Letter.

     “Material Subsidiary” means each Subsidiary (a) which, as of the most recent fiscal
quarter of NAI, for the period covering the then most recently ended fiscal year and the
portion of the then current fiscal year ending at the end of such fiscal quarter, for which
financial statements have been delivered pursuant to subparagraph 2(D), contributed greater
than five percent (5%) of NAI’s Consolidated EBITDA for such period or (b) which contributed
greater than five percent (5%) of NAI’s Consolidated Total Assets as of such date.

     “Moody’s” means Moody’s Investors Service, Inc.

     “NAI’s Secured Revolver” means the Secured Credit Agreement dated as of October 5, 2007
by and among NAI, certain lenders and JPMorgan Chase Bank, National Association, as
administrative agent, as it exists and is in force on the Effective Date.

     “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such Person arising
from each Swap Agreement transaction. “Unrealized losses” means the fair market value of
the cost to such Person of replacing such transaction as of the date of determination
(assuming such transaction were to be terminated as of that date), and “unrealized profits”
means the fair market value of the gain to such Person of replacing such transaction as of
the date of determination (assuming such transaction was to be terminated as of that date).

     “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 15

 

 

that is related to retained credit risk, or (b) any indebtedness, liability or
obligation under any so-called “synthetic lease” transaction entered into by such Person.

     “Permitted Liens or Encumbrances” means:

     (a) Liens imposed by law for Taxes or other governmental charges that are not
yet due or are being contested in accordance with Accepted Contest Requirements;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s,
landlord’s and other like Liens imposed by law, arising in the ordinary course of
business and securing obligations that are not overdue by more than sixty (60) days
or are being contested in accordance with Accepted Contest Requirements;

     (c) pledges and deposits made in the ordinary course of business in compliance
with workers’ compensation, unemployment insurance and other social security laws or
regulations;

     (d) deposits to secure the performance of bids, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature, in each case in the ordinary course of business;

     (e) judgment liens in respect of judgments that do not constitute an Event of
Default under clause (J) of the definition thereof in the Common Definitions and
Provisions Agreement;

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on
real property imposed by law or arising in the ordinary course of business that do
not secure any monetary obligations and do not materially detract from the value of
the affected property or interfere in any material respect with the ordinary conduct
of business of NAI or any Subsidiary;

     (g) leases or subleases granted to other Persons and not interfering in any
material respect with the business of the lessor or sublessor;

     (h) Liens arising from precautionary Uniform Commercial Code filings or
similar filings relating to operating leases;

     (i) Liens in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties in connection within the importation of
goods;

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 16

 

 

     (j) Liens on insurance proceeds securing the premium of financed insurance
proceeds;

     (k) Liens incurred in the ordinary course of business on cash collateral to
secure letters of credit, bank guarantees and banker’s acceptances and Swap
Agreements;

     (l) licenses of intellectual property in the ordinary course of business;

     (m) any interest or title of a lessor or sublessor under any lease of real
property or personal property; and

     (n) other Liens on assets securing Indebtedness or other obligations not
prohibited under provisions of the Operative Documents other than this Paragraph 3
in an aggregate amount not to exceed $50,000,000 at any time outstanding;

provided that the term “Permitted Liens or Encumbrances” shall not include any Lien securing
Indebtedness.

     “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States of America (or by any
agency thereof to the extent such obligations are backed by the full faith and
credit of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

     (b) investments in commercial paper maturing within 365 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of “A-2” (or
better) from S&P or “P-2” (or better) from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time
deposits maturing within 180 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or offered
by, any domestic office of any commercial bank organized under the laws of the
United States of America or any State thereof or any other country which has a
combined capital and surplus and undivided profits of not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 17

 

 

than thirty (30) days for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria described in clause (c)
above;

     (e) money market funds that (i) comply with the criteria set forth in
Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of
1940, as amended, to the extent such money market fund is governed thereby, (ii) are
rated AA by S&P and Aa by Moody’s and (iii) have portfolio assets of at least
$5,000,000,000;

     (f) investments made pursuant to a cash management investment policy approved
by the board of directors of the Person making such investment and as in effect on
the Effective Date, as such policy may be amended or otherwise modified from time to
time with the written consent of BNPPLC; and

     (g) investments described in the following table:

	 	 	 
	Type of Security	 	Remaining Maturity/ S&P/ Moody’s Rating
	JPMorgan Certificates of Deposit
	 	 
	 
	 	 
	US Treasury Treasuries
	 	 
	 
	 	 
	US Agency Securities

	 	Less than 30 years
	 
	 	 
	USD Commercial Paper

	 	A1/P1 Less than or equal to 270 days
	 
	 	 
	Money Market Funds (Must be
through JPMorgan)

	 	US Gov’t
	 

	 	Treasury Plus
	 

	 	Cash Management
	 

	 	100% US Treasury
	 

	 	Federal Money Market
	 
	 	 
	Medium Term Notes, Corporate
Bonds, Corporate Debentures,
Floating Rate Notes, and Auction
Rate Securities

	 	A or better

     “S&P” means Standard & Poor’s, a division of the McGraw-Hill Companies.

     “Sale and Leaseback Transaction” means any sale or other transfer of assets or property
by any Person with the intent to lease any such asset or property as lessee.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 18

 

 

     “Subordinated Indebtedness” means any Indebtedness of NAI or any Subsidiary the payment
of which is subordinated to payment of the obligations under the Operative Documents to the
written satisfaction of BNPPLC.

     “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in accordance
with GAAP as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity (a) of which securities or other ownership
interests representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership interests
are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one
or more subsidiaries of the parent.

     “Subsidiary” means any subsidiary of NAI.

     “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to,
one or more rates, currencies, commodities, equity or debt instruments or securities, or
economic, financial or pricing indices or measures of economic, financial or pricing risk or
value or any similar transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of NAI or the Subsidiaries
shall be a Swap Agreement.

     “Swap Obligations” of a Person means any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor),
under (a) any and all Swap Agreements, and (b) any and all cancellations, buy backs,
reversals, terminations or assignments of any such Swap Agreement transaction.

     “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority.

     (B) Negative Covenants. Prior to the Designated Sale Date and so long thereafter as
any amount shall continue to be due and payable by NAI to BNPPLC pursuant to any of the Operative
Documents, NAI covenants and agrees as follows:

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 19

 

 

     (1) Subsidiary Indebtedness. NAI will not permit any Subsidiary to create,
incur, assume or permit to exist any Indebtedness, except:

     (a) by Guarantee or assumption of any obligations evidenced or created by (x)
any of the Operative Documents, (y) or other comparable agreements between BNPPLC
and NAI covering other properties, or (z) the Credit Agreement referenced on the
first page of the Disclosure Letter;

     (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 to
the Disclosure Letter and extensions, renewals and replacements of any such
Indebtedness that do not increase the then outstanding principal amount thereof;

     (c) Indebtedness of (i) any Subsidiary to any Material Domestic Subsidiary and
(ii) any Subsidiary that is not a Material Domestic Subsidiary to any other
Subsidiary that is not a Material Domestic Subsidiary;

     (d) Guarantees by any Subsidiary of Indebtedness of NAI or any other
Subsidiary;

     (e) Indebtedness of any Subsidiary incurred to finance the acquisition,
construction or improvements of any fixed or capital assets, including Capital Lease
Obligations and any Indebtedness assumed in connection with the acquisition of any
such assets or secured by a Lien on any such assets (and additions, accessions,
parts, improvement and attachments thereto and the proceeds thereof) prior to the
acquisition thereof, and extensions, renewals and replacements of any such
Indebtedness that do not increase the then outstanding principal amount thereof;
provided that such Indebtedness is incurred prior to or within 120 days after such
acquisition or the completion of such construction or improvement; and extensions,
renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof;

     (f) Indebtedness of any Person that becomes a Subsidiary after the date
hereof; provided that such Indebtedness exists at the time such Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person
becoming a Subsidiary, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof;

     (g) Indebtedness of any Subsidiary as an account party in respect of letters
of credit, bank guarantees and bankers’ acceptances;

     (h) Indebtedness in respect of Swap Agreements permitted under

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 20

 

 

subparagraph 3(B)(4);

     (i) Indebtedness of Subsidiaries which are not Material Domestic Subsidiaries
in an aggregate principal amount not exceeding 5% of Consolidated Total Assets at
any time outstanding; and

     (j) other Indebtedness of any Subsidiary which is a Material Domestic
Subsidiary so long as, at the time of the incurrence thereof and after giving effect
thereto (on a pro forma basis), NAI is in pro forma compliance with the maximum
Leverage Ratio permitted under subparagraph 3(C)(1).

     (2) Liens. NAI will not, and will not permit any Subsidiary to, create, incur, assume
or permit to exist any Lien on any property or asset now owned or hereafter acquired by it
(and for purposes hereof, any capital stock issued by NAI which is held by NAI as treasury
stock shall not be deemed to be property or an asset of NAI and shall not be subject to this
subparagraph 3(B)(2)), or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except that the following shall be
permitted so long as they do not encumber any interest in the Property in violation of other
provisions of the Operative Documents:

     (a) Permitted Liens or Encumbrances;

     (b) any Lien on any property or asset of NAI or any Subsidiary existing on the
date hereof and set forth in Schedule 6.02 to the Disclosure Letter; provided that
(i) such Lien shall not apply to any other property or asset of NAI or any
Subsidiary and (ii) such Lien shall secure only those obligations which it secures
on the date hereof and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof;

     (c) any Lien existing on any property or asset prior to the acquisition
thereof by NAI or any Subsidiary or existing on any property or asset of any Person
that becomes a Subsidiary after the date hereof prior to the time such Person
becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of
or in connection with such acquisition or such Person becoming a Subsidiary, as the
case may be, (ii) such Lien shall not apply to any other property or assets of NAI
or any Subsidiary and (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a
Subsidiary, as the case may be, and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount
thereof;

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 21

 

 

     (d) Liens on fixed or capital assets (and additions, accessions, parts,
improvements and attachments thereto and the proceeds thereof) acquired, constructed
or improved by NAI or any Subsidiary; provided that:

     (i) such security interests secure Indebtedness not otherwise
prohibited under the Operative Documents;

     (ii) such security interests and the Indebtedness secured thereby are
either (A) incurred prior to or within one hundred twenty (120) days after
such acquisition or the completion of such construction or improvement, or
(B) granted and incurred to extend, renew or replace any security interest
and Indebtedness secured thereby that are permitted by this clause (d) and
do not increase the outstanding principal amount thereof by more than 5%;

     (iii) the Indebtedness secured thereby does not exceed 105% of the cost
of acquiring, constructing or improving such fixed or capital assets; and

     (iv) such security interests shall not apply to any other property or
assets of NAI or any Subsidiary;

     (e) customary bankers’ Liens and rights of setoff arising by operation of law
or contract and incurred on deposits made in the ordinary course of business;

     (f) assignments of the right to receive income effected (i) as a part of the
sale of a Subsidiary or a business unit or (ii) for factoring in the ordinary course
of business;

     (g) Liens on any cash earnest money deposit made by NAI or any Subsidiary in
connection with any letter of intent or acquisition agreement that is not prohibited
by the Operative Documents;

     (h) customary Liens granted in favor a trustee to secure fees and other
amounts owing to such trustee under an indenture or other agreement pursuant to
Indebtedness not otherwise prohibited under the Operative Documents; and

     (i) Liens granted as provided in and securing Indebtedness under NAI’s
Secured Revolver, provided such Liens do not at any time secure an outstanding
principal balance of more than $500,000,000.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 22

 

 

     (3) Fundamental Changes and Asset Sales.

     (a) NAI will not, and will not permit any Subsidiary to, merge into,
consolidate with, or otherwise be acquired by, any other Person, or sell, transfer,
lease or otherwise dispose (including pursuant to a Sale and Leaseback Transaction)
of (in one transaction or in a series of transactions) all or substantially all of
its assets, or all or substantially all of the stock of any of its Subsidiaries (in
each case, whether now owned or here-after acquired, and for purposes hereof, any
capital stock issued by NAI which is held by NAI as treasury stock shall not be
deemed to be property or an asset of NAI and shall not be subject to this
subparagraph 3(B)(3), or liquidate or dissolve, except that, if at the time thereof
and immediately after giving effect thereto no Default shall have occurred and be
continuing (i) any Subsidiary may merge into a Material Domestic Subsidiary in a
transaction in which the surviving entity is such Material Domestic Subsidiary, (ii)
any wholly owned Subsidiary may merge into or consolidate with any wholly owned
Subsidiary in a transaction in which the surviving entity is a wholly owned
Subsidiary and no Person other than NAI or a wholly owned Subsidiary receives any
consideration, provided that if any such merger described in this clause (ii) shall
involve a Material Domestic Subsidiary, the surviving entity of such merger shall be
a Material Domestic Subsidiary, (iii) any Subsidiary may sell, transfer, lease or
otherwise dispose of its assets to a Material Domestic Subsidiary or any wholly
owned Subsidiary pursuant to a transaction not otherwise prohibited under the
Operative Documents, (iv) any Subsidiary may liquidate or dissolve if NAI determines
in good faith that such liquidation or dissolution is in the best interests of NAI,
(v) NAI may merge with any other Person so long as NAI is the surviving entity, (vi)
any Subsidiary may merge with any other Person so long as the surviving entity is,
in the case of a Subsidiary Guarantor, the Subsidiary Guarantor, and in all other
cases, a wholly owned Subsidiary and (vii) any Subsidiary other than a Subsidiary
Guarantor may merge into, and NAI or any Subsidiary may dispose of assets to, any
other Person so long as NAI delivers a certificate to BNPPLC demonstrating pro forma
compliance with subparagraph 3(C) after giving effect to such transaction.

     (b) NAI will not, and will not permit any of its Subsidiaries to, engage to
any material extent in any business other than businesses of the type conducted by
NAI and its Subsidiaries on the date of execution of the Operative Documents and
businesses reasonably related thereto.

     (c) NAI will not, and will not permit any of its Subsidiaries to, change its
fiscal year to end on a day other than as such fiscal year end is currently

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 23

 

 

determined or change NAI’s method of determining fiscal quarters.

     (4) Speculative Swap Agreements. NAI will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to
hedge or mitigate risks to which NAI or any Subsidiary has actual exposure (other than those
in respect of Equity Interests or Subordinated Indebtedness of NAI or any of its
Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or investment of
NAI or any Subsidiary.

     (5) Transactions with Affiliates. NAI will not, and will not permit any of its
Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase,
lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at
prices and on terms and conditions not less favorable to NAI or such Subsidiary than could
be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between
or among NAI and its wholly owned Subsidiaries not involving any other Affiliate, (c) to
enter into indemnification arrangements with or to pay customary fees and reimburse
out-of-pocket expenses of directors or (d) as set forth on the Disclosure Letter.

     (6) Restrictive Agreements. NAI will not, and will not permit any of its
Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability
of NAI or any Subsidiary to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its capital stock or to make or repay loans or
advances to NAI or any other Subsidiary or to Guarantee Indebtedness of NAI or any other
Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions
imposed by law, by any Operative Document, by any document relating to NAI’s unsecured
syndicated revolving credit facility from certain lenders and JPMorgan Chase Bank, National
Association as administrative agent, by NAI’s Secured Revolver, or by any document relating
to NAI’s synthetic lease facilities, (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.06 to the Disclosure Letter
(but shall apply to any extension or renewal of, or any amendment or modification expanding
the scope of, any such restriction or condition), (iii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the sale of assets
or of a Subsidiary pending such sale, provided such restrictions and conditions apply only
to such assets or such Subsidiary that are to be sold and such sale is
permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions
or conditions imposed by any agreement relating to secured Indebtedness permitted by the

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 24

 

 

Operative Documents if such restrictions or conditions apply only to the property or assets
securing such Indebtedness, and (v) clause (a) of the foregoing shall not apply to customary
provisions in leases, licenses, joint venture agreements and other agreements entered into
in the ordinary course of business restricting the assignment thereof.

