Document:

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                                                                   EXHIBIT 10.61

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                               PURCHASE AGREEMENT
                            (PHASE V - IMPROVEMENTS)

                                     BETWEEN

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                                       AND

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                                  MARCH 1, 2000

                             (SUNNYVALE, CALIFORNIA)

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                                TABLE OF CONTENTS

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<S>     <C>                                                                                <C>
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...............................................3

        (C)    Designation of the Purchaser..................................................5

        (D)    Effect of the Purchase Option and NAI's Initial Remarketing Rights and
        Obligations on Subsequent Title Encumbrances.........................................5

        (E)    Security for the Purchase Option and NAI's Initial Remarketing Rights
        and Obligations......................................................................5

        (F)    Delivery of Books and Records If BNPLC Retains the Property...................6

2.      NAI's Rights and Options After the Designated Sale Date..............................6

        (A)    NAI's Extended Right to Remarket..............................................6

        (B)    Definition of Minimum Extended Remarketing Price..............................6

        (C)    BNPLC's Right to Sell.........................................................7

        (D)    NAI's Right to Excess Sales Proceeds..........................................8

        (E)    Permitted Transfers During NAI's Extended Remarketing Period..................8

3.      Terms of Conveyance Upon Purchase....................................................8

4.      Survival and Termination of the Rights and Obligations of NAI and BNPLC..............9

        (A)    Status of this Agreement Generally............................................9

        (B)    Election by NAI to Terminate the Purchase Option and NAI's Initial
        Remarketing Rights and Obligations Prior to the Base Rent Commencement
        Date................................................................................10

        (C)    Election by BNPLC to Terminate the Purchase Option and NAI's Initial
        Remarketing Rights and Obligations..................................................10

        (D)    Automatic Termination of NAI's Rights........................................10
</TABLE>

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<TABLE>
<S>     <C>                                                                                 <C>
        (E) Termination of NAI's Extended Remarketing Rights to Permit a Sale by BNPLC .....11

        (F) Payment Only to BNPLC...........................................................11

        (G) Remedies Under the Other Operative Documents....................................11

        (H) Occupancy by NAI Prior to Closing of a Sale.....................................11

5.      SECURITY FOR NAI'S OBLIGATIONS; RETURN OF FUNDS.....................................12

6.      CERTAIN REMEDIES CUMULATIVE.........................................................12

7.      ATTORNEYS' FEES AND LEGAL EXPENSES..................................................12

8.      ESTOPPEL CERTIFICATE................................................................13

9.      SUCCESSORS AND ASSIGNS..............................................................13
</TABLE>

                             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

Exhibit K.................................Notice by NAI of Election to Terminate

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                               PURCHASE AGREEMENT
                            (PHASE V - IMPROVEMENTS)

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

                                    RECITALS

        Pursuant to the 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 V - Improvements) (the
"IMPROVEMENTS LEASE") and the Construction Management Agreement (the
"Construction Management Agreement"), each executed by BNPLC and NAI
contemporaneously with this Agreement, BNPLC is agreeing to provide funding for
the construction and completion of Improvements on the Land, all of which will
be owned by BNPLC, and 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:

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                        (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"):

                                (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:

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                                                (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 V -
                                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.

                        (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, and
        plus an amount equal to the Balance of Unpaid Construction-Period
        Indemnity Payments, but less the aggregate amounts (if any) of Direct
        Payments to Participants and Deposit Taker Losses. As used herein, the
        "Balance of Unpaid Construction-Period Indemnity Payments" means an
        amount equal to the sum of Construction-Period Indemnity Payments, if
        any, that NAI declined to pay pursuant to subparagraph 5(d)(ii) of the
        Improvements Lease, plus interest accruing at the Default Rate,
        compounded annually, on each such payment from the date such payment
        would have become due but for NAI's right to decline to pay it as
        described in subparagraph 5(d)(ii) of the Improvements Lease. If,
        however, Losses for which NAI has so declined to pay any
        Construction-Period Indemnity Payment consist of claims against BNPLC or
        another Interested Party that have not been liquidated prior to the
        Designated Sale Date (and, thus, such Losses have yet to be fixed in
        amount as of the Designated Sale Date), then NAI may elect to exclude
        any Construction-Period Indemnity Payment attributable to such Losses by
        providing to BNPLC, for the benefit of BNPLC and other Interested
        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 Balance of Unpaid Construction-Period Indemnity
        Payments (and, thus, the Break Even Price), any such written indemnity
        must be fully executed and delivered by NAI on or prior to the
        Designated Sale Date, must include provisions comparable to
        subparagraphs 5(c)(ii), (iii), (iv) and (v) of the Improvements Lease
        and otherwise must be in form and substance satisfactory to BNPLC.

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                        (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 V - 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.

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                (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 "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 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.

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                (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 all plans and specifications for the Property
prepared in connection with the construction contemplated by the Construction
Management Agreement and the Improvements Lease, together with all other 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
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:

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                        (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 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

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        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 V -
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 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

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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.

