Document:

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                                                                   EXHIBIT 10.53

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                               PURCHASE AGREEMENT
                            (PHASE IV - IMPROVEMENTS)

                                     BETWEEN

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                                       AND

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                               DECEMBER ___, 1999

                             (SUNNYVALE, CALIFORNIA)

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                                TABLE OF CONTENTS

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1.  NAI'S OPTIONS AND OBLIGATIONS ON THE DESIGNATED SALE DATE.................................1
    (A)  Right to Purchase; Right and Obligation to Remarket..................................1
    (B)  Determinations Concerning Price......................................................2
    (C)  Designation of the Purchaser.........................................................3
    (D)  Effect of the Purchase Option and NAI's Initial Remarketing Rights and
         Obligations on Subsequent Title Encumbrances.........................................4
    (E)  Security for the Purchase Option and NAI's Initial Remarketing Rights and
         Obligations..........................................................................4
    (F)  Delivery of Books and Records If BNPLC Retains the Property..........................4

2.  NAI'S RIGHTS AND OPTIONS AFTER THE DESIGNATED SALE DATE...................................4
    (A)  NAI's Extended Right to Remarket.....................................................4
    (B)  Definition of Minimum Extended Remarketing Price.....................................5
    (C)  BNPLC's Right to Sell................................................................6
    (D)  NAI's Right to Excess Sales Proceeds.................................................6
    (E)  Permitted Transfers During NAI's Extended Remarketing Period.........................6
3.  TERMS OF CONVEYANCE UPON PURCHASE                                                         6
4.  SURVIVAL AND TERMINATION OF THE RIGHTS AND OBLIGATIONS OF NAI AND BNPLC                   7
    (A)  Status of this Agreement Generally...................................................7
    (B)  [Intentionally deleted.].............................................................8
    (C)  [Intentionally deleted.].............................................................8
    (D)  Automatic Termination of NAI's Rights................................................8
    (E)  Termination of NAI's Extended Remarketing Rights to Permit a Sale by BNPLC...........8
    (F)  Payment Only to BNPLC................................................................8
    (G)  Remedies Under the Other Operative Documents.........................................8
    (H)  Occupancy by NAI Prior to Closing of a Sale..........................................8
5.  SECURITY FOR NAI'S OBLIGATIONS; RETURN OF FUNDS.......................................... 8
6.  CERTAIN REMEDIES CUMULATIVE.............................................................. 9
7.  ATTORNEYS' FEES AND LEGAL EXPENSES....................................................... 9
8.  ESTOPPEL CERTIFICATE..................................................................... 9
9.  SUCCESSORS AND ASSIGNS................................................................... 9
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                             Exhibits and Schedules

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

Exhibit B...........................................Grant Deed Form Requirements

Exhibit C............................................Bill of Sale and Assignment

Exhibit D..........................................Acknowledgment and Disclaimer

Exhibit E................................................Secretary's Certificate

Exhibit F.................................Certificate Concerning Tax Withholding

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                               PURCHASE AGREEMENT
                            (PHASE IV - IMPROVEMENTS)

         This PURCHASE AGREEMENT (PHASE IV - IMPROVEMENTS) (this "AGREEMENT"),
by and between BNP LEASING CORPORATION, a Delaware corporation ("BNPLC"), and
NETWORK APPLIANCE, INC., a California corporation ("NAI"), is made and dated as
of December ___, 1999, the Effective Date. ("EFFECTIVE DATE" and other
capitalized terms used and not otherwise defined in this Agreement are intended
to have the meanings assigned to them in the Common Definitions and Provisions
Agreement (Phase IV - Improvements) executed by BNPLC and NAI contemporaneously
with this Agreement. By this reference, the Common Definitions and Provisions
Agreement (Phase IV - Improvements) is incorporated into and made a part of this
Agreement for all purposes.)

                                    RECITALS

         Pursuant to the Existing Contract, which covers the Land described in
Exhibit A, BNPLC is acquiring the Land and any appurtenances thereto and the
existing Improvements thereon from Seller contemporaneously with the execution
of this Agreement. Pursuant to the Lease Agreement (Phase IV - Improvements)
executed by BNPLC and NAI contemporaneously with this Agreement (the
"IMPROVEMENTS LEASE"), BNPLC is leasing the Improvements to NAI. (All of BNPLC's
interests, including those created by the documents delivered at the closing
under the Existing Contracts, in the Improvements and in all other real and
personal property from time to time covered by the Improvements Lease and
included within the "Property" as defined therein are hereinafter collectively
referred to as the "PROPERTY". The Property does not include the fee estate in
the Land itself, it being understood that the Other Purchase Agreement
constitutes a separate agreement providing for the possible sale of the Land and
the appurtenances thereto, and only the Land and the appurtenances thereto, from
BNPLC to NAI or a third party designated by NAI.)

         NAI and BNPLC have reached agreement upon the terms and conditions upon
which NAI will purchase or arrange for the purchase of the Property, and by this
Agreement they desire to evidence such agreement.

                                   AGREEMENTS

         1. NAI'S OPTIONS AND OBLIGATIONS ON THE DESIGNATED SALE DATE.

                  (A) Right to Purchase; Right and Obligation to Remarket.
Whether or not an Event of Default shall have occurred and be continuing or the
Improvements Lease shall have been terminated, but subject to Paragraph 4 below:

                           (1) NAI shall have the right (the "PURCHASE OPTION")
         to purchase or cause an Affiliate of NAI to purchase the Property and
         BNPLC's interest in Escrowed Proceeds, if any, on the Designated Sale
         Date for a cash price equal to the Break Even Price (as defined below).

                           (2) If neither NAI nor an Affiliate of NAI purchases
         the Property and BNPLC's interest in any Escrowed Proceeds on the
         Designated Sale Date as provided in the preceding subparagraph 1(A)(1),
         then NAI shall have the following rights and obligations (collectively,
         "NAI'S INITIAL REMARKETING RIGHTS AND OBLIGATIONS"):

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                                    (a) First, NAI shall have the right (but not
                  the obligation) to cause an Applicable Purchaser who is not an
                  Affiliate of NAI to purchase the Property and BNPLC's interest
                  in any Escrowed Proceeds on the Designated Sale Date for a
                  cash purchase price (the "THIRD PARTY PRICE") determined as
                  provided below. If, however, the Break Even Price exceeds the
                  sum of any Third Party Price tendered or to be tendered to
                  BNPLC by an Applicable Purchaser and any Supplemental Payment
                  paid by NAI as described below, then BNPLC may affirmatively
                  elect to decline such tender from the Applicable Purchaser and
                  to keep the Property and any Escrowed Proceeds rather than
                  sell to the Applicable Purchaser pursuant to this subparagraph
                  (a "VOLUNTARY RETENTION OF THE PROPERTY").

                                    (b) Second, if the Third Party Price
                  actually paid by an Applicable Purchaser to BNPLC on the
                  Designated Sale Date exceeds the Break Even Price, NAI shall
                  be entitled to such excess, subject, however, to BNPLC's right
                  to offset against such excess any and all sums that are then
                  due from NAI to BNPLC under the other Operative Documents.

                                    (c) Third, if for any reason whatsoever
                  (including a Voluntary Retention of the Property or a decision
                  by NAI not to exercise its right to purchase or cause an
                  Applicable Purchaser to purchase from BNPLC as described
                  above) neither NAI nor an Applicable Purchaser pays a net cash
                  price to BNPLC on the Designated Sale Date equal to or in
                  excess of the Break Even Price in connection with a sale of
                  the Property and BNPLC's interest in any Escrowed Proceeds
                  pursuant to this Agreement, then NAI shall have the obligation
                  to pay to BNPLC on the Designated Sale Date a supplemental
                  payment (the "SUPPLEMENTAL PAYMENT") equal to the lesser of
                  (1) the amount by which the Break Even Price exceeds such net
                  cash price (if any) actually received by BNPLC on the
                  Designated Sale Date (such excess being hereinafter called a
                  "DEFICIENCY") or (2) the Maximum Remarketing Obligation. As
                  used herein, the "MAXIMUM REMARKETING OBLIGATION" means a
                  dollar amount determined in accordance with the following
                  provisions:

                                            (1) The "MAXIMUM REMARKETING
                           OBLIGATION" will equal the product of (i) Stipulated
                           Loss Value on the Designated Sale Date, times (ii)
                           100% minus the Residual Risk Percentage, provided
                           that both of the following conditions are satisfied:

                                                     (x) NAI shall not have
                                    elected to accelerate the Designated Sale
                                    Date as provided in clause (2) of the
                                    definition of Designated Sale Date in the
                                    Common Definitions and Provisions Agreement
                                    (Phase IV - Improvements).

                                                     (y) No Event of Default,
                                    other than an Issue 97-1
                                    Non-performance-related Subjective Event of
                                    Default, shall occur on or be continuing on
                                    the Designated Sale Date.

                                            (2) If either of the conditions
                           listed in subparagraph 1) preceding are not
                           satisfied, the "MAXIMUM REMARKETING OBLIGATION" will
                           equal the Break Even Price.

If any Supplemental Payment or other amount payable to BNPLC pursuant to this
subparagraph 1(A) is not actually paid to BNPLC on the Designated Sale Date, NAI
shall pay interest on the past due amount computed at the Default Rate from the
Designated Sale Date.

                  (B) Determinations Concerning Price.

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                           (1) Determination of the Break Even Price. As used
         herein, "BREAK EVEN PRICE" means an amount equal, on the Designated
         Sale Date, to Stipulated Loss Value, plus all out-of-pocket costs and
         expenses (including appraisal costs, withholding taxes (if any) not
         constituting Excluded Taxes, and Attorneys' Fees) incurred by BNPLC in
         connection with any sale of BNPLC's interests in the Property under
         this Agreement or in connection with collecting payments due hereunder,
         but less the aggregate amounts (if any) of Direct Payments to
         Participants and Deposit Taker Losses.

                           (2) Determination of Third Party Price. The Third
         Party Price required of any Applicable Purchaser purchasing from BNPLC
         under subparagraph 1(A)(2)(a) will be determined as follows:

                           (a) NAI may give a notice (a "REMARKETING NOTICE") to
                  BNPLC and to each of the Participants no earlier than one
                  hundred twenty days before the Designated Sale Date and no
                  later than ninety days before the Designated Sale Date,
                  specifying an amount as the Third Party Price that NAI
                  believes in good faith to constitute reasonably equivalent
                  value for the Property and any Escrowed Proceeds. Once given,
                  a Remarketing Notice shall not be rescinded or modified
                  without BNPLC's written consent.

                           (b) If BNPLC believes in good faith that the Third
                  Party Price specified by NAI in a Remarketing Notice does not
                  constitute reasonably equivalent value for the Property and
                  any Escrowed Proceeds, BNPLC may at any time before sixty days
                  prior to the Designated Sale Date respond to the Remarketing
                  Notice with a notice back to NAI, objecting to the Third Party
                  Price so specified by NAI. If BNPLC receives a Remarketing
                  Notice, yet does not respond with an objection as provided in
                  the preceding sentence, the Third Party Price suggested by NAI
                  in the Remarketing Notice will be the Third Party Price for
                  purposes of this Agreement. If, however, BNPLC does respond
                  with an objection as provided in this subparagraph, and if NAI
                  and BNPLC do not otherwise agree in writing upon a Third Party
                  Price, then the Third Party Price will be the lesser of (I)
                  fair market value of the Property, plus the amount of any
                  Escrowed Proceeds, as determined by a professional independent
                  appraiser satisfactory to BNPLC, or (II) the Break Even Price.

                           (c) If for any reason, including an acceleration of
                  the Designated Sale Date as provided in the definition thereof
                  in the Common Definitions and Provisions Agreement (Phase IV -
                  Improvements), NAI does not deliver a Remarketing Notice to
                  BNPLC within the time period specified above, then the Third
                  Party Price will be an amount determined in good faith by
                  BNPLC as constituting reasonably equivalent value for the
                  Property and any Escrowed Proceeds, but in no event more than
                  the Break Even Price.

         If any payment to BNPLC by an Applicable Purchaser hereunder is held to
         constitute a preference or a voidable transfer under Applicable Law, or
         must for any other reason be refunded by BNPLC to the Applicable
         Purchaser or to another Person, and if such payment to BNPLC reduced or
         had the effect of reducing a Supplemental Payment or increased or had
         the effect of increasing any excess sale proceeds paid to NAI pursuant
         to subparagraph 1(A)(2)(b) or pursuant to subparagraph 2(D), then NAI
         shall pay to BNPLC upon demand an amount equal to the reduction of the
         Supplemental Payment or to the increase of the excess sale proceeds
         paid to NAI, as applicable, and this Agreement shall continue to be
         effective or shall be reinstated as necessary to permit BNPLC to
         enforce its right to collect such amount from NAI.

                  (C) Designation of the Purchaser. To give BNPLC the
opportunity before the Designated Sale Date to prepare the deed and other
documents that BNPLC must tender pursuant to Paragraph 3 (collectively, the

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"SALE CLOSING DOCUMENTS"), NAI must, by a notice to BNPLC given at least seven
days prior to the Designated Sale Date, specify irrevocably, unequivocally and
with particularity the party who will purchase the Property in order to satisfy
the obligations of NAI set forth in subparagraph 1(A). If for any reason NAI
fails to so specify a party who will in accordance with the terms and conditions
set forth herein purchase the Property (be it NAI itself, an Affiliate of NAI or
another Applicable Purchaser), BNPLC shall be entitled to postpone the tender of
the Sale Closing Documents until a date after the Designated Sale Date and not
more than twenty days after NAI finally does so specify a party, but such
postponement will not relieve or postpone the obligation of NAI to make a
Supplemental Payment on the Designated Sale Date as provided in Paragraph
1(A)(2)(c).

                  (D) Effect of the Purchase Option and NAI's Initial
Remarketing Rights and Obligations on Subsequent Title Encumbrances. Any
conveyance of the Property to NAI or any Applicable Purchaser pursuant to this
Paragraph 1(A) shall cut off and terminate any interest in the Improvements or
other Property claimed by, through or under BNPLC, including any interest
claimed by the Participants and including any Liens Removable by BNPLC (such as,
but not limited to, any judgment liens established against the Property because
of a judgment rendered against BNPLC and any leasehold or other interests
conveyed by BNPLC in the ordinary course of BNPLC's business), but not including
personal obligations of NAI to BNPLC under the Improvements Lease or other
Operative Documents (including obligations arising under the indemnities
therein). Anyone accepting or taking any interest in the Property by or through
BNPLC after the date of this Agreement shall acquire such interest subject to
the Purchase Option and NAI's Initial Remarketing Rights and Obligations.
Further, NAI and any Applicable Purchaser shall be entitled to pay any payment
required by this Agreement for the purchase of the Property directly to BNPLC
notwithstanding any prior conveyance or assignment by BNPLC, voluntary or
otherwise, of any right or interest in this Agreement or the Property, and
neither NAI nor any Applicable Purchaser shall be responsible for the proper
distribution or application of any such payments by BNPLC; and any such payment
to BNPLC shall discharge the obligation of NAI to cause such payment to all
Persons claiming an interest in such payment. Contemporaneously with the
execution of this Agreement, the parties shall record a memorandum of this
Agreement for purposes of effecting constructive notice to all Persons of NAI's
rights under this Agreement, including its rights under this subparagraph.