     (C) Financial Covenants. Prior to the Designated Sale Date and so long thereafter as
any amount shall continue to be due and payable by NAI to BNPPLC pursuant to any of the Operative
Documents:

     (1) Maximum Leverage Ratio. NAI will not permit the Leverage Ratio to be greater than
3.0 to 1.0.

     (2) Minimum Liquidity. NAI and its Subsidiaries on a consolidated basis shall
maintain, at all times, Liquidity of not less than $300,000,000.

4 Limited Representations and Covenants of BNPPLC

     (A)  Concerning Accounting Matters.

     (1) To permit NAI to determine the appropriate accounting for NAI’s relationship with
BNPPLC under FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities
(“FIN 46”), BNPPLC represents that to the knowledge of BNPPLC the fair value of the Property
and of other properties, if any, leased to NAI by BNPPLC (collectively, whether one or more,
the “Properties Leased to NAI”) are, as of the Effective Date, less than half of the total
of the fair values of all assets of BNPPLC, excluding any assets of BNPPLC held within a
silo. Further, none of the Properties Leased to NAI are, as of the Effective Date, held
within a silo. Consistent with the directions of NAI (based upon the current interpretation
of FIN 46 by NAI and its auditors), and for purposes of this representation only:

	 	•	 	“held within a silo” means, with respect to any asset
or group of assets leased by BNPPLC to a single lessee or group of
affiliated lessees, that BNPPLC has obtained funds equal to or in
excess of 95% of the fair value of the leased asset or group of assets
to acquire or maintain its investment in such asset or group of assets
through non-recourse financing or other contractual arrangements (such
as targeted equity or bank participations), the effect of which is to
leave such asset or group of assets (or proceeds thereof) as the only
significant asset or assets of BNPPLC at risk for the
repayment of such funds;

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 25

 

 

	 	•	 	“fair value” means, with respect to any asset, the amount for which
the asset could be bought or sold in a current transaction negotiated
at arms length between willing parties (that is, other than in a forced
or liquidation sale);
	 
	 	•	 	with respect to the Properties Leased to NAI
(regardless of how BNPPLC accounts for the leases of the Properties
Leased to NAI), and with respect to other assets that are subject to
leases accounted for by BNPPLC as operating leases pursuant to
Financial Accounting Standards Board Statement 13 (“FAS 13”), fair
value is determined without regard to residual value guarantees,
remarketing agreements, non-recourse financings, purchase options or
other contractual arrangements, whether made by BNPPLC with NAI or with
other parties, that might otherwise impact the fair value of such
assets;
	 
	 	•	 	with respect to assets, other than Properties Leased to
NAI, that are subject to leases accounted for by BNPPLC as leveraged
leases pursuant to FAS 13, fair value is determined on a gross basis
prior to the application of leveraged lease accounting, recognizing
that equity investments made by BNPPLC in its assets subject to
leveraged lease accounting should be grossed up in applying this test
(however, equity investments made by BNPPLC through another legal
entity should not be so grossed up in applying this test);
	 
	 	•	 	with respect to assets, other than Properties Leased to
NAI, that are subject to leases accounted for by BNPPLC as direct
financing leases pursuant to FAS 13, fair value is determined as the
sum of the fair values (considering current interest rates at which
similar loans would be made to borrowers with similar credit ratings
and for the same remaining maturities) of the corresponding finance
lease receivables and related unguaranteed residual values.

     (2) BNPPLC also represents that BNPPLC’s Parent is, as of the Effective Date, including
BNPPLC as a consolidated subsidiary in the audited financial statements issued by BNPPLC’s
Parent.

     (3) BNPPLC covenants that, as reasonably requested by NAI from time to
time with respect to any accounting period during which the Lease is or was in effect, BNPPLC will
provide to NAI confirmation of facts concerning BNPPLC and its assets as

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 26

 

 

necessary to permit NAI to determine the proper accounting for the Lease (including updates
of the facts set forth in clauses (1) and (2) above); except that BNPPLC will not be
required by this provision to (w) provide any information that is not in the possession or
control of BNPPLC or its Affiliates, (x) disclose the specific terms and conditions of its
leases or other transactions with other parties or the names of such parties, (y) make
disclosures prohibited by any law applicable to BNPPLC or BNPPLC’s Parent, or (z) disclose
any other information that is protected from disclosure by confidentiality provisions in
favor of such other parties or would be protected if their agreements with BNPPLC contained
confidentiality provisions similar in scope and substance to any confidentiality provisions
set forth in the Operative Documents for the benefit of NAI or its Affiliates. BNPPLC will
represent that information provided by it pursuant to this clause is true and complete in
all material respects, but only to the knowledge of BNPPLC as of the date it is provided,
utilizing the form of the certificate attached hereto as Exhibit D (signed by an
officer of BNPPLC), which certificate will be provided periodically by BNPPLC within five
business days of reasonable written request therefor by NAI as provided above, or such
longer period of time as may be reasonably necessary under the circumstances in order for
BNPPLC to confirm such information.

     (4) Although the representations required of BNPPLC by this subparagraph are intended
to cover facts, it is understood and agreed (consistent with subparagraph 4(C) of
the Lease) that BNPPLC has not made and will not make any representation or warranty as to
the proper accounting by NAI or its Affiliates of the Lease or as to other accounting
conclusions.

     (B) Other Limited Representations. BNPPLC represents that:

     (1) Entity Status. BNPPLC is a corporation duly incorporated, validly existing and in
good standing under the laws of Delaware.

     (2) Authority. The Constituent Documents of BNPPLC permit the execution,
delivery and performance of the Operative Documents by BNPPLC, and all actions and approvals
necessary to bind BNPPLC under the Operative Documents have been taken and obtained.
Without limiting the foregoing, the Operative Documents will be binding upon BNPPLC when
signed on behalf of BNPPLC by Lloyd G. Cox, Managing Director of BNPPLC. BNPPLC has all
requisite power and all governmental certificates of authority, licenses, permits and
qualifications to carry on its business as now conducted and contemplated to be conducted
and to perform the Operative Documents, except that BNPPLC makes no representation as to
whether it has obtained governmental certificates of authority, licenses, permits,
qualifications or other documentation required by state or local Applicable Laws. With
regard to any such state or local requirements, NAI may require that BNPPLC obtain a
specific governmental certificates of authority, licenses,

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 27

 

 

permits, qualifications or other documentation pursuant to subparagraph 4(C), subject
to the conditions set forth in that subparagraph.

     (3) Solvency. BNPPLC is not “insolvent” on the Effective Date (that is, the sum of
BNPPLC’s absolute and contingent liabilities — including the obligations of BNPPLC under the
Operative Documents — does not exceed the fair market value of BNPPLC’s assets), and BNPPLC
has no outstanding liens, suits, garnishments or court actions which could render BNPPLC
insolvent or bankrupt. BNPPLC’s capital is adequate for the businesses in which BNPPLC is
engaged and intends to be engaged. BNPPLC has not incurred (whether by the Operative
Documents or otherwise), nor does BNPPLC intend to incur or believe that it will incur,
debts which will be beyond its ability to pay as such debts mature. No petition or answer
has been filed by or, to BNPPLC’s knowledge, against BNPPLC in bankruptcy or other legal
proceedings that seeks an assignment for the benefit of creditors, the appointment of a
receiver, trustee, custodian or liquidator with respect to BNPPLC or any significant portion
of BNPPLC’s property, a reorganization, arrangement, rearrangement, composition, extension,
liquidation or dissolution of BNPPLC or similar relief under the federal Bankruptcy Code or
any state law. (As used in the Operative Documents, “BNPPLC’s knowledge” and words of like
effect mean the present actual knowledge of Lloyd G. Cox and Barry Mendelsohn, the current
officers of BNPPLC having primary responsibility for the negotiation of the Operative
Documents.)

     (4) Pending Legal Proceedings. No judicial or administrative investigations, actions,
suits or proceedings are pending or, to the knowledge of BNPPLC, threatened against or
affecting BNPPLC by or before any court or other Governmental Authority. BNPPLC is not in
default with respect to any order, writ, injunction, decree or demand of any court or other
Governmental Authority in a manner that has or could reasonably be expected to have a a
material adverse effect on BNPPLC or its ability to perform its obligations under the
Operative Documents.

     (5) No Default or Violation. The execution and performance by BNPPLC of the Operative
Documents do not and will not contravene or result in a breach of or default under any other
agreement to which BNPPLC is a party or by which BNPPLC is bound or which affects any assets
of BNPPLC. Such execution and performance by BNPPLC do not contravene any law, order,
decree, rule or regulation to which BNPPLC is subject. Further, such execution and
performance by BNPPLC will not result in the creation or imposition of (or the obligation to
create or impose) any lien, charge or encumbrance on, or security interest in, any property
of BNPPLC pursuant to the provisions of any such other agreement.

     (6) Enforceability. The Operative Documents constitute the legal, valid and

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 28

 

 

binding obligations of BNPPLC enforceable in accordance with their terms, subject to
the effect of bankruptcy, insolvency, reorganization, receivership and other similar laws
affecting the rights of creditors generally.

     (7) Conduct of Business and Maintenance of Existence. So long as any of the Operative
Documents remains in force, BNPPLC will continue to engage in business of the same general
type as now conducted by it and will preserve, renew and keep in full force and effect its
corporate existence and its rights, privileges and franchises necessary or desirable in the
normal conduct of business.

     (8) Not a Foreign Person. BNPPLC is not a “foreign person” within the meaning of
Sections 1445 and 7701 of the Code (i.e. BNPPLC is not a non-resident alien, foreign
corporation, foreign partnership, foreign trust or foreign estate as those terms are defined
in the Code and regulations promulgated thereunder).

Notwithstanding the foregoing, however or any other provision herein or in other Operative
Documents to the contrary, it is understood that NAI is not relying upon BNPPLC for any evaluation
of California or local Applicable Laws upon the transactions contemplated in the Operative
Documents, and BNPPLC makes no representation and will not make any representation that conditions
imposed by zoning ordinances or other state or local Applicable Laws to the purchase, ownership,
lease or operation of the Property have been satisfied.

     (C) Further Assurances. Prior to the Completion Date and during the Term of the
Lease BNPPLC will take any action reasonably requested by NAI to facilitate the construction
contemplated by the Construction Agreement or the use of the Property permitted by the Lease or the
establishment of a commercial condominium regime that includes the Property (a “Condominium
Regime”) or replatting of the Land and other adjacent land owned by NAI (a “Replatting”); subject,
however, to the following terms and conditions:

     (1) This subparagraph 4(C) will not impose upon BNPPLC the obligation to take any
action that can be taken by NAI, NAI’s Affiliates or anyone else other than BNPPLC as the
lessee under the Ground Lease or the owner of the Property.

     (2) BNPPLC will not be required by this subparagraph 4(C) to incur any expense or make
any payment to another Person unless (a) BNPPLC has received funds from NAI, in excess of
any other amounts due from NAI under any of the Operative Documents, sufficient to cover the
expense or make the payment or (b) the request by NAI which will result in such expense or
payment is made before the Completion Date and BNPPLC can include such expense or payment in
the Outstanding Construction Allowance for purposes of the Construction Agreement.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 29

 

 

     (3) BNPPLC will have no obligations whatsoever under this subparagraph 4(C) at any time
after a 97-10/Meltdown Event or when a Default has occurred and is continuing.

     (4) NAI must request any action to be taken by BNPPLC pursuant to this subparagraph
4(C), and such request must be specific and in writing, if required by BNPPLC at the time
the request is made.

     (5) No action may be required of BNPPLC pursuant to this subparagraph 4(C) that could
constitute a violation of any Applicable Laws or compromise or constitute a waiver of
BNPPLC’s rights under other provisions of this Certificate or any of the other Operative
Documents or that for any other reason is reasonably objectionable to BNPPLC.

     The actions BNPPLC will take pursuant to this subparagraph 4(C) if reasonably requested
by NAI will include, subject to the conditions listed in the proviso above, executing or consenting
to, or exercising or assisting NAI to exercise rights under any: (I) grant of easements, licenses,
rights of way, and other rights in the nature of easements encumbering the Land or the
Improvements, (II) release, relocation or termination of easements, licenses, rights of way or
other rights in the nature of easements which are for the benefit of the Land or Improvements or
any portion thereof, (III) dedication or transfer of portions of the Land not improved with a
building, for road, highway or other public purposes, (IV) agreements (which will, in the case of
agreements made with NAI or its Affiliates, remain subject to subparagraphs (J), (K) and (L) of
Paragraph 11 of the Ground Lease or comparable provisions included in amendments to the Operative
Documents) for the use and maintenance of common areas, for reciprocal rights of parking, ingress
and egress and amendments to any covenants and restrictions affecting the Land or any portion
thereof, (V) documents required to create or administer a governmental special benefit district or
assessment district for public improvements and collection of special assessments, (VI) instruments
necessary or desirable for the exercise or enforcement of rights or performance of obligations
under any Permitted Encumbrance or any contract, permit, license, franchise or other right included
within the term “Property”, (VII) modifications of Permitted Encumbrances, (VIII) permit
applications or other documents required to accommodate the Construction Project or any Replatting,
(IX) confirmations of NAI’s rights under any particular provisions of the Operative Documents which
NAI may wish to provide to a third party, (X) tract or parcel map subdividing the Land and adjacent
land into lots or parcels as part of a final Replatting consistent with the tentative map attached
to and made a part of Exhibit A, or (XI) condominium documents (e.g., a condominium
declaration or map) meeting the requirements of Applicable Laws to establish a Condominium Regime.
However, the determination of whether any such action is reasonably requested or reasonably
objectionable to BNPPLC may depend in whole or in part upon the extent to which the requested
action may result in a lien to secure payment or performance obligations against BNPPLC’s interest
in the Property, may cause the

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 30

 

 

value of the Property to be less than the Lease Balance after any Qualified Prepayments that
may result from such action are taken into account, or may impose upon BNPPLC any present or future
obligations greater than the obligations BNPPLC is willing to accept, taking into consideration the
indemnifications provided by NAI under the Construction Agreement or the Lease, as applicable.

     In addition, with respect to any request made by NAI to facilitate a relocation of any
easements or a substitution of new easements for those described in Exhibit A, the
following will be relevant to the determination of whether the request is reasonable:

     (i) whether material encroachments will result from the relocation or replacement, and
whether title to the land over or under which any such easement is to be relocated or
replaced is encumbered by Liens other than those which are Fully Subordinated or Removable
or which otherwise constitute Permitted Encumbrances;

     (ii) whether the relocation or replacement will result in any interruption of access or
services provided to the Property which is likely to extend beyond the Designated Sale Date
(it being understood, however, that any such interruption which is not likely to extend
beyond the Designated Sale Date will not be a reason for BNPPLC to decline the request); and

     (iii) whether the relocation or replacement is to be accomplished in a manner that will
not, when the relocation or replacement is complete, result in a material adverse change in
the access to or services provided to the Improvements or the Land.