                                       9
<PAGE>   13

                (B) Election by NAI to Terminate the Purchase Option and NAI's
Initial Remarketing Rights and Obligations Prior to the Base Rent Commencement
Date. At any time prior to the Base Rent Commencement Date, NAI may elect to
terminate both the Purchase Option and NAI's Initial Remarketing Rights and
Obligations, subject to the following conditions:

                        (1) To be effective, any such election to terminate must
        be made prior to the Base Rent Commencement Date and must be made after
        (x) NAI shall have given Notice of NAI's Election to Terminate pursuant
        to Paragraph 5(D) of the Construction Management Agreement, (y) BNPLC
        shall have given any FOCB Notice as provided in Paragraph 5(E) of the
        Construction Management Agreement, or (z) BNPLC shall have given notice
        of its election to accelerate the Designated Sale Date when an Event of
        Default has occurred and is continuing as provided in clause (5) of the
        definition "Designated Sale Date" in the Common Definitions and
        Provisions Agreement (Phase V - Improvements).

                        (2) To be effective, any such election to terminate must
        be made by giving BNPLC and the Participants a notice thereof in the
        form attached as Exhibit F prior to the Base Rent Commencement Date.

                        (3) No termination pursuant to this subparagraph 4(B)
        shall be effective, notwithstanding any notice NAI may have given as
        described in the preceding clause (2), unless contemporaneously with the
        giving of the notice (and in any event prior to the Base Rent
        Commencement Date) NAI shall deliver to BNPLC an Issue 97-10 Prepayment.

                        (4) If for any reason whatsoever, including any bona
        fide dispute over the amount of any required Issue 97-10 Prepayment,
        BNPLC does not receive both the notice described in the preceding clause
        (2) and a full Issue 97-10 Prepayment as described in the preceding
        clause (3) prior to the Base Rent Commencement Date, then without any
        notice or other action by the parties to this Agreement NAI shall cease
        to have any option to terminate pursuant to this subparagraph 4(B).

                (C) Election by BNPLC to Terminate the Purchase Option and NAI's
Initial Remarketing Rights and Obligations. By notice to NAI BNPLC shall be
entitled to terminate both the Purchase Option and NAI's Initial Remarketing
Rights and Obligations, as BNPLC deems appropriate in its sole and absolute
discretion, at any time after receiving a notice given by NAI to make or attempt
to make any Issue 97-10 Election. Upon any such termination by BNPLC, NAI shall
become immediately obligated to pay BNPLC an Issue 97-10 Prepayment.

                (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

                                       10
<PAGE>   14

subparagraph 1(A)(2)(a). If, however, NAI's Initial Remarketing Rights and
Obligations are effectively terminated pursuant to subparagraph 4(B) or 4(C)
prior to the Designated Sale Date, thereby excusing NAI from the obligation to
make any Supplemental Payment pursuant to subparagraph 1(A)(2)(c) and precluding
any Voluntary Retention of the Property pursuant to subparagraph 1(A)(2)(a),
then NAI's Extended Remarketing Rights will not automatically terminate pursuant
to this subparagraph. Further, 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, the Construction
Management Agreement 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.

                                       11
<PAGE>   15

        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 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.

                                       12
<PAGE>   16

        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 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.]

                                       13
<PAGE>   17

        IN WITNESS WHEREOF, NAI and BNPLC have caused this Purchase Agreement
(Phase V - Improvements) to be executed as of March 1, 2000.

                                            "NAI"

                                            NETWORK APPLIANCE, INC.

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

                                       14
<PAGE>   18

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

                                            "BNPLC"

                                            BNP LEASING CORPORATION

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

                                       15
<PAGE>   19

                                    EXHIBIT A

                                LEGAL DESCRIPTION

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

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

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

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

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

<PAGE>   20

                                    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 from 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>   21

                                   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>   22

                                            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>   23

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>   24

                                     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:

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

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

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

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

                              EXHIBIT B-1 - PAGE 4
<PAGE>   25

                                     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 V - Improvements) incorporated by reference into the Lease
Agreement (Phase V 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:

1.      TAXES for the fiscal year 2000-2001, 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    : 16-foot slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the State of
                     California
        Recorded   : October 9, 1964 in Book 6695, Page 389, Official Records
        Affects    : Southerly 16 feet abutting Moffett Park Drive, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed
                     for Network Appliance, 1260 Crossman Avenue," dated
                     January 21, 2000, prepared by Kier & Wright Civil Engineers
                     and Surveyors, Job No. 99274.

4.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the State of
                     California
        Recorded   : October 9, 1964 in Book 6695, Page 409, Official Records
        Affects    : Northwesterly 16 feet abutting Crossman Road, as shown on a
                     survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

5.      EASEMENT for the purposes stated herein and incidents thereto

        Purpose    : Public Utilities Easement
        Granted to : City of Sunnyvale, a municipal corporation of the State of
                     California
        Recorded   : October 9, 1964 in Book 6695, Page 457, Official Records
        Affects    : Northwesterly 7 feet abutting Crossman Road, as shown on a
                     survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260

                              EXHIBIT B-1 - PAGE 5
<PAGE>   26

                     Crossman Avenue," dated January 21, 2000, prepared by
                     Kier & Wright Civil Engineers and Surveyors, Job No. 99274.

6.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utility Easement
        Granted to : City of Sunnyvale, a municipal corporation of the State of
                     California
        Recorded   : September 24, 1965 in Book 7116, Page 489, Official
                     Records,
        Affects    : Southerly 7 feet abutting Moffett Park Drive, as shown on a
                     survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

7.      AGREEMENT on the terms and conditions contained therein
        For        : Construction of Storm Drainage Facilities
        Between    : City of Sunnyvale And : Moffett Park Associates, a joint
                     venture partnership
        Recorded   : November 2, 1966 in Book 7552, Page 688, Official Records

                     An amendment to said agreement recorded in an instrument
                     recorded April 21, 1967 in Book 7700, Page 638, Official
                     Records.