                  (E) Security for the Purchase Option and NAI's Initial
Remarketing Rights and Obligations. To secure BNPLC's obligation to sell the
Property pursuant to this Paragraph 1(A) and to pay any damages to NAI caused by
a breach of such obligations, including any such breach caused by a rejection or
termination of this Agreement in any bankruptcy or insolvency proceeding
instituted by or against BNPLC, as debtor, BNPLC does hereby grant to NAI a lien
and security interest against all rights, title and interests of BNPLC from time
to time in and to the Improvements and other Property. NAI may enforce such lien
and security interest judicially after any such breach by BNPLC, but not
otherwise. Contemporaneously with the execution of this Agreement, NAI and BNPLC
will execute a memorandum of this Agreement which is in recordable form and
which specifically references the lien granted in this subparagraph, and NAI
shall be entitled to record such memorandum at any time prior to the Designated
Sale Date.

                  (F) Delivery of Books and Records If BNPLC Retains the
Property. Unless NAI or its Affiliate or another Applicable Purchaser purchases
the Property pursuant to Paragraph 1(A), promptly after the Designated Sale Date
NAI shall deliver to BNPLC copies of books and records of NAI which will be
necessary or useful to any future owner's or occupant's use of the Property in
the manner permitted by the Improvements Lease.

         2. NAI'S RIGHTS AND OPTIONS AFTER THE DESIGNATED SALE DATE.

                  (A) NAI's Extended Right to Remarket. During the two years
following the Designated Sale Date ("NAI'S EXTENDED REMARKETING PERIOD"), NAI
shall have the right ("NAI'S EXTENDED REMARKETING RIGHT") to cause an Applicable
Purchaser who is not an Affiliate of NAI to purchase the Property for a cash

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purchase price not below the lesser of (I) the Minimum Extended Remarketing
Price (as defined below), or (II) if applicable, the Third Party Target Price
(as defined below) specified in any Third Party Sale Notice (as defined below)
given by BNPLC pursuant to subparagraph 2(C)(2) within the ninety days prior to
the date (the "FINAL SALE DATE") upon which BNPLC receives such purchase price
from the Applicable Purchaser. NAI's Extended Remarketing Right shall, however,
be subject to all of the following conditions:

                           (1) The Property and BNPLC's interest in Escrowed
         Proceeds, if any, shall not have been sold on the Designated Sale Date
         as provided in Paragraph 1.

                           (2) No Voluntary Retention of the Property shall have
         occurred as described in subparagraph 1(A)(2)(a).

                           (3) NAI's Extended Remarketing Right shall not have
         been terminated pursuant to subparagraph 4(D) below because of NAI's
         failure to make any Supplemental Payment required on the Designated
         Sale Date.

                           (4) NAI's Extended Remarketing Right shall not have
         been terminated by BNPLC pursuant to subparagraph 4(E) below to
         facilitate BNPLC's sale of the Property to a third party in accordance
         with subparagraph 2(C).

                           (5) At least thirty days prior to the Final Sale
         Date, NAI shall have notified BNPLC of (x) the date proposed by NAI as
         the Final Sale Date (which must be a Business Day), (y) the full legal
         name of the Applicable Purchaser and such other information as will be
         required to prepare the Sale Closing Documents, and (z) the amount of
         the purchase price that the Applicable Purchaser will pay (consistent
         with the minimum required pursuant to the other provisions of this
         subparagraph 2(A)) for the Property.

                  (B) Definition of Minimum Extended Remarketing Price. As used
herein, "MINIMUM EXTENDED REMARKETING PRICE" means an amount equal to the sum of
the following:

                           (1) the amount by which the Break Even Price computed
         on the Designated Sale Date exceeds any Supplemental Payment actually
         paid to BNPLC on the Designated Sale Date, together with interest on
         such excess computed at the Default Rate from the period commencing on
         the Designated Sale Date and ending on the Final Sale Date, plus

                           (2) all out-of-pocket costs and expenses (including
         withholding taxes [if any], other than Excluded Taxes, and Attorneys'
         Fees) incurred by BNPLC in connection with the sale to the Applicable
         Purchaser, to the extent not already included in the computation of
         Break Even Price, and plus

                           (3) the sum of all Impositions, insurance premiums
         and other Losses of every kind suffered or incurred by BNPLC or any
         other Interested Party with respect to the ownership, operation or
         maintenance of the Property on or after the Designated Sale Date
         (except to the extent already reimbursed by any lessee of the Property
         after the Designated Sale Date), together with interest on such
         Impositions, insurance premiums and other Losses computed at the
         Default Rate from the date paid or incurred to the Final Sale Date.

If, however, Losses described in the preceding clause (3) consist of claims
against BNPLC or another Interested Party that have not been liquidated prior to
the Final Sale Date (and, thus, such Losses have yet to be fixed in amount as of
the Final Sale Date), then NAI may elect to exclude any such Losses from the
computation of the Minimum Extended Remarketing Price by providing to BNPLC, for
the benefit of BNPLC and other Interested

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Parties, a written agreement to indemnify and defend BNPLC and other Interested
Parties against such Losses. To be effective hereunder for purposes of reducing
the Minimum Extended Remarketing Price (and, thus, the Break Even Price), any
such written indemnity must be fully executed and delivered by NAI on or prior
to the Final Sale Date, must include provisions comparable to subparagraphs
5(c)(ii), (iii), (iv) and (v) of the Improvements Lease and otherwise must be in
form and substance satisfactory to BNPLC.

                  (C) BNPLC's Right to Sell. After the Designated Sale Date, if
the Property has not already been sold by BNPLC pursuant to Paragraph 1 or this
Paragraph 2, BNPLC shall have the right to sell the Property or offer the
Property for sale to any third party on any terms believed to be appropriate by
BNPLC in its sole good faith business judgment; provided, however, that so long
as the conditions to NAI's Extended Remarketing Rights specified in subparagraph
2(A) continue to be satisfied:

                           (1) BNPLC shall not sell the Property to an Affiliate
         of BNPLC on terms less favorable than those which BNPLC would require
         from a prospective purchaser not an Affiliate of BNPLC;

                           (2) If BNPLC receives or desires to make a written
         proposal (whether in the form of a "letter of intent" or other
         nonbinding expression of interest or in the form of a more definitive
         purchase and sale agreement) for a sale of the Property to a
         prospective purchaser (a "THIRD PARTY SALE PROPOSAL"), and if on the
         basis of such Third Party Sale Proposal BNPLC expects to enter into or
         to pursue negotiations for a definitive purchase and sale agreement
         with the prospective purchaser, then prior to executing any such
         definitive agreement, BNPLC shall submit the Third Party Sale Proposal
         to NAI with a notice (the "THIRD PARTY SALE NOTICE") explaining that
         (A) BNPLC is then prepared to accept a price not below an amount
         specified in such Third Party Sale Notice (the "THIRD PARTY TARGET
         PRICE") if BNPLC and the prospective purchaser reach agreement on other
         terms and conditions to be incorporated into a definitive purchase and
         sale agreement, and (B) NAI's Extended Remarketing Right may be
         terminated pursuant to subparagraph 4(E) of this Agreement unless NAI
         causes an Applicable Purchaser to consummate a purchase of the Property
         pursuant to this Paragraph 2 within ninety days after the date of such
         Third Party Sale Notice.

                  (D) NAI's Right to Excess Sales Proceeds. If the cash price
actually paid by any third party purchasing the Property from BNPLC during NAI's
Extended Remarketing Period, including any price paid by an Applicable Purchaser
purchasing from BNPLC pursuant to this Paragraph 2, exceeds the Minimum Extended
Remarketing Price, then NAI shall be entitled to the excess; provided, that
BNPLC may offset and retain from the excess any and all sums that are then due
and unpaid from NAI to BNPLC under any of the Operative Documents.

                  (E) Permitted Transfers During NAI's Extended Remarketing
Period. Any "Permitted Transfer" described in clause (6) of the definition
thereof in the Common Definitions and Provisions Agreement (Phase IV -
Improvements) to an Affiliate of BNPLC or that covers BNPLC's entire interest in
the Improvements will be subject to NAI's Extended Remarketing Right if, at the
time of the Permitted Transfer, NAI's Extended Remarketing Right has not expired
or been terminated as provided herein. Any other Permitted Transfer described in
clause (6) of the definition thereof, however, will not be subject to NAI's
Extended Remarketing Right. Thus, for example, BNPLC's conveyance of a utility
easement or space lease more than thirty days after the Designated Sale Date to
a Person not an Affiliate of BNPLC shall not be subject to NAI's Extended
Remarketing Right, though following the conveyance of the lesser estate, NAI's
Extended Remarketing Right may continue to apply to BNPLC's remaining interest
in the Improvements and any Personal Property.

         3. TERMS OF CONVEYANCE UPON PURCHASE. As necessary to consummate any
sale of the Property to NAI or an Applicable Purchaser pursuant to this
Agreement, BNPLC must, subject to any

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postponement permitted by subparagraph 1(C), promptly after the tender of the
purchase price and any other payments to BNPLC required pursuant to Paragraph 1
or Paragraph 2, as applicable, convey all of BNPLC's right, title and interest
in the Improvements and other Property to NAI or the Applicable Purchaser, as
the case may be, by BNPLC's execution, acknowledgment (where appropriate) and
delivery of the Sale Closing Documents. Such conveyance by BNPLC will be subject
only to the Permitted Encumbrances and any other encumbrances that do not
constitute Liens Removable by BNPLC. However, such conveyance shall not include
the rights of BNPLC or other Interested Parties under the indemnities provided
in the Operative Documents, including rights to any payments then due from NAI
under the indemnities or that may become due thereafter because of any expense
or liability incurred by BNPLC or another Interested Party resulting in whole or
in part from events or circumstances occurring or alleged to have occurred
before such conveyance. All costs, both foreseen and unforeseen, of any purchase
by NAI or an Applicable Purchaser hereunder shall be the responsibility of the
purchaser. The Sale Closing Documents used to accomplish such conveyance shall
consist of the following: (1) a Corporation Grant Deed in the form attached as
Exhibit B-1 or Exhibit B-2 or Exhibit B-3, as required by Exhibit B, (2) a Bill
of Sale and Assignment in the form attached as Exhibit C, (3) an Acknowledgment
of Disclaimer of Representations and Warranties, in the form attached as Exhibit
D, which NAI or the Applicable Purchaser must execute and return to BNPLC, (4) a
Secretary's Certificate in the form attached as Exhibit E, and (5) a certificate
concerning tax withholding in the form attached as Exhibit F. If for any reason
BNPLC fails to tender the Sale Closing Documents as required by this Paragraph
3, BNPLC may cure such refusal at any time before thirty days after receipt of a
demand for such cure from NAI.

         4. SURVIVAL AND TERMINATION OF THE RIGHTS AND OBLIGATIONS OF NAI AND
BNPLC.

                  (A) Status of this Agreement Generally. Except as expressly
provided herein, this Agreement shall not terminate; nor shall NAI have any
right to terminate this Agreement; nor shall NAI be entitled to any reduction of
the Break Even Price, any Deficiency, the Maximum Remarketing Obligation, any
Supplemental Payment or the Minimum Extended Remarketing Price hereunder; nor
shall the obligations of NAI to BNPLC under Paragraph 1 be affected, by reason
of (i) any damage to or the destruction of all or any part of the Property from
whatever cause (though it is understood that NAI will receive any remaining
Escrowed Proceeds yet to be applied as provided in the Improvements Lease that
may result from such damage if NAI purchases the Property and the Escrowed
Proceeds as herein provided), (ii) the taking of or damage to the Property or
any portion thereof by eminent domain or otherwise for any reason (though it is
understood that NAI will receive any remaining Escrowed Proceeds yet to be
applied as provided in the Improvements Lease that may result from such taking
or damage if NAI purchases the Property and the Escrowed Proceeds as herein
provided), (iii) the prohibition, limitation or restriction of NAI's use of all
or any portion of the Property or any interference with such use by governmental
action or otherwise, (iv) any eviction of NAI or any party claiming under NAI by
paramount title or otherwise, (v) NAI's prior acquisition or ownership of any
interest in the Property, (vi) any default on the part of BNPLC under this
Agreement, the Improvements Lease or any other agreement to which BNPLC is a
party, or (vii) any other cause, whether similar or dissimilar to the foregoing,
any existing or future law to the contrary notwithstanding. It is the intention
of the parties hereto that the obligations of NAI to make payment to BNPLC
hereunder shall be separate and independent covenants and agreements from
BNPLC's obligations under this Agreement or any other agreement between BNPLC
and NAI; provided, however, that nothing in this subparagraph shall excuse BNPLC
from its obligation to tender the Sale Closing Documents in substantially the
form attached hereto as exhibits when required by Paragraph 3. Further, nothing
in this subparagraph shall be construed as a waiver by NAI of any right NAI may
have at law or in equity to the following remedies, whether because of BNPLC's
failure to remove a Lien Removable by BNPLC or because of any other default by
BNPLC under this Agreement: (i) the recovery of monetary damages, (ii)
injunctive relief in case of the violation, or attempted or threatened
violation, by BNPLC of any of the express covenants, agreements, conditions or
provisions of this Agreement which are binding upon BNPLC, or (iii) a decree
compelling performance by BNPLC of any of the express covenants, agreements,
conditions or provisions of this Agreement which are binding upon BNPLC.

                                        7
<PAGE>   11

                  (B) [Intentionally deleted.]

                  (C) [Intentionally deleted.]

                  (D) Automatic Termination of NAI's Rights. Without limiting
BNPLC's right to enforce NAI's obligation to pay any Supplemental Payment or
other amounts required by this Agreement, the rights of NAI (to be distinguished
from the obligations of NAI) included in NAI's Initial Remarketing Rights and
Obligations, the Purchase Option and NAI's Extended Remarketing Rights shall all
terminate automatically if NAI shall fail to pay the full amount of any
Supplemental Payment required by subparagraph 1(A)(2)(c) on the Designated Sale
Date or if BNPLC shall elect a Voluntary Retention of the Property as provided
in subparagraph 1(A)(2)(a). However, notwithstanding anything in this
subparagraph to the contrary, even after a failure to pay any required
Supplemental Payment on the Designated Sale Date, NAI may nonetheless tender to
BNPLC the full Break Even Price and all amounts then due under the Operative
Documents, together with interest on the total Break Even Price computed at the
Default Rate from the Designated Sale Date to the date of tender, on any
Business Day within thirty days after the Designated Sale Date, and if presented
with such a tender within thirty days after the Designated Sale Date, BNPLC must
accept it and promptly thereafter deliver any Escrowed Proceeds and the Sale
Closing Documents listed in Paragraph 3 to NAI.