     With respect to any request made by NAI to facilitate the establishment of a Condominium
Regime, the following will be relevant to the determination of whether the request is reasonable:

     (1) whether the Condominium Regime will create one or more distinct condominium units
or parcels of land that include all significant Improvements constructed or to be
constructed by NAI for BNPPLC pursuant to the Construction Agreement’ and only such
Improvements (whether one or more, the “Applicable Units”);

     (2) whether NAI is willing to amend the Operative Documents by amendments in form and
substance acceptable to BNPPLC (the “Anticipated Amendments”) as necessary to ensure that:

     (A) the Property will include all of the Applicable Units, together with
appurtenant access, parking and other rights and easements (whether exclusive or
nonexclusive) at least comparable to those existing or created as of the Effective

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 31

 

 

Date by the Ground Lease (as described in Exhibit A thereto)
(“Appurtenant Condo Rights”);

     (B) the land leased to BNPPLC pursuant to the Ground Lease will include the
land over which exclusive possession and control must reasonably be vested in the
owner of the Applicable Units to preserve the value and utility of the Applicable
Units to such owner, taking into account Appurtenant Condo Rights; and

     (C) in the event discretionary approvals or consents are required from any
“declarant” or “operator” or “owners’ association” by the Condominium Regime over
the design, construction or alteration of Improvements or over the sale, use,
leasing or financing of the Property, then (i) the “declarant” or “operator” or
“owners’ association” will be NAI or controlled by it or another party acceptable to
BNPPLC and will be bound by and remain bound by subparagraphs (J), (K) and (L) of
Paragraph 11 of the Ground Lease or comparable provisions in the Anticipated
Amendments with respect to such discretionary approvals or consents;

     (3) whether the request itself (if granted) or the proposed Condominium Regime is
likely to have any material adverse impact on the value or utility of the Property, taken as
a whole, after giving effect to the Anticipated Amendments and taking into account
Appurtenant Condo Rights; and

     (4) whether the request itself (if granted) or the Condominium Regime will materially
limit, or give NAI or its Affiliates discretionary control over, the rights of BNPPLC and
its successors and assigns to use or lease, sell or otherwise transfer the Applicable Units
in the event NAI declines for any reason to purchase the Property on the Designated Sale
Date pursuant to the Purchase Agreement, but taking into account any superior rights BNPPLC
has or may reserve under or by reference to subparagraphs (J), (K) and (L) of Paragraph 11
of the Ground Lease or comparable provisions in the Anticipated Amendments.

     Any and all Losses incurred by BNPPLC because of any action taken after the Completion Date
pursuant to this subparagraph 4(C) will be covered by the indemnifications of BNPPLC set forth in
Construction Agreement or in the Lease. Further, for purposes of such indemnification, any such
action taken by BNPPLC will be deemed to have been made at the request of NAI if made pursuant to
any request of counsel to or any officer of NAI (or with their knowledge, and without their
objection) in connection with the execution or administration of the Lease or the other Operative
Documents.

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 32

 

 

     (D) Actions Permitted by NAI Without BNPPLC’s Consent. No refusal by BNPPLC to
execute or join in the execution of any agreement, application or other document requested by NAI
pursuant to the preceding subparagraph 4(C) will prevent NAI from itself executing such agreement,
application or other document, so long as NAI is not purporting to act for BNPPLC and does not
thereby create or expand any obligations or restrictions that encumber BNPPLC’s title to the
Property. Further, subject to the other terms and conditions of the Lease and other Operative
Documents, NAI may do any of the following in NAI’s own name and to the exclusion of BNPPLC before
and during the Term of the Lease, so long as no 97-10/Meltdown Event has occurred and no Default
has occurred and is continuing, and provided NAI is not purporting to act for BNPPLC and does not
thereby create or expand any obligations or restrictions that encumber BNPPLC’s title to the
Property:

     (1) perform obligations arising under and exercise and enforce the rights of NAI or the
owner of the Property under the Permitted Encumbrances;

     (2) perform obligations arising under and exercise and enforce the rights of NAI or the
owner of the Property with respect to any other contracts or documents (such as building
permits) included within the Personal Property; and

     (3) recover and retain any monetary damages or other benefit inuring to NAI or the
owner of the Property through the enforcement of any rights, contracts or other documents
included within the Personal Property (including the Permitted Encumbrances); provided, that
to the extent any such monetary damages may become payable as compensation for an adverse
impact on value of the Property, the rights of BNPPLC and NAI under the other Operative
Documents with respect to the collection and application of such monetary damages will be
the same as for condemnation proceeds payable because of a taking of all or any part of the
Property.

     (E) Waiver of Landlord’s Liens. BNPPLC waives any security interest, statutory
landlord’s lien or other interest BNPPLC may have in or against computer equipment and other
tangible personal property placed on the Land from time to time that NAI or its Affiliates own or
lease from other lessors; however, BNPPLC does not waive its interest in or rights with respect to
equipment or other property included within the “Property” as described in Paragraph 7 of
the Lease. Although computer equipment or other tangible personal property may be “bolted down” or
otherwise firmly affixed to Improvements, it will not by reason thereof become part of the
Improvements if it can be removed without causing structural or other material damage to the
Improvements and without rendering HVAC or other major building systems inoperative and if it does
not otherwise constitute “Property” as provided in Paragraph 7 of the Lease.

     Without limiting the foregoing, BNPPLC acknowledges that NAI may obtain financing from
other parties for inventory, furnishings, equipment, machinery and other personal property

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 33

 

 

that is located in or about the Improvements, but that is not included in or integral to the
Property, and to secure such financing NAI may grant a security interest under the California
Uniform Commercial Code in such inventory, furnishings, equipment, machinery and other personal
property. Further, BNPPLC acknowledges that the lenders providing such financing may require
confirmation from BNPPLC of its agreements concerning landlord’s liens and other matters set forth
in this subparagraph 4(E), and NAI may obtain such confirmation in any statement required of BNPPLC
by the next subparagraph.

     (F) Estoppel Letters. Upon thirty days written request by NAI at any time and from
time to time prior to the Designated Sale Date, BNPPLC must provide a statement in writing
certifying that the Operative Documents are unmodified and in full effect (or, if there have been
modifications, that the Operative Documents are in full effect as modified, and setting forth such
modifications), certifying the dates to which the Base Rent payable by NAI under the Lease has been
paid, stating whether BNPPLC is aware of any Default by NAI that may exist under the Operative
Documents and confirming BNPPLC’s agreements concerning landlord’s liens and other matters set
forth in subparagraph 4(E). Any such statement by BNPPLC may be relied upon by anyone with whom NAI
may intend to enter into an agreement for construction of the Improvements or other significant
agreements concerning the Property.

     (G) No Implied Representations or Promises by BNPPLC. NAI acknowledges and agrees
that neither BNPPLC nor its representatives or agents have made any representations or promises
with respect to the Property or the transactions contemplated in the Operative Documents except as
expressly set forth in the Operative Documents, and no rights, easements or licenses are being
acquired by NAI from BNPPLC by implication or otherwise, except as expressly set forth in the other
Operative Documents.

5 Usury Savings Provision. Notwithstanding anything to the contrary in any of the
Operative Documents, BNPPLC does not intend to contract for, charge or collect any amount of money
from NAI that constitutes interest in excess of the maximum nonusurious rate of interest, if any,
allowed by applicable usury laws (the “Maximum Rate”). BNPPLC and NAI agree that it is their intent
in the execution of the Lease, the Purchase Agreement and other Operative Documents to contract in
strict compliance with applicable usury laws, if any. In furtherance thereof, BNPPLC and NAI
stipulate and agree that none of the provisions of the Lease, the Purchase Agreement or the other
Operative Documents shall ever be construed to create a contract requiring compensation for the
use, forbearance or detention of money at a rate in excess of the Maximum Rate, and the provisions
of this paragraph shall control over all other provisions of this Certificate or other Operative
Documents which may be in apparent conflict herewith. All interest paid or agreed to be paid by
NAI to BNPPLC shall, to the extent permitted by applicable usury laws, be amortized, prorated,
allocated, and spread throughout the period that any principal upon which such interest accrues is
expected to be outstanding (including without limitation any

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 34

 

 

renewal or extension of the term of the Lease) so that the amount of interest included in such
payments does not exceed the maximum nonusurious amount permitted by applicable usury laws. If
the Designated Sale Date is accelerated and as a result thereof amounts paid by NAI to BNPPLC as
interest are determined to exceed the interest that would have accrued at the Maximum Rate for the
period prior to the Designated Sale Date, then BNPPLC shall, at its option, either refund to NAI
the amount of such excess or credit such excess as a Qualified Prepayment (and thus reduce the
Lease Balance and other amounts, the determination of which depend upon Qualified Prepayments
credited to NAI) and thereby shall render inapplicable any and all penalties of any kind provided
by applicable usury laws as a result of such excess interest. If BNPPLC receives money (or
anything else) that is determined to constitute interest and that would, but for this provision,
increase the effective interest rate received by BNPPLC under or in connection with the Operative
Documents to a rate in excess of the Maximum Rate, then the amount determined to constitute
interest in excess of the maximum nonusurious interest shall, immediately following such
determination, be returned to NAI or be credited as a Qualified Prepayment, in which event any and
all penalties of any kind under applicable usury law shall be inapplicable. If BNPPLC does not
actually receive, but shall contract for, request or demand, a payment of money (or anything else)
which is determined to constitute interest and to increase the effective interest rate contracted
for or charged to a rate in excess of the Maximum Rate, BNPPLC shall be entitled, following such
determination, to waive or rescind the contractual claim, request or demand for the amount
determined to exceed the Maximum Rate, in which event any and all penalties of any kind under
applicable usury law shall be inapplicable. If at any time NAI should have reason to believe that
the transactions evidenced by the Operative Documents are in fact usurious, NAI shall promptly give
BNPPLC notice of such condition, after which BNPPLC shall have ninety days in which to make
appropriate refund or other adjustment in order to correct such condition if it in fact exists.

6 Obligations of NAI Under Other Operative Documents Not Limited by this Certificate.
Except as provided above in Paragraph 5, nothing contained in this Certificate will limit, modify
or otherwise affect any of NAI’s obligations under the other Operative Documents. Subject to
Paragraph 5, those obligations are intended to be separate, independent and in addition to, and not
in lieu of, those established by this Certificate.

7 Obligations of NAI Hereunder Not Limited by Other Operative Documents. Recognizing that
but for this Certificate (including the representations of NAI set forth in Paragraph 1) BNPPLC
would not acquire the Property or enter into the other Operative Documents, NAI agrees that
BNPPLC’s rights for any breach of this Certificate (including a breach of such representations)
will not be limited by any provision of the other Operative Documents that would limit NAI’s
liability thereunder.

8 Waiver of Jury Trial. Each of the parties hereto hereby waives its right to a
jury trial of any claim or cause of action based upon or arising out of this Agreement, the other
Operative

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 35

 

 

Documents or any of the transactions contemplated hereby or thereby, including contract claims,
tort claims, breach of duty claims, and all other common law or statutory claims (collectively, the
“Claims”). If and to the extent that the foregoing waiver of the right to a jury trial is
unenforceable for any reason in such forum, each of the parties hereto hereby consents to the
adjudication of all Claims pursuant to judicial reference as provided in California Code of Civil
Procedure Section 638, and the judicial referee shall be empowered to hear and determine all issues
in such reference, whether fact or law. Each of the parties hereto represents that each has
reviewed this waiver and consent and each knowingly and voluntarily waives its jury trial rights
and consents to judicial reference following consultation with legal counsel on such matters. In
the event of litigation, a copy of this Agreement may be filed as a written consent to a trial by
the court or to judicial reference under California Code of Civil Procedure Section 638 as provided
herein.

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

[The signature pages follow.]

Amended and Restated Closing Certificate and Agreement (Building 8) – Page 36

 

 

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

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION,
a 
Delaware corporation

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

Amended and Restated Closing Certificate and Agreement (Building 8) – Signature Page

 

 

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

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a
Delaware
 corporation

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

Amended and Restated Closing Certificate and Agreement (Building 8) – Signature Page

 

 

Exhibit A

Legal Description

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

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

 

 

Exhibit A to Amended and Restated

Closing Certificate and Agreement (Building 8) – Page 2

 

 

Exhibit B

Quarterly Certificate

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Gentlemen:

     This Certificate is furnished pursuant to subparagraph 2(D)(3) of the Amended and Restated
Closing Certificate and Agreement (Building 8) dated as of November 29, 2007 between Network
Appliance, Inc. and BNP Paribas Leasing Corporation(as amended, the “Closing Certificate”). Terms
defined in the Closing Certificate and used but not otherwise defined in this Certificate are
intended to have the respective meanings ascribed to them in the Closing Certificate.

     The undersigned, being a Responsible Financial Officer of Network Appliance, Inc., represents
and certifies the following to BNP Paribas Leasing Corporation:

     (a) No Event of Default or material Default by NAI has occurred except as follows:

[If an Event of Default or material Default by NAI has occurred, insert a
description of the nature thereof and the action which NAI has taken or
proposes to take to rectify it; otherwise, insert the word “none”.]

     (b) The representations and warranties by NAI in the Closing Certificate are true and
complete in all material respects on and as of the date of this Certificate as though made
on and as of such date.

     (c) the calculations set forth in the attachment to this Certificate, which show
whether NAI is complying with financial covenants set forth in subparagraph 3(C) of the
Closing Certificate based upon the most recent information available, are true and complete.

 

 

     Executed this                      day of
                                        
 , 20
                    .

[INSERT SIGNATURE BLOCK FOR A 

RESPONSIBLE FINANCIAL OFFICER]

Exhibit B to Amended and Restated

Closing Certificate and Agreement (Building 8) – Page 2

 

 

Exhibit C

Form of Disclosure Letter

 

 

NETWORK APPLIANCE, INC.

DISCLOSURE LETTER

To: JPMorgan Chase Bank, National Association, as Administrative Agent (“Agent”), under
that certain Credit Agreement dated as of November ___, 2007 (as such agreement may be amended,
restated or otherwise modified in writing from time to time, the “Credit Agreement”) among
Network Appliance, Inc. (the “Borrower”), the lenders from time to time party thereto, BNP
Paribas, as syndication agent, and Agent.

This Disclosure Letter is delivered to you pursuant to the Credit Agreement. The items set forth
in the attached Schedules represent exceptions, qualifications, permitted items and disclosures
that are listed herein pursuant to the terms of the Credit Agreement. Capitalized terms used
herein (or in the attached schedules) and defined in the Credit Agreement shall have the meanings
ascribed in the Credit Agreement, unless the context otherwise requires.

IN WITNESS WHEREOF, the undersigned has executed this Disclosure Letter as of November ___, 2007.

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC.

 	 
	 	By:  	 	 
	 	 	        Name:  	Ingemar Lanevi 	 
	 	 	        Title:  	Treasurer 	 

 

 

	 	 	 	 	 

Schedule 3.01

Subsidiaries

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Network Appliance
Global Ltd.

	 	N
	 	Bermuda
	 	Network Appliance Inc.
	 	 	100	%
	Network Appliance
Holdings Ltd.

	 	N
	 	Cyprus
	 	Network Appliance
Global Ltd.
	 	 	100	%
	Network Appliance
Holding & Manufacturing
BV

	 	N
	 	Netherlands
	 	Network Appliance
Holdings Ltd.
	 	 	100	%
	Network Appliance BV

	 	N
	 	Netherlands
	 	Network Appliance
Holding & Mfg BV
	 	 	100	%
	Network Appliance ApS

	 	N
	 	Denmark
	 	Network Appliance
Holdings Ltd.
	 	 	100	%
	Network Appliance Ltd

	 	N
	 	UK
	 	Network Appliance BV
	 	 	100	%
	Network Appliance SAS

	 	N
	 	France
	 	Network Appliance BV
	 	 	100	%
	Network Appliance GmbH

	 	N
	 	Germany
	 	Network Appliance BV
	 	 	100	%
	Network Appliance Srl.

	 	N
	 	Italy
	 	Network Appliance BV
	 	 	100	%

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 2

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Network Appliance GmbH

	 	N
	 	Switzerland
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
(Sales) Limited

	 	N
	 	Ireland
	 	Network Appliance BV
	 	 	100	%
	Network Appliance GesmbH

	 	N
	 	Austria
	 	Network Appliance BV
	 	 	100	%
	Network Appliance SL

	 	N
	 	Spain
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BVBA

	 	N
	 	Belgium
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
Israel Ltd.

	 	N
	 	Israel
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
Israel R&D, Ltd.

	 	N
	 	Israel
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Poland Sp. z.o.o.

	 	N
	 	Poland
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
Sweden AB

	 	N
	 	Sweden
	 	Network Appliance BV
	 	 	100	%
	Network Appliance South
Africa (Pty) Ltd.