        An amendment to said agreement recorded in an instrument recorded
        February 23, 1968 in Book 8034, Page 631, Official Records.

        Notice affecting said real property-waiver of construction credit dated
        September 22, 1976 has been executed by Moffett Park Association (MPA) a
        joint venture partnership, recorded September 28, 1976 in Book C307,
        Page 346, Official Records.

8.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utilities Easement
        Recorded   : July 18, 1978 in Book 423 of Maps, at page 13
        Affects    : Northwesterly 9 feet, Southwesterly 15 feet from the
                     Southernmost 9 feet of said land, as shown on a survey plat
                     entitled "ALTA/ACSM Land Title Surveyed for Network
                     Appliance, 1260 Crossman Avenue," dated January 21, 2000,
                     prepared by Kier & Wright Civil Engineers and Surveyors,
                     Job No. 99274.

9.      Limitations, covenants, conditions, restrictions, reservations,
        exceptions, terms, liens or charges, 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 U.S.C. 3604(c), contained in the document
        recorded March 8, 1978 in Book D511, Page 396, Official Records.

        And re-recorded December 12, 1978 in Book E157, Page 147, Official
        Records.

                              EXHIBIT B-1 - PAGE 6
<PAGE>   27

                                   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

<PAGE>   28

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.

                              EXHIBIT B2 - PAGE 2
<PAGE>   29

                                            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 B2 - PAGE 3
<PAGE>   30

                                     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:

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

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

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

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

                              EXHIBIT B2 - PAGE 4
<PAGE>   31

                                     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 V - Improvements) incorporated by reference into the Lease
Agreement (Phase V 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:

1.      TAXES for the fiscal year 2000-2001, 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    : 16-foot slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 389, Official Records
        Affects    : Southerly 16 feet abutting Moffett Park Drive, as shown
                     on a survey plat entitled "ALTA/ACSM Land Title Surveyed
                     for Network Appliance, 1260 Crossman Avenue," dated January
                     21, 2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

4.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 409, Official Records
        Affects    : Northwesterly 16 feet abutting Crossman Road, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

5.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utilities Easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 457, Official Records
        Affects    : Northwesterly 7 feet abutting Crossman Road, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance,

                              EXHIBIT B2 - PAGE 5
<PAGE>   32

                     1260 Crossman Avenue," dated January 21, 2000, prepared
                     by Kier & Wright Civil Engineers and Surveyors, Job No.
                     99274.

6.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utility Easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : September 24, 1965 in Book 7116, Page 489, Official
                     Records,
        Affects    : Southerly 7 feet abutting Moffett Park Drive, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

7.      AGREEMENT on the terms and conditions contained therein
        For        : Construction of Storm Drainage Facilities
        Between    : City of Sunnyvale
        And        : Moffett Park Associates, a joint venture partnership
        Recorded   : November 2, 1966 in Book 7552, Page 688, Official Records

        An amendment to said agreement recorded in an instrument recorded April
        21, 1967 in Book 7700, Page 638, Official Records.

        An amendment to said agreement recorded in an instrument recorded
        February 23, 1968 in Book 8034, Page 631, Official Records.

        Notice affecting said real property-waiver of construction credit dated
        September 22, 1976 has been executed by Moffett Park Association (MPA) a
        joint venture partnership, recorded September 28, 1976 in Book C307,
        Page 346, Official Records.

        EASEMENT for the purposes stated herein and incidents thereto

        Purpose    : Public Utilities Easement

        Recorded   : July 18, 1978 in Book 423 of Maps, at page 13

        Affects    : Northwesterly 9 feet, Southwesterly 15 feet from the
                     Southernmost 9 feet of said land, as shown on a survey plat
                     entitled "ALTA/ACSM Land Title Surveyed for Network
                     Appliance, 1260 Crossman Avenue," dated January 21, 2000,
                     prepared by Kier & Wright Civil Engineers and Surveyors,
                     Job No. 99274.

8.      Limitations, covenants, conditions, restrictions, reservations,
        exceptions, terms, liens or charges, 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 U.S.C. 3604(c), contained in the document
        recorded March 8, 1978 in Book D511, Page 396, Official Records.

        And re-recorded December 12, 1978 in Book E157, Page 147, Official
        Records.

                              EXHIBIT B2 - PAGE 6
<PAGE>   33

                                   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>   34

                                            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 B3 - PAGE 2
<PAGE>   35

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 B3 - PAGE 3
<PAGE>   36

                                     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:

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

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

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

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

                               EXHIBIT B3 - PAGE 4
<PAGE>   37

                                     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 V - Improvements) incorporated by reference into the Lease
Agreement (Phase V 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:

1.      TAXES for the fiscal year 2000-2001, 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    : 16-foot slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 389, Official Records
        Affects    : Southerly 16 feet abutting Moffett Park Drive, as shown
                     on a survey plat entitled "ALTA/ACSM Land Title Surveyed
                     for Network Appliance, 1260 Crossman Avenue," dated January
                     21, 2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

4.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Slope easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 409, Official Records
        Affects    : Northwesterly 16 feet abutting Crossman Road, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

5.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utilities Easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : October 9, 1964 in Book 6695, Page 457, Official Records

                               EXHIBIT B3 - PAGE 5
<PAGE>   38

        Affects    : Northwesterly 7 feet abutting Crossman Road, as shown on
                     a survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     2000, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

6.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utility Easement
        Granted to : City of Sunnyvale, a municipal corporation of the
                     State of California
        Recorded   : September 24, 1965 in Book 7116, Page 489, Official
                     Records,
        Affects    : Southerly 7 feet abutting Moffett Park Drive, as shown on
                     survey plat entitled "ALTA/ACSM Land Title Surveyed for
                     Network Appliance, 1260 Crossman Avenue," dated January 21,
                     20, prepared by Kier & Wright Civil Engineers and
                     Surveyors, Job No. 99274.