                  (E) Termination of NAI's Extended Remarketing Rights to Permit
a Sale by BNPLC. At any time more than ninety days after BNPLC has delivered a
Third Party Sale Notice to NAI as described in subparagraph 2(C)(2), BNPLC may
terminate NAI's Extended Remarketing Rights contemporaneously with the
consummation of a sale of the Property by BNPLC to any third party (be it the
prospective purchaser named in the Third Party Sale Notice or another third
party) at a price equal to or in excess of the Third Party Target Price
specified in the Third Party Sale Notice, so as to permit the sale of the
Property unencumbered by NAI's Extended Remarketing Rights.

                  (F) Payment Only to BNPLC. All amounts payable under this
Agreement by NAI and, if applicable, by an Applicable Purchaser must be paid
directly to BNPLC, and no payment to any other party shall be effective for the
purposes of this Agreement. In addition to the payments required under
subparagraph 1(A), on the Designated Sale Date NAI must pay all amounts then due
to BNPLC under the Improvements Lease or other Operative Documents.

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

                  (H) Occupancy by NAI Prior to Closing of a Sale. Prior to the
closing of any sale of the Property to NAI or an Applicable Purchaser hereunder,
NAI's occupancy of the Improvements and its use of the Property shall continue
to be subject to the terms and conditions of the Improvements Lease, including
the terms setting forth NAI's obligation to pay rent, prior to any termination
or expiration of the Improvements Lease pursuant to its express terms and
conditions.

         5. SECURITY FOR NAI'S OBLIGATIONS; RETURN OF FUNDS. NAI's obligations
under this Agreement are secured by the Pledge Agreement, reference to which is
hereby made for a description of the Collateral covered thereby and the rights
and remedies provided to BNPLC thereby. Although the collateral agent

                                       8
<PAGE>   12

appointed for BNPLC as provided in the Pledge Agreement shall be entitled to
hold all Collateral as security for the full and faithful performance by NAI of
NAI's covenants and obligations under this Agreement, the Collateral shall not
be considered an advance payment of the Break Even Price or any Supplemental
Payment or a measure of BNPLC's damages should NAI breach this Agreement. If NAI
does breach this Agreement and fails to cure the same within any time specified
herein for the cure, BNPLC may, from time to time, without prejudice to any
other remedy and without notice to NAI, require the collateral agent to
immediately apply the proceeds of any disposition of the Collateral (and any
cash included in the Collateral) to amounts then due hereunder from NAI. If by a
Permitted Transfer BNPLC conveys its interest in the Property before the
Designated Sale Date, BNPLC may also assign BNPLC's interest in the Collateral
to the transferee. BNPLC shall be entitled to return any Collateral not sold or
used to satisfy the obligations secured by the Pledge Agreement directly to NAI
notwithstanding any prior actual or attempted conveyance or assignment by NAI,
voluntary or otherwise, of any right to receive the same; neither BNPLC nor the
collateral agent named in the Pledge Agreement shall be responsible for the
proper distribution or application by NAI of any such Collateral returned to
NAI; and any such return of Collateral to NAI shall discharge any obligation of
BNPLC to deliver such Collateral to all Persons claiming an interest in the
Collateral. Further, BNPLC shall be entitled to deliver any Escrowed Proceeds it
holds on the Designated Sale Date directly to NAI or to any Applicable Purchaser
purchasing BNPLC's interest in the Property and the Escrowed Proceeds pursuant
to this Agreement notwithstanding any prior actual or attempted conveyance or
assignment by NAI, voluntary or otherwise, of any right to receive the same;
BNPLC shall not be responsible for the proper distribution or application by NAI
or any Applicable Purchaser of any such Escrowed Proceeds paid over to NAI or
the Applicable Purchaser; and any such payment of Escrowed Proceeds to NAI or an
Applicable Purchaser shall discharge any obligation of BNPLC to deliver the same
to all Persons claiming an interest therein.

         6. CERTAIN REMEDIES CUMULATIVE. No right or remedy herein conferred
upon or reserved to BNPLC is intended to be exclusive of any other right or
remedy BNPLC has with respect to the Property, and each and every right and
remedy shall be cumulative and in addition to any other right or remedy given
hereunder or now or hereafter existing at law or in equity or by statute. In
addition to other remedies available under this Agreement, either party shall be
entitled, to the extent permitted by applicable law, to a decree compelling
performance of any of the other party's agreements hereunder.

         7. ATTORNEYS' FEES AND LEGAL EXPENSES. If either party to this
Agreement commences any legal action or other proceeding to enforce any of the
terms of this Agreement, or because of any breach by the other party or dispute
hereunder, the party prevailing in such action or proceeding shall be entitled
to recover from the other party all Attorneys' Fees incurred in connection
therewith, whether or not such controversy, claim or dispute is prosecuted to a
final judgment. Any such Attorneys' Fees incurred by either party in enforcing a
judgment in its favor under this Agreement shall be recoverable separately from
such judgment, and the obligation for such Attorneys' Fees is intended to be
severable from other provisions of this Agreement and not to be merged into any
such judgment.

         8. ESTOPPEL CERTIFICATE. Upon request by BNPLC, NAI shall execute,
acknowledge and deliver a written statement certifying that this Agreement is
unmodified and in full effect (or, if there have been modifications, that this
Agreement is in full effect as modified, and setting forth such modification)
and either stating that no default exists hereunder or specifying each such
default of which NAI has knowledge. Any such statement may be relied upon by any
Participant or prospective purchaser or assignee of BNPLC with respect to the
Property.

         9. SUCCESSORS AND ASSIGNS. The terms, provisions, covenants and
conditions hereof shall be binding upon NAI and BNPLC and their respective
permitted successors and assigns and shall inure to the benefit of NAI and BNPLC
and all permitted transferees, mortgagees, successors and assignees of NAI and
BNPLC with respect to the Property; provided, that (A) the rights of BNPLC
hereunder shall not pass to NAI or any Applicable

                                       9
<PAGE>   13

Purchaser or any subsequent owner claiming through NAI or an Applicable
Purchaser, (B) BNPLC shall not assign this Agreement or any rights hereunder
except pursuant to a Permitted Transfer, and (C) NAI shall not assign this
Agreement or any rights hereunder without the prior written consent of BNPLC.

                            [Signature pages follow.]

                                       10
<PAGE>   14

         IN WITNESS WHEREOF, NAI and BNPLC have caused this Agreement to be
executed as of December ___, 1999.

                                        "NAI"

                                        NETWORK APPLIANCE, INC.

                                        By: ___________________________________

                                            Name: _____________________________

                                            Title: ____________________________

<PAGE>   15

[Continuation of signature pages to Purchase Agreement (Phase IV - Improvements)
dated to be effective December __, 1999]

                                        "BNPLC"

                                        BNP LEASING CORPORATION

                                        By: ___________________________________
                                            Lloyd G. Cox, Vice President

<PAGE>   16

                                    EXHIBIT A

                                LEGAL DESCRIPTION

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

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:

Commencing at the Northeast corner of said Parcel A; thence North
75(degree)8'27" West 500.00 feet along the Northeasterly line of said Parcel A;
thence South 14(degree)51'33" West 7.00 feet; thence parallel to Northeasterly
line of said Parcel A, South 75(degree)08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14(degree)51'33" East 7.00 feet to the point of
beginning.

APN: 110-32-002
ARB: 110-3-65.02

TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-6
ARB: 110-3-x65

TRACT 4:

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-7
ARB: 110-3-x65

<PAGE>   17

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN: 110-32-12
ARB: 110-03-65.11

<PAGE>   18

                                    EXHIBIT B

                       REQUIREMENTS RE: FORM OF GRANT DEED

The form of deed to be used to convey BNPLC's interest in the Improvements to
NAI or an Applicable Purchaser will depend upon whether BNPLC's interest in the
Land has been or is being conveyed at the same time to the same party.

If BNPLC's interests in BOTH the Land and the Improvements are to be conveyed to
NAI or an Applicable Purchaser at the same time, because a sale under this
Purchase Agreement and a sale under the Other Purchase Agreement (covering the
Land) are being consummated at the same time and to the same party, then the one
deed in form attached as Exhibit B-1 will be used to convey both.

If, however, BNPLC's interest in the Land pursuant to the Other Purchase
Agreement has not been consummated before, and is not being consummated
contemporaneously with, the sale of BNPLC's interest in the Improvements under
this Agreement, then BNPLC's interest in the Improvements will be conveyed by a
deed in the form attached as Exhibit B-2.

Finally, BNPLC's interest in the Improvements will be conveyed by a deed in the
from attached as Exhibit B-3 if BNPLC's interest in the Land has been sold
pursuant to the Other Purchase Agreement before a sale of BNPLC's interest in
the Improvements under this Agreement, or BNPLC's interest in the Improvements
is being sold contemporaneously with a sale of BNPLC's interest in the Land, but
the purchaser of the Improvements is not the same as the purchaser of the Land.

<PAGE>   19

                                   EXHIBIT B-1

                             CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

MAIL TAX STATEMENTS TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

                             CORPORATION GRANT DEED

                        (Covering Land and Improvements)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to [NAI
or the Applicable Purchaser] ("Grantee") all of Grantor's interest in the land
situated in Sunnyvale, California, described on Annex A attached hereto and
hereby made a part hereof and all improvements on such land, together with the
any other right, title and interest of Grantor in and to any easements,
rights-of-way, privileges and other rights appurtenant to such land or the
improvements thereon; provided, however, that this grant is subject to the
encumbrances described on Annex B (the "Permitted Encumbrances"). Grantee hereby
assumes the obligations (including any personal obligations) of Grantor, if any,
created by or under, and agrees to be bound by the terms and conditions of, the
Permitted Encumbrances to the extent that the same concern or apply to the land
or improvements conveyed by this deed.

<PAGE>   20

                                                 BNP LEASING CORPORATION

Date: As of ____________                By: __________________________________
                                            Its:

                                        Attest: ______________________________
                                                Its:

                                        [NAI or Applicable Purchaser]

Date: As of ____________                By: __________________________________
                                            Its:

                                        Attest: ______________________________
                                                Its:

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ______________________ before me, ____________, personally appeared
__________________ and __________________, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the persons whose names are
subscribed to the within instrument and acknowledged to me that they executed
the same in their authorized capacities, and that by their signatures on the
instrument the person, or the entity upon behalf of which the persons acted,
executed the instrument.

         WITNESS my hand and official seal.

         Signature _____________________________

                              EXHIBIT B-1 - PAGE 2

<PAGE>   21

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On _____________________ before me, ______________, personally appeared
__________________ and __________________, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the persons whose names are
subscribed to the within instrument and acknowledged to me that they executed
the same in their authorized capacities, and that by their signatures on the
instrument the person, or the entity upon behalf of which the persons acted,
executed the instrument.

         WITNESS my hand and official seal.

         Signature _____________________________

                              EXHIBIT B-1 - PAGE 3
<PAGE>   22

                                     ANNEX A

                                LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPLC'S CONSENT
OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH
CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING NOTE"
WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

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

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:

Commencing at the Northeast corner of said Parcel A; thence North
75(degree)8'27" West 500.00 feet along the Northeasterly line of said Parcel A;
thence South 14(degree)51'33" West 7.00 feet; thence parallel to Northeasterly
line of said Parcel A, South 75(degree)08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14(degree)51'33" East 7.00 feet to the point of
beginning.

APN: 110-32-002
ARB: 110-3-65.02

TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-6
ARB: 110-3-x65

TRACT 4:

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of

                              EXHIBIT B-1 - PAGE 4
<PAGE>   23

Santa Clara, State of California on July 7, 1994, in Book 657 of Parcel Maps,
Page 9.

APN: 110-32-7
ARB: 110-3-x65

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN: 110-32-12
ARB: 110-03-65.11

                              EXHIBIT B-1 - PAGE 5

<PAGE>   24

                                     ANNEX B

                             PERMITTED ENCUMBRANCES

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF NAI'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO AN
ADJUSTMENT.]

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

TRACT 1 and 2:

1.   TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

3.   LIMITATIONS, covenants, conditions, restrictions, reservations, exceptions
     or terms, but deleting any covenant, condition or restriction indicating a
     preference, limitation or discrimination based on race, color, religion,
     sex, handicap, familial status, or national origin to the extent such
     covenants, conditions or restrictions violate 42 USC 3604(c), contained in
     the document recorded December 23, 1971 in Book 9640, page 443, Official
     Records.

     Assignments and Assumption, executed by Moffett Park Associates, a
     partnership to Prudential Insurance Company of America, recorded February
     8, 1977 in Book C583, page 685, Official Records.

4.   AGREEMENT on the terms and conditions contained therein,

         For      : Waiver of Construction Credits
         Between  : Moffett Park Associates
         And      : None Shown
         Recorded : September 28, 1976 in Book C307, page 346, Official Records.

5.   EASEMENT for the purposes stated herein and incidents thereto

         Purpose     : Construction, reconstruction, operation, repair,
                       maintenance, replacement, relocation and enlargement of
                       Public Utilities

         Granted to  : The City of Sunnyvale, a municipal corporation
         Recorded    : November 16, 1976 in Book C414, page 105, Official
                       Records
         Affects     : as follows:

     Being a portion of Parcel B as shown on that certain Parcel Map recorded
     August 28, 1974 in Book of Maps, at page 20, Santa Clara County Records; a
     strip of land 10 feet in width, measured at right angles lying Northerly
     and Easterly of and contiguous to the following described line; beginning
     at the

                              EXHIBIT B-1 - PAGE 6
<PAGE>   25

     intersection of the Westerly line of Crossman Road, 90 feet in width, with
     the Northerly line of Parcel A as shown on said Map; thence North
     75(degree) 7' 58" West along said Northerly line of Parcel A 450.13 feet;
     thence leaving said Northerly line, North 30(degree) 7' 48" West 210.69
     feet; thence North 75(degree) 8' 27" West 391.04 feet to a point on the
     Easterly line of the proposed Geneva Drive, 60 feet wide, said point being
     the terminus of said easement.

6.   ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

TRACT 3:

1.   TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

3.   EASEMENT for the purposes stated herein and incidents thereto

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

4.   EASEMENT for the purposes stated herein and incidents thereto

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

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

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

                              EXHIBIT B-1 - PAGE 7

<PAGE>   26

6.   EASEMENT for the purposes stated herein and incidents thereto

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

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

8.   ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

          (a) The fact that a chain link fence extends across the southerly
     boundary of said land.

