Document:

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                                                                   EXHIBIT 10.67

                              CLOSING CERTIFICATE

                                      AND

                                   AGREEMENT
                                   (PHASE IV)

                                    BETWEEN

                            NETWORK APPLIANCE, INC.,

                                    ("NAI")

                                      AND

                            BNP LEASING CORPORATION

                                   ("BNPLC")

                                 OCTOBER 2, 2000

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                          Page
<S>     <C>                                                                               <C>
1       Representations, Warranties And Covenants Of NAI Concerning The Property.............2
        (A)    Condition of the Property.....................................................2
        (B)    Title to the Property.........................................................2
        (C)    Title Insurance...............................................................2
        (D)    Environmental Representations.................................................2
        (E)    Cooperation by NAI and its Affiliates.........................................3

2       Other Representations, Warranties, Covenants And Acknowledgments Of NAI..............3
        (A)    No Default or Violation of Other Agreements...................................3
        (B)    No Suits......................................................................3
        (C)    Enforceability................................................................4
        (D)    Solvency......................................................................4
        (E)    Organization..................................................................4
        (F)    Existence.....................................................................4
        (G)    Not a Foreign Person..........................................................4
        (H)    Investment Company Act........................................................4
        (I)    ERISA.........................................................................4
        (J)    Use of Proceeds...............................................................5
        (K)    Omissions.....................................................................5
        (L)    [Intentionally deleted].......................................................5
        (M)    Further Assurances............................................................5
        (N)    No Implied Representations or Promises by BNPLC...............................6

3       Limited Covenants And Representations By BNPLC.......................................6
        (A)    Cooperation of BNPLC to Facilitate Construction, Development and Use..........6
        (B)    Actions Permitted by NAI Without BNPLC's Consent..............................7
        (C)    Waiver of Landlord's Liens....................................................8
        (D)    Estoppel Letter...............................................................8
        (E)    Limited Representations by BNPLC Concerning Accounting Matters................8
        (F)    Other Limited Representations by BNPLC........................................9
        (G)    Partial Release Provisions...................................................10

4       Obligations Of NAI Under Other Operative Documents Not Limited By This Agreement....12

5       Obligations Of NAI Hereunder Not Limited By Other Operative Documents...............12

6       Waiver Of Jury Trial................................................................12

7       Amendment And Restatement...........................................................13
</TABLE>

        Exhibits and Schedules

Exhibit A      Legal Description

Exhibit B      Permitted Encumbrance List

                                       i

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Exhibit C      Development Document List

Exhibit D      Standard Notice of Request for Action by BNPLC

                                       ii
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                  CLOSING CERTIFICATE AND AGREEMENT (PHASE IV)

        This CLOSING CERTIFICATE AND AGREEMENT (PHASE IV) (this "AGREEMENT"), by
and between NETWORK APPLIANCE, INC., a California corporation ("NAI"), and BNP
LEASING CORPORATION, a Delaware corporation ("BNPLC"), is made and dated as of
October 2, 2000 (the "EFFECTIVE Date").

                                    RECITALS

        A. Contemporaneously with the execution of this Agreement, BNPLC and NAI
are executing a Common Definitions and Provisions Agreement (Phase IV -
Improvements) (the "IMPROVEMENTS CDPA"), and a Common Definitions and Provisions
Agreement (Phase IV - Land) (the "LAND CDPA"), each dated as of the Effective
Date, which are each incorporated into and made a part of this Agreement for all
purposes. Capitalized terms defined in the Improvements CDPA and used but not
otherwise defined herein are intended in this Agreement to have the respective
meanings ascribed to them in the Improvements CDPA. Any capitalized terms
defined in the Land CDPA and used but not otherwise defined herein or in the
Improvements CDPA are intended in this Agreement to have the respective meanings
ascribed to them in the Land CDPA. As used in this Agreement, "PROPERTY" is
intended to mean, collectively, the Property as defined in the Improvements CDPA
and the Property as defined in the Land CDPA; "IMPROVEMENT DOCUMENTS" is
intended to mean, collectively, the Operative Documents as defined in the
Improvements CDPA; "LAND DOCUMENTS" is intended to mean the Operative Documents
as defined in the Land CDPA; "OPERATIVE DOCUMENTS" is intended to mean the
Improvement Documents and the Land Documents, collectively; "IMPROVEMENTS LEASE"
is intended to mean the Lease as defined in the Improvements CDPA; "LEASES" is
intended to mean the Improvements Lease and the Lease as defined in the Land
CDPA, collectively; "PURCHASE AGREEMENTS" is intended to mean the Purchase
Agreement as defined in the Improvements CDPA and the Purchase Agreement as
defined in the Land CDPA, collectively; collectively; "PLEDGE AGREEMENTS" is
intended to mean the Pledge Agreement as defined in the Improvements CDPA and
the Pledge Agreement as defined in the Land CDPA, collectively; and "DESIGNATED
SALE DATE" is intended to mean the earlier of the Designated Sale Date as
defined in the Improvements CDPA or the Designated Sale Date as defined in the
Land CDPA.