7.      AGREEMENT on the terms and conditions contained therein
        For        : Construction of Storm Drainage Facilities
        Between    : City of Sunnyvale
        And        : Moffett Park Associates, a joint venture partnership
        Recorded   : November 2, 1966 in Book 7552, Page 688, Official Records

        An amendment to said agreement recorded in an instrument recorded April
        21, 1967 in Book 7700, Page 638, Official Records.

        An amendment to said agreement recorded in an instrument recorded
        February 23, 1968 in Book 8034, Page 631, Official Records.

        Notice affecting said real property-waiver of construction credit dated
        September 22, 1976 has been executed by Moffett Park Association (MPA) a
        joint venture partnership, recorded September 28, 1976 in Book C307,
        Page 346, Official Records.

8.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose    : Public Utilities Easement
        Recorded   : July 18, 1978 in Book 423 of Maps, at page 13
        Affects    : Northwesterly 9 feet, Southwesterly 15 feet from the
                     Southernmost 9 feet of said land, as shown on a survey plat
                     entitled "ALTA/ACSM Land Title Surveyed for Network
                     Appliance, 1260 Crossman Avenue," dated January 21, 2000,
                     prepared by Kier & Wright Civil Engineers and Surveyors,
                     Job No. 99274.

9.      Limitations, covenants, conditions, restrictions, reservations,
        exceptions, terms, liens or charges, 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 U.S.C. 3604(c), contained in the document
        recorded March 8, 1978 in Book D511, Page 396, Official Records.

        And re-recorded December 12, 1978 in Book E157, Page 147, Official
        Records.

                               EXHIBIT B3 - PAGE 6
<PAGE>   39

                                    EXHIBIT C

                           BILL OF SALE AND ASSIGNMENT

        Reference is made to: (1) that certain Purchase Agreement (Phase V -
Improvements) between BNP Leasing Corporation ("ASSIGNOR") and Network
Appliance, Inc., dated as of March 1, 2000, (the "PURCHASE AGREEMENT") and (2)
that certain Lease Agreement (Phase V Improvements) between Assignor, as
landlord, and Network Appliance, Inc., as tenant, dated as of March 1, 2000 (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 V - 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

<PAGE>   40

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 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>   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
                 ---------------------------------

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>   42

                                     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:

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

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

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

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

                               EXHIBIT C - PAGE 4
<PAGE>   43

                                    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 V - Improvements) incorporated by reference into the Purchase Agreement
(Phase V- Improvements) between BNPLC and Network Appliance, Inc. dated March 1,
2000, 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>   44

                                    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.]

<TABLE>
<CAPTION>
Name                           Title                   Signature
----                           -----                   ---------
<S>                            <C>                     <C>

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

----------------------         ----------------        -------------------------
</TABLE>

        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>   45

                            CORPORATE RESOLUTIONS OF
                             BNP LEASING CORPORATION

        WHEREAS, pursuant to that certain Purchase Agreement (Phase V -
Improvements) (herein called the "Purchase Agreement") dated as of March 1,
2000, 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>   46

                                    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>   47

                                    EXHIBIT K

             NOTICE OF ELECTION TO TERMINATE THE PURCHASE OPTION AND
                NAI'S INITIAL REMARKETING RIGHTS AND OBLIGATIONS

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

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

Gentlemen:

Capitalized terms used in this letter are intended to have the meanings assigned
to them in the Purchase Agreement referenced above. This letter shall constitute
a notice, given before the Base Rent Commencement Date pursuant to subparagraph
4(B) of the Purchase Agreement, of NAI's election to terminate the Purchase
Option and NAI's Initial Remarketing Rights and Obligations. NAI irrevocably
elects to terminate the Purchase Option and NAI's Initial Remarketing Rights and
Obligations effective immediately, subject only to the conditions described
below.

NAI acknowledges that the election made by NAI described above constitutes an
Issue 97-10 Election under and as defined in the Operative Documents.

NAI also acknowledges that its right to terminate the Purchase Option and NAI's
Initial Remarketing Rights and Obligations is subject to the condition precedent
that (x) NAI shall have given Notice of NAI's Election to Terminate pursuant to
Paragraph 5(D) of the Construction Management Agreement, or (y) BNPLC shall have
given any FOCB Notice as provided in Paragraph 5(E) of the Construction
Management Agreement, or (z) BNPLC shall have given notice of its election to
accelerate the Designated Sale Date when an Event of Default has occurred and is
continuing as provided in clause (5) of the definition Designated Sale Date in
the Common Definitions and Provisions Agreement (Phase V - Improvements).
Accordingly, if none of the notices described in the preceding sentence have
been given, the Purchase Option and NAI's Initial Remarketing Rights and
Obligations shall not terminate by reason of this notice.