TRACT 4:

9.   TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

11.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Slope Easement
     In favor of         : City of Sunnyvale
     Recorded            : November 16, 1976 in Book C414, page 90, Official
                           Records
     Affects             : Westerly 5 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright, Job
                         No. 97208-16.

12.  EASEMENT recorded on that certain Map for the purposes stated herein and
     incidents thereto

     Purpose      : Public utilities easement
     Recorded            : July 7, 1994 in Book 657 of Maps, page 9, Official
                           Records
     Affects             : Westerly 10 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright, Job
                         No. 97208-16.

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

                              EXHIBIT B-1 - PAGE 8

<PAGE>   27

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

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

TRACT 5:

15.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

17.  EASEMENT for the purposes stated herein and incidents thereto

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

18.  EASEMENT for the purposes stated herein and incidents thereto

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

19.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Sidewalk and sign easement
     Recorded            : July 7, 1994, in Book 657 Maps, page 9, Official
                           Records
     Affects      : The Northerly 2 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

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

                              EXHIBIT B-1 - PAGE 9
<PAGE>   28

21.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Public utilities easement
     Recorded            : October 7, 1998, in Book 708 of Maps, pages 51-52,
                           Official Records
     Affects      : The Northerly 15 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

                              EXHIBIT B-1 - PAGE 10
<PAGE>   29

                                   EXHIBIT B-2

                             CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

MAIL TAX STATEMENTS TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

                             CORPORATION GRANT DEED

         (Covering Improvements but not the Land under the Improvements)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to [NAI
or the Applicable Purchaser] ("Grantee") all of Grantor's interest in the
buildings and other improvements (the "Improvements") on the land situated in
Sunnyvale, California, described on Annex A attached hereto and hereby made a
part hereof (the "Land"), together with the any other right, title and interest
of Grantor in and to any easements, rights-of-way, privileges and other rights
appurtenant to the Improvements; provided, however, that this grant is subject
to the encumbrances described on Annex B (the "Permitted Encumbrances") and any
reservations or qualifications set forth below. Grantee hereby assumes the
obligations (including any personal obligations) of Grantor, if any, created by
or under, and agrees to be bound by the terms and conditions of, the Permitted
Encumbrances to the extent that the same concern or apply to the Improvements.

Although this deed conveys Grantor's interest in the Improvements, this deed
does not convey any interest in the Land under the Improvements or any rights or
easements appurtenant to Land. Grantor retains and reserves all right, title and
interest of Grantor in and to the Land and any rights and easements appurtenant
to Land. Further, this deed does not convey any right of access over or right to
use the Land, it being understood that the right of Grantee or its successors
and assigns to maintain or use the improvements conveyed hereby shall be on and
subject to the terms and conditions of any separate ground lease or deed that
Grantee may from time to time obtain from the owner of the Land. If Grantee does
not obtain a separate deed or ground lease giving Grantee the authority to
maintain the Improvements on the Land, Grantee shall remove or abandon the
Improvements promptly upon request of the owner of the Land. Nothing herein or
in the agreements pursuant to which this deed is being delivered shall be
construed as an obligation on the part of Grantor to deliver or cooperate
reasonably in obtaining for Grantee any deed or ground lease covering the Land
described on Annex A.

<PAGE>   30

                                        BNP LEASING CORPORATION

Date: As of ____________                By: ___________________________________
                                            Its:

                                        Attest: _______________________________
                                                Its:

                                        [NAI or Applicable Purchaser]

Date: As of ____________                By: ___________________________________
                                            Its:

                                        Attest: _______________________________
                                                Its:

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On _____________________ before me, _____________, personally appeared
____________ and ____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature __________________________

                              EXHIBIT B-2 - PAGE 2
<PAGE>   31

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ___________________ before me, _______________, personally appeared
____________ and ____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature __________________________

                              EXHIBIT B-2 - PAGE 3

<PAGE>   32

                                     ANNEX A

                                LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPLC'S CONSENT
OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH
CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING NOTE"
WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

                                Legal Description

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

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:

Commencing at the Northeast corner of said Parcel A; thence North
75(degree)8'27" West 500.00 feet along the Northeasterly line of said Parcel A;
thence South 14(degree)51'33" West 7.00 feet; thence parallel to Northeasterly
line of said Parcel A, South 75(degree)08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14(degree)51'33" East 7.00 feet to the point of
beginning.

APN: 110-32-002
ARB: 110-3-65.02

TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-6
ARB: 110-3-x65

TRACT 4:

                              EXHIBIT B-2 - PAGE 4
<PAGE>   33

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-7
ARB: 110-3-x65

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN: 110-32-12
ARB: 110-03-65.11

                              EXHIBIT B-2 - PAGE 5
<PAGE>   34

                                     ANNEX B

                             PERMITTED ENCUMBRANCES

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF NAI'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO AN
ADJUSTMENT.]

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

TRACT 1 and 2:

1.   TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

3.   LIMITATIONS, covenants, conditions, restrictions, reservations, exceptions
     or terms, but deleting any covenant, condition or restriction indicating a
     preference, limitation or discrimination based on race, color, religion,
     sex, handicap, familial status, or national origin to the extent such
     covenants, conditions or restrictions violate 42 USC 3604(c), contained in
     the document recorded December 23, 1971 in Book 9640, page 443, Official
     Records.

     Assignments and Assumption, executed by Moffett Park Associates, a
     partnership to Prudential Insurance Company of America, recorded February
     8, 1977 in Book C583, page 685, Official Records.

4.   AGREEMENT on the terms and conditions contained therein,

     For         : Waiver of Construction Credits
     Between     : Moffett Park Associates
     And         : None Shown

     Recorded    : September 28, 1976 in Book C307, page 346, Official Records.

5.   EASEMENT for the purposes stated herein and incidents thereto

     Purpose     : Construction, reconstruction, operation, repair, maintenance,
                   replacement, relocation and enlargement of Public Utilities
     Granted to  : The City of Sunnyvale, a municipal corporation
     Recorded    : November 16, 1976 in Book C414, page 105, Official Records
     Affects     : as follows:

     Being a portion of Parcel B as shown on that certain Parcel Map recorded
     August 28, 1974 in Book of Maps, at page 20, Santa Clara County Records; a
     strip of land 10 feet in width, measured at right angles lying Northerly
     and Easterly of and contiguous to the following described line; beginning
     at the

                              EXHIBIT B-2 - PAGE 6
<PAGE>   35

     intersection of the Westerly line of Crossman Road, 90 feet in width, with
     the Northerly line of Parcel A as shown on said Map; thence North
     75(degree) 7' 58" West along said Northerly line of Parcel A 450.13 feet;
     thence leaving said Northerly line, North 30(degree) 7' 48" West 210.69
     feet; thence North 75(degree) 8' 27" West 391.04 feet to a point on the
     Easterly line of the proposed Geneva Drive, 60 feet wide, said point being
     the terminus of said easement.

6.   ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

TRACT 3:

22.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

24.  EASEMENT for the purposes stated herein and incidents thereto

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

25.  EASEMENT for the purposes stated herein and incidents thereto

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

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

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

                              EXHIBIT B-2 - PAGE 7
<PAGE>   36

27.  EASEMENT for the purposes stated herein and incidents thereto

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

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

29.  ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

                  (a) The fact that a chain link fence extends across the
     southerly boundary of said land.

TRACT 4:

30.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

32.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Slope Easement
     In favor of         : City of Sunnyvale
     Recorded            : November 16, 1976 in Book C414, page 90, Official
                           Records
     Affects             : Westerly 5 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright,
                         Job No. 97208-16.

33.  EASEMENT recorded on that certain Map for the purposes stated herein and
     incidents thereto

     Purpose      : Public utilities easement
     Recorded            : July 7, 1994 in Book 657 of Maps, page 9, Official
                           Records
     Affects             : Westerly 10 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright,
                         Job No. 97208-16.

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

                              EXHIBIT B-2 - PAGE 8
<PAGE>   37

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

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

TRACT 5:

36.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

38.  EASEMENT for the purposes stated herein and incidents thereto

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

39.  EASEMENT for the purposes stated herein and incidents thereto

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

40.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Sidewalk and sign easement
     Recorded            : July 7, 1994, in Book 657 of Maps, page 9, Official
                           Records
     Affects      : The Northerly 2 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

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

                              EXHIBIT B-2 - PAGE 9

<PAGE>   38

42.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Public utilities easement
     Recorded            : October 7, 1998, in Book 708 of Maps, pages 51-52,
                           Official Records
     Affects      : The Northerly 15 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

                              EXHIBIT B-2 - PAGE 10
<PAGE>   39

                                   EXHIBIT B-3

                             CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

MAIL TAX STATEMENTS TO:

NAME: [NAI or the Applicable Purchaser]

ADDRESS: ____________________________
ATTN: _______________________________
CITY: _______________________________
STATE: ______________________________
Zip: ________________________________

                             CORPORATION GRANT DEED
           (Covering Improvements but not Land under the Improvements)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to [NAI
or the Applicable Purchaser] ("Grantee") all of Grantor's interest in the
buildings and other improvements (the "Improvements") on the land situated in
Sunnyvale, California, described on Annex A attached hereto and hereby made a
part hereof (the "Land"), together with the any other right, title and interest
of Grantor in and to any easements, rights-of-way, privileges and other rights
appurtenant to the Improvements; provided, however, that this grant is subject
to the encumbrances described on Annex B (the "Permitted Encumbrances") and any
reservations or qualifications set forth below. Grantee hereby assumes the
obligations (including any personal obligations) of Grantor, if any, created by
or under, and agrees to be bound by the terms and conditions of, the Permitted
Encumbrances to the extent that the same concern or apply to the Improvements.

Although this deed conveys Grantor's interest in the Improvements on the Land,
this deed does not convey any interest in the Land itself or any rights or
easements appurtenant to Land. Prior to or contemporaneously with the delivery
of this deed, Grantor has conveyed or is conveying the Land and appurtenant
rights and easements to another party, subject to the terms and conditions of a
Ground Lease dated ________, filed or to be filed for record in the Santa Clara
County records. Grantor is assigning it's rights as lessee under the Ground
Lease to Grantee by a separate instrument dated of even date herewith.

<PAGE>   40

                                        BNP LEASING CORPORATION

Date: As of ____________                By: ___________________________________
                                            Its:

                                        Attest: _______________________________
                                                Its:

                                        [NAI or Applicable Purchaser]

Date: As of ____________                By: ___________________________________
                                            Its:

                                        Attest: _______________________________
                                                Its:

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ___________________ before me, _______________, personally appeared
____________ and _____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature ___________________________

                              EXHIBIT B-3 - PAGE 2
<PAGE>   41

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ___________________ before me, _______________, personally appeared
____________ and ____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature ___________________________

                              EXHIBIT B-3 - PAGE 3
<PAGE>   42

                                     ANNEX A

                                LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPLC'S CONSENT
OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH
CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING NOTE"
WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

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

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:

Commencing at the Northeast corner of said Parcel A; thence North
75[degrees]8'27" West 500.00 feet along the Northeasterly line of said Parcel A;
thence South 14[degrees]51'33" West 7.00 feet; thence parallel to Northeasterly
line of said Parcel A, South 75[degrees]08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14[degrees]51'33" East 7.00 feet to the point of
beginning.

APN: 110-32-002
ARB: 110-3-65.02

TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-6
ARB: 110-3-x65

TRACT 4:

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

                              EXHIBIT B-3 - PAGE 4
<PAGE>   43

APN: 110-32-7
ARB: 110-3-x65

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN: 110-32-12
ARB: 110-03-65.11

                              EXHIBIT B-3 - PAGE 5
<PAGE>   44

                                     ANNEX B

                             PERMITTED ENCUMBRANCES

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF NAI'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO AN
ADJUSTMENT.]

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

TRACT 1 and 2:

1.   TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

3.   LIMITATIONS, covenants, conditions, restrictions, reservations, exceptions
     or terms, but deleting any covenant, condition or restriction indicating a
     preference, limitation or discrimination based on race, color, religion,
     sex, handicap, familial status, or national origin to the extent such
     covenants, conditions or restrictions violate 42 USC 3604(c), contained in
     the document recorded December 23, 1971 in Book 9640, page 443, Official
     Records.

     Assignments and Assumption, executed by Moffett Park Associates, a
     partnership to Prudential Insurance Company of America, recorded February
     8, 1977 in Book C583, page 685, Official Records.

4.   AGREEMENT on the terms and conditions contained therein,

     For       : Waiver of Construction Credits
     Between   : Moffett Park Associates
     And       : None Shown
     Recorded  : September 28, 1976 in Book C307, page 346, Official Records.

5.   EASEMENT for the purposes stated herein and incidents thereto

     Purpose     : Construction, reconstruction, operation, repair, maintenance,
                   replacement, relocation and enlargement of Public Utilities
     Granted to  : The City of Sunnyvale, a municipal corporation
     Recorded    : November 16, 1976 in Book C414, page 105, Official Records
     Affects     : as follows:

     Being a portion of Parcel B as shown on that certain Parcel Map recorded
     August 28, 1974 in Book of Maps, at page 20, Santa Clara County Records; a
     strip of land 10 feet in width, measured at right angles lying Northerly
     and Easterly of and contiguous to the following described line; beginning
     at the

                              EXHIBIT B-3 - PAGE 6
<PAGE>   45
     intersection of the Westerly line of Crossman Road, 90 feet in width, with
     the Northerly line of Parcel A as shown on said Map; thence North
     75[degrees]7'58" West along said Northerly line of Parcel A 450.13 feet;
     thence leaving said Northerly line, North 30[degrees]7'48" West 210.69
     feet; thence North 75[degrees]8'27" West 391.04 feet to a point on the
     Easterly line of the proposed Geneva Drive, 60 feet wide, said point being
     the terminus of said easement.

6.   ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

TRACT 3:

43.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

45.  EASEMENT for the purposes stated herein and incidents thereto

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

46.  EASEMENT for the purposes stated herein and incidents thereto

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

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

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

                              EXHIBIT B-3 - PAGE 7
<PAGE>   46

48.  EASEMENT for the purposes stated herein and incidents thereto

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

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

50.  ANY RIGHTS, interests, or claims adverse to those of the vestee herein
     which may exist or arise by reason of the following facts shown on a survey
     plat entitled ALTA/ACSM Land Title Survey for: Network Appliance, 1345
     Crossman Avenue, dated December 2, 1999, prepared by Kier & Wright, Job No.
     97208-16.

                  (a) The fact that a chain link fence extends across the
     southerly boundary of said land.

TRACT 4:

51.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

53.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Slope Easement
     In favor of         : City of Sunnyvale
     Recorded            : November 16, 1976 in Book C414, page 90, Official
                           Records
     Affects             : Westerly 5 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright, Job
                         No. 97208-16.