	 	N
	 	South Africa
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
Finland Oy

	 	N
	 	Finland
	 	Network Appliance BV
	 	 	100	%

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 3

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Network Appliance
Norway AS

	 	N
	 	Norway
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BV
(Representative Office)

	 	N
	 	UAE
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BV
(Representative Office)

	 	N
	 	Turkey
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BV
(Representative Office)

	 	N
	 	Russia
	 	Network Appliance BV
	 	 	100	%
	Network Appliance
Luxembourg S.a.r.l.

	 	N
	 	Luxembourg
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BV
(Representative Office)

	 	N
	 	Indonesia
	 	Network Appliance BV
	 	 	100	%
	Network Appliance BV
(Representative Office

	 	N
	 	Philippines
	 	Network Appliance BV
	 	 	100	%
	Network Appliance KK

	 	N
	 	Japan
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance Pty.
Ltd.

	 	N
	 	Australia
	 	Network Appliance
Global Ltd.
	 	 	100	%
	Network Appliance
Mexico S. de R.L. de
C.V.

	 	N
	 	Mexico
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Singapore Private Ltd.

	 	N
	 	Singapore
	 	Network Appliance
Inc.
	 	 	100	%

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 4

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Network Appliance Sdn
Bhd

	 	N
	 	Malaysia
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Systems Private Ltd.

	 	N
	 	India
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Argentina Srl

	 	N
	 	Argentina
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance Ltd.

	 	N
	 	Brazil
	 	Network Appliance
	 	 	100	%
	Network Appliance
Canada Ltd.

	 	N
	 	Canada
	 	Inc.
Network Appliance
Inc.
	 	 	100	%
	Network Appliance
(Shanghai) Commercial
Co., Ltd.

	 	N
	 	China
	 	Network Appliance BV
	 	 	100	%
	Network Appliance (Hong
Kong) Limited

	 	N
	 	Hong Kong
	 	Network Appliance BV
	 	 	100	%
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	China, Beijing
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	China, Shanghai
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	China, Guangzhou
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	Korea
	 	Network Appliance
Inc.
	 	 	100	%

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 5

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	Taiwan
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance, Inc.
(Representative Office)

	 	N
	 	Hong Kong
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Federal Systems, Inc.

	 	N
	 	California
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance
Financial Solutions,
Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%
	Spinnaker Networks, Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%
	Spinnaker Networks, LLC

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%
	Alacritus, Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%
	Decru, Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%
	Decru BV

	 	N
	 	Netherlands
	 	Network Appliance
Holding & Mfg BV
	 	 	100	%
	Network Appliance
Limited

	 	N
	 	Thailand
	 	Network Appliance
Inc.
	 	 	100	%
	Network Appliance Saudi
Arabia LLFC

	 	N
	 	Saudi Arabia
	 	Network Appliance BV
	 	 	100	%
	Decru Ltd.

	 	N
	 	U.K.
	 	Decru Inc.
	 	 	100	%

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 6

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Material	 	 	 	 	 	 
	 	 	Domestic	 	 	 	 	 	 
	 	 	Subsidiary	 	 	 	 	 	Percentage
	Subsidiary	 	(Y/N)	 	Jurisdiction	 	Shareholder	 	Interest
	Topio, Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	 	100	%

Commitments or Obligations of Borrower or any Subsidiary to issue capital or other equity
interests:

     None.

Options, warrants or other rights to acquire capital or other equity interests of Borrower or any
Subsidiary:

     None.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 7

 

 

Schedule 3.06

Disclosed Matters

     None.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 8

 

 

Schedule 6.01

Existing Indebtedness

Secured Credit Agreement, dated as of October 5, 2007, by and among Network Appliance, Inc., the
lenders party thereto and JPMorgan Chase Bank, National Association, as administrative agent.

Loan Agreement, dated as of March 31, 2006, by and among Network Appliance Global, Ltd., as the
borrower, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.
See attached schedule of existing letters of credit and bank guarantees.

Lease Agreements, dated as of December 15, 2005, December 16, 2006, and July 17, 2007, by and
between BNP Paribas Leasing Corporation and Network Appliance, Inc., and those certain Closing
Certificates executed in connection with such Lease Agreements, dated as of December 15, 2005,
December 16, 2006, and July 17, 2007, by and between BNP Paribas Leasing Corporation and Network
Appliance, Inc.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 9

 

 

Schedule 6.02

Existing Liens

Liens in connection with items disclosed on Schedule 6.01.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 10

 

 

Schedule 6.05

Existing Affiliate Transactions

Transaction arising in connection with commissionaire agreements between Network Appliance B. V.
and each of its subsidiaries and related arrangements with respect to payment of value added taxes.

Transactions arising in connection that certain Technology License Agreement, effective as of May
1, 2000, by and between Network Appliance Global Ltd. and Network Appliance B.V.

Transactions arising in connection that certain Technology License Agreement, effective as of May
1, 2000, by and between Network Appliance Global Ltd. and Network Appliance Inc.

Transactions arising in connection with that certain Technology License Agreement, entered into as
of April 27, 2002, by and between Network Appliance, Inc. and Network Appliance Global Ltd.

Transactions arising in connection with that certain Technology License Agreement, entered into as
of May 1, 2004, by and between Network Appliance Global Ltd. and Spinnaker Networks Inc.

Transactions arising in connection with that certain Technology License Agreement, entered into as
of May 3, 2005, by and between Network Appliance Inc. and Alacritus Inc.

Transactions arising in connection with that certain Technology License Agreement, entered into as
of April 29, 2006, by and between Network Appliance Global Ltd. and Decru Inc.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 11

 

 

Schedule 6.06

Existing Restrictive Agreements

Secured Credit Agreement, dated as of October 5, 2007, by and among Network Appliance, Inc., the
lenders party thereto and JPMorgan Chase Bank, National Association, as administrative agent.

Loan Agreement dated as of March 31, 2006, by and among Network Appliance Global, Ltd., as the
borrower, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent

Lease Agreements, dated as of December 15, 2005, December 16, 2006, and June 17, 2007, by and
between BNP Paribas Leasing Corporation and Network Appliance, Inc., and those certain

Closing Certificates executed in connection with such Lease Agreements, dated as of December 15,
2005, December 16, 2006, and June 17, 2007, by and between BNP Paribas Leasing Corporation and
Network Appliance, Inc.

Letter Agreement between Wells Fargo Bank, National Association, and Borrower, dated as of December
1, 2006, providing Borrower with a revolving line of credit for the issuance of letters of credit
in an aggregate principal amount not to exceed $5,000,000.

Exhibit C to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 12

 

 

Exhibit D

Certificate of BNPPLC Re: Accounting

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Gentlemen:

     This certificate is furnished pursuant to subparagraph 4(A) of the Amended and Restated
Closing Certificate and Agreement (Building 8) dated as of November 29, 2007 between BNP Paribas
Leasing Corporation and Network Appliance, Inc. (as amended, the “Closing Certificate”). Terms
defined in the Closing Certificate and used but not otherwise defined in this certificate are
intended to have the respective meanings ascribed to them in the Closing Certificate.

     BNP Paribas Leasing Corporation (“BNPPLC”) certifies that the following are true and complete
in all material respects, but only to the knowledge of BNPPLC as of the date hereof:

     (A) The facts disclosed in any financial statements or other documents listed in the
Annex attached to this certificate were (as of their respective dates) true and complete in
all material respects. Copies of such statements or other documents were provided by or behalf of
BNPPLC to NAI prior to the date hereof to permit NAI to determine the appropriate accounting for
NAI’s relationship with BNPPLC under FASB Interpretation No. 46(R), Consolidation of Variable
Interest Entities (“FIN 46”).

     (B The fair value of the Property and of other properties, if any, leased to NAI by BNPPLC
(collectively, whether one or more, the “Properties Leased to NAI”) are, as of the date hereof,
less than half of the total of the fair values of all assets of BNPPLC, excluding any assets of
BNPPLC which are held within a silo. Further, none of the Properties Leased to NAI are, as of the
date hereof, held within a silo.

     Although the representations required of BNPPLC by this certificate are intended to cover
facts, it is understood and agreed (consistent with subparagraph 4(C) of the Lease) that
BNPPLC has not made and will not make any representation or warranty as to the proper accounting by
NAI or its Affiliates of the Lease or other Operative Documents or as to other accounting
conclusions.

 

 

     Executed this                      day of
                                        
,
 20                    .

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a 

Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 

Exhibit D to Closing Amended and Restated

Certificate and Agreement (Building 8) – Page 2exv10w40

Exhibit 10.40

AMENDED AND RESTATED

CONSTRUCTION AGREEMENT

(BUILDING 8)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ENGAGEMENT AND AUTHORIZATION
	 	 	1	 
	 
	 	 	 	 
	GENERAL TERMS AND CONDITIONS
	 	 	2	 
	 
	 	 	 	 
	1 Additional definitions
	 	 	2	 
	“97-10/Maximum Permitted Prepayment”
	 	 	2	 
	“97-10/Meltdown Event”
	 	 	2	 
	“97-10/Prepayment”
	 	 	3	 
	“97-10/Project Costs”
	 	 	3	 
	“97-10/Pronouncement”
	 	 	4	 
	“NAI’s Estimate of Force Majeure Delays”
	 	 	4	 
	“NAI’s Estimate of Force Majeure Excess Costs”
	 	 	4	 
	“Accrued Construction Period Interest Expense”
	 	 	4	 
	“Administrative Fee”
	 	 	5	 
	“Affiliate’s Contract”
	 	 	5	 
	“Arrangement Fee”
	 	 	5	 
	“Capital Adequacy Charges”
	 	 	5	 
	“Carrying Costs”
	 	 	5	 
	“Commitment Fee Rate”
	 	 	5	 
	“Commitment Fees”
	 	 	6	 
	“Complete Taking”
	 	 	7	 
	“Completion Date”
	 	 	7	 
	“Completion Notice”
	 	 	7	 
	“Construction Advances”
	 	 	7	 
	“Construction Advance Request”
	 	 	7	 
	“Construction Allowance”
	 	 	7	 
	“Construction Budget”
	 	 	7	 
	“Construction Project”
	 	 	7	 
	“Covered Construction Period Losses”
	 	 	8	 
	“Defective Work”
	 	 	8	 
	“FOCB Notice”
	 	 	8	 
	“Force Majeure Event”
	 	 	8	 
	“Funded Construction Allowance”
	 	 	8	 
	“Future Work”
	 	 	9	 
	“Ground Lease Rents”
	 	 	9	 
	“Increased Cost Charges”
	 	 	9	 
	“Increased Commitment”
	 	 	9	 
	“Increased Funding Commitment”
	 	 	9	 
	“Increased Time Commitment”
	 	 	9	 
	“Initial Advance”
	 	 	9	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	“Maximum Construction Allowance”
	 	 	9	 
	“Notice of NAI’s Intent to Terminate”
	 	 	9	 
	“Notice of NAI’s Intent to Terminate Because of a Force Majeure Event”
	 	 	9	 
	“Notice of Termination by NAI”
	 	 	9	 
	“Outstanding Construction Allowance”
	 	 	9	 
	“Owner’s Election to Continue Construction”
	 	 	9	 
	“Pre-lease Casualty”
	 	 	9	 
	“Pre-lease Force Majeure Delays”
	 	 	10	 
	“Pre-lease Force Majeure Event”
	 	 	10	 
	“Pre-lease Force Majeure Event Notice”
	 	 	10	 
	“Pre-lease Force Majeure Excess Costs”
	 	 	10	 
	“Pre-lease Force Majeure Losses”
	 	 	10	 
	“Prior Work”
	 	 	11	 
	“Projected Cost Overruns”
	 	 	11	 
	“Reimbursable Construction Period Costs”
	 	 	11	 
	“Remaining Proceeds”
	 	 	12	 
	“Scope Change”
	 	 	12	 
	“Target Completion Date”
	 	 	12	 
	“Termination of NAI’s Work”
	 	 	12	 
	“Third Party Contract”
	 	 	12	 
	“Third Party Contract/Termination Fees”
	 	 	12	 
	“Timing or Budget Shortfall”
	 	 	12	 
	“Upfront Fees”
	 	 	13	 
	“Work”
	 	 	13	 
	“Work/Suspension Event”
	 	 	13	 
	“Work/Suspension Notice”
	 	 	14	 
	“Work/Suspension Period”
	 	 	14	 
	 
	 	 	 	 
	2
Construction and Management of the Property by NAI
	 	 	14	 
	(A) The
Construction Project 
	 	 	14	 
	(1) Construction Approvals by BNPPLC 
	 	 	14	 
	(a) Preconstruction Approvals by BNPPLC 
	 	 	14	 
	(b) Approval of Scope Changes
	 	 	14	 
	(2) NAI’s Right to Possession and to Control Construction 
	 	 	15	 
	(a) Performance of the Work 
	 	 	15	 
	(b) Third Party Contracts 
	 	 	16	 
	(c) Adequacy of Drawings, Specifications and Budgets 
	 	 	16	 
	(d) Existing Condition of the Land and Improvements 
	 	 	16	 

(ii) 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	(e) Correction of Defective Work 
	 	 	16	 
	(f) Clean Up 
	 	 	17	 
	(g) No Damage for Delays 
	 	 	17	 
	(h) No Fee For Construction Management
	 	 	17	 
	(3) Quality of Work 
	 	 	17	 
	(B) Completion Notice
	 	 	17	 
	(C) Status of Property Acquired With BNPPLC’s Funds
	 	 	18	 
	(D) Insurance 
	 	 	18	 
	(1) Liability Insurance 
	 	 	18	 
	(2) Property Insurance
	 	 	19	 
	(3) Failure of NAI to Obtain Insurance
	 	 	19	 
	(4) Waiver of Subrogation
	 	 	19	 
	(E) Condemnation 
	 	 	20	 
	(F) Additional Representations, Warranties and Covenants of NAI Concerning the Property 
	 	 	20	 
	(1) Payment of Local Impositions 
	 	 	20	 
	(2) Operation and Maintenance 
	 	 	21	 
	(3) Debts for Construction, Maintenance, Operation or Development 
	 	 	22	 
	(4) Permitted Encumbrances and the Ground Lease
	 	 	22	 
	(5) Books and Records Concerning the Property 
	 	 	22	 
	(G) BNPPLC’s Right of Access 
	 	 	23	 
	(1) Access Generally 
	 	 	23	 
	(2) Failure of NAI to Perform 
	 	 	23	 
	 
	 	 	 	 
	3 Amounts to be Added to the Lease Balance (in Addition to Construction Advances)
	 	 	24	 
	(A) Initial Advance 
	 	 	24	 
	(B) Carrying Costs 
	 	 	25	 
	(C) Commitment Fees 
	 	 	25	 
	(D) Future Administrative Fees and Out-of-Pocket Costs 
	 	 	26	 
	(E) Increased Cost Charges and Capital Adequacy Charges
	 	 	26	 
	(F) Ground Lease Payments
	 	 	27	 
	 
	 	 	 	 
	4 Construction Advances
	 	 	27	 
	(A) Costs Subject to Reimbursement Through Construction Advances
	 	 	27	 
	(B) Exclusions From Reimbursable Construction Period Costs 
	 	 	29	 
	(C) Conditions to NAI’s Right to Receive Construction Advances 
	 	 	29	 
	(1) Construction Advance Requests 
	 	 	29	 
	(2) Amount of the Advances 
	 	 	30	 
	(a) The Maximum Construction Allowance 
	 	 	30	 

(iii) 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	(b) Costs Previously Incurred by NAI 
	 	 	30	 
	(c) Limits During any Work/Suspension Period 
	 	 	31	 
	(d) Restrictions Imposed for Administrative Convenience 
	 	 	31	 
	(3) No Advances After Certain Dates 
	 	 	31	 
	(D) Breakage Costs for Construction Advances Requested But Not Taken 
	 	 	31	 
	(E) No Third Party Beneficiaries 
	 	 	32	 
	(F) No Waiver 
	 	 	32	 
	 