NAI further acknowledges that no termination of the Purchase Option and NAI's
Initial Remarketing Rights and Obligations by NAI pursuant to this notice shall
be effective, unless contemporaneously with the giving of this notice NAI shall
deliver to BNPLC a full Issue 97-10 Prepayment. NAI hereby covenants to pay, if
NAI has not already done so, a full Issue 97-10 Prepayment to BNPLC.

<PAGE>   48

Finally, NAI acknowledges that a termination of the Purchase Option and NAI's
Initial Remarketing Rights and Obligations pursuant to this notice shall cause
the Improvements Lease to terminate as of the Base Rent Commencement Date
pursuant to subparagraph 1(b) of the Improvements Lease.

Executed this _____ day of ______________, 2000.

NETWORK APPLIANCE, INC.

Name:
Title:

[cc all Participants]

                                EXHIBIT K-PAGE 2<PAGE>   1

                                                                   EXHIBIT 10.62

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

                                PLEDGE AGREEMENT
                                (PHASE V - LAND)

                                      AMONG

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                       BANQUE NATIONALE DE PARIS, AS AGENT

                                    ("AGENT")

                             NETWORK APPLIANCE, INC.

                                     ("NAI")

                                       AND

                        PARTICIPANTS AS DESCRIBED HEREIN

                                  MARCH 1, 2000

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

<PAGE>   2

                                TABLE OF CONTENTS

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

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

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

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

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

                                      -i-
<PAGE>   3

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

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

ARTICLE VIII  AUTHORIZED ACTION BY AGENT....................................................18
        8.1    Power of Attorney............................................................18

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

ARTICLE X  OTHER RECOURSE...................................................................19
        10.1   Recovery Not Limited.........................................................19

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

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

                                      -ii-
<PAGE>   4

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

Attachment 2...................................Supplement to Pledge Agreement (Phase V - 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>

                                     -iii-
<PAGE>   5

                                PLEDGE AGREEMENT
                                (PHASE V - LAND)

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

                                    RECITALS

        A. NAI and BNPLC are parties to: (i) a Common Definitions and Provisions
Agreement (Phase V - Land) dated as of the Effective Date (the "COMMON
DEFINITIONS AND PROVISIONS AGREEMENT (PHASE V - LAND)"); and (ii) a Purchase
Agreement (Phase V - 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 V -
Land)), in consideration of the rights granted to NAI by the Purchase Agreement.

        B. Pursuant to a Participation Agreement dated as of March 1, 2000 (the
"PARTICIPATION AGREEMENT"), BNPLC's Parent has agreed with BNPLC to participate
in the risks and rewards to BNPLC of the Purchase Agreement and other Operative
Documents (as defined in the Common Definitions and Provisions Agreement (Phase
V - 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

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

                                      -1-
<PAGE>   6

otherwise defined herein shall have the same meanings herein as set forth
therein, except where the context otherwise requires.

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

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

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

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

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

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

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

                "CERTIFICATE OF DEPOSIT" shall mean a certificate of deposit
        issued by a Deposit Taker as required by Section 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

                                      -2-
<PAGE>   7

        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.

                "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

                                      -3-
<PAGE>   8

                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;

                        (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 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.

                                      -4-
<PAGE>   9

                "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.

                "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.)

                                      -5-
<PAGE>   10

                "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.

                "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.

                                      -6-
<PAGE>   11

                "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.

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

        1.4 Amendment of Defined Instruments. Unless the context otherwise
requires or unless otherwise provided herein, references in this Agreement to a
particular agreement, instrument or document (including references to the 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.

        1.5 References and Titles. All references in this Agreement to
Attachments, Articles, Sections, subsections, and other subdivisions refer to
the Attachments, Articles, Sections, subsections and other subdivisions of this
Agreement unless expressly provided otherwise. Titles appearing at the beginning
of any subdivision are for convenience only and do not constitute any part of
any such subdivision and shall be disregarded in construing the language
contained in this Agreement. The words "this Agreement", "herein", "hereof",
"hereby", "hereunder" and words of similar import refer to this Agreement as a
whole and not to any particular subdivision unless expressly so limited. The
phrases "this Article," "this Section" and "this subsection" and similar phrases
refer only to the Articles, Sections or subsections hereof in which the phrase
occurs. The word "or" is not exclusive, and the word "including" (in all of its

                                      -7-
<PAGE>   12

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

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

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

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

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

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

            ARTICLE III DESIGNATION OF MINIMUM COLLATERAL PERCENTAGE

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

                                      -8-
<PAGE>   13

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

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

                3.2.1 any Material Lease Default;

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

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

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

                 ARTICLE IV PROVISIONS CONCERNING DEPOSIT TAKERS

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

                4.1.1 Such Person must have received from Agent and NAI a
completed, executed Notice of Security Interest in the form of ATTACHMENT 4 (a
"NOTICE OF SECURITY INTEREST") which specifically identifies any and all
Accounts in which such Person shall hold

                                      -9-
<PAGE>   14

Cash Collateral delivered to it pursuant to this Agreement and which designates
Account Offices with respect to all such Accounts in New York or California.