        B. NAI and BNPLC previously executed that Closing Certificate (Phase IV)
and Agreement dated as of December 20, 1999 (the "Prior Closing Certificate and
Agreement"). NAI and BNPLC have agreed to amend, restate and replace the Prior
Closing Certificate and Agreement as provided in Paragraph 6 below.

        C. At the request of NAI and to facilitate the transactions contemplated
in the other Operative Documents, BNPLC has acquired the Land described in
Exhibit A attached hereto from Seller and any existing Improvements thereon,
subject to the Permitted Encumbrances described in Exhibit B attached hereto and
with the understanding that development and use of such Land may be subject to
or benefitted by the Development Documents described in Exhibit C attached
hereto (if any).

        D. As a condition to its continued ownership of the Land and execution
of the other Operative Documents, BNPLC requires the representations, warranties
and covenants of NAI set out below.

        E. As a condition to its execution of other Operative Documents, NAI
requires the representations and covenants of BNPLC set out below.

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

        1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF NAI CONCERNING THE
PROPERTY. NAI represents, warrants and covenants as follows:

        (A) Condition of the Property. The Land as described in Exhibit A is the
same as the land shown on the plat included as part of the survey titled
"ALTA/ACSM LAND TITLE SURVEY FOR NETWORK APPLIANCE, 1345 CROSSMAN AVENUE, 1347
CROSSMAN AVENUE, 1330 GENEVA DRIVE, AND 1350 GENEVA DRIVE" made by Kier &
Wright, Licensed Land Surveyor, dated September 20, 2000, as Job No. 97208-16,
which survey was delivered to BNPLC at the request of NAI. All material
improvements on the Land as of the date hereof are as shown on that survey, and
except as shown on the survey there are to the best of NAI's knowledge no
easements or encroachments visible or apparent from an inspection of the Land.
No significant encroachment of building Improvements exist across the boundaries
of the Land described in Exhibit A, and no significant building Improvements
that presently exist (or that will be constructed by NAI as part of the
Construction Project) on the Land may be disturbed by reason of the exercise of
easement or other rights created by any of the Permitted Encumbrances. Adequate
provision has been made for the Land and the Property to be served by electric,
gas, storm and sanitary sewers, sanitary water supply, telephone and other
utilities required for the use thereof. All streets, alleys and easements
necessary to serve the Land and Improvements contemplated by the Improvements
Lease and the Construction Management Agreement have been completed and are
serviceable (or can and will be completed at a cost that is reasonable in
connection with the construction contemplated in the Construction Management
Agreement). To the best of NAI's knowledge, no extraordinary circumstances
(including any use of the Land as a habitat for endangered species) exists that
would materially and adversely affect the construction of Improvements
contemplated by the Construction Management Agreement, the use of any
Improvements for their intended purposes or other reasonable future development
of the Land. NAI is not aware of any latent or patent material defects or
deficiencies in the Property that, either individually or in the aggregate,
could materially and adversely affect the use or occupancy of the Property or
the construction or use of Improvements as permitted by the Improvements Lease
and the Construction Management Agreement or could reasonably be anticipated to
endanger life or limb. No part of the Land is within a flood plain as designated
by any governmental authority.