	 	 	 	 
	  5 Application of Insurance and Condemnation Proceeds
	 	 	32	 
	(A) Collection and Application Generally 
	 	 	32	 
	(B) Advances of Escrowed Proceeds to NAI 
	 	 	33	 
	(C) Status of Escrowed Proceeds After Commencement of the Term of the Lease
	 	 	33	 
	(D) Special Provisions Applicable After a 97-10/Meltdown Event or Event of Default 
	 	 	33	 
	(E) NAI’s Obligation to Restore 
	 	 	33	 
	(F) Special Provisions Concerning a Complete Taking
	 	 	34	 
	 
	 	 	 	 
	  6 Notice of Cost Overruns and Pre-lease Force Majeure Events
	 	 	34	 
	(A) Notice of Projected Cost Overruns 
	 	 	34	 
	(B) Pre-lease Force Majeure Event Events and Notices 
	 	 	34	 
	 
	 	 	 	 
	  7 Suspension and Termination of NAI’s Work
	 	 	34	 
	(A) Rights and Obligations During a Work/Suspension Period 
	 	 	34	 
	(B) NAI’s Election to Terminate NAI’s Work 
	 	 	34	 
	(C) BNPPLC’s Election to Terminate NAI’s Work 
	 	 	38	 
	(D) Surviving Rights and Obligations 
	 	 	38	 
	(E) Cooperation After a Termination of NAI’s Work 
	 	 	38	 
	 
	 	 	 	 
	  8 Continuation of Construction by BNPPLC
	 	 	40	 
	(A) Owner’s Election to Continue Construction 
	 	 	40	 
	(1) Take Control of the Property 
	 	 	40	 
	(2) Continuation of Construction 
	 	 	40	 
	(3) Arrange for Turnkey Construction 
	 	 	41	 
	(4) Suspension or Termination of Construction by BNPPLC 
	 	 	41	 
	(B) Powers Coupled With an Interest 
	 	 	42	 
	 
	 	 	 	 
	  9 NAI’s Obligation for 97-10/Prepayments
	 	 	42	 
	 
	 	 	 	 
	10 Indemnity for Covered Construction Period Losses
	 	 	43	 

(iv) 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	(A) Covenant to Indemnify Against Covered Construction Period Losses
	 	 	43	 
	(B) Certain Losses Included or Excluded 
	 	 	44	 
	(1) Back to Back Claims by Participants Against BNPPLC
	 	 	44	 
	(2) Environmental
	 	 	45	 
	(3) Failure to Maintain a Safe Work Site
	 	 	45	 
	(4) Failure to Complete Construction
	 	 	46	 
	(5) Fraud
	 	 	46	 
	(6) Excluded Taxes and Established Misconduct
	 	 	46	 
	(C) Express Negligence Protection 
	 	 	46	 
	(D) Survival of Indemnity 
	 	 	47	 
	(E) Due Date for Indemnity Payments
	 	 	47	 
	(F) Order of Application of Payments 
	 	 	47	 
	(G) Defense of BNPPLC
	 	 	47	 
	(1) Assumption of Defense
	 	 	47	 
	(2) Indemnity Not Contingent
	 	 	47	 
	(H) Notice of Claims
	 	 	48	 
	(I) Withholding of Consent to Settlements Proposed by NAI
	 	 	48	 
	(J) Settlements Without the Prior Consent of NAI
	 	 	48	 
	(1) Election to Pay Reasonable Settlement Costs in Lieu of Actual
	 	 	48	 
	(2) Conditions to Election
	 	 	49	 
	(3) Indemnity Survives Settlement
	 	 	49	 
	(K) No Authority to Admit Wrongdoing on the Part of NAI
	 	 	49	 
	(L) Refunds of Covered Construction Period Losses Paid by NAI 
	 	 	50	 
	(1) Payment by BNPPLC After Refund
	 	 	50	 
	(2) Meaning of Refund
	 	 	50	 
	(3) Conditions to Payment
	 	 	51	 
	 
	 	 	 	 
	11 Characterization of Operative Documents; Remedies
	 	 	51	 
	(A) Characterization of Operative Documents
	 	 	51	 
	(1) Confirmation of Lien and Security Interest Granted in the Lease
	 	 	51	 
	(2) Foreclosure Remedies
	 	 	51	 
	(B) Notice Required So Long As the Purchase Option Continues Under the Purchase Agreement
	 	 	52	 
	(C) Remedies Cumulative 
	 	 	52	 
	(D) Third Party Estoppels
	 	 	53	 
	 
	 	 	 	 
	12 Amendment and Restatement of Prior Construction Agreement
	 	 	53	 

(v) 

 

TABLE OF CONTENTS

(Continued)

Exhibits and Schedules

	 	 	 
	Exhibit A
	 	Legal Description

	 	 	 

	Exhibit B
	 	Description of the Construction Project and Budget

	 	 	 

	Exhibit C
	 	Construction Advance Request Form

	 	 	 

	Exhibit D
	 	Pre-lease Force Majeure Event Notice

	 	 	 

	Exhibit E
	 	Notice of Termination by NAI’s Work

	 	 	 

	Exhibit F
	 	Notice of NAI’s Intent to Terminate

	 	 	 

	Exhibit G
	 	Notice of Increased Funding Commitment by BNPPLC

	 	 	 

	Exhibit H
	 	Notice of Increased Time Commitment by BNPPLC

	 	 	 

	Exhibit I
	 	Notice of Rescission of NAI’s Intent to Terminate

	 	 	 

	Exhibit J
	 	Form of Contractor Estoppel

	 	 	 

	Exhibit K
	 	Form of Design Professional Estoppel

(vi) 

 

AMENDED AND RESTATED

CONSTRUCTION AGREEMENT

(BUILDING 8)

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

RECITALS

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

     At the request of NAI and to facilitate the transaction contemplated in the other Operative
Documents, contemporaneously with this Agreement BNPPLC is executing and accepting an Amended and
Restated Ground Lease (Building 8) from NAI (the “Ground Lease”), pursuant to which BNPPLC is
acquiring a leasehold estate in the Land described in Exhibit A and any existing
Improvements on such Land.

     Also contemporaneously with this Agreement, BNPPLC and NAI are executing an Amended and
Restated Lease Agreement (Building 8) (the “Lease”), pursuant to which the parties expect that NAI
will lease the Improvements on the Land described in Exhibit A from BNPPLC for a lease term
that will commence on the Completion Date (as defined below).

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

ENGAGEMENT AND AUTHORIZATION

     Subject to the terms and conditions set forth in this Agreement, BNPPLC does hereby
engage and authorize NAI — and NAI does hereby accept such engagement and authorization, as an
independent contractor for BNPPLC — to construct the Construction Project on the Land and to

 

 

manage
such construction for BNPPLC. As more particularly provided in subparagraph 2(A)(2) below, NAI
will take possession and control of the Land and all Improvements on the Land to accomplish such
construction. However, the rights and authority granted to NAI by this Agreement are expressly
made subject and subordinate to the terms and condition hereinafter set forth and to the Ground
Lease, to the Permitted Encumbrances and to any other claims or encumbrances affecting the Land or
the Property that may be asserted by third parties other than Liens Removable by BNPPLC.

GENERAL TERMS AND CONDITIONS

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

     (d) Accrued Construction Period Interest Expense; and

     (e) any costs in addition to those described in clauses (a) through (d)
preceding that GAAP (as it exists on the Effective Date) would allow BNPPLC to

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

 

 

capitalize as
part of the cost of the Property or that the 97-10/Pronouncement would allow BNPPLC to
characterize as project costs, including: (1) cancellation or termination fees or other
compensation payable by NAI or BNPPLC pursuant to any contract concerning the Construction
Project made by NAI or BNPPLC with any general contractor, architect, engineer or other
third party because of any election by NAI or BNPPLC to cancel or terminate such contract,
and (2) any costs that BNPPLC incurs and is allowed to capitalize to continue or complete
the Construction Project after any Owner’s Election to Continue Construction as provided in
subparagraph 8(A).

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

It is understood that 97-10/Project Costs will include all amounts paid, reimbursed or
accrued prior to the Effective Date and included in the Initial Lease Balance that would
qualify as 97-10/Project Costs under and as defined in the Prior Construction Agreement.
However, it is also understood that 97-10/Project Costs will not include any costs that were
paid, reimbursed or accrued prior to the Effective Date, but excluded from 97-10/Project
Costs according to the definition thereof in the Prior Construction Agreement. For example,
97-10/Project Costs will not include the fee described and defined as an Arrangement Fee in
the Prior Construction Agreement.

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

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

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

“Accrued Construction Period Interest Expense” means interest that has accrued and
that BNPPLC has paid or is obligated to pay on Funding Advances for any period prior to the
Completion Date. Such interest will include a percentage, equal to the aggregate
Percentages of all Participants (under and as defined in the Participation Agreement), of
Carrying Costs and Commitment Fees that accrue after the execution of any Participation
Agreement and that are added to the Outstanding Construction Allowance as provided in

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

 

 

this
Agreement, it being understood that the additional amounts BNPPLC must pay to the
Participants under the Participation Agreement because of the accrual of Carrying Costs and
Commitment Fees effectively constitute construction period interest on advances the
Participants make to BNPPLC under the Participation Agreement. Accrued Construction Period
Interest Expense will also include any interest and other finance charges that accrue prior
to the Completion Date because of Funding Advances provided to BNPPLC by BNPPLC’s Parent in
the form of loans, regardless of whether BNPPLC’s obligation in respect of such loans is
limited to BNPPLC’s interest in the Property. However, any such interest and other finance
charges accruing on Funding Advances provided by BNPPLC’s Parent and included in Accrued
Construction Period Interest Expense will not exceed the Carrying Costs attributable to the
portion of the Lease Balance funded or maintained by such Funding Advances. Further,
Accrued Construction Period Interest will not include any portion of Carrying Costs included
in Pre-lease Force Majeure Losses (as set forth in the definition thereof below) or interest
or finance charges that BNPPLC must pay to the Participants under the Participation
Agreement because of the accrual of such portion of Carrying Costs.

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

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

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

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

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

“Commitment Fee Rate” means, for each Construction Period, the amount established as of the
date (in this definition, the “CFR Test Date”) that is two Business Days prior to such
period by reference to the pricing grid below, based upon the ratio calculated by dividing
(1) Consolidated EBITDA for the then latest Rolling Four Quarters Period that ended prior to
(and for which NAI has reported earnings as necessary to compute Consolidated EBITDA) into
(2) the Consolidated Debt for Borrowed Money as of the end of such Rolling Four Quarters
Period. In each case, the Commitment Fee Rate will be
established at the Level in the pricing grid below which corresponds to such ratio;
provided, that:

     (a) promptly after earnings are reported by NAI for the latest quarter
in any Rolling Four Quarters Period, NAI must notify BNPPLC of any resulting change
in the Commitment Fee Rate under this definition, and no reduction in the

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

 

 

Commitment
Fee Rate from one period to the next will be effective for purposes of this
Agreement unless, prior to the CFR Test Date for the next period, NAI shall have
provided BNPPLC with a written notice setting forth and certifying the calculation
under this definition that justifies the reduction; and

     (b) if Commitment Fees are understated during any Construction Period because
of any misstatement, subsequently discovered, of Consolidated EBITDA or Consolidated
Debt for Borrowed Money, BNPPLC will be entitled to add to the Outstanding
Construction Allowance or (after the Completion Date) collect from NAI all
additional amounts that would have been added to the Outstanding Construction
Allowance hereunder or expected to be paid under the other Operative Documents but
for the misstatement, together with interest on each such additional amount computed
at the Default Rate from the date it would have been included in the Outstanding
Construction Allowance or expected to be paid to the date it is actually added or
paid.

	 	 	 	 	 
	 	 	Ratio of Consolidated Debt for	 	 
	 	 	Borrowed Money to	 	 
	Levels	 	Consolidated EBITDA	 	Spread
	Level I

	 	less than 0.5
	 	6.0 basis points
	 
	 	 	 	 
	Level II

	 	greater than or equal to 0.5, but less
than 1.0
	 	7.0 basis points
	 
	 	 	 	 
	Level III

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

	 	greater than or equal to 1.5, but less
than 2.0
	 	10.0 basis point
	 
	 	 	 	 
	Level V

	 	greater than or equal to 2.0
	 	15.0 basis points

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

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

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

 

 

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

 

 

Outstanding
Construction Allowance.

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

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

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

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

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

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

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

“Maximum Construction Allowance” means an amount equal to the difference computed by
subtracting both the Initial Lease Balance and the Initial Advance from $65,000,000, as such
amount may be increased from time to time by any Increased Funding Commitment made by BNPPLC
as provided in subparagraph 7(B)(6).

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

     (c) any increase in the total amount of Carrying Costs, Commitment Fees,
Administrative Fees, Increased Cost Charges, Capital Adequacy Charges and Ground
Lease Rents (and any other amounts) added to the Lease Balance as

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

 

 

provided in
Paragraph 3 solely by reason of Pre-lease Force Majeure Delays; and

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

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

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

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

“Projected Cost Overruns” means the excess (if any), calculated as of the date of each
Construction Advance Request, of (1) the total of projected Reimbursable Construction Period
Costs yet to be incurred or for which NAI has yet to be reimbursed hereunder (including
projected Reimbursable Construction Period Costs for Future Work), over (2) the balance of
the remaining Construction Allowance then projected to be available to
cover such costs. The balance of the remaining Construction Allowance then projected to be
available will equal: (i) the amount (if any) by which the Maximum Construction Allowance
exceeds the Funded Construction Allowance, plus (ii) any Escrowed Proceeds then available or
expected to be available to cover costs of repairs and restoration that NAI will perform as
part of the Work after a casualty or condemnation, less (iii) all projected future Carrying
Costs, Commitment Fees, Administrative Fees and other amounts to be added to the Outstanding
Construction Allowance as provided in Paragraph 3.

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

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

 

 

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

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

“Target Completion Date” means January 31, 2009, as such date may be extended from time to
time by any Increased Time Commitment made by BNPPLC as provided in subparagraph 7(B)(6)(b).

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

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

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

“Timing or Budget Shortfall” means that, as of any time prior to the Completion Date,
(i) the remaining available Construction Allowance will not be sufficient to cover

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

 

 

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

“Upfront Fees” has the meaning indicated in subparagraph 3(A).

“Work” has the meaning indicated in subparagraph 2(A)(2)(a), and it includes all work and
services, labor and materials provided by or on behalf of the Prior Construction Agreement.

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

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

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

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

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

 

 

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

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

2 Construction and Management of the Property by NAI.

     (A) The Construction Project.

     (1) Construction Approvals by BNPPLC.

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

     (b) Approval of Scope Changes. Before making a Scope Change, NAI
must provide to BNPPLC a reasonably detailed written description of the Scope
Change, a revised Construction Budget and a copy of any changes to the drawings,
plans and specifications for the Improvements required in connection therewith, all
of which must be approved in writing by BNPPLC before the Scope Change is
implemented. After receiving such items, BNPPLC will endeavor in good faith to
respond promptly (and in any event no later than thirty days after such receipt) to
any request by NAI for approval of the Scope Change. BNPPLC

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

 

 

will not, however, be
liable for any failure to provide a prompt response. Further, BNPPLC’s approval
will not in any event constitute a waiver of subparagraph 2(A)(3) or of any other
provision of this Agreement or other Operative Documents.

     (2) NAI’s Right to Possession and to Control Construction. Subject to the terms
and conditions set forth in this Agreement, and prior to any Termination of NAI’s Work as
provided in subparagraphs 7(B) and 7(C), NAI will have possession of the Land and all
Improvements on the Land to the exclusion of BNPPLC and will have the sole right to control
and the sole responsibility for the design and construction of the Construction Project,
including the means, methods, sequences and procedures implemented to accomplish such design
and construction. Although title to all Improvements will vest in BNPPLC (as more
particularly provided in subparagraph 2(C)), BNPPLC’s obligation with respect to the
Construction Project will be limited to the making of advances under and subject to the
conditions set forth in this
Agreement. Without limiting the foregoing, NAI acknowledges and agrees that:

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

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

 

 

     (b) Third Party Contracts.