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

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

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

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

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

                                      -10-
<PAGE>   15

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

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

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

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

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

        4.8 Attempted Setoff by Deposit Takers. By delivery of a Deposit Taker's
Acknowledgment and Agreement, each Deposit Taker shall be required to agree not
to setoff or attempt a setoff, WITHOUT IN EACH CASE FIRST OBTAINING THE PRIOR
WRITTEN AUTHORIZATION OF

                                      -11-
<PAGE>   16

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

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

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

              ARTICLE V DELIVERY AND MAINTENANCE OF CASH COLLATERAL

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

                                      -12-
<PAGE>   17

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

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

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

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

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

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

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

                                      -13-
<PAGE>   18

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

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

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

                                      -14-
<PAGE>   19

                    ARTICLE VI WITHDRAWAL OF CASH COLLATERAL

        NAI may not withdraw Cash Collateral, except as follows:

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

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

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

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

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

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

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

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

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

                                      -15-
<PAGE>   20

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

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

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

                ARTICLE VII REPRESENTATIONS AND COVENANTS OF NAI

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

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

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

                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.

                                      -16-
<PAGE>   21

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

        7.2 Covenants of NAI. NAI hereby agrees as follows:

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

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

                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).

                                      -17-
<PAGE>   22

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

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

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

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

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

        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

                                      -18-
<PAGE>   23

hereafter payable on or on account of the Collateral; (b) enter into any
extension, reorganization, deposit, merger, consolidation or other agreement
pertaining to, or deposit, surrender, accept, hold or apply other property in
exchange for the Collateral; (c) insure, process, preserve and enforce the
Collateral; (d) make any compromise or settlement, and take any action it deems
advisable, with respect to the Collateral; (e) pay any indebtedness of NAI
relating to the Collateral; and (f) execute UCC financing statements and other
documents, instruments and agreements required hereunder. NAI agrees that such
care as Agent gives to the safekeeping of its own property of like kind shall
constitute reasonable care of the Collateral when in Agent's possession;
provided, however, that Agent shall not be obligated to NAI to give any notice
or take any action to preserve rights against any other Person in connection
with the Secured Obligations or with respect to the Collateral.

                         ARTICLE IX DEFAULT AND REMEDIES

        9.1 Remedies. In addition to all other rights and remedies granted to
Agent, BNPLC or the Participants by this Agreement, the 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:

                (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

        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

                                      -19-
<PAGE>   24

full, NAI shall have no right to subrogation, reimbursement, contribution or
indemnity against any Other Liable Party and NAI waives the right to enforce any
remedy which Agent, BNPLC or any Participant has or may hereafter have against
any Other Liable Party, and waives any benefit of and any right to participate
in any other security whatsoever now or hereafter held by Agent, BNPLC or any
Participant. NAI authorizes Agent, BNPLC and the Participants, without notice or
demand and without any reservation of rights against NAI and without affecting
NAI's liability hereunder or on the Secured Obligations, from time to time to
(a) take or hold any other property of any type from any other Person as
security for the Secured Obligations, and exchange, enforce, waive and release
any or all of such other property, (b) after any Event of Default, apply or
require the application of the Collateral (in accordance with this Agreement) or
such other property in any order they may determine and to direct the order or
manner of sale thereof as they may determine, (c) renew, extend for any period,
accelerate, modify, compromise, settle or release any of the obligations of any
Other Liable Party with respect to any or all of the Secured Obligations or
other security for the Secured Obligations, and (d) release or substitute any
Other Liable Party.

                     ARTICLE XI PROVISIONS CONCERNING AGENT

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

        11.1 Appointment and Authority. BNPLC and each Participant hereby
irrevocably authorizes Agent, and Agent hereby undertakes, to take all actions
and to exercise such powers under this Agreement as are specifically delegated
to Agent by the terms hereof, together with all other powers reasonably
incidental thereto. The relationship of Agent to the Participants is only that
of one commercial bank acting as collateral agent for others, and nothing herein
shall be construed to constitute Agent a trustee or other fiduciary for any
Participant or anyone claiming through or under a Participant nor to impose on
Agent duties and obligations other than those expressly provided for in this
Agreement. With respect to any matters not expressly provided for in this
Agreement and any matters which this Agreement places within the discretion of
Agent, Agent shall not be required to exercise any discretion or take any
action, and it may request instructions from BNPLC and Participants with respect
to any such matter, in which case it shall be required to act or to refrain from
acting (and shall be fully protected and free from liability to all Participants
in so acting or refraining from acting) upon the instructions of the Majority,
as defined in the Participation Agreement, including itself as a Participant and
BNPLC; provided, however, that Agent shall not be required to take any action
which exposes it to a risk of personal liability that it considers unreasonable
or which is contrary to this Agreement or the other documents referenced herein
or to Applicable Law.

        11.2 Exculpation, Agent's Reliance, Etc. Neither Agent nor any of its
directors, officers, agents, attorneys, or employees shall be liable for any
action taken or omitted to be taken by any of them under or in connection with
this Agreement, INCLUDING THEIR NEGLIGENCE OF ANY KIND, EXCEPT THAT EACH SHALL
BE LIABLE FOR ITS OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. Without limiting
the generality of the foregoing, Agent (1) may treat the rights of any
Participant under its Participation Agreement as continuing until Agent receives
written notice of the assignment or transfer of those rights in accordance with

                                      -20-
<PAGE>   25

such Participation Agreement, signed by such Participant and in form
satisfactory to Agent; (2) may consult with legal counsel (including counsel for
NAI), independent public accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts, unless the
action taken or omitted constitutes misconduct; (3) makes no warranty or
representation and shall not be responsible for any statements, warranties or
representations made in or in connection with this Agreement or the other
documents referenced herein; (4) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of the Transaction Documents on the part of any party thereto, or to
inspect the property (including the books and records) of any party thereto; (5)
shall not be responsible to any Participant for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Transaction
Document or any instrument or document furnished in connection therewith; (6)
may rely upon the representations and warranties of NAI, Participants and
Deposit Takers in exercising its powers hereunder; and (7) shall incur no
liability under or in respect of the Transaction Documents by acting upon any
notice, consent, certificate or other instrument or writing (including any
telecopy, telegram, cable or telex) believed by it to be genuine and signed or
sent by the proper Person or Persons.