        (B) Title to the Property. The deed that Seller executed in favor of
BNPLC pursuant to the Existing Contract vested in BNPLC good and marketable
title to the Land and existing Improvements thereon, subject only to the
Permitted Encumbrances, the Development Documents and any Liens Removable by
BNPLC. NAI shall not, without the prior consent of BNPLC, create, place or
authorize, or through any act or failure to act, acquiesce in the placing of,
any deed of trust, mortgage or other Lien, whether statutory, constitutional or
contractual against or covering the Property or any part thereof (other than
Permitted Encumbrances and Liens Removable by BNPLC), regardless of whether the
same are expressly or otherwise subordinate to the Operative Documents or
BNPLC's interest in the Property.

        (C) Title Insurance. Without limiting NAI's obligations under the
preceding subparagraph, contemporaneously with the execution of this Agreement
NAI shall provide to BNPLC a title insurance policy (or binder committing the
applicable title insurer to issue a title insurance policy, without the payment
of further premiums) in the amount of no less than $126,000,000, in form and
substance satisfactory to BNPLC, written by one or more title insurance
companies satisfactory to BNPLC and insuring BNPLC's fee estate in the Land and
Improvements.

        (D) Environmental Representations. To the knowledge of NAI except as
otherwise disclosed in the Environmental Report: (i) no Hazardous Substances
Activity has occurred prior to the Effective Date; (ii) no owner or operator of
the Property has reported or been required to report any release of any

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Hazardous Substances on or from the Property pursuant to any Environmental Law;
and (iii) no owner or operator of the Property has received from any federal,
state or local governmental authority any warning, citation, notice of violation
or other communication regarding a suspected or known release or discharge of
Hazardous Substances on or from the Property or regarding a suspected or known
violation of Environmental Laws concerning the Property. Further, NAI represents
that to its knowledge, the Environmental Report taken as a whole is not
misleading or inaccurate in any material respect.

        (E) Cooperation by NAI and its Affiliates. If neither NAI nor an
Applicable Purchaser purchases the Property pursuant to the Purchase Agreements
on the Designated Sale Date, then after the Designated Sale Date:

               (1)if a use of the Property by BNPLC or any removal or
        modification of Improvements proposed by BNPLC would violate any
        Permitted Encumbrance, Development Document or Applicable Law unless NAI
        or any of its Affiliates, as an owner of adjacent property or otherwise,
        gave its consent or approval thereto or agreed to join in a modification
        of a Permitted Encumbrance or Development Document, then NAI shall, to
        the extent it can without violating Applicable Law, give and cause its
        Affiliates to give such consent or approval or join in such
        modification;

               (2)to the extent, if any, that any Permitted Encumbrance,
        Development Document or Applicable Law requires the consent or approval
        of NAI or any of its Affiliates or of the City of Sunnyvale or any other
        Person to a transfer of any interest in the Property by BNPLC or its
        successors or assigns, NAI will without charge give and cause its
        Affiliates to give such consent or approval and will cooperate in any
        way reasonably requested by BNPLC to assist BNPLC to obtain such consent
        or approval from the City or any other Person; and

               (3)NAI's obligations under this subparagraph 1(E) shall be
        binding upon any successor or assign of NAI with respect to the Land and
        other properties encumbered by the Permitted Encumbrances or subject to
        the Development Documents.

        2 OTHER REPRESENTATIONS, WARRANTIES, COVENANTS AND ACKNOWLEDGMENTS OF
NAI. NAI represents, warrants, covenants and acknowledges as follows:

        (A) No Default or Violation of Other Agreements. The execution, delivery
and performance by NAI of this Agreement and the other Operative Documents do
not and will not constitute a breach or default under any other material
agreement or contract to which NAI is a party or by which NAI is bound or which
affects the Property, and do not violate or contravene any law, order, decree,
rule or regulation to which NAI is subject, and such execution, delivery and
performance by NAI will not result in the creation or imposition of (or the
obligation to create or impose) any lien, charge or encumbrance on, or security
interest in, NAI's property pursuant to the provisions of any such other
material agreement.