54.  EASEMENT recorded on that certain Map for the purposes stated herein and
     incidents thereto

     Purpose      : Public utilities easement
     Recorded            : July 7, 1994 in Book 657 of Maps, page 9, Official
                           Records
     Affects             : Westerly 10 feet, as shown on a survey plat entitled
                           ALTA/ACSM Land Title
                         Survey for: Network Appliance, 1345 Crossman Avenue,
                         dated December 2, 1999, prepared by Kier & Wright, Job
                         No. 97208-16.

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

                              EXHIBIT B-3 - PAGE 8
<PAGE>   47

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

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

TRACT 5:

57.  TAXES for the fiscal year 1999-2000, a lien not yet due or payable.

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

59.  EASEMENT for the purposes stated herein and incidents thereto

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

60.  EASEMENT for the purposes stated herein and incidents thereto

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

61.  EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Sidewalk and sign easement
     Recorded     : July 7, 1994, in Book 657 of Maps, page 9, Official
                    Records
     Affects      : The Northerly 2 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

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

                              EXHIBIT B-3 - PAGE 9
<PAGE>   48

63.      EASEMENT for the purposes stated herein and incidents thereto

     Purpose      : Public utilities easement
     Recorded     : October 7, 1998, in Book 708 of Maps, pages 51-52,
                    Official Records
     Affects      : The Northerly 15 feet, as shown on a survey plat entitled
                  ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                  Crossman Avenue, dated December 2, 1999, prepared by Kier &
                  Wright, Job No. 97208-16.

                              EXHIBIT B-3 - PAGE 10
<PAGE>   49

                                    EXHIBIT C

                           BILL OF SALE AND ASSIGNMENT

         Reference is made to: (1) that certain Purchase Agreement (Phase IV -
Improvements) between BNP Leasing Corporation ("ASSIGNOR") and Network
Appliance, Inc., dated as of December ___, 1999, (the "PURCHASE AGREEMENT") and
(2) that certain Lease Agreement (Phase IV - Improvements) between Assignor, as
landlord, and Network Appliance, Inc., as tenant, dated as of December ___, 1999
(the "IMPROVEMENTS LEASE"). (Capitalized terms used and not otherwise defined in
this document are intended to have the meanings assigned to them in the Common
Definitions and Provisions Agreement (Phase IV - Improvements) incorporated by
reference into both the Purchase Agreement and Improvements Lease.)

         As contemplated by the Purchase Agreement, Assignor hereby sells,
transfers and assigns unto [NAI OR THE APPLICABLE PURCHASER, AS THE CASE MAY
BE], a _____________ ("ASSIGNEE"), all of Assignor's right, title and interest
in and to the following property, if any, to the extent such property is
assignable:

         (a) the Improvements Lease [DRAFTING NOTE: THE FOLLOWING WILL BE ADDED
ONLY IF APPLICABLE BECAUSE OF THE SIMULTANEOUS DELIVERY OF A GRANT DEED IN THE
FORM OF EXHIBIT B-3: and the Ground Lease dated _________, between _________, as
lessor, and Assignor, as lessee, filed for record on in ___________ of Santa
Clara County records (the "GROUND LEASE")];

         (b) any pending or future award made because of any condemnation
affecting the Property or because of any conveyance to be made in lieu thereof,
and any unpaid award for damage to the Property and any unpaid proceeds of
insurance or claim or cause of action for damage, loss or injury to the
Property; and

         (c) all other property included within the definition of "Property" as
set forth in the Purchase Agreement, including but not limited to any of the
following transferred to Assignor by the tenant pursuant to Paragraph 7 of the
Improvements Lease or otherwise acquired by Assignor, at the time of the
execution and delivery of the Improvements Lease and Purchase Agreement or
thereafter, by reason of Assignor's status as the owner of any interest in the
Property: (1) any goods, equipment, furnishings, furniture, chattels and
tangible personal property of whatever nature that are located on the Property
and all renewals or replacements of or substitutions for any of the foregoing;
(ii) the rights of Assignor, existing at the time of the execution of the
Improvements Lease and Purchase Agreement or thereafter arising, under Permitted
Encumbrances or Development Documents (both as defined in the Improvements
Lease); and (iii) any other permits, licenses, franchises, certificates, and
other rights and privileges related to the Property that Assignee would have
acquired if Assignee had itself acquired the Improvements covered by the
Improvements Lease and constructed the Improvements included in the Property.

Provided, however, excluded from this conveyance and reserved to Assignor are
any rights or privileges of Assignor under the following ("EXCLUDED RIGHTS"):
(1) the indemnities set forth in the Improvements Lease, whether such rights are
presently known or unknown, including rights of the Assignor to be indemnified
against environmental claims of third parties as provided in the Improvements
Lease which may not presently be known, (2) provisions in the Improvements Lease
that establish the right of Assignor to recover any accrued unpaid rent under
the Improvements Lease which may be outstanding as of the date hereof, (3)
agreements between Assignor and "BNPLC's Parent" or any "Participant," both as
defined in the Improvements Lease, or any modification or extension thereof, or
(4) any other instrument being delivered to Assignor contemporaneously herewith
pursuant to the Purchase Agreement. To the extent that this conveyance does
include any rights to receive future payments

<PAGE>   50

under the Improvements Lease, such rights ("INCLUDED RIGHTS") shall be
subordinate to Assignor's Excluded Rights, and Assignee hereby waives any rights
to enforce Included Rights until such time as Assignor has received all payments
to which it remains entitled by reason of Excluded Rights. If any amount shall
be paid to Assignee on account of any Included Rights at any time before
Assignor has received all payments to which it is entitled because of Excluded
Rights, such amount shall be held in trust by Assignee for the benefit of
Assignor, shall be segregated from the other funds of Assignee and shall
forthwith be paid over to Assignor to be held by Assignor as collateral for, or
then or at any time thereafter applied in whole or in part by Assignor against,
the payments due to Assignor because of Excluded Rights, whether matured or
unmatured, in such order as Assignor shall elect.

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

         Assignee hereby assumes and agrees to keep, perform and fulfill
Assignor's obligations, if any, relating to any permits or contracts, under
which Assignor has rights being assigned herein.

         IN WITNESS WHEREOF, the parties have executed this instrument as of
_______________, _____.

                                         ASSIGNOR:

                                         BNP LEASING CORPORATION a Delaware
                                         corporation

                                         By: __________________________________

                                         Its: _________________________________

                                         ASSIGNEE:

                                         [NAI or the Applicable Purchaser], a

                                         ______________________________________

                                         By: __________________________________

                                         Its: _________________________________

                              EXHIBIT C - PAGE 2
<PAGE>   51

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ___________________ before me, _______________, personally appeared
____________ and ____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature ______________________________

STATE OF ____________  )
                       )    SS
COUNTY OF ___________  )

         On ___________________ before me, _______________, personally appeared
____________ and ____________, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the persons whose names are subscribed to
the within instrument and acknowledged to me that they executed the same in
their authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature ____________________________

                              EXHIBIT C - PAGE 3
<PAGE>   52

                                     ANNEX A

                                LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE OTHER LEASE CHANGES
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH NAI REQUESTS BNPLC'S CONSENT
OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH
CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING NOTE"
WILL BE DELETED BEFORE THE DOCUMENT TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

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

TRACT 1:

All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Clara County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.

TRACT 2:

Together with an easement for vehicles parking over the following described
property:

A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:

Commencing at the Northeast corner of said Parcel A; thence North
75[degrees]8'27" West 500.00 feet along the Northeasterly line of said Parcel A;
thence South 14[degrees]51'33" West 7.00 feet; thence parallel to Northeasterly
line of said Parcel A, South 75[degrees]08'27" East 500.00 feet to the Southeast
line of said Parcel A, North 14[degrees]51'33" East 7.00 feet to the point of
beginning.

APN: 110-32-002
ARB: 110-3-65.02

TRACT 3:

Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-6
ARB: 110-3-x65

                              EXHIBIT C - PAGE 4
<PAGE>   53

TRACT 4:

Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.

APN: 110-32-7
ARB: 110-3-x65

TRACT 5:

Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Clara, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.

APN: 110-32-12
ARB: 110-03-65.11

                              EXHIBIT C - PAGE 5
<PAGE>   54

                                    EXHIBIT D

         ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

         THIS ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES
(this "CERTIFICATE") is made as of ___________________, ____, by [NAI or the
Applicable Purchaser, as the case may be], a ___________________ ("GRANTEE").

         Contemporaneously with the execution of this Certificate, BNP Leasing
Corporation, a Delaware corporation ("BNPLC"), is executing and delivering to
Grantee (1) a corporate grant deed and (2) a Bill of Sale and Assignment (the
foregoing documents and any other documents to be executed in connection
therewith are herein called the "CONVEYANCING DOCUMENTS" and any of the
properties, rights or other matters assigned, transferred or conveyed pursuant
thereto are herein collectively called the "SUBJECT PROPERTY").

         NOTWITHSTANDING ANY PROVISION CONTAINED IN THE CONVEYANCING DOCUMENTS
TO THE CONTRARY, GRANTEE ACKNOWLEDGES THAT BNPLC MAKES NO REPRESENTATIONS OR
WARRANTIES OF ANY NATURE OR KIND, WHETHER STATUTORY, EXPRESS OR IMPLIED, WITH
RESPECT TO ENVIRONMENTAL MATTERS OR THE PHYSICAL CONDITION OF THE SUBJECT
PROPERTY, AND GRANTEE, BY ACCEPTANCE OF THE CONVEYANCING DOCUMENTS, ACCEPTS THE
SUBJECT PROPERTY "AS IS," "WHERE IS," "WITH ALL FAULTS" AND WITHOUT ANY SUCH
REPRESENTATION OR WARRANTY BY GRANTOR AS TO ENVIRONMENTAL MATTERS, THE PHYSICAL
CONDITION OF THE SUBJECT PROPERTY, COMPLIANCE WITH SUBDIVISION OR PLATTING
REQUIREMENTS OR CONSTRUCTION OF ANY IMPROVEMENTS. Without limiting the
generality of the foregoing, Grantee hereby further acknowledges and agrees that
warranties of merchantability and fitness for a particular purpose are excluded
from the transaction contemplated by the Conveyancing Documents, as are any
warranties arising from a course of dealing or usage of trade. Grantee hereby
assumes all risk and liability (and agrees that BNPLC shall not be liable for
any special, direct, indirect, consequential, or other damages) resulting or
arising from or relating to the ownership, use, condition, location,
maintenance, repair, or operation of the Subject Property, except for damages
proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of BNPLC. As used in the
preceding sentence, "ESTABLISHED MISCONDUCT" is intended to have, and be limited
to, the meaning given to it in the Common Definitions and Provisions Agreement
(Phase IV - Improvements) incorporated by reference into the Purchase Agreement
(Phase IV- Improvements) between BNPLC and Network Appliance, Inc. dated
December ___, 1999, pursuant to which Purchase Agreement BNPLC is delivering the
Conveyancing Documents.

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

         EXECUTED as of ________________, ____.

                                        [NAI or the Applicable Purchaser]

                                        By: ___________________________________

                                        Name: _________________________________

                                        Title: ________________________________

<PAGE>   55

                                    EXHIBIT E

                             SECRETARY'S CERTIFICATE

         The undersigned, [Secretary or Assistant Secretary] of BNP Leasing
Corporation, a Delaware corporation (the "Corporation"), hereby certifies as
follows:

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

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

[THE FOLLOWING BLANKS MUST BE COMPLETED WITH THE NAMES AND SIGNATURES OF THE
OFFICERS WHO WILL BE SIGNING THE DEED AND OTHER SALE CLOSING DOCUMENTS ON BEHALF
OF THE CORPORATION.]

Name                           Title                    Signature

___________________            __________________       _______________________

___________________            __________________       _______________________

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

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

                                        ______________________________________
                                        [signature and title]

<PAGE>   56

                            CORPORATE RESOLUTIONS OF
                             BNP LEASING CORPORATION

         WHEREAS, pursuant to that certain Purchase Agreement (Phase IV -
Improvements) (herein called the "Purchase Agreement") dated as of December ___,
1999, by and between BNP Leasing Corporation (the "Corporation") and [NAI OR THE
APPLICABLE PURCHASER AS THE CASE MAY BE] ("Purchaser"), the Corporation agreed
to sell and Purchaser agreed to purchase or cause the Applicable Purchaser (as
defined in the Purchase Agreement) to purchase the Corporation's interest in the
property (the "Property") located in Sunnyvale, California more particularly
described therein.

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

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

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

                               Exhibit E - Page 2
<PAGE>   57

                                    EXHIBIT F

                                FIRPTA STATEMENT

         Section 1445 of the Internal Revenue Code of 1986, as amended, provides
that a transferee of a U.S. real property interest must withhold tax if the
transferor is a foreign person. Sections 18805, 18815 and 26131 of the
California Revenue and Taxation Code, as amended, provide that a transferee of a
California real property interest must withhold income tax if the transferor is
a nonresident seller.

         To inform [NAI OR THE APPLICABLE PURCHASER] (the "Transferee") that
withholding of tax is not required upon the disposition of a California real
property interest by transferor, BNP Leasing Corporation (the "Seller"), the
undersigned hereby certifies the following on behalf of the Seller:

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

         2. The United States employer identification number for the Seller is
_____________________;

         3.The office address of the Seller is ______________
_________________________ _________________.

         4. The Seller is qualified to do business in California.

         The Seller understands that this certification may be disclosed to the
Internal Revenue Service and/or to the California Franchise Tax Board by the
Transferee and that any false statement contained herein could be punished by
fine, imprisonment, or both.

         The Seller understands that the Transferee is relying on this affidavit
in determining whether withholding is required upon said transfer.

         Under penalties of perjury I declare that I have examined this
certification and to the best of my knowledge and belief it is true, correct and
complete, and I further declare that I have authority to sign this document on
behalf of the Seller.

         Dated: ___________, ____.