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

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

                                      -21-
<PAGE>   26

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

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

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

        11.8 Resignation. Agent may resign at any time by giving written notice
thereof to BNPLC, Participants and NAI. Upon any such resignation the Majority
(as defined in the Participation Agreement) shall have the right to appoint a
successor Agent, subject to NAI's consent, such consent not to be unreasonably
withheld. A successor must be appointed for any retiring Agent, and such Agent's
resignation shall become effective when such successor accepts such appointment.
If, within thirty days after the date of the retiring Agent's resignation, no
successor Agent has been appointed and has accepted such appointment, then the
retiring Agent may appoint a successor Agent, which shall be a commercial bank
organized or licensed to conduct a banking or trust business under the laws of
the United States of America or of any state thereof. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, the retiring Agent shall be
discharged from its duties and obligations under this Agreement. After any
retiring Agent's resignation hereunder, the provisions of this Article 11 shall
continue to inure to its benefit as to any actions taken or omitted to be taken
by it while it was Agent.

                                      -22-
<PAGE>   27

                            ARTICLE XII MISCELLANEOUS

        12.1 Provisions Incorporated From Other Operative Documents. Reference
is made to the Common Definitions and Provisions Agreement (Phase V - 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 V -
Land) are incorporated into this Agreement for all purposes as if set forth in
this Article.

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

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

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

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

                          [The signature pages follow.]

                                      -23-
<PAGE>   28

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

                                            "NAI"

                                            NETWORK APPLIANCE, INC.

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

<PAGE>   29

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

                                            "BNPLC"

                                            BNP LEASING CORPORATION

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

<PAGE>   30

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

                                            "AGENT"

                                            BANQUE NATIONALE DE PARIS

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

                                            "PARTICIPANT"

                                            BANQUE NATIONALE DE PARIS

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

<PAGE>   31

                                  ATTACHMENT 1
                               TO PLEDGE AGREEMENT

                             CERTIFICATE OF DEPOSIT

                                 (No. _________)

                               [____________, _____]

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

PAYABLE TO
THE ORDER OF:           BANQUE NATIONALE DE PARIS, as Agent under the Pledge
                        Agreement (Phase V - Land) dated March 1, 2000, among
                        Network Appliance, Inc., BNP Leasing Corporation, Banque
                        Nationale de Paris and any other financial institutions
                        which are from time to time Participants under such
                        Pledge Agreement (Phase V - 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>   32

                                  ATTACHMENT 2
                               TO PLEDGE AGREEMENT

                         SUPPLEMENT TO PLEDGE AGREEMENT

                               [____________, _____]

Banque Nationale de Paris

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

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

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

Network Appliance, Inc.

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

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

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

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

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

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

                                      -1-
<PAGE>   33

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

                                            [                                  ]
                                             ----------------------------------

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

                                      -2-
<PAGE>   34

                                  ATTACHMENT 3
                               TO PLEDGE AGREEMENT

          NOTICE OF NAI'S ELECTION TO CHANGE THE COLLATERAL PERCENTAGE

                               [____________, _____]

Banque Nationale de Paris
[address of BNP]

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

Gentlemen:

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

                           __________ percent (___%),

on the following Base Rent Date:

                                ____________, _____

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

                     ____________________________ Dollars ($__________),

will result in an expected new Minimum Collateral Value of:

                     ____________________________ Dollars ($__________).

                                      -1-
<PAGE>   35

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

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

                     ____________________________ Dollars ($__________).]

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

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

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

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

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

                                            Network Appliance, Inc.

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

                                      -2-
<PAGE>   36

                                      -3-
<PAGE>   37

                                  ATTACHMENT 4
                               TO PLEDGE AGREEMENT

                           NOTICE OF SECURITY INTEREST

                               [____________, _____]

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

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

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

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

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

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

                                      -1-
<PAGE>   38

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>   39

                                            "AGENT"

                                            BANQUE NATIONALE DE PARIS

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

                                            "NAI"

                                            Network Appliance, Inc.

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

                                      -3-
<PAGE>   40

                          ACKNOWLEDGMENT AND AGREEMENT
                                OF DEPOSIT TAKER

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

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

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

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

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

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

                                            [                                  ]
                                             ----------------------------------

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

                                               [Date]

<PAGE>   41

                                  ATTACHMENT 5
                               TO PLEDGE AGREEMENT

                        EXAMPLES OF CALCULATIONS REQUIRED
                         TO AVOID A COLLATERAL IMBALANCE

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

                                  EXAMPLE NO. 1

Assumptions:

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

2.      On the Base Rent Commencement Date, Funding Advances (including those to
        cover Carrying Costs under the 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.

                                      -1-
<PAGE>   42

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

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

                                 EXAMPLE NO. 2..