        (B) No Suits. Other than as previously disclosed in NAI's most recent
10-K filings with the Securities and Exchange Commission (copies of which have
been delivered to BNPLC), there are no judicial or administrative actions,
suits, proceedings or investigations pending or, to NAI's knowledge, threatened
that will adversely affect the Property or the validity or enforceability or
priority of this Agreement or any other Operative Document, and NAI is not in
default with respect to any order, writ, injunction, decree or demand of any
court or other governmental or regulatory authority that could materially and
adversely affect the use, occupancy or operation of the Property for the
purposes contemplated in the Leases. No condemnation or other like proceedings
are pending or, to NAI's knowledge, threatened against the Property.

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<PAGE>   7

        (C) Enforceability. The execution, delivery and performance of each of
the Operative Documents by NAI are duly authorized, are not in contravention of
or conflict with any term or provision of NAI's articles of incorporation or
bylaws and do not, to NAI's knowledge, conflict with any Applicable Laws or
require the consent or approval of any governmental body or other regulatory
authority that has not heretofore been obtained; provided, some consents or
approvals which are readily obtainable and which are required for NAI's
performance under the Operative Documents (for example, building permits
required for construction of the Construction Project) may not have been
heretofore obtained, but NAI shall obtain such consents or approvals as required
in connection with its performance of the Operative Documents. Each of the
Operative Documents are valid, binding and legally enforceable obligations of
NAI except as such enforcement is affected by bankruptcy, insolvency and similar
laws affecting the rights of creditors, generally, and equitable principles of
general application.

        (D) Solvency. NAI is not "insolvent" on the date hereof (that is, the
sum of NAI's absolute and contingent liabilities - including the obligations of
NAI under this Agreement and the other Operative Documents - does not exceed the
fair market value of NAI's assets) and has no outstanding liens, suits,
garnishments or court actions which could render NAI insolvent or bankrupt.
NAI's capital is adequate for the businesses in which NAI is engaged and intends
to be engaged. NAI has not incurred (whether hereby or otherwise), nor does NAI
intend to incur or believe that it will incur, debts which will be beyond its
ability to pay as such debts mature. There has not been filed by or, to NAI's
knowledge, against NAI a petition in bankruptcy or a petition or answer seeking
an assignment for the benefit of creditors, the appointment of a receiver,
trustee, custodian or liquidator with respect to NAI or any significant portion
of NAI's property, reorganization, arrangement, rearrangement, composition,
extension, liquidation or dissolution or similar relief under the federal
Bankruptcy Code or any state law. The financial statements and all financial
data heretofore delivered to BNPLC relating to NAI are true, correct and
complete in all material respects. No material adverse change has occurred in
the financial position of NAI as reflected in NAI's financial statements
covering the most recent fiscal period for which NAI's financial statements have
been published.

        (E) Organization. NAI is duly incorporated and legally existing under
the laws of the State of California. NAI has all requisite corporate power and
has procured or will procure on a timely basis all governmental certificates of
authority, licenses, permits, qualifications and similar documentation required
to fulfill its obligations under this Agreement and the other Operative
Documents. Further, NAI has the corporate power and adequate authority, rights
and franchises to own NAI's property and to carry on NAI's business as now
conducted and is duly qualified and in good standing in each state in which the
character of NAI's business makes such qualification necessary (including the
State of California) or, if it is not so qualified in a state other than
California, such failure does not have a material adverse effect on the
properties, assets, operations or businesses of NAI and its Subsidiaries, taken
as a whole.

        (F) Existence. So long as any of the Operative Documents continue in
force, NAI shall continuously maintain its existence and its qualification to do
business in the State of California.

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

        (H) Investment Company Act. NAI is not an "investment company" or a
company "controlled" by an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.

        (I) ERISA. NAI is not and will not become an "employee benefit plan" (as
defined in Section 3(3) of ERISA) which is subject to Title I of ERISA. The
assets of NAI do not and will not in the future constitute "plan assets" of one
or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. NAI is
not and will not become a "governmental plan" within the meaning of Section
3(32) of ERISA.