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

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

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

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

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

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

 

 

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

     (g) No Damage for Delays. NAI will have no claim for damages against
BNPPLC or for an increase in the Construction Allowance by reason of any delay in
the performance of any Work. Nor will NAI have any claim for an extension of the
deadline specified in subparagraph 2(A)(2)(a) for completing the Work because of any
such period of delay, except that (i) in the case of any Pre-lease Force Majeure
Delays, NAI will have certain rights as set forth in subparagraph 7(B) and other
provisions of this Agreement, and (ii) in the event of intentional interference with
the Work by BNPPLC itself for which NAI provides written notice to cease, NAI will
be entitled to an extension of the deadline
specified in subparagraph 2(A)(2)(a) as needed because of any delays resulting
from such intentional interference. It is also understood that any such intentional
interference by BNPPLC will constitute a Force Majeure Event. In no event, however,
will BNPPLC’s exercise of its rights and remedies permitted under this Agreement or
the other Operative Documents be construed as intentional interference with NAI’s
performance of any Work; and thus neither BNPPLC’s exercise of its right to withhold
Construction Advances at any time when NAI has failed to satisfy all conditions
herein to such advances, nor BNPPLC’s exercise of its right to terminate Work by NAI
as provided in subparagraph 7(C), be considered as intentional interference with the
Work or a Pre-lease Force Majeure Event.

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

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

     (B) Completion Notice. Within fifteen Business Days after NAI substantially
completes construction of the Construction Project and obtains any certificate of occupancy or

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

 

 

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

     (C) Status of Property Acquired With BNPPLC’s Funds. All Improvements constructed on
the Land as provided in this Agreement or the Prior Construction Agreement will constitute
“Property” for purposes of the Lease and other Operative Documents. Further, to the extent
heretofore or hereafter acquired (in whole or in part) with funds previously advanced by
BNPPLC under the Prior Construction Agreement or with any portion of the Initial Advance or
with any Construction Advances or with other funds for which NAI receives reimbursement from such
funds previously advanced, the Initial Advance or Construction Advances, all furnishings,
furniture, chattels, permits, licenses, franchises, certificates and other personal property of
whatever nature will be considered as having been acquired on behalf of BNPPLC by NAI and will
constitute “Property” for purposes of the Lease and other Operative Documents, as will all renewals
or replacements of or substitutions for any such Property. The parties intend that title to the
Improvements and to any other such Property will vest in BNPPLC without passing through NAI or
NAI’s Affiliates before it is transferred to BNPPLC from contractors, suppliers, vendors or other
third Persons, but with the understanding that all such Property will be accepted by BNPPLC subject
to the terms and conditions of the other Operative Documents, including
subparagraph 4(C)(1) of the Lease (concerning the characterization of the Lease and other
Operative Documents for tax and certain other purposes). Although nothing herein constitutes
authorization of NAI by BNPPLC to bind BNPPLC to any construction contract or other agreement with
a third Person, any construction contract or other agreement executed by NAI for the acquisition or
construction of Improvements or other components of the Property may, as NAI deems appropriate,
provide for the direct transfer of title to BNPPLC as described in the preceding sentence.

     (D) Insurance.

     (1) Liability Insurance. Throughout the period prior to any Termination
of NAI’s Work, NAI must maintain commercial general liability insurance against claims for
bodily and personal injury, death and property damage occurring in or upon or resulting from
any occurrence in or upon the Property under one or more insurance policies that satisfy the
Minimum Insurance Requirements, which are set forth in an exhibit to the Common Definitions
and Provisions Agreement. NAI must deliver and maintain with

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

 

 

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

     (2) Property Insurance. Throughout the period prior to any Termination of NAI’s
Work, NAI must also keep all Improvements (including all alterations, additions and changes
made to the Improvements) insured against fire and other casualty under one or more property
insurance policies that satisfy the Minimum Insurance Requirements. NAI must deliver and
maintain with BNPPLC for each property insurance policy required by this Agreement written
confirmation of the policy and the scope of the coverage provided thereby issued by the
applicable insurer or its authorized agent, which confirmation must also satisfy the Minimum
Insurance Requirements. If any of the
Property is destroyed or damaged by fire, explosion, windstorm, hail or by any other
casualty against which insurance has been required hereunder, (i) BNPPLC may, but will not
be obligated to, make proof of loss if not made promptly by NAI after notice from BNPPLC,
(ii) each insurance company concerned is hereby authorized and directed to make payment for
such loss directly to BNPPLC for application as required by Paragraph 5, and (iii) BNPPLC
may settle, adjust or compromise any and all claims for loss, damage or destruction under
any policy or policies of insurance (provided, that so long as no 97-10/Meltdown Event has
occurred and no Event of Default has occurred and is continuing, BNPPLC must provide NAI
with at least forty-five days notice of BNPPLC’s intention to settle any such claim before
settling it unless NAI has already approved of the settlement by BNPPLC). BNPPLC will not
in any event or circumstances be liable or responsible for failure to collect, or to
exercise diligence in the collection of, any insurance proceeds. If any casualty results in
damage to or loss or destruction of the Property, NAI must give prompt notice thereof to
BNPPLC and Paragraph 5 will apply.

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

     (4) Waiver of Subrogation. NAI, for itself and for any Person claiming
through it (including any insurance company claiming by way of subrogation), waives any and
every claim which arises or may arise in its favor against BNPPLC or any other Interested
Party for any and all Losses, to the extent that NAI is compensated by

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

 

 

insurance or would be
compensated by the insurance policies contemplated in this Agreement, but for any deductible
or self-insured retention maintained under such insurance or but for a failure of NAI to
maintain the insurance as required by this Agreement. NAI agrees to have such insurance
policies properly endorsed so as to make them valid notwithstanding this waiver, if such
endorsement is required to prevent a loss of insurance.

     (E) Condemnation. Immediately upon obtaining knowledge of the institution of any
proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party must promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings.
Prior to any Termination of NAI’s Work, NAI must, if requested by BNPPLC, diligently prosecute
any such proceedings and consult with BNPPLC, its attorneys and experts and cooperate with them as
reasonably requested in the carrying on or defense of any such proceedings. All proceeds of
condemnation awards or proceeds of sale in lieu of condemnation with respect to the Property and
all judgments, decrees and awards for injury or damage to the Property will be paid to BNPPLC as
Escrowed Proceeds, and all such proceeds will be applied as provided in Paragraph 5. BNPPLC is
hereby authorized, in its own name or in the name of NAI or in the name of both, to settle and
deliver valid acquittances for, or to challenge and to appeal from, any such judgment, decree or
award concerning condemnation of any of the Property (provided, that so long as no 97-10/Meltdown
Event has occurred and no Event of Default has occurred and is continuing, BNPPLC must provide NAI
with at least forty-five days notice of BNPPLC’s intention to settle any such claim before settling
it unless NAI has already approved of the settlement by BNPPLC). BNPPLC will not in any event or
circumstances be liable or responsible for failure to collect, or to exercise diligence in the
collection of, any such proceeds, judgments, decrees or awards.

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

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

Notwithstanding the foregoing, NAI may in good faith, by appropriate proceedings,

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

 

 

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

     (2) Operation and Maintenance. Throughout the period prior to any
Termination of NAI’s Work, NAI must operate and maintain the Property in a good and
workmanlike manner and in compliance with Applicable Laws in all material respects and pay
or cause to be paid all fees or charges of any kind in connection therewith. (If NAI does
not promptly correct any failure of the Property to comply with Applicable Laws that is the
subject of a written complaint or demand for corrective action given by any Governmental
Authority to NAI, or to BNPPLC and forwarded by it to NAI, then for purposes of the
preceding sentence, NAI will be considered not to have maintained the Property “in
compliance with all Applicable Laws in all material respects” whether or not the
noncompliance would be material in the absence of the complaint or demand.) NAI must not
use or occupy, or allow the use or occupancy of, the Property in any manner which violates
any Applicable Law or which constitutes a public or private nuisance or which makes void,
voidable or cancelable any insurance then in force with respect thereto. Without limiting
the generality of the foregoing, NAI must not conduct or permit others to conduct Hazardous
Substance Activities on the Property, except Permitted Hazardous Substance Use and Remedial
Work; and NAI must not discharge or permit the discharge of anything (including Permitted
Hazardous Substances) on or from the Property that would require any permit under applicable
Environmental Laws, other than (1) storm water runoff, (2) fume hood emissions, (3) waste
water discharges through a publicly owned treatment works, (4) discharges that are a
necessary part of any Remedial Work, and (5) other similar discharges consistent with the
definition of Permitted

Amended and Restated Construction Agreement (Building 8) – Page 21

 

 

Hazardous Substance Use which do not significantly increase the risk
of Environmental Losses to BNPPLC, in each case in strict compliance with Environmental
Laws. To the extent that any of the following would, individually or in the aggregate,
increase the likelihood of a 97-10/Meltdown Event or materially and adversely affect the
value of the Property or the use of the Property for purposes permitted by this Agreement,
NAI must not, without BNPPLC’s prior consent: (i) initiate or permit any zoning
reclassification of the Property; (ii) seek any variance under existing zoning ordinances
applicable to the Property; (iii) use or permit the use of the Property in a manner that
would result in such use becoming a nonconforming use under applicable zoning ordinances or
similar laws, rules or regulations; (iv) execute or file any subdivision plat affecting the
Property; or (v)
consent to the annexation of the Property to any municipality. NAI will not cause or
permit any drilling or exploration for, or extraction, removal or production of, minerals
from the surface or subsurface of the Property, and NAI must not do anything that could
reasonably be expected to significantly reduce the market value of the Property. If NAI
receives a notice or claim from any federal, state or other governmental authority that the
Property is not in compliance with any Applicable Law, or that any action may be taken
against BNPPLC because the Property does not comply with any Applicable Law, NAI must
promptly furnish a copy of such notice or claim to BNPPLC.

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 22

 

 

to
be inspected and copied by BNPPLC.

     (G) BNPPLC’s Right of Access.

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

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

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

     (2) Failure of NAI to Perform. If NAI fails to perform any act or to
take any action required of it by this Agreement or other Operative Documents, or to pay any
money which NAI is required by this Agreement or other Operative Documents to pay, and if
such failure or action constitutes an Event of Default or renders BNPPLC or any director,
officer, employee or Affiliate of BNPPLC at risk of criminal prosecution or renders BNPPLC’s
interest in the Property or any part thereof at risk of forfeiture by forced sale or
otherwise, then in addition to any other remedies specified herein or otherwise available,
BNPPLC may, perform or cause to be performed such act or take such action or pay such money.
(To the extent that expenses so incurred by BNPPLC, or money so paid by BNPPLC, qualify as a
Covered Construction Period Losses, NAI must pay the same to BNPPLC upon demand. If any
such expenses incurred or money paid do not qualify as Covered Construction Period Losses,
but do constitute 97-10/Project Costs, BNPPLC may treat them as Construction Advances
hereunder. To the extent that any such expenses incurred or money paid do not qualify as
Covered Construction Period Losses and do constitute 97-10/Project Costs, they will be
included — with interest — in the

Amended and Restated Construction Agreement (Building 8) – Page 23

 

 

Balance of Unpaid Covered Construction Period Losses under
and as defined in the Purchase Agreement.) Further, BNPPLC, upon making such payment, will
be subrogated to all of the rights of the person, corporation or body politic receiving such
payment. But nothing herein will imply any duty upon the part of BNPPLC to do any work
which, under any provision of this Agreement or otherwise, NAI may be required to perform,
and the performance thereof by BNPPLC will not constitute a waiver of NAI’s default. BNPPLC
may during the progress of any such work permitted by BNPPLC hereunder on or in the Property
keep and store upon the Property all necessary materials, tools, and
equipment. BNPPLC will not in any event be liable for inconvenience, annoyance,
disturbance, loss of business, or other damage to NAI or the subtenants or invitees of NAI
by reason of BNPPLC’s performance of any such work, or on account of bringing materials,
supplies and equipment into or through the Property during the course of such work, and the
obligations of NAI under this Agreement and the other Operative Documents will not thereby
be excused in any manner.

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

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

Amended and Restated Construction Agreement (Building 8) – Page 24

 

 

Construction Period Costs to be paid or reimbursed pursuant to Paragraph 4 will not be
limited to those incurred after the Effective Date.)

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

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

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

	 	•	 	the Commitment Fee Rate for such Construction Period, times an
amount equal to:
	 
	 	 	 	(1) the Maximum Construction Allowance, less
	 
	 	 	 	(2) the Funded Construction Allowance on the first day of such Construction
Period; times

Amended and Restated Construction Agreement (Building 8) – Page 25

 

 

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

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

     (E) Increased Cost Charges and Capital Adequacy Charges.

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

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

     (3) Notwithstanding the foregoing provisions of this subparagraph 3(E), the
Outstanding Construction Allowance will not be increased by Increased Cost Charges or

Amended and Restated Construction Agreement (Building 8) – Page 26

 

 

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

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

4 Construction Advances.

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 27

 

 

	 	•	 	soft costs payable to third parties (whether or not incurred prior to the
Effective Date), such as legal fees, architectural fees, engineering fees,
construction management fees, transaction management fees and fees and costs
paid in connection with obtaining project permits and approvals required by
governmental authorities or any of the Permitted Encumbrances,
	 
	 	•	 	site preparation costs,
	 
	 	•	 	costs of offsite and other public improvements required as
conditions of governmental approvals for the Construction Project, and
	 
	 	•	 	to the extent that funds from the Construction Allowance can be
used for such costs without causing Projected Cost Overruns, the costs of
constructing parking lots, driveways and other improvements on the land subject
to the Appurtenant Easements;

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

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

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

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

     (7) furniture, trade fixtures and equipment and other tenant improvements to
support NAI’s use and occupancy of the Property for the permitted uses described in
subparagraph 2(A) of the Lease, but that are not integral to or affixed in such a
manner as to become part of the Improvements, the aggregate cost of which does not exceed
ten percent (10%) of the Maximum Construction Allowance; provided, that no Construction
Advance for furniture and other items described in this clause will be required of

Amended and Restated Construction Agreement (Building 8) – Page 28

 

 

BNPPLC or requested by NAI before the Construction Project is substantially complete and
substantially all other Reimbursable Construction Period Costs have been paid or reimbursed
from Construction Advances.

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

     (1) Environmental Losses;

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 29

 

 

     (2) Amount of the Advances.

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 30

 

 

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

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

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

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 31

 

 

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

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

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

5 Application of Insurance and Condemnation Proceeds.

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 32

 

 

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 33

 

 

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

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

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

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

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

7 Suspension and Termination of NAI’s Work.

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

     (B) NAI’s Election to Terminate NAI’s Work. NAI may elect to terminate its
rights

Amended and Restated Construction Agreement (Building 8) – Page 34

 

 

and obligations to continue Work at any time prior to the Completion Date if at such time
NAI believes in good faith that a Timing or Budget Shortfall exists. To be effective, however, any
such election by NAI must be made in accordance with the following provisions:

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 35

 

 

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

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

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

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

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

     (d) In the case of a Notice of Intent to Terminate which is not a Notice

Amended and Restated Construction Agreement (Building 8) – Page 36

 

 

of Intent to Terminate Because of a Force Majeure Event (and thus not covered by any
of the preceding subparagraphs (a) through (c)), BNPPLC may require NAI to promptly
provide a good faith estimate of the minimum Increased Funding Commitment or
Increased Time Commitment (or both) reasonably required to eliminate the reasons for
NAI’s delivery of the Notice of Intent to Terminate. After receipt of NAI’s good
faith estimate, BNPPLC may respond with an Increased Funding Commitment or Increased
Time Commitment (or both) consistent with such estimate.

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

     (8) For the avoidance of doubt, BNPPLC acknowledges that NAI’s rescission of any Notice
of NAI’s Intent to Terminate (including any Notice of NAI’s Intent to Terminate Because of a
Force Majeure Event) after receipt of an Increased Commitment as described in the preceding
subsection will not preclude NAI from subsequently exercising its rights under this
subparagraph 7(B) in the event NAI subsequently believes in good faith that a Timing or
Budget Shortfall exists.