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

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

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

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

<TABLE>
<S>                                                                                  <C>
        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
</TABLE>

                                      -2-
<PAGE>   43

<TABLE>
<S>                                                                                     <C>
        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:

<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

                                      -3-
<PAGE>   44

FOR ONE PARTICIPANT AND DEPOSIT IT IN AN ACCOUNT MAINTAINED BY A DEPOSIT TAKER
FOR ANOTHER PARTICIPANT.

                                      -4-
<PAGE>   45

                                  ATTACHMENT 6
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT TO
                         WITHDRAW EXCESS CASH COLLATERAL

                                      [________, ___]

Banque Nationale de Paris
[address of BNP]

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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 ($__________),

                                      -1-
<PAGE>   46

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

                     ____________________________ Dollars ($__________).

Such Minimum Collateral Value equals the Collateral Percentage of:

                           __________ percent (___%),

times the Stipulated Loss Value of:

                     ____________________________ Dollars ($__________).

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

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

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

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

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

                                      -2-
<PAGE>   47

                                            Network Appliance, Inc.

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

                                      -3-
<PAGE>   48

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

                                 [________, ___]

Deposit Takers on the
Attached Distribution List

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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>
<CAPTION>
Deposit Taker                     Account No.                     Amount
-------------                     -----------                     ------
<S>                               <C>                             <C>
1.                                ___________________             $_____________

2.                                ___________________             $_____________

3.                                ___________________             $_____________

4.                                ___________________             $_____________

                                  TOTAL WITHDRAWALS:              $_____________
</TABLE>

                                      -4-
<PAGE>   49

                                            BANQUE NATIONALE DE PARIS, AS AGENT

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

                                      -5-
<PAGE>   50

                                  ATTACHMENT 7
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                         DIRECT PAYMENTS TO PARTICIPANTS

                                 [________, ___]

Banque Nationale de Paris
[address of BNP]

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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 (___%),

                                      -1-
<PAGE>   51

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

                     ____________________________ Dollars ($__________).

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

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

                                            Network Appliance, Inc.

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

                                      -2-
<PAGE>   52

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

                                 [________, ___]

Deposit Takers on the
Attached Distribution List

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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>
<CAPTION>
Deposit Taker                     Account No.                     Amount
-------------                     -----------                     ------
<S>                               <C>                             <C>
1.                                ___________________             $_____________

2.                                ___________________             $_____________

3.                                ___________________             $_____________

4.                                ___________________             $_____________

                                  TOTAL WITHDRAWALS:              $_____________
</TABLE>

                                      -3-
<PAGE>   53

                                            BANQUE NATIONALE DE PARIS, AS AGENT

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

                                      -4-
<PAGE>   54

                                  ATTACHMENT 8
                               TO PLEDGE AGREEMENT

                         NOTICE OF NAI'S REQUIREMENT OF
                             DIRECT PAYMENT TO BNPLC

                                 [________, ___]

Banque Nationale de Paris
[address of BNP]

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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

                                      -1-
<PAGE>   55

advise it of your intent to withdraw and of your presentment of Certificates of
Deposit as required in connection therewith. The attached letter also sets forth
the amount NAI believes you must withdraw to comply with Section 6.3 of the
Pledge Agreement.

                                            Network Appliance, Inc.

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

                                      -2-
<PAGE>   56

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

                                 [________, ___]

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

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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.

                                      -3-
<PAGE>   57

                                            BANQUE NATIONALE DE PARIS, AS AGENT

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

                                      -4-
<PAGE>   58

                                  ATTACHMENT 9
                               TO PLEDGE AGREEMENT

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

                                 [________, ___]

Banque Nationale de Paris
[address of BNP]

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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:

<TABLE>
<CAPTION>
                   Deposit Taker                        Account No.
<S>                                                <C>
        ___________________________________        _____________________

        ___________________________________        _____________________
</TABLE>

Cash Collateral in the following amount:

                      ____________________________ Dollars ($__________)

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

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

                                      -1-
<PAGE>   59

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

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

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

                                            Network Appliance, Inc.

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

                                      -2-
<PAGE>   60

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

                                 [________, ___]

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

                Re:     Pledge Agreement (Phase V - Land) dated March 1, 2000
                        among Network Appliance, Inc., BNP Leasing Corporation,
                        Banque Nationale de Paris and any other financial
                        institutions which are from time to time Participants
                        under such Pledge Agreement (Phase V - 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 V - 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.

                                      -3-
<PAGE>   61

                                            BANQUE NATIONALE DE PARIS, AS AGENT

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

                                      -4-
<PAGE>   62

                                   Schedule 1

                               FINANCIAL COVENANTS

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

                             PART I - DEFINED TERMS

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

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

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

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

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

                                      -1-
<PAGE>   63

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

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

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

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

                                      -2-
<PAGE>   64

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

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

        "QUICK RATIO" means the ratio of:

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

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

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

                          PART II - FINANCIAL COVENANTS

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

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

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

                                      -3-
<PAGE>   65

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

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

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

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

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

                PART III - TESTS FOR MANDATORY COLLATERAL PERIODS

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

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

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

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

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

                                      -4-
<PAGE>   66

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

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

                            PART IV - OTHER COVENANTS

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

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

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

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

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

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

                                      -5-
<PAGE>   67

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

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

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

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

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

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

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

                                      -6-
<PAGE>   68

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

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

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

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

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

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

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

                                      -7-

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