                                      -4-
<PAGE>   8

Transactions by or with NAI are not subject to state statutes regulating
investments of and fiduciary obligations with respect to governmental plans.
Each Plan and, to the knowledge of NAI, any Multiemployer Plan, is in compliance
with, and has been administered in compliance with, the applicable provisions of
ERISA, the Code and any other applicable Federal or state law in all respects,
the failure to comply with which would have a material adverse effect upon the
properties, assets, operations or businesses of NAI and its Subsidiaries taken
as a whole. As of the date hereof no event or condition is occurring or exists
which would require a notice from NAI under subparagraph 15(c)(vi) of the
Leases.

        (J) Use of Proceeds. In no event shall the funds advanced to NAI
pursuant to the Operative Documents be used directly or indirectly for personal,
family, household or agricultural purposes or for the purpose, whether
immediate, incidental or ultimate, of purchasing, acquiring or carrying any
"margin stock" or any "margin securities" (as such terms are defined in
Regulation U promulgated by the Board of Governors of the Federal Reserve
System) or to extend credit to others directly or indirectly for the purpose of
purchasing or carrying any such margin stock or margin securities. NAI
represents and warrants that NAI is not engaged principally, or as one of NAI's
important activities, in the business of extending credit to others for the
purpose of purchasing or carrying such margin stock or margin securities.

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

        (L)[Intentionally deleted].

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

        Without limiting the forgoing, NAI shall cooperate with BNPLC as
reasonably required to allow BNPLC to induce banks not affiliated with BNPLC to
become Participants. Such cooperation will include the payment of fees ("UPFRONT
SYNDICATION FEES") as provided under the heading "Upfront Fees" in the letter
from BNPLC to NAI dated August 21, 2000. Such cooperation will also include the
execution of one or more modification agreements proposed by BNPLC to any of the
Operative Documents, which agreements may change the Spread, Unsecured Spread,
Commitment Fee Rate or may limit NAI's right to designate a new Collateral
Percentage under Section 3.1 of the Pledge Agreements or may otherwise modify
terms and conditions of the Operative Documents as requested by a prospective
Participant; provided, however, that the form and substance of any such
modification agreements is approved by NAI (which approval will not be
unreasonably withheld); and, provided further, that NAI will have no obligation
to join with BNPLC in executing any such modification agreement to satisfy a
prospective Participant after the earlier of (1) the date that is one hundred
twenty days after the Effective Date, or (2) the date upon which other banks not
affiliated with BNPLC have become Participants with aggregate Percentages under
(and as defined in) the Participation Agreement of no less than eighty percent
(80%).

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        (N) No Implied Representations or Promises by BNPLC. BNPLC AND BNPLC'S
AGENTS HAVE MADE NO REPRESENTATIONS OR PROMISES WITH RESPECT TO THE PROPERTY
EXCEPT AS EXPRESSLY SET FORTH IN THE OTHER OPERATIVE DOCUMENTS, AND NO RIGHTS,
EASEMENTS OR LICENSES ARE BEING ACQUIRED BY NAI BY IMPLICATION OR OTHERWISE
EXCEPT AS EXPRESSLY SET FORTH IN THE OTHER OPERATIVE DOCUMENTS.

        3  LIMITED COVENANTS AND REPRESENTATIONS BY BNPLC.

        (A) Cooperation of BNPLC to Facilitate Construction, Development and
Use. So long as the Leases remain in force and NAI remains in possession of the
Property, BNPLC shall take any action reasonably requested by NAI to facilitate
the construction or use of the Property permitted by the Leases or the
Construction Management Agreement; provided, however, that:

               (1) This subparagraph 3(A) shall not impose upon BNPLC the
        obligation to take any action that can be taken by NAI, NAI's Affiliates
        or anyone else other than BNPLC as the owner of the Property.

               (2) BNPLC shall not be required by this subparagraph 3(A) to make
        any payment to another Person unless BNPLC shall first have received
        funds from NAI, in excess of any other amounts due from NAI under any of
        the Operative Documents, sufficient to make the payment. (This clause
        (2) will not be construed as limiting the right of NAI to obtain
        additional Construction Advances, on and subject to the terms and
        conditions set forth in the Construction Management Agreement, for
        payments NAI itself may pay or incur an obligation to pay to another
        Person.)

               (3) BNPLC shall have no obligations whatsoever under this
        subparagraph 3(A) at any time after a CMA Termination Event or when an
        Event of Default shall have occurred and be continuing.