                                        By: ___________________________________

                                        Name: _________________________________

                                        Title: ________________________________<PAGE>   1
================================================================================

                                PLEDGE AGREEMENT
                                (PHASE IV - LAND)

                                      AMONG

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                       BANQUE NATIONALE DE PARIS, AS AGENT

                                    ("AGENT")

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                                       AND

                        PARTICIPANTS AS DESCRIBED HEREIN

                               DECEMBER ___, 1999

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

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           Page
                                                                                           ----
<S>                                                                                        <C>
ARTICLE I   DEFINITIONS AND INTERPRETATION...................................................1
        Section 1.1 Capitalized Terms Used But Not Defined in This Agreement.................1
        Section 1.2  Definitions.............................................................1
               Account ......................................................................1
               Account Office................................................................2
               Agent ........................................................................2
               BNPLC ........................................................................2
               BNPLC's Corresponding Obligations to Participants.............................2
               Cash Collateral...............................................................2
               Certificate of Deposit........................................................2
               Collateral....................................................................2
               Collateral Imbalance..........................................................2
               Collateral Percentage.........................................................2
               Default ......................................................................2
               Deposit Taker.................................................................3
               Deposit Taker Losses..........................................................3
               Deposit Taker's Acknowledgment and Agreement..................................3
               Disqualified Deposit Taker....................................................3
               Event of Default..............................................................3
               Failed Collateral Test Date...................................................4
               Initially Qualified Deposit Taker.............................................4
               Lien .........................................................................4
               Material Lease Default........................................................5
               Mandatory Collateral Period...................................................5
               Minimum Collateral Value......................................................5
               NAI ..........................................................................5
               NAI's Purchase Agreement Obligations..........................................5
               Notice of Security Interest...................................................5
               Other Liable Party............................................................5
               Participants..................................................................5
               Participation Agreement.......................................................5
               Percentage....................................................................6
               Qualified Pledge..............................................................6
               Secured Obligations...........................................................6
               Supplement....................................................................6
               Transaction Documents.........................................................6
               Value ........................................................................6
        Section 1.3  Attachments.............................................................6
        Section 1.4  Amendment of Defined Instruments........................................6
        Section 1.5  References and Titles...................................................6
ARTICLE II   SECURITY INTEREST...............................................................7
        Section 2.1  Pledge and Grant of Security Interest...................................7
        Section 2.2  Return of Collateral After the Secured Obligations are
            Satisfied in Full ...............................................................7
ARTICLE III   DESIGNATION OF MINIMUM COLLATERAL PERCENTAGE...................................7
        Section 3.1  Determination of Minimum Collateral Percentage Generally................7
</TABLE>

[Phase IV - Land]                     -i-

<PAGE>   3

<TABLE>
<S>                                                                                         <C>
        Section 3.2  Limitations on NAI's Right to Lower the Collateral Percentage...........8
        Section 3.3  Mandatory Collateral Periods............................................8
ARTICLE IV   PROVISIONS CONCERNING DEPOSIT TAKERS............................................8
        Section 4.1  Qualification of Deposit Takers Generally...............................8
        Section 4.2  Existing Deposit Takers.................................................9
        Section 4.3  Replacement of Participants Proposed by NAI.............................9
        Section 4.4  Mandatory Substitution for Disqualified Deposit Takers..................9
        Section 4.5  Voluntary Substitution of Deposit Takers...............................10
        Section 4.6  Delivery of Notice of Security Interest by NAI and Agent...............10
        Section 4.7  Constructive Possession of Collateral..................................10
        Section 4.8  Attempted Setoff by Deposit Takers.....................................10
        Section 4.9  Deposit Taker Losses...................................................10
        Section 4.10  Losses Resulting from Failure of Deposit Taker to Comply with this
               Agreement....................................................................11
ARTICLE V   DELIVERY AND MAINTENANCE OF CASH COLLATERAL.....................................11
        Section 5.1  Delivery of Funds by NAI...............................................11
        Section 5.2  Transition Account.....................................................11
        Section 5.3  Allocation of Cash Collateral Among Deposit Takers.....................11
        Section 5.4  Issuance and Redemption of Certificates of Deposit.....................12
        Section 5.5  Status of the Accounts Under the Reserve Requirement Regulations.......12
        Section 5.6  Acknowledgment by NAI that Requirements of this Agreement are
               Commercially Reasonable......................................................13
ARTICLE VI   WITHDRAWAL OF CASH COLLATERAL..................................................13
        Section 6.1  Withdrawal of Collateral Prior to the Designated Sale Date.............13
        Section 6.2  Withdrawal and Application of Cash Collateral to Reduce or Satisfy the
               Secured Obligations to the Participants......................................13
        Section 6.3  Withdrawal and Application of Cash Collateral to Reduce or Satisfy the
               Secured Obligations to BNPLC.................................................14
        Section 6.4  Withdrawal of Cash Collateral From Accounts Maintained by Disqualified
               Deposit Takers...............................................................14
ARTICLE VII   REPRESENTATIONS AND COVENANTS OF NAI..........................................14
        Section 7.1  Representations of NAI.................................................14
        Section 7.2  Covenants of NAI.......................................................15
ARTICLE VIII    AUTHORIZED ACTION BY AGENT..................................................16
        Section 8.1  Power of Attorney......................................................16
ARTICLE IX    DEFAULT AND REMEDIES..........................................................16
        Section 9.1  Remedies...............................................................16
ARTICLE X    OTHER RECOURSE.................................................................17
        Section 10.1  Recovery Not Limited..................................................17
ARTICLE XI   PROVISIONS CONCERNING AGENT....................................................17
        Section 11.1  Appointment and Authority.............................................17
        Section 11.2  Exculpation, Agent's Reliance, Etc....................................18
        Section 11.3  Participant's Credit Decisions........................................18
        Section 11.4  Indemnity.............................................................18
        Section 11.5  Agent's Rights as Participant and Deposit Taker.......................19
        Section 11.6  Investments...........................................................19
        Section 11.7  Benefit of Article XI.................................................19
        Section 11.8  Resignation...........................................................19
ARTICLE XII   MISCELLANEOUS.................................................................20
        Section 12.1 Provisions Incorporated From Other Operative Documents.................20
        Section 12.2  Cumulative Rights, etc................................................20
</TABLE>

[Phase IV - Land]                      -ii-

<PAGE>   4

<TABLE>
<S>                                                                                        <C>
        Section 12.3  Survival of Agreements................................................20
        Section 12.4  Other Liable Party....................................................20
        Section 12.5  Termination...........................................................20
</TABLE>

[Phase IV - Land]                      -iii-

<PAGE>   5

<TABLE>
<S>                              <C>
Attachment 1....................................................Form of Certificate of Deposit

Attachment 2..................................Supplement to Pledge Agreement (Phase IV - Land)

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

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

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

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

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

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

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

Schedule 1..........................................Financial Covenants and Negative Covenants
</TABLE>

[Phase IV - Land]                     -iv-
<PAGE>   6

                                PLEDGE AGREEMENT
                                (PHASE IV - LAND)

        This PLEDGE AGREEMENT (PHASE IV - LAND) (this "AGREEMENT") is made as of
December ___, 1999 (the "EFFECTIVE DATE"), by NETWORK APPLIANCE, INC., a
California corporation ("NAI"); BNP LEASING CORPORATION, a Delaware corporation
("BNPLC"); BANQUE NATIONALE DE PARIS ("BNPLC'S PARENT"), as a "PARTICIPANT"; and
BANQUE NATIONALE DE PARIS, acting in its capacity as agent for BNPLC and the
Participants (in such capacity, "AGENT"), is made and dated as of the Effective
Date.

                                    RECITALS

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

        B. Pursuant to a Participation Agreement dated as of December ___, 1999
(the "PARTICIPATION AGREEMENT"), BNPLC's Parent has agreed with BNPLC to
participate in the risks and rewards to BNPLC of the Purchase Agreement and
other Operative Documents (as defined in the Common Definitions and Provisions
Agreement (Phase IV - Land)), and the parties to this Agreement anticipate that
other financial institutions may become parties to the Participation Agreement
as Participants, agreeing to participate in the risks and rewards to BNPLC of
the Purchase Agreement and other Operative Documents.

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

                                    AGREEMENT

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

                    ARTICLE I DEFINITIONS AND INTERPRETATION

        Section 1.1 Capitalized Terms Used But Not Defined in This Agreement.
All capitalized terms used in this Agreement which are defined in Article I of
the Common Definitions and Provisions Agreement (Phase IV - Land) and not
otherwise defined herein shall have the same meanings herein as set forth in the
Common Definitions and Provisions Agreement (Phase IV - Land). All terms used in
this Agreement which are defined in the UCC and not otherwise defined herein
shall have the same meanings herein as set forth therein, except where the
context otherwise requires.

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

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

[Phase IV - Land]                     -1-

<PAGE>   7

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

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

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

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

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

                "CERTIFICATE OF DEPOSIT" shall mean a certificate of deposit
        issued by a Deposit Taker as required by Section 5.4 below to evidence
        an Account into which Cash Collateral has been deposited pursuant to
        this Agreement. Each Certificate of Deposit shall be issued in an amount
        equal to the Value of the Account which it evidences and shall otherwise
        be in the form set forth as ATTACHMENT 1.

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

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

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

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

[Phase IV - Land]                     -2-

<PAGE>   8

                "DEPOSIT TAKER" for BNPLC shall mean BNPLC's Parent and for each
        Participant shall mean the Participant itself; provided, that each of
        BNPLC and the Participants, for itself only, may from time to time
        designate another Deposit Taker as provided in Sections 4.4 and 4.5
        below.

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

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

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

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

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

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

                (c) the failure of the pledge or security interest contemplated
        herein in the Transition Account or any Account, Certificate of Deposit
        or Cash Collateral to be a Qualified Pledge (regardless of the
        characterization of the Transition Account or any Accounts, Certificates
        of Deposit or Cash Collateral as deposit accounts, instruments or
        general intangibles under the UCC), if within five Business Days after
        NAI becomes aware of such failure, NAI does not (1) notify Agent, BNPLC
        and the Participants of such failure, and (2) cure such failure, and (3)
        to the extent required by Section 7.2.9, pay to BNPLC any additional
        Base Rent that has accrued under the Land Lease because of (or that
        would have accrued if BNPLC had been aware of) such failure, together
        with interest at the Default Rate on any such additional Base Rent;

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

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

[Phase IV - Land]                     -3-

<PAGE>   9

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

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

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

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

        "INITIALLY QUALIFIED DEPOSIT TAKER" means (1) Banque Nationale de Paris,
acting through any branch, office or agency that can lawfully maintain an
Account as a Deposit Taker hereunder, and (2) any of the fifty largest (measured
by total assets) U.S. banks, or one of the one hundred largest (measured by
total assets) banks in the world, with debt ratings of at least (i) A- (in the
case of long term debt) and A-1 (in the case of short term debt) or the
equivalent thereof by Standard and Poor's Corporation, and (ii) A3 (in the case
of long term debt) and P-2 (in the case of short term debt) or the equivalent
thereof by Moody's Investor Service, Inc. The parties believe it improbable that
the ratings systems used by Standard and Poor's Corporation and by Moody's
Investor Service, Inc. will be discontinued or changed, but if such ratings
systems are discontinued or changed, NAI shall be entitled to select and use a
comparable ratings systems as a substitute for the S&P Rating or the Moody
Rating, as the case may be, for purposes of determining the status of any bank
as an Initially Qualified Deposit Taker.

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

[Phase IV - Land]                     -4-

<PAGE>   10

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

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

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

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

        "MINIMUM COLLATERAL VALUE" shall mean (1) as of the Designated Sale Date
or any prior date, an amount equal to the Collateral Percentage multiplied by
the Stipulated Loss Value determined as of that date in accordance with the Land
Lease; and (2) as of any date after the Designated Sale Date, an amount equal to
the Break Even Price plus any unpaid interest accrued on past due amounts
payable pursuant to Paragraph 1(a) of the Purchase Agreement.

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

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

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

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

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

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

[Phase IV - Land]                     -5-

<PAGE>   11

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

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

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

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

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

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

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

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

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

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

        and

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

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

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

        Section 1.5 References and Titles. All references in this Agreement to
Attachments, Articles, Sections, subsections, and other subdivisions refer to
the Attachments, Articles, Sections, subsections and other subdivisions of this
Agreement unless expressly provided otherwise. Titles appearing at the

[Phase IV - Land]                     -6-

<PAGE>   12

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

                          ARTICLE II SECURITY INTEREST

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

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

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

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

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

            ARTICLE III DESIGNATION OF MINIMUM COLLATERAL PERCENTAGE

        Section 3.1 Determination of Minimum Collateral Percentage Generally.
Effective as of the date of this Agreement, and until a new Collateral
Percentage becomes effective, the Collateral Percentage is zero percent (0%).
Subject to the provisions of this Article III, NAI may from time to time
designate a new Collateral Percentage between 0% and 100% by written notice
delivered to Agent, BNPLC and the Participants in the form of ATTACHMENT 3. Any
new Collateral Percentage so designated shall not become effective, however,
until the commencement of the later of (A) the first Base Rent Period to

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<PAGE>   13

commence on or after the first Business Day of January, 2002, or (B) the next
following Base Rent Period which is at least ten Business Days after the receipt
of such notice by Agent, BNPLC and the Participants. Further, after the first
change in the Collateral Percentage resulting from a designation by NAI of a
Collateral Percentage greater than zero percent (0%), any subsequent change
resulting from NAI's designation of a new Collateral Percentage shall not become
effective before the first Business Day of the first Base Rent Period that
commences at least ninety days after the effective date of the last preceding
change in the Collateral Period. In any event, if NAI provides more than one
notice of a change in the Collateral Percentage to be effective on a particular
Base Rent Date, then the latest such notice from NAI which satisfies the
requirements of this Section (and of Sections 3.2 and 3.3) will control. After
any Collateral Percentage becomes effective as provided in this Article, it
shall remain in effect until a different Collateral Percentage becomes effective
as provided in this Article.

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

                3.2.1 any Material Lease Default;

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

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

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

                 ARTICLE IV PROVISIONS CONCERNING DEPOSIT TAKERS

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

                4.1.1 Such Person must have received from Agent and NAI a
        completed, executed Notice of Security Interest in the form of
        ATTACHMENT 4 (a "NOTICE OF SECURITY INTEREST") which specifically
        identifies any and all Accounts in which such Person shall hold Cash
        Collateral delivered to it pursuant to this Agreement and which
        designates Account Offices with respect to all such Accounts in New York
        or California.

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

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<PAGE>   14

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

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

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

        Section 4.3 Replacement of Participants Proposed by NAI. So long as no
Event of Default has occurred and is continuing, BNPLC shall not unreasonably
withhold its approval for a substitution under the Participation Agreement of a
new Participant proposed by NAI for any Participant, the Deposit Taker for whom
would no longer meet the requirements for an Initially Qualified Deposit Taker;
provided, however, that (A) the proposed substitution can be accomplished
without a release or breach by BNPLC of its rights and obligations under the
Participation Agreement; (B) the new Participant will agree (by executing a
Supplement and a supplement to the Participation Agreement as contemplated
therein and by other agreements as may be reasonably required by BNPLC and NAI)
to become a party to the Participation Agreement and to this Agreement, to
designate an Initially Qualified Deposit Taker as the Deposit Taker for it under
this Agreement and to accept a Percentage under the Participation Agreement
equal to the Percentage of the Participant to be replaced; (C) the new
Participant (or NAI) will provide the funds required to pay the termination fee
by Section 6.4 of the Participation Agreement to accomplish the substitution;
(D) NAI (or the new Participant) agrees in writing to indemnify and defend BNPLC
for any and all Losses incurred by BNPLC in connection with or because of the
substitution, including the cost of preparing supplements to the Participation
Agreement and this Agreement and including any cost of defending and paying any
claim asserted by the Participant to be replaced because of the substitution
(but not including any liability of BNPLC to such Participant for damages caused
by BNPLC's bad faith or gross negligence in the performance of BNPLC's
obligations under the Participation Agreement prior to the substitution); (E)
the new Participant shall be a reputable financial institution having a net
worth of no less than seven and one half percent (7.5%) of total assets and
total assets of no less than $10,000,000,000.00 (all according to then recent
audited financial statements); and (F) in no event will BNPLC be required to
approve a substitution pursuant to this Section 4.3 which will replace a
Participant that is an Affiliate of BNPLC. BNPLC shall attempt in good faith to
assist (and cause BNPLC's Parent to attempt in good faith to assist) NAI in
identifying a new Participant that NAI may propose to substitute for an existing
Participant pursuant to this Section, as NAI may reasonably request from time to
time. However, in no event shall BNPLC itself, or any of its Affiliates, be
required to take the Percentage of any Participant to be replaced.