Thus, for example, if NAI rescinds a Notice of NAI’s Intent to Terminate Because of a Force
Majeure Event after receiving an Increased Commitment from BNPPLC, but subsequently
determines that such Increased Commitment is insufficient (through no fault
of NAI or its employees or any other party acting under NAI’s control or with the approval
or authorization of NAI) to rectify the Timing or Budget Shortfall which caused NAI to send
such notice, then NAI may deliver a second Notice of NAI’s Intent to Terminate Because of a
Force Majeure Event, and in response thereto BNPPLC may elect to provide yet another
Increased Commitment. Moreover, such process may be repeated any number of times, in each
case without causing NAI to lose its right to subsequently invoke this subparagraph 7(B) and
send yet another Notice of NAI’s Intent to Terminate (including another Notice of NAI’s
Intent to Terminate Because of a Force Majeure Event).

     (9) Notwithstanding the foregoing, in the event of a Complete Taking, NAI

Amended and Restated Construction Agreement (Building 8) – Page 37

 

 

may
deliver a Notice of NAI’s Intent to Terminate Because of a Force Majeure Event that explains
the futility of continuing with the Construction Project on the Land regardless of any
willingness of BNPPLC to approve or consider Scope Changes or an Increased Commitment, and
no offer by BNPPLC of an Increased Commitment after a Complete Taking will preclude a
“Termination of NAI’s Work Because of a Pre-lease Force Majeure Event” for the purposes of
determining whether NAI must pay a 97-10/Prepayment pursuant to Paragraph 9.

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

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

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

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

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

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

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

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

     (1) NAI must promptly deliver copies to BNPPLC of all Third Party Contracts

Amended and Restated Construction Agreement (Building 8) – Page 38

 

 

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 must be made free and clear of any liens, security interests,
or encumbrances, except such as may be created by the Operative Documents.

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 39

 

 

     satisfactory to
BNPPLC.

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

8 Continuation of Construction by BNPPLC.

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

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

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

     (a) proceed with construction according to such plans and

Amended and Restated Construction Agreement (Building 8) – Page 40

 

 

     specifications
as BNPPLC may from time to time approve;

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

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

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

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

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

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

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

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

     (4) Suspension or Termination of Construction by BNPPLC. Notwithstanding

Amended and Restated Construction Agreement (Building 8) – Page 41

 

 

any Owner’s Election to Continue Construction, BNPPLC may subsequently elect at any time to
suspend or terminate further construction without obligation to NAI.

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

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

9 NAI’s Obligation for 97-10/Prepayments. After any 97-10/Meltdown Event NAI must make a
97-10/Prepayment to BNPPLC within three Business Days after receipt from BNPPLC of any demand for
such a payment. BNPPLC may demand 97-10/Prepayments pursuant to this Paragraph at any time and
from time to time (as 97-10/Project Costs increase) after a 97-10/Meltdown Event. NAI acknowledges
that it is undertaking the obligation to make 97-10/Prepayments as provided in this Paragraph in
consideration of the rights afforded to it by this Agreement, but that such obligation is not
contingent upon any exercise by NAI of such rights or upon its rights under any other Operative
Documents. If a 97-10/Meltdown Event does occur, NAI’s obligation to make 97-10/Prepayments as
provided in this Paragraph will survive any Termination of NAI’s Work.

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

Amended and Restated Construction Agreement (Building 8) – Page 42

 

 

Project or causes it to be
completed as BNPPLC is authorized to do by subparagraph 8(A).

10 Indemnity for Covered Construction Period Losses.

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

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

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 43

 

 

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

     (B) Certain Losses Included or Excluded.

     (1) Back to Back Claims by Participants Against BNPPLC. Losses for which BNPPLC is
entitled to be indemnified as described in subparagraph 10(A) will include claims made
against BNPPLC by any Participant, and amounts (if any) reimbursed by BNPPLC to any
Participant, because of the following:

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

Amended and Restated Construction Agreement (Building 8) – Page 44

 

 

matters described in clauses (i), (ii), or (iii) of this provision or any allegation of any
such matters;

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

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

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

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

     (3) Failure to Maintain a Safe Work Site. If a third party asserts a claim for
damages against BNPPLC because of injuries the third party sustained while on the Land as a
result of NAI’s breach of its obligations under this Agreement to keep the Land and the
Improvements thereon in a reasonably safe condition as Work progresses under NAI’s

Amended and Restated Construction Agreement (Building 8) – Page 45

 

 

direction
and control, then any such claim and other Losses resulting from such claim will constitute
Covered Construction Period Losses under clause (2) of subparagraph 10(A). Also, if the
third party asserts a claim for damages against any Participant because of such injuries,
and if the Participant requires BNPPLC to reimburse the Participant’s Losses attributable to
such claim, then such reimbursement will constitute Covered Construction Period Losses under
clause (2) of subparagraph 10(A), consistent with understanding confirmed by clause (b) of
subparagraph 10(B)(1).

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

     (5) Fraud. As used in clause (3) of subparagraph 10(A) and clause (c) of
subparagraph 10(B)(1), “fraud” or “willful misconduct” will include (i) any deliberate
decision by NAI to make a Scope Change without BNPPLC’s prior written approval, (ii)
any fraud or intentional misrepresentation by NAI, or its vendors, contractors or
subcontractors regarding NAI’s ongoing compliance with the requirements of this Agreement,
and (iii) the performance by NAI or its vendors, contractors or subcontractors of Defective
Work, with NAI’s knowledge that it constitutes Defective Work, prior to any Termination of
NAI’s Work as provided in subparagraphs 7(B) and 7(C).

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

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

Amended and Restated Construction Agreement (Building 8) – Page 46

 

 

obtain insurance required by this Agreement will not be limited to Losses against which
indemnity is provided, it being understood that the parties have agreed upon insurance requirements
for reasons that extend beyond providing a source of payment for Losses against which BNPPLC may be
indemnified by NAI).

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

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

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

     (G) Defense of BNPPLC.

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

     (2) Indemnity Not Contingent. Also, although subparagraphs 10(I) and 10(J) will
apply to tort claims asserted against BNPPLC related to the Property, the right of BNPPLC to
be indemnified pursuant to subparagraph 10(A) for payments made to satisfy governmental
requirements (“Government Mandated Payments”) (e.g., fines payable

Amended and Restated Construction Agreement (Building 8) – Page 47

 

 

because of any release of
Hazardous Materials from the Property) will not be conditioned in any way upon NAI having
consented to or approved of, or having been provided with an opportunity to defend against
or contest, such Government Mandated Payments. In all cases, however, including those which
may involve Government Mandated Payments, the rights of BNPPLC to be indemnified will be
subject to subparagraph 10(K).

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

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

     (J) Settlements Without the Prior Consent of NAI.

     (1) Election to Pay Reasonable Settlement Costs in Lieu of Actual. Except as
otherwise provided in subparagraph 10(J)(2), if BNPPLC settles any tort claim for which

Amended and Restated Construction Agreement (Building 8) – Page 48

 

 

it is entitled to be indemnified by NAI without NAI’s consent, then NAI may, by notice given to
BNPPLC no later than ten days after NAI is notified of the settlement, elect to pay
Reasonable Settlement Costs to BNPPLC in lieu of a payment or reimbursement of actual
settlement costs. (With respect to any tort claim asserted against BNPPLC, “Reasonable
Settlement Costs” means the maximum amount that a prudent Person in the position of BNPPLC,
but able to pay any amount, might reasonably agree to pay to settle the tort claim, taking
into account the nature and amount of the claim, the relevant facts and circumstances known
to BNPPLC at the time of settlement and the additional Attorneys Fees’ and other costs of
defending the claim which could be anticipated but for the settlement.) After making an
election to pay Reasonable Settlement Costs with regard to a particular tort claim, NAI will
have no right to rescind or revoke the election, despite any subsequent determination that
Reasonable Settlement Costs exceed actual settlement costs. It is understood that
Reasonable Settlement Costs may be more or less than actual settlement costs and that a
final determination of Reasonable Settlement Costs may not be possible until after NAI must
decide between paying Reasonable Settlement Costs or paying actual settlement costs.

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

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

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

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

Amended and Restated Construction Agreement (Building 8) – Page 49

 

 

continuing to contest the
claim by reason of any provision set forth herein.

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

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

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

     (1) Payment by BNPPLC After Refund. If BNPPLC receives a refund of any Covered
Construction Period Losses paid, reimbursed or advanced by NAI pursuant to
subparagraph 10(A), BNPPLC will promptly pay to NAI the amount of such refund, plus or minus
any net tax benefits or detriments realized by BNPPLC as a result of such refund and such
payment to NAI; provided, that the amount payable to NAI will not exceed the amount of the
indemnity payment in respect of such refunded Covered Construction Period Losses that was
made by NAI. If it is subsequently determined that BNPPLC was not entitled to such refund,
the portion of such refund that is repaid or recaptured will be treated as a Covered
Construction Period Loss for which NAI must indemnify BNPPLC pursuant to subparagraph 10(A)
without regard to subparagraph 10(B)(6). If, in connection any such refund, BNPPLC also
receives an amount representing interest on such refund, BNPPLC will promptly pay to NAI the
amount of such interest, plus or minus any net tax benefits or detriments realized by BNPPLC
as a result of the receipt or accrual of such interest and as a result of the such payment
to NAI; provided, that BNPPLC will not be required to make any such payment in respect of
the interest (if any) that is fairly attributable to a period before NAI paid, reimbursed or
advanced the Covered Construction Period Losses refunded to BNPPLC.

     (2) Meaning of Refund. With respect to Covered Construction Period Losses
incurred or suffered by BNPPLC and paid or reimbursed by NAI on an After Tax Basis, if

Amended and Restated Construction Agreement (Building 8) – Page 50

 

 

taxes
of BNPPLC which are not subject to indemnification by NAI are reduced because of such Losses
(whether by reason of a deduction, credit or otherwise) and such reduction was not taken
into account in the calculation of the required reimbursement or payment by NAI, then for
purposes of this subparagraph 10(L) such reduction will be considered a “refund”.

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

11 Characterization of Operative Documents; Remedies.

     (A) Characterization of Operative Documents.

     (1) Confirmation of Lien and Security Interest Granted in the Lease.
Reference is made to subparagraph 4(C) of the Lease, in which NAI and BNPPLC have
confirmed their intent that (A) for the purposes of determining the proper accounting for
the Lease by NAI, BNPPLC will be treated as the owner and landlord of the Property and NAI
will be treated as the tenant of the Property, and (B) for income tax purposes and
commercial law (including real estate and bankruptcy law) and regulatory purposes, (1) the
Lease and the other Operative Documents (including this Agreement) will be treated as a
financing arrangement, (2) BNPPLC will be deemed a lender making loans to NAI in the
principal amount equal to the Lease Balance, which loans are secured by the Property, and
(3) NAI will be treated as the owner of the Property and will be entitled to all tax
benefits available to the owner of the Property. Consistent with such intent, by the
provisions set forth in Exhibit B to the Lease, NAI is granting to BNPPLC a lien
upon and mortgaging and warranting title to the leasehold estate in the Land created by the
Ground Lease and the Improvements and all rights, titles and interests of NAI in and to
other Property, WITH POWER OF SALE, to secure all obligations (monetary or otherwise) of NAI
arising under or in connection with any of the Operative Documents (including this
Agreement). NAI further confirms and agrees that (i) its grant of a lien and security
interest as set forth in Exhibit B of the Lease is made as of the Effective Date,
even though the Term of the Lease will not commence before the Completion Date, and (ii) the
security interest granted in Exhibit B of the Lease will extend to and cover all
Third Party Contracts, now existing or made in the future.

     (2) Foreclosure Remedies. Even before the Completion Date, at any time when an
Event of Default has occurred and is continuing, BNPPLC may notify NAI of BNPPLC’s intent to
pursue remedies described in Exhibit B to the Lease, and at any time thereafter,
regardless of whether the Event of Default is continuing, if NAI has not

Amended and Restated Construction Agreement (Building 8) – Page 51

 

 

already purchased
the Property or caused an Applicable Purchaser to purchase the Property pursuant to the
Purchase Agreement, (i) BNPPLC will have the power and authority, to the extent provided by
law, after proper notice and lapse of such time as may be required by law, to sell or
arrange for a sale to foreclose its lien and security interest granted in Exhibit B
to the Lease, and (ii) BNPPLC, in lieu of or in addition to exercising any power of sale
granted in Exhibit B to the Lease, may proceed by a suit or suits in equity or at
law for a foreclosure or sale of the Property or for the specific performance of any
covenant or agreement herein contained or in aid of the execution of any power herein
granted, or for the appointment of a receiver pending any foreclosure or sale of the
Property, or for the enforcement of any other legal or equitable remedy permitted by law.

     (B) Notice Required So Long As the Purchase Option Continues Under the Purchase
Agreement. Prior to the Designated Sale Date, so long as NAI remains in possession of the
Property and there has been no termination of the Purchase Option as provided in
Paragraph 6(B) of the Purchase Agreement, BNPPLC’s right to complete any foreclosure sale
as provided in subparagraph 11(A)(2) will be subject to the condition precedent that BNPPLC has
notified NAI,
at a time when an Event of Default has occurred and is continuing and no less than thirty days
prior to completing such a sale, of BNPPLC’s intent to do so. The condition precedent is intended
to provide NAI with an opportunity to exercise the Purchase Option before losing possession of the
Property because of a sale authorized by subparagraph 11(A)(2). The condition precedent is not,
however, intended to extend any period for curing an Event of Default. Accordingly, if an Event of
Default has occurred, and regardless of whether any Event of Default is then continuing, BNPPLC may
proceed immediately to complete a sale authorized by subparagraph 11(A)(2) at any time after the
earliest of (i) thirty days after BNPPLC has given such a notice to NAI, (ii) any date upon which
NAI relinquishes possession of the Property, or (iii) any termination of the Purchase Option.

     (C) Remedies Cumulative. No right or remedy herein conferred upon or reserved
to BNPPLC is intended to be exclusive of any other right or remedy, and each and every such right
and remedy will be cumulative and in addition to any other right or remedy given to BNPPLC under
other Operative Documents (including the right to accelerate the Designated Sale Date, as provided
in the definition thereof in the Common Definitions and Provisions Agreement, and the right, when
applicable, to exercise the Put Option as provided in subparagraph 3(B) of the Purchase Agreement)
or now or hereafter existing in favor of BNPPLC under Applicable Laws. In addition to other
remedies provided in this Agreement, BNPPLC will be entitled, to the extent permitted by Applicable
Law or in equity, to injunctive relief in case of the violation, or attempted or threatened
violation, of any of the covenants, agreements, conditions or provisions of this Agreement.
Nothing contained in this Agreement will limit or prejudice the right of BNPPLC to prove for and
obtain in proceedings for bankruptcy or insolvency of NAI by reason of the termination of this
Agreement, an amount equal to the maximum allowed by any statute or rule of law in effect at the
time when, and governing the proceedings in which, the damages are

Amended and Restated Construction Agreement (Building 8) – Page 52

 

 

to be proved, whether or not the
amount be greater, equal to, or less than the amount BNPPLC might recover under this Agreement.
Without limiting the generality of the foregoing, nothing contained herein will modify, limit or
impair any of the rights and remedies of BNPPLC under the Purchase Agreement, including its right
to exercise the Put Option provided in subparagraph 3(B) of the Purchase Agreement if the
conditions listed in subparagraph 3(B) of the Purchase Agreement are satisfied; and BNPPLC will not
be required to give the thirty day notice described in subparagraph 11(B) as a condition precedent
to any acceleration of the Designated Sale Date or to taking any action to enforce the Purchase
Agreement

     (D) Third Party Estoppels. If requested by BNPPLC with respect to any material
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 BNPPLC an estoppel letter substantially in the form
of Exhibit J. Similarly, if requested by BNPPLC 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
BNPPLC an estoppel letter substantially in the form of Exhibit K.