               (4) NAI must request any action to be taken by BNPLC pursuant to
        this subparagraph 3(A), and such request must be specific and in
        writing, if required by BNPLC at the time the request is made. A
        suggested form for such a request is attached as Exhibit D.

               (5) No action may be required of BNPLC pursuant to this
        subparagraph 3(A) that could constitute a violation of any Applicable
        Laws or compromise or constitute a waiver of BNPLC's rights under other
        provisions of this Agreement or any of the other Operative Documents or
        that for any other reason is reasonably objectionable to BNPLC.

        The actions BNPLC shall take pursuant to this subparagraph 3(A) if
reasonably requested by NAI will include, subject to the conditions listed in
the proviso above, executing or consenting to, or exercising or assisting NAI to
exercise rights under any (I) grant of easements, licenses, rights of way, and
other rights in the nature of easements encumbering the Land or the
Improvements, (II) release or termination of easements, licenses, rights of way
or other rights in the nature of easements which are for the benefit of the Land
or Improvements or any portion thereof, (III) dedication or transfer of portions
of the Land not improved with a building, for road, highway or other public
purposes, (IV) agreements (other than with NAI or its Affiliates) for the use
and maintenance of common areas, for reciprocal rights of parking, ingress and
egress and amendments to any covenants and restrictions affecting the Land or
any portion thereof, (V) documents required to create or administer a
governmental special benefit district or assessment district for public
improvements and collection of special assessments, (VI) instruments necessary
or desirable for the exercise or enforcement of rights or performance of
obligations under any Permitted Encumbrance or any contract, permit, license,
franchise or other right included within the term "Property" (including, without
limitation, under the Development Documents), (VII) modifications of

                                      -6-
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Permitted Encumbrances or Development Documents, (VIII) permit applications or
other documents required to accommodate the Construction Project, (IX)
confirmations of NAI's rights under any particular provisions of the Operative
Documents which NAI may wish to provide to a third party or (X) execution or
filing of a tract or parcel map subdividing the Land into lots or parcels or to
adjust boundary lines of the Land to facilitate construction thereon or on
adjacent land which NAI leases from BNPLC. However, the determination of whether
any such action is reasonably requested or reasonably objectionable to BNPLC may
depend in whole or in part upon the extent to which the requested action shall
result in a lien to secure payment or performance obligations against BNPLC's
interest in the Property, shall cause a decrease in the value of the Property to
less than forty-five percent (45%) of Stipulated Loss Value after any Qualified
Prepayments that may result from such action are taken into account, or shall
impose upon BNPLC any present or future obligations greater than the obligations
BNPLC is willing to accept in reliance on the indemnifications provided by NAI
under the Operative Documents.

        Any Losses incurred by BNPLC because of any action taken pursuant to
this subparagraph 3(A) shall be covered by the indemnifications set forth in
subparagraph 5(c) of the Leases. Further, for purposes of such indemnification,
any action taken by BNPLC will be deemed to have been made at the request of NAI
if made pursuant to any request of counsel to or any officer of NAI (or with
their knowledge, and without their objection) in connection with the execution
or administration of the Leases or the other Operative Documents.

        (B) Actions Permitted by NAI Without BNPLC's Consent. No refusal by
BNPLC to execute or join in the execution of any agreement, application or other
document requested by NAI pursuant to the preceding subparagraph 3(A) shall
preclude NAI from itself executing such agreement, application or other
document; provided, that in doing so NAI is not purporting to act for BNPLC and
does not thereby create or expand any obligations or restrictions that encumber
BNPLC's title to the Property. Further, subject to the other terms and
conditions of the Leases and other Operative Documents, NAI shall be entitled to
do any of the following in NAI's own name and to the exclusion of BNPLC without
any notice to or consent of BNPLC, provided, that (i) the Leases remain in
force, (ii) NAI remains in possession of the Property, (iii) no Event of Default
has occurred and is continuing, (iv) no CMA Termination Event has occurred, and
(v) NAI is not purporting to act for BNPLC and does not thereby create or expand
any obligations or restrictions that encumber BNPLC's title to the Property:

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

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

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

               (4) without limiting the foregoing, as tenant under the
        Improvements Lease, (i) collect and retain all rents paid under the
        Premises Leases; (ii) recover and retain any monetary damages or other
        benefit inuring to NAI or the owner of the Real Property through the
        enforcement of any

                                      -7-
<PAGE>   11

        rights under the Premises Leases (provided that this subsection (ii)
        shall not apply to any damages or benefits that are required by the
        terms of the Lease to be paid over to BNPLC); (iii) cancel or accept the
        surrender of any space under any Premises Lease; and (iv) enforce any
        guaranties or other collateral provided by Lessees under the Premises
        Leases and retain the proceeds thereof.