        Section 4.4 Mandatory Substitution for Disqualified Deposit Takers. If
any Deposit Taker shall cease to satisfy the requirements set forth in Section
4.1, the party for whom such Disqualified Deposit Taker has been designated as
Deposit Taker (i.e., BNPLC or the applicable Participant) shall promptly (1)
provide notice thereof to Agent and NAI, and (2) designate a substitute Deposit
Taker and cause the

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<PAGE>   15

substitute to satisfy the requirements set forth in Section 4.1. Pending the
designation of the substitute and the satisfaction by it of the requirements set
forth in Section 4.1, Agent may withdraw Collateral held by the Disqualified
Deposit Taker and deposit such Collateral with other Deposit Takers, subject to
Section 5.3 below.

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

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

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

        Section 4.8 Attempted Setoff by Deposit Takers. By delivery of a Deposit
Taker's Acknowledgment and Agreement, each Deposit Taker shall be required to
agree not to setoff or attempt a setoff, WITHOUT IN EACH CASE FIRST OBTAINING
THE PRIOR WRITTEN AUTHORIZATION OF AGENT, Secured Obligations owed to it against
any Collateral held by it from time to time. Further, by delivery of a Deposit
Taker's Acknowledgment and Agreement, each Deposit Taker shall be required to
agree not to setoff or attempt a setoff, WITHOUT IN EACH CASE FIRST OBTAINING
THE PRIOR WRITTEN AUTHORIZATION OF BOTH NAI AND AGENT, obligations owed to it
other than Secured Obligations against any Collateral held by it from time to
time. Any Deposit Taker for BNPLC or a Participant shall not be permitted by
BNPLC or the applicable Participant, as the case may be, to violate such
agreements. However, NAI acknowledges and agrees (without limiting its right to
recover damages from a Deposit Taker that violates such agreements) that Agent
shall not be responsible for, or be deemed to have taken any action against NAI
because of, any Deposit Taker's violation of such agreements; and, neither BNPLC
nor any Participant shall be responsible for, or be deemed to have taken any
action against NAI because of, any violation of such agreements by a Deposit
Taker for another party.

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

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<PAGE>   16

as additional Collateral hereunder, failing which NAI may recover any damages
suffered by it because of the Deposit Taker Losses from such Deposit Taker or
such Participant.

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

              ARTICLE V DELIVERY AND MAINTENANCE OF CASH COLLATERAL

        Section 5.1 Delivery of Funds by NAI. On each Base Rent Date, NAI must
deliver to Agent, subject to the pledge and security interest created hereby,
funds as Cash Collateral then needed (if any) to cause the Value of the
Collateral to be no less than the Minimum Collateral Value. Each delivery of
funds required by the preceding sentence must be received by Agent no later than
12:00 noon (San Francisco time) on the date it is required; if received after
12:00 noon it will be considered for purposes of the Land Lease as received on
the next following Business Day. At least five Business Days prior to any Base
Rent Date upon which it is expected that NAI will be required to deliver
additional funds pursuant to this Section, NAI shall notify BNPLC, Agent and
each of the Participants thereof and of the amount NAI expects to deliver to
Agent as Cash Collateral on the applicable Base Rent Date. In addition to
required deliveries of Cash Collateral as provided in the foregoing provisions,
NAI may on any date (whether or not a Base Rent Date) deliver additional Cash
Collateral to Agent as necessary to prevent any Default from becoming an Event
of Default. Upon receipt of any funds delivered to it by NAI as Cash Collateral,
Agent shall immediately deposit the same with the Deposit Takers in accordance
with the requirements of Sections 5.3 and 5.4 below.

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

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

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

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

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<PAGE>   17

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

        Section 5.4 Issuance and Redemption of Certificates of Deposit. Upon the
receipt of any deposit of Cash Collateral from Agent, each Deposit Taker shall
issue a Certificate of Deposit evidencing the Account into which such deposit is
made and deliver such Certificate of Deposit to Agent for the benefit of BNPLC
and the Participants. Each Certificate of Deposit shall be issued in an amount
equal to the Value of the Account which it evidences and shall otherwise be in
the form set forth as ATTACHMENT 1 to this Agreement. Upon depositing any Cash
Collateral into an Account that is already evidenced by an outstanding
Certificate of Deposit, Agent will surrender the outstanding Certificate of
Deposit, and in exchange the Deposit Taker receiving the deposit will issue a
new Certificate of Deposit, evidencing the total amount of Cash Collateral in
the Account after the deposit. A Deposit Taker that has issued a Certificate of
Deposit may require the surrender of the Certificate of Deposit as a condition
to a withdrawal from the Account evidenced thereby, including any withdrawal
required or permitted by this Agreement. Upon surrender of a Certificate of
Deposit in connection with a withdrawal of less than all of the Cash Collateral
in the Account evidenced thereby, the applicable Deposit Taker will concurrently
issue a new Certificate of Deposit to Agent, evidencing the balance of the Cash
Collateral remaining on deposit in the Account after the withdrawal.
Notwithstanding the foregoing, if any Certificate of Deposit held by Agent shall
be destroyed, lost or stolen, the Deposit Taker that issued the Certificate,
upon the written request of Agent, shall issue a new Certificate of Deposit to
Agent in lieu of and in substitution for the Certificate of Deposit so
destroyed, lost or stolen. However, as applicant for the substitute Certificate
of Deposit, Agent must indemnify (at no cost to NAI) the applicable Deposit
Taker against any liability on the Certificate of Deposit destroyed, lost or
stolen, and Agent shall furnish to the Deposit Taker an affidavit of an officer
of Agent setting forth the fact of destruction, loss or theft and confirming the
status of Agent as holder of the Certificate of Deposit immediately prior to the
destruction, loss or theft. If any Certificate of Deposit held by Agent shall
become mutilated, the Deposit Taker that issued the Certificate, upon the
written request of Agent, shall issue a new Certificate of Deposit to Agent in
exchange and substitution for the mutilated Certificate of Deposit. Agent shall
hold all Certificates of Deposit for the benefit of BNPLC and the Participants,
subject to the pledge and security interest created hereby.

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

[Phase IV - Land]                     -12-
<PAGE>   18

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

                    ARTICLE VI WITHDRAWAL OF CASH COLLATERAL

NAI may not withdraw Cash Collateral, except as follows:

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

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

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

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

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

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

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

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

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

                6.2.3 in any event, no withdrawals or payments directly to
        Participants shall be required by this Section 6.2 (or permitted over
        the objection of BNPLC) in excess of those required to

[Phase IV - Land]                     -13-

<PAGE>   19

        satisfy BNPLC's Corresponding Obligations to Participants or to reduce
        such obligations to zero under the Participation Agreement.

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

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

                ARTICLE VII REPRESENTATIONS AND COVENANTS OF NAI

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

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

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

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

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

                7.1.5 To the knowledge of NAI, neither the ownership or the
        intended use of the Collateral by NAI, nor the pledge of Accounts or the
        grant of the security interest by NAI to Agent

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<PAGE>   20

        herein, nor the exercise by Agent of its rights or remedies hereunder,
        will (i) violate any provision of (a) Applicable Law, (b) the articles
        or certificate of incorporation, charter or bylaws of NAI, or (c) any
        agreement, judgment, license, order or permit applicable to or binding
        upon NAI, or (ii) result in or require the creation of any Lien, charge
        or encumbrance upon any assets or properties of NAI except as expressly
        contemplated in this Agreement. Except as expressly contemplated in this
        Agreement, to the knowledge of NAI no consent, approval, authorization
        or order of, and no notice to or filing with any court, governmental
        authority or third party is required in connection with the pledge or
        grant by NAI of the security interest contemplated herein or the
        exercise by Agent of its rights and remedies hereunder.

        Section 7.2 Covenants of NAI. NAI hereby agrees as follows:

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

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

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

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

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

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

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

[Phase IV - Land]                     -15-

<PAGE>   21

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

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

                     ARTICLE VIII AUTHORIZED ACTION BY AGENT

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

                         ARTICLE IX DEFAULT AND REMEDIES

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

[Phase IV - Land]                     -16-

<PAGE>   22

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

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

Agent shall distribute the proceeds of all Collateral received by Agent after
the occurrence of an Event of Default to BNPLC and the Participants for
application to the Secured Obligations. If any proceeds of Collateral remain
after all Secured Obligations have been paid in full, Agent will deliver or
direct the Deposit Takers to deliver such proceeds to NAI or other Persons
entitled thereto. In any case where notice of any sale or disposition of any
Collateral is required, NAI hereby agrees that seven (7) Business Days notice of
such sale or disposition is reasonable.

                            ARTICLE X OTHER RECOURSE

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

                     ARTICLE XI PROVISIONS CONCERNING AGENT

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

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

[Phase IV - Land]                     -17-
<PAGE>   23

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

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

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

        Section 11.4 Indemnity. Each Participant agrees to indemnify Agent (to
the extent not reimbursed by NAI within ten days after demand) from and against
such Participant's Percentage of any and all Losses of any kind or nature
whatsoever which to any extent (in whole or in part) may be imposed on, incurred
by, or asserted against Agent growing out of, resulting from or in any other way
associated with any of the Collateral, the Transaction Documents and the
transactions and events (including the enforcement thereof) at any time
associated therewith or contemplated therein. THE FOREGOING INDEMNIFICATION
SHALL APPLY WHETHER OR NOT SUCH LOSSES ARE IN ANY WAY OR TO ANY

[Phase IV - Land]                     -18-
<PAGE>   24

EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY,
OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND
BY AGENT, PROVIDED ONLY THAT NO PARTICIPANT SHALL BE OBLIGATED UNDER THIS
SECTION TO INDEMNIFY AGENT FOR THAT PORTION, IF ANY, OF ANY LOSS WHICH IS
PROXIMATELY CAUSED BY AGENT'S OWN INDIVIDUAL GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT, AS DETERMINED IN A FINAL JUDGMENT RENDERED AGAINST AGENT. Cumulative
of the foregoing, each Participant agrees to reimburse Agent promptly upon
demand for such Participant's Percentage share of any costs and expenses to be
paid to Agent by NAI hereunder to the extent that Agent is not timely reimbursed
by NAI as provided in subsection 7.2.8. As used in this Section the term "Agent"
shall refer not only to the Person designated as such in the introductory
paragraph of this Agreement, but also to each director, officer, agent,
attorney, employee, representative and Affiliate of such Person.

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

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

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

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

[Phase IV - Land]                     -19-

<PAGE>   25

Agreement. After any retiring Agent's resignation hereunder, the provisions of
this Article 10.1 shall continue to inure to its benefit as to any actions taken
or omitted to be taken by it while it was Agent.

                            ARTICLE XII MISCELLANEOUS

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

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

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

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

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

                          [The signature pages follow.]

[Phase IV - Land]                     -20-

<PAGE>   26

        IN WITNESS WHEREOF, NAI, BNPLC, Agent and the Participants whose
signatures appear below have caused this Agreement to be executed as of December
___, 1999.

                                          "NAI"

                                          NETWORK APPLIANCE, INC.

                                          By:
                                             ----------------------------------

<PAGE>   27

[Continuation of signature pages to Pledge Agreement (Phase IV - Land) dated to
be effective December __, 1999.]

                                          "BNPLC"

                                          BNP LEASING CORPORATION

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

<PAGE>   28

[Continuation of signature pages to Pledge Agreement (Phase IV - Land) dated to
be effective December __, 1999.]

                                          "AGENT"

                                          BANQUE NATIONALE DE PARIS

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

                                          "PARTICIPANT"

                                          BANQUE NATIONALE DE PARIS

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

<PAGE>   29

                                  ATTACHMENT 1
                               TO PLEDGE AGREEMENT

                             CERTIFICATE OF DEPOSIT

                                 (No. _________)

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

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

PAYABLE TO
THE ORDER OF:         BANQUE NATIONALE DE PARIS, as Agent under the
                      Pledge Agreement (Phase IV - Land) dated December __,
                      1999, among Network Appliance, Inc., BNP Leasing
                      Corporation, Banque Nationale de Paris and any other
                      financial institutions which are from time to time
                      Participants under such Pledge Agreement (Phase IV - Land)
                      and Banque Nationale de Paris, acting in its capacity as
                      agent for BNPLC and the Participants

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

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

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

<PAGE>   30

                                  ATTACHMENT 2
                               TO PLEDGE AGREEMENT

                         SUPPLEMENT TO PLEDGE AGREEMENT

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

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

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

        1. Reference is made to the Pledge Agreement (Phase IV - Land) (the
"PLEDGE AGREEMENT") dated December ___, 1999 among Network Appliance, Inc.
("NAI"), BNP Leasing Corporation ("BNPLC"), Banque Nationale de Paris and any
other financial institutions which are from time to time Participants under such
Pledge Agreement (collectively, the "PARTICIPANTS") and Banque Nationale de
Paris, acting in its capacity as agent for BNPLC and the Participants (in such
capacity, "AGENT"). Unless otherwise defined herein, all capitalized terms used
in this Supplement have the respective meanings given to those terms in the
Pledge Agreement.

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

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

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

[______________________________________________________________________________]

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

<PAGE>   31

                                  ATTACHMENT 3
                               TO PLEDGE AGREEMENT

          NOTICE OF NAI'S ELECTION TO CHANGE THE COLLATERAL PERCENTAGE

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

Banque Nationale de Paris
[address of BNP]

Re:             Pledge Agreement (Phase IV - Land) (the "PLEDGE AGREEMENT")
                dated December ___, 1999 among Network Appliance, Inc., BNP
                Leasing Corporation, Banque Nationale de Paris and any other
                financial institutions which are from time to time Participants
                under such Pledge Agreement and Banque Nationale de Paris,
                acting in its capacity as agent for BNPLC and the Participants

Gentlemen:

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

                           __________ percent (___%),

on the following Base Rent Date:

                           __________________, ______

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

               ____________________________ Dollars ($__________),

will result in an expected new Minimum Collateral Value of:

              _____________________________ Dollars ($__________).

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

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

<PAGE>   32

               ___________________________ Dollars ($__________).]

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

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

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

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

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

                                          Network Appliance, Inc.