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

[The signature pages follow.]

Amended and Restated Construction Agreement (Building 8) – Page 53

 

 

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

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING CORPORATION, a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lloyd G. Cox 	 	 
	 

	 	 	 	 

Lloyd G. Cox, Managing Director
	 	 

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

 

 

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

	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ingemar Lanevi 	 	 
	 

	 	 	 	 

Ingemar Lanevi, Vice President and Corporate Treasurer
	 	 

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

 

 

Exhibit A

Legal Description

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

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

 

 

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

 

 

Exhibit B

Description of the Construction Project and Construction Budget

Subject to future Scope Changes, the Construction Project will be substantially consistent with the
following general description and with the site plan attached as part of Exhibit A and the
elevations attached to this Exhibit:

A new 5-story class A office building containing a total of approximately 189,500
square feet of gross building area and approximately 177,500 square feet of net
rentable area, including fixed building services and necessary land improvements.
The subject building once completed will be constructed with a steel frame covered
by GFRC (Glass Fiber Reinforced Concrete) walls, insulated windows, and built-up
asphalt roofs. The structure will be built on reinforced concrete slab foundation
with column footings and girders. Additionally the subject will have a four-story
parking garage containing approximately 660 parking spaces. Land improvements
consisting mainly of paved parking area (206 parking spaces), parking lot lighting,
and landscaping.

     All of the improvements will be suitable for uses contemplated in the Lease and of a quality,
when complete to be considered first class facilities for such uses. The location of improvements,
including appurtenant parking areas, driveways and other facilities on the Land (or pursuant to
appurtenant easements described in Exhibit A to the Ground Lease) will be as shown in the Tentative
Parcel Map attached to and made a part of Exhibit A.

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

 

 

Construction Budget

	 	 	 	 	 
	 	 	Cost	 
	Unallocated Costs
	 	 	 	 
	 
	 	 	 	 
	Carrying Costs
	 	$	6,448,496	 
	Insurance
	 	 	237,120	 
	 
	 	 	 	 
	Building 8 Costs
	 	 	 	 
	 
	 	 	 	 
	Design & Engineering
	 	 	1,240,816	 
	Permits
	 	 	5,055,240	 
	Site & Shell Construction
	 	 	29,361,240	 
	Interior Construction
	 	 	21,818,719	 
	 
	 	 	 
	Subtotal
	 	 	48,476,016	 
	 
	 	 	 	 
	Garage C Costs
	 	 	 	 
	Design & Engineering
	 	 	739,900	 
	Permits
	 	 	195,771	 
	Site & Shell Construction
	 	 	8,799,378	 
	 
	 	 	 
	Subtotal
	 	 	9,735,049	 
	 
	 	 	 	 
	 
	 	 	 
	Total Project Cost
	 	$	64,896,681	 
	 
	 	 	 

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

 

 

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

 

 

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

 

 

Exhibit C

Construction Advance Request Form

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

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

$                     ,

on the Advance Date that will occur on:

                    , 20                    .

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

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

	 	 	 	 	 
	(1) NAI has paid or incurred bona fide Reimbursable Construction Period
Costs other than for Work (e.g., property taxes) of no less than
	 	$	                    	 
	 
	 	 	 	 
	(2) NAI has paid or incurred bona fide Reimbursable Construction Period
Costs for Prior Work of no less than
	 	$	                    	 
	 
	 	 	 	 
	(3) NAI has received prior Construction Advances of
	 	$	                    	 

 

 

	 	 	 	 	 
	     LIMIT (1 + 2 - 3)
	 	$	                    	 

II. Projected Cost Overruns:

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

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

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

IV. Absence of Certain Work/Suspension Events:

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

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

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE,
INC., a Delaware
 corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

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

 

 

Exhibit D

Pre-lease Force Majeure Event Notice

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

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

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

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

[INSERT DESCRIPTION OF EVENT HERE]

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

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE,
INC., a Delaware
 corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

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

 

 

Exhibit E

Notice of Termination of NAI’s Work

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications

of this notice under the Construction Agreement and other Operative Documents.

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

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

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE,
INC., a Delaware 
corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit E to Amended and Restated Construction Agreement (Building 8) – Page 2

 

 

Exhibit F

Notice of NAI’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

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

 

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

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

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

 

 

ADVANCES IN THE CONSTRUCTION AGREEMENT.]

 

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

 

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

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

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

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

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

     NAI acknowledges and agrees that BNPPLC is entitled to all proceeds of the taking of
the Property and all such proceeds must be paid to BNPPLC. NAI has no right and will not assert

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

 

 

any right to share in such proceeds. NAI agrees to cooperate with BNPPLC as BNPPLC may from time
to time request in order to maximize BNPPLC’s recovery of such proceeds.]

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

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

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

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

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

     In the event BNPPLC fails to respond with an Increased Commitment, the failure may
excuse NAI from the obligation to make a 97-10/Prepayment under Paragraph 9 of the
Construction Agreement notwithstanding any Termination of NAI’s Work, which would constitute a very
material adverse consequence to BNPPLC. Moreover, the Construction Agreement grants to NAI a right
to cause a Termination of NAI’s Work at any time more than

Exhibit F to Amended and Restated Construction Agreement (Building 8) – Page 3

 

 

forty-five days after giving this
notice, provided that NAI continues to believe that a Timing or Budget Shortfall exists at that
time. Thus, if BNPPLC intends to respond with an Increased Commitment, BNPPLC would be well
advised to do so before the expiration of such forty-five day period.]

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE,
INC., a Delaware 
corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Exhibit F to Amended and Restated Construction Agreement (Building 8) – Page 4

 

 

Exhibit G

Notice of Increased Funding Commitment by BNPPLC

[Date]

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Telecopy: (919) 476-5750

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement referenced in the
Construction Agreement.

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

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

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

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING
CORPORATION, a 
Delaware corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit G to Amended and Restated Construction Agreement (Building 8) – Page 2

 

 

Exhibit H

Notice of Increased Time Commitment by BNPPLC

[Date]

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Telecopy: (919) 476-5750

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement referenced in the
Construction Agreement.

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

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

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

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BNP PARIBAS LEASING
CORPORATION, a 
Delaware corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit H to Amended and Restated Construction Agreement (Building 8) – Page 2

 

 

Exhibit I

Rescission of Notice of NAI’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

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

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
referenced in the Construction Agreement.

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

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

	 	 	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE,
INC., a Delaware 
corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

Exhibit J

Estoppel From Contractor

                    ,
200__

BNP Paribas 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 Paribas Leasing Corporation, a Delaware corporation
(“BNPPLC”), and covenants with BNPPLC 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 Building 8 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 an Amended and Restated Lease Agreement
(Building 8) and an Amended and Restated Construction Agreement (Building 8), both dated as of
November 29, 2007 (collectively, the “Building 8 Documents”), BNPPLC is leasing the Project to NAI
and has agreed, subject to the terms and conditions of the Building 8 Documents, to provide a
construction allowance for the design and construction of the Improvements. The undersigned has
also been advised that the Building 8 Documents expressly provide that third parties (including the
undersigned) are not intended as beneficiaries of the Building 8 Documents and, thus, will have no
standing to enforce any obligations of NAI or BNPPLC under the Building 8 Documents, including any
such obligation that BNPPLC may have to provide the construction allowance. The undersigned
understands that the Building 8 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 BNPPLC or to
otherwise bind BNPPLC 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.

 

 

BNP Paribas 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 BNPPLC, not
to NAI. BNPPLC shall not, however, be liable for, and the undersigned shall not assert, any claims,
demands or liabilities against BNPPLC 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 BNPPLC under the Construction
Contract if BNPPLC 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 BNPPLC 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 BNPPLC 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
Building 8 Documents, including any eviction of NAI resulting from an Event of Default (as defined
in the Building 8 Documents), BNPPLC 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 BNPPLC that NAI’s right to possession has been terminated, the undersigned shall send
to BNPPLC 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

Exhibit J to Amended and Restated Construction Agreement (Building 8) – Page 2

 

 

BNP Paribas Leasing Corporation

                    ,
200___

Page 3

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 BNPPLC may request to allow it to decide
whether to assume the Construction Contract. BNPPLC shall have seven days from receipt of such
written certificate containing all such requested information to decide whether to assume the
Construction Contract. If BNPPLC fails to assume the Construction Contract within such time, the
undersigned agrees that BNPPLC shall not be liable (and the undersigned shall not assert or bring
any action against BNPPLC, 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 BNPPLC notifies the undersigned that BNPPLC 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 Building 8 Documents, the undersigned shall immediately discontinue the work
under the Construction Contract and remove its personnel from the Project, and BNPPLC shall be
entitled to take exclusive possession of the Project. The undersigned shall also, upon request by
BNPPLC, deliver and assign to BNPPLC 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 BNPPLC 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
BNPPLC that BNPPLC 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 BNPPLC’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 BNPPLC is given the
opportunity to elect whether or not to assume the Construction Contract as provided herein, BNPPLC
shall nonetheless have the right hereunder to assume the Construction Contract, as if it

Exhibit J to Amended and Restated Construction Agreement (Building 8) – Page 3

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 4

had not
been terminated, upon any termination of NAI’s right to possession of the Project under the
Building 8 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 BNPPLC, for the additional costs
incurred by the undersigned attributable to the disruption; and, provided further, that if BNPPLC
does assume the Construction Contract, BNPPLC 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).

     e) No action taken by BNPPLC or the undersigned with respect to the Construction Contract
shall prejudice any other rights or remedies of BNPPLC or the undersigned provided by law, by the
Building 8 Documents, by the Construction Contract or otherwise against NAI.

     f) The undersigned agrees promptly to notify BNPPLC 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 BNPPLC 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 BNPPLC 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 BNPPLC 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 BNPPLC will include the time necessary to terminate NAI’s right to
possession of the Project and evict NAI, provided that BNPPLC commences the steps required to
exercise such right within sixty days after it is entitled to do so under the terms of the
Building 8 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

Exhibit J to Amended and Restated Construction Agreement (Building 8) – Page 4

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 5

telecopy, addressed as follows:

	 	 	 	 	 
	To the undersigned:
	 	 	 	 
	 

	 	 	 	 
	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Telecopy: (___) ______-_________	 	 
	 
	 	 	 	 
	To BNPPLC:

	 	BNP Paribas 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:

	 	 	 
	Address of NAI:

	 	Network Appliance, Inc.
	 

	 	7301 Kit Creek Road
	 

	 	Research Triangle Park, NC 27709
	 

	 	Attention: Ingemar Lanevi
	 

	 	Telecopy: (919) 476-5750
	 
	With a copy to:

	 	Network Appliance, Inc.
	 

	 	495 East Java Drive

Sunnyvale, California 94089

Attention: Mr. Thom Bryant

Telecopy: (408)-822-4463

     h) The undersigned acknowledges that it has all requisite authority to execute this letter.
The undersigned further acknowledges that BNPPLC has requested this letter, and is relying on the
truth and accuracy of the representations made herein, in connection with BNPPLC’s decision to
advance funds for construction under the Building 8 Documents with NAI.

Exhibit J to Amended and Restated Construction Agreement (Building 8) – Page 5

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 6

	 	 	 	 	 	 	 	 	 
	 	 	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, BNPPLC to assume
the Construction Contract in the event NAI is evicted from the Project.

	 	 	 	 	 	 	 	 	 
	 	 	Network Appliance, Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit J to Amended and Restated Construction Agreement (Building 8) – Page 6

 

 

Exhibit K

Estoppel From Design Professionals

                    , 200___

BNP Paribas 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 Paribas Leasing Corporation, a Delaware corporation
(“BNPPLC”), and covenants with BNPPLC 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 Building 8 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 an Amended and Restated Lease Agreement
(Building 8) and an Amended and Restated Construction Agreement (Building 8), both dated as of
November 29, 2007 (collectively, the “Building 8 Documents”), BNPPLC is leasing the Project to NAI
and has agreed, subject to the terms and conditions of the Building 8 Documents, to provide a
construction allowance for the design and construction of the Improvements. The undersigned has
also been advised that the Building 8 Documents expressly provide that third parties (including the
undersigned) are not intended as beneficiaries of the Building 8 Documents and, thus, will have no
standing to enforce any obligations of NAI or BNPPLC under the Building 8 Documents, including any
such obligation that BNPPLC may have to provide the construction allowance. The undersigned
understands that the Building 8 Documents expressly provide that NAI is not authorized to enter
into any Agreement or other agreement with any third party in the name of BNPPLC or to otherwise
bind BNPPLC 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.

 

 

BNP Paribas 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 Agreement, 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 Agreement.

     The undersigned acknowledges and agrees that:

     a) BNPPLC shall not be liable for, and the undersigned shall not assert, any claims, demands
or liabilities against BNPPLC 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 BNPPLC under the Agreement if BNPPLC 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 BNPPLC 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 BNPPLC 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
Building 8 Documents, including any eviction of NAI resulting from an Event of Default (as defined
in the Building 8 Documents), BNPPLC 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 BNPPLC that
NAI’s right to possession has been terminated, the undersigned shall send to BNPPLC 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

Exhibit K to Amended and Restated Construction Agreement (Building 8) – Page 2

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 3

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 BNPPLC may request to allow it to decide whether
to assume the Agreement. BNPPLC shall have seven days from receipt of such written certificate
containing all such requested information to decide whether to assume the Agreement. If BNPPLC
fails to assume the Agreement within such time, the undersigned agrees that BNPPLC shall not be
liable (and the undersigned shall not assert or bring any action against BNPPLC or, 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 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 BNPPLC notifies the undersigned that BNPPLC shall not assume the Agreement pursuant to
the preceding paragraph following the termination of NAI’s right to possession of the Project under
the Building 8 Documents, the undersigned shall immediately deliver and assign to BNPPLC 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 BNPPLC that BNPPLC 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 BNPPLC’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 BNPPLC is given the opportunity to
elect whether or not to assume the Agreement as provided herein, BNPPLC 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 Building 8 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

Exhibit K to Amended and Restated Construction Agreement (Building 8) – Page 3

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 4

equitable adjustment to the price of the
Agreement, following any assumption thereof by BNPPLC, for the additional costs incurred by the
undersigned attributable to the disruption; and, provided further, that if BNPPLC does assume the
Agreement, BNPPLC 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 BNPPLC or the undersigned with respect to the Agreement shall prejudice
any other rights or remedies of BNPPLC or the undersigned provided by law, by the Building 8
Documents, by the Agreement or otherwise against NAI.

     f) The undersigned agrees promptly to notify BNPPLC 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 BNPPLC prominently marked “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 BNPPLC 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 BNPPLC 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: (___) _______-______
 	 	 

Exhibit K to Amended and Restated Construction Agreement (Building 8) – Page 4

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 5

	 	 	 
	To BNPPLC:
	 	BNP Paribas 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:

	 	 	 
	Address of NAI:
	 	Network Appliance, Inc.

	 	 	7301 Kit Creek Road

	 	 	Research Triangle Park, NC 27709

	 	 	Attention: Ingemar Lanevi

	 	 	Telecopy: (919) 476-5750

	 
	With a copy to:
	 	Network Appliance, Inc.

	 	 	495 East Java Drive

	 	 	Sunnyvale, California 94089

	 	 	Attention: Mr. Thom Bryant

	 	 	Telecopy: (408)-822-4463

     h) The undersigned acknowledges that it has all requisite authority to execute this letter.
The undersigned further acknowledges that BNPPLC has requested this letter, and is relying on the
truth and accuracy of the representations made herein, in connection with BNPPLC’s decision to
advance funds for design services under the Building 8 Documents with NAI.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit K to Amended and Restated Construction Agreement (Building 8) – Page 5

 

 

BNP Paribas Leasing Corporation

                    , 200___

Page 6

     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, BNPPLC to assume
the Agreement in the event NAI is evicted from the Project.

	 	 	 	 	 	 	 	 	 
	 	 	Network Appliance, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

Exhibit K to Amended and Restated Construction Agreement (Building 8) – Page 6

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