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

        (D) Estoppel Letter. Upon thirty days written request by NAI at any time
and from time to time prior to the Designated Sale Date, BNPLC shall provide a
statement in writing certifying that the Operative Documents are unmodified and
in full effect (or, if there have been modifications, that the Operative
Documents are in full effect as modified, and setting forth such modifications),
certifying the dates to which the rents payable by NAI under the Leases has been
paid, stating whether BNPLC is aware of any default by NAI that may exist under
the Leases and confirming BNPLC's agreements concerning landlord's liens and
other matters set forth in subparagraph 3(C). It being intended that any such
statement by BNPLC may be relied upon by anyone with whom NAI may intend to
enter into an agreement for construction of the Improvements or other
significant agreements concerning the Property.

        (E) Limited Representations by BNPLC Concerning Accounting Matters.
BNPLC is not expected or required to represent or warrant that the Leases or
other agreements comprising the Operative Documents will qualify for any
particular accounting treatment under GAAP. However, to permit NAI to determine
for itself the appropriate accounting for the Operative Documents, BNPLC does
represent to NAI the following as of the Effective Date:

               (1) Equity capital invested in BNPLC is greater than three
        percent (3%) of the aggregate of all lease funding amounts (including
        participations) of BNPLC. Such equity capital investments constitute
        equity in legal form and are reflected as shareholders' equity in the
        financial statements and accounting records of BNPLC.

               (2) BNPLC is one hundred percent (100%) owned by French American
        Bank Corporation, which is one hundred percent (100%) owned by BNPLC's
        Parent.

               (3) BNPLC leases properties of substantial value to more than
        fifteen tenants.

               (4) All parties to whom BNPLC has any material obligations known
        to BNPLC are (and are expected to be) Affiliates of BNPLC's Parent,
        Participants, or participants with BNPLC in other leasing deals or loans
        made by BNPLC, or other tenants or borrowers in such other leasing deals
        or loans.

               (5) BNPLC has substantial assets in addition to the Property,
        assets which BNPLC believes to have a value far in excess of the value
        of the Property.

               (6) Other than any Funding Advances provided from time to time by
        Participants under the Participation Agreement, BNPLC expects to obtain
        all Funding Advances from BNP Paribas or other Affiliates of
        BNPLC(including Funding Advances to cover Carrying Costs and other

                                      -8-
<PAGE>   12

        amounts to be capitalized as part of the Outstanding Construction
        Allowance, and assuming that NAI uses the Maximum Construction Allowance
        under the Construction Management Agreement), and to the extent that BNP
        Paribas or such other Affiliates themselves borrow or accept bank
        deposits to obtain the funds needed to provide such Funding Advances,
        the obligation to repay such funds shall not be limited, by agreement or
        corporate structure, to payments collected from NAI or otherwise
        recovered from the Property.

               (7) BNPLC has not obtained residual value insurance or a residual
        value guarantee from any third party to ensure the recovery of its
        investment in the Property.

               (8) BNPLC does not intend to take any action during the terms of
        the Leases that would change, or anticipate any change in, any of the
        facts listed above in this subparagraph.

NAI shall have the right to ask BNPLC questions from time to time concerning
BNPLC's financial condition, concerning matters relevant to the proper
accounting treatment of the Leases on NAI's financial statements and accounting
records (including the amount of BNPLC's equity capital as a percentage of the
aggregate of all lease funding amounts [including participations] by BNPLC) or
concerning BNPLC's ability to perform under the Leases or the Purchase
Agreements, to which questions BNPLC shall promptly respond. Such response,
however, may be limited to a statement that BNPLC will not provide requested
information; provided, however, BNPLC must notify NAI in writing if at any time
during the terms of the Leases BNPLC ceases to be 100% owned, directly or
indirectly, by BNP Paribas, or if at any time during the terms of the Leases
BNPLC believes it could not represent that the statements in clauses (1), (5)
and (7) above continue to be accurate, whether because of a change in the
capital structure of BNPLC, a purchase of residual value insurance with respect
to the Property or otherwise.