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

[cc BNPLC and all Participants]

[Phase IV - Land]                     -2-

<PAGE>   33

                                  ATTACHMENT 4
                               TO PLEDGE AGREEMENT

                           NOTICE OF SECURITY INTEREST

                               [_________, _____]

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

1. Reference is made to the Pledge Agreement (Phase IV - Land) (the "PLEDGE
AGREEMENT") dated December __, 1999 among Network Appliance, Inc. ("NAI"), BNP
Leasing Corporation ("BNPLC"), Banque Nationale de Paris and any other financial
institutions which are from time to time Participants under such Pledge
Agreement (collectively, the "PARTICIPANTS") and Banque Nationale de Paris,
acting in its capacity as agent for BNPLC and the Participants (in such
capacity, "AGENT"). Unless otherwise defined herein, all capitalized terms used
in this Notice have the respective meanings given to those terms in the Pledge
Agreement.

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

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

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

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

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

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

<PAGE>   34

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

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

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

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

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

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

                                          "AGENT"

                                          BANQUE NATIONALE DE PARIS

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

[Phase IV - Land]                     -2-

<PAGE>   35

                                          "NAI"

                                          Network Appliance, Inc.

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

[Phase IV - Land]                     -3-
<PAGE>   36

                          ACKNOWLEDGMENT AND AGREEMENT
                                OF DEPOSIT TAKER

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

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

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

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

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

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

                                          [___________________________________]

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

                                          [Date]

<PAGE>   37

                                  ATTACHMENT 5
                               TO PLEDGE AGREEMENT

                        EXAMPLES OF CALCULATIONS REQUIRED
                         TO AVOID A COLLATERAL IMBALANCE

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

                                  EXAMPLE NO. 1

Assumptions:

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

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

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

                 TOTAL .............................................      $12,000,000
</TABLE>

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

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

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

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

              TOTAL ....................................................................      $7,200,000
</TABLE>

<PAGE>   38

                                  EXAMPLE NO. 2

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

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

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

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

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

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

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

<TABLE>
<S>                                                                                            <C>
        A.   BNPLC's Deposit Taker ($480,000 less $360,000 already on deposit) ................ $  120,000
        B.   Participant A's Deposit Taker ($3,840,000 less $3,600,000 already on deposit) ....    240,000
        C.   Participant B's Deposit Taker ($3,360,000 less $3,240,000 already on deposit) ....    120,000
        D.   Participant C's  Deposit Taker ($1,920,000 less $0 already on deposit) ...........  1,920,000
                                                                                                ----------

             TOTAL ............................................................................ $2,400,000
</TABLE>

                                  EXAMPLE NO. 3

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

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

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

[Phase IV - Land]                     -2-

<PAGE>   39

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

              TOTAL ....................................................................      $8,400,000
</TABLE>

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

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

              TOTAL ............................................................................      $ 1,200,000
</TABLE>

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

[Phase IV - Land]                      -3-

<PAGE>   40

                                  ATTACHMENT 6
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT TO
                         WITHDRAW EXCESS CASH COLLATERAL

                               [_________, _____]

Banque Nationale de Paris
[address of BNP]

        Re:    Pledge Agreement (Phase IV - Land) dated December ___, 1999 among
               Network Appliance, Inc., BNP Leasing Corporation, Banque
               Nationale de Paris and any other financial institutions which are
               from time to time Participants under such Pledge Agreement (Phase
               IV - Land) and Banque Nationale de Paris, acting in its capacity
               as agent for BNPLC and the Participants

Gentlemen:

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

                ___________________________ Dollars ($__________)

on the following date:

                                __________, ____

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

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

               ____________________________ Dollars ($__________),

<PAGE>   41

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

               ____________________________ Dollars ($__________).

        Such Minimum Collateral Value equals the Collateral Percentage of:

                           __________ percent (___%),

        times the Stipulated Loss Value of:

               ____________________________ Dollars ($__________).

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

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

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

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

                                      -2-

<PAGE>   42

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

                                          Network Appliance, Inc.

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

                                      -3-

<PAGE>   43
                                     Annex 1
                        TO NAI'S NOTICE OF REQUIREMENT TO
                         WITHDRAW CASH EXCESS COLLATERAL

                               [_________, _____]

Deposit Takers on the
Attached Distribution List

      Re:   Pledge Agreement (Phase IV - Land) dated December __, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

                                __________, ____

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

<TABLE>
Deposit Taker                      Account No.                        Amount
-------------                      -----------                        ------
<S>                          <C>                                 <C>
1.____________________       ______________________              $______________

2.____________________       ______________________              $______________

3.____________________       ______________________              $______________

4.____________________       ______________________              $______________

                             TOTAL WITHDRAWALS:                  $______________
</TABLE>

                                            BANQUE NATIONALE DE PARIS, AS AGENT

                                               Name:
                                                     ---------------------------

                                               Title:
                                                     ---------------------------

[cc BNPLC and NAI]

[Phase IV - Land]                     -4-

<PAGE>   44

                                  ATTACHMENT 7
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                         DIRECT PAYMENTS TO PARTICIPANTS

                               [_________, _____]

Banque Nationale de Paris
[address of BNP]

      Re:   Pledge Agreement (Phase IV - Land) dated December ___, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

               ____________________________ Dollars ($__________)

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

                                __________, ____

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

                           __________ percent (___%),

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

               ____________________________ Dollars ($__________).

<PAGE>   45

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

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

                                           Network Appliance, Inc.

                                           By:
                                              ----------------------------------

                                                  Name:
                                                        ------------------------

                                                  Title:
                                                        ------------------------

[cc BNPLC and all Participants]

[Phase IV - Land]                     -2-

<PAGE>   46

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

                               [_________, _____]

Deposit Takers on the
Attached Distribution List

      Re:   Pledge Agreement (Phase IV - Land) dated December ___, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

                                __________, ____

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

<TABLE>
Deposit Taker                      Account No.                        Amount
-------------                      -----------                        ------
<S>                          <C>                                 <C>
1.____________________       ______________________              $______________

2.____________________       ______________________              $______________

3.____________________       ______________________              $______________

4.____________________       ______________________              $______________

                             TOTAL WITHDRAWALS:                  $______________
</TABLE>

                                            BANQUE NATIONALE DE PARIS, AS AGENT

                                               Name:
                                                     ---------------------------

                                               Title:
                                                     ---------------------------

[cc BNPLC and NAI]

[Phase IV - Land]                     -3-

<PAGE>   47

                                  ATTACHMENT 8
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                             DIRECT PAYMENT TO BNPLC

                               [_________, _____]

Banque Nationale de Paris
[address of BNP]

      Re:   Pledge Agreement (Phase IV - Land) dated December __, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

               ____________________________ Dollars ($__________)

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

                                __________, ____

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

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

                                           Network Appliance, Inc.

                                           By:
                                              ----------------------------------

                                                  Name:
                                                        ------------------------

                                                  Title:
                                                        ------------------------

[cc BNPLC]

<PAGE>   48

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

                               [_________, _____]

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

      Re:   Pledge Agreement (Phase IV - Land) dated December ___, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

               ____________________________ Dollars ($__________)

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

                                __________, ____

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

                                            BANQUE NATIONALE DE PARIS, AS AGENT

                                               Name:
                                                     ---------------------------

                                               Title:
                                                     ---------------------------

[cc BNPLC and NAI]

[Phase IV - Land]                     -2-

<PAGE>   49

                                  ATTACHMENT 9
                               TO PLEDGE AGREEMENT

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

                               [_________, _____]

Banque Nationale de Paris
[address of BNP]

      Re:   Pledge Agreement (Phase IV - Land) dated December ___, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

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

Cash Collateral in the following amount:

               ____________________________ Dollars ($__________)

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

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

[NAI MUST INSERT HERE A DESCRIPTION OF WHICH REQUIREMENTS THE DEPOSIT TAKER NO
LONGER SATISFIES AND HOW NAI HAS DETERMINED THAT THE REQUIREMENTS ARE NO LONGER
SATISFIED, ALL IN SUFFICIENT DETAIL TO PERMIT THE PARTICIPANT FOR WHOM SUCH
DEPOSIT TAKER HAS BEEN

<PAGE>   50

MAINTAINING AN ACCOUNT TO RESPOND IF IT BELIEVES THAT NAI IS IN ERROR.]

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

                                           Network Appliance, Inc.

                                           By:
                                              ----------------------------------

                                                  Name:
                                                        ------------------------

                                                  Title:
                                                        ------------------------

[cc BNPLC]

[Phase IV - Land]                     -2-

<PAGE>   51

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

                               [_________, _____]

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

      Re:   Pledge Agreement (Phase IV - Land) dated December __, 1999 among
            Network Appliance, Inc., BNP Leasing Corporation, Banque Nationale
            de Paris and any other financial institutions which are from time to
            time Participants under such Pledge Agreement (Phase IV - Land) and
            Banque Nationale de Paris, acting in its capacity as agent for BNPLC
            and the Participants

Gentlemen:

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

               ____________________________ Dollars ($__________)

no later than the following date:

                                __________, ____

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

                                            BANQUE NATIONALE DE PARIS, AS AGENT

                                               Name:
                                                     ---------------------------

                                               Title:
                                                     ---------------------------

[cc BNPLC and NAI]

[Phase IV - Land]                     -3-

<PAGE>   52

                                   Schedule 1

                               FINANCIAL COVENANTS

      This Schedule 1 is attached to and made a part of (a) the Lease Agreement
(Phase IV - Improvements) (the "IMPROVEMENTS LEASE") dated to be effective as of
December ___, 1999 (the "EFFECTIVE DATE"), between BNP Leasing Corporation, a
Delaware corporation ("BNPLC") and Network Appliance, Inc., a California
corporation ("NAI"), (b) the Lease Agreement (Phase IV - Land) (the "LAND LEASE"
and, together with the Improvements Lease, the "LEASES") dated to be effective
as of the Effective Date, between BNPLC and NAI, (c) the Pledge Agreement (Phase
IV - Improvements) (the "PLEDGE AGREEMENT (IMPROVEMENTS)") dated to be effective
as of the Effective Date, among BNPLC, NAI, and Banque Nationale de Paris, as a
Participant and as agent for any financial institutions that become Participants
thereunder from time to time, and (d) the Pledge Agreement (Phase IV - Land)
(collectively with the Pledge Agreement (Improvements), the "PLEDGE AGREEMENTS")
dated to be effective as of the Effective Date, among BNPLC, NAI, and Banque
Nationale de Paris, as a Participant and as agent for any financial institutions
that become Participants thereunder from time to time.

                             PART I - DEFINED TERMS

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

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

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

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

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

      "DEBT" as used in this Exhibit shall have the meaning assigned to it in
      the Common Definitions and Provisions Agreements, where "Debt" of any
      Person is defined to mean (without duplication of any item): (a)
      indebtedness of such Person for borrowed money; (b) indebtedness of such
      Person for the deferred purchase price of property or services (except
      trade payables and accrued expenses constituting current liabilities in
      the ordinary course of business); (c) the face amount of any outstanding
      letters of credit issued for the account of such Person; (d) obligations
      of such

[Phase IV - Land]                     -4-

<PAGE>   53

      Person arising under acceptance facilities; (e) guaranties, endorsements
      (other than for collection in the ordinary course of business) and other
      contingent obligations of such Person to purchase, to provide funds for
      payment, to provide funds to invest in any Person, or otherwise to assure
      a creditor against loss; (f) obligations of others secured by any Lien on
      property of such Person; (g) obligations of such Person as lessee under
      Capital Leases; and (h) the obligations of such Person, contingent or
      otherwise, under any lease of property or related documents (including a
      separate purchase agreement) which provide that such Person or any of its
      Affiliates must purchase or cause another Person to purchase any interest
      in the leased property and thereby guarantee a minimum residual value of
      the leased property to the lessor. For purposes of this definition, the
      amount of the obligations described in clause (h) of the preceding
      sentence with respect to any lease classified according to GAAP as an
      "operating lease," shall equal the sum of (1) the present value of rentals
      and other minimum lease payments required in connection with such lease
      [calculated in accordance with SFAS 13 and other GAAP relevant to the
      determination of the whether such lease must be accounted for as an
      operating lease or capital lease], plus (2) the fair value of the property
      covered by the lease; provided, however, that such amount shall not exceed
      the price, as of the date a determination of Debt is required hereunder,
      for which the lessee can purchase the leased property pursuant to any
      valid ongoing purchase option if, upon such a purchase, the lessee shall
      be excused from paying rentals or other minimum lease payments that would
      otherwise accrue after the purchase.

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

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

      "MANDATORY COLLATERAL PERIOD" means any period during which,
      notwithstanding any contrary designation of a Collateral Percentage by NAI
      under the Pledge Agreements, the Collateral Percentage for purposes of the
      Pledge Agreements shall be one hundred percent (100%), determined as set
      forth in Part III of this Schedule 1.

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

      "QUICK RATIO" means the ratio of:

                  (A) the sum (without duplication of any item) of the following
            assets of NAI and its Subsidiaries (determined on a consolidated
            basis): Collateral delivered and pledged under the Pledge Agreements
            in accordance with the requirements thereof (if any); plus

[Phase IV - Land]                     -5-

<PAGE>   54

            unencumbered cash; plus unencumbered short term cash investments;
            plus other unencumbered marketable securities which are classified
            as short term investments in accordance with GAAP; plus unencumbered
            accounts receivable, computed net of reserves for uncollectible
            amounts as determined in accordance with GAAP, to

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

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

                          PART II - FINANCIAL COVENANTS

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

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

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

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

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

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

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

[Phase IV - Land]                     -6-

<PAGE>   55

                PART III - TESTS FOR MANDATORY COLLATERAL PERIODS

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

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

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

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

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

<TABLE>
            Date                         Failed Collateral Test Date?
            ----                         ----------------------------
            <S>                          <C>

            February 15, 2001                        Yes
            May 12, 2001                             No
            August 16, 2001                          Yes
            November 11, 2001                        No
            February 18, 2002                        No
            May 14, 2002                             Yes
            August 18, 2002                          Yes
            November 18, 2002                        No
            February 15, 2003                        No
</TABLE>

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

                            PART IV - OTHER COVENANTS

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

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

[Phase IV - Land]                     -7-

<PAGE>   56

Operative Documents:

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

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

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

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

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

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

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

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

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

[Phase IV - Land]                     -8-

<PAGE>   57

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

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

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

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

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

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

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

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

      J.    Dividends, Distributions. Declare or pay any dividend or
distribution either in cash, stock

[Phase IV - Land]                     -9-

<PAGE>   58

or any other property on NAI's stock now or hereafter outstanding, nor redeem,
retire, repurchase or otherwise acquire any shares of any class of NAI's stock
now or hereafter outstanding.

                                      -10-

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