        (F) Other Limited Representations by BNPLC. BNPLC represents that:

               (1) No Default or Violation. The execution, delivery and
        performance by BNPLC of this Agreement and the other Operative Documents
        do not and will not constitute a breach or default under any material
        contract or agreement to which BNPLC is a party or by which BNPLC is
        bound and do not, to the knowledge of BNPLC, violate or contravene any
        law, order, decree, rule or regulation to which BNPLC is subject. (As
        used in this subparagraph 3(F), "BNPLC'S KNOWLEDGE" means the present
        actual knowledge of Lloyd Cox, the current officer of BNPLC having
        primary responsibility for the negotiation of the Operative Documents.)

               (2) No Suits. There are no judicial or administrative actions,
        suits, proceedings or investigations pending or, to BNPLC's knowledge,
        threatened against BNPLC that are reasonably likely to affect BNPLC's
        interest in the Property or the validity, enforceability or priority of
        the Leases or the Purchase Agreements, and BNPLC is not in default with
        respect to any order, writ, injunction, decree or demand of any court or
        other governmental or regulatory authority that could materially and
        adversely affect the business or assets of BNPLC or its interest in the
        Property.

               (3) Enforceability. The execution, delivery and performance of
        each of the Operative Documents by BNPLC are duly authorized, are not in
        contravention of or conflict with any term or provision of BNPLC's
        articles of incorporation or bylaws and do not, to BNPLC's knowledge,
        require the consent or approval of any governmental body or other
        regulatory authority that has not heretofore been obtained or conflict
        with any Applicable Laws. Each of the Operative Documents are valid,
        binding and legally enforceable obligations of BNPLC except as such
        enforcement is affected by bankruptcy, insolvency and similar laws
        affecting the rights of creditors, generally, and equitable principles
        of general application; provided, BNPLC makes no representation or
        warranty that conditions imposed by zoning ordinances or other state or
        local

                                      -9-
<PAGE>   13

        Applicable Laws to the purchase, ownership, lease or operation of the
        Property have been satisfied.

                (4) Organization. BNPLC is duly incorporated and legally
        existing under the laws of Delaware and is duly qualified to do business
        in the State of California. BNPLC has or will obtain on a timely basis,
        at NAI's expense to the extent so provided in the Leases, all requisite
        power and all governmental certificates of authority, licenses, permits,
        qualifications and other documentation necessary to own and lease the
        Property and to perform its obligations under the Operative Documents.

               (5) Existence. So long as NAI continues to have rights under the
        Leases or Purchase Agreements, BNPLC shall continuously maintain its
        existence and, to the extent required to comply with its obligations
        under the Operative Documents, its qualification to do business in the
        State of California.

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

               (7) Bankruptcy. BNPLC's capital is adequate for the businesses in
        which BNPLC is engaged and intends to be engaged. BNPLC has not incurred
        (whether hereby or otherwise), nor does BNPLC intend to incur or believe
        that it will incur, debts which will be beyond its ability to pay as
        such debts mature. There has not been filed by or, to BNPLC's knowledge,
        against BNPLC a petition in bankruptcy or a petition or answer seeking
        an assignment for the benefit of creditors, the appointment of a
        receiver, trustee, custodian or liquidator with respect to BNPLC or any
        significant portion of BNPLC's property, reorganization, arrangement,
        rearrangement, composition, extension, liquidation or dissolution or
        similar relief under the federal Bankruptcy Code or any state law.

        (G) Partial Release Provisions. So long as no CMA Termination Event
shall have occurred and no Event of Default shall have occurred and be
continuing, NAI shall have the option from time to time prior to the Designated
Sale Date to purchase or to designate a third party to purchase the Existing
Buildings, Building 6, Building 7 or Building 8, together with a portion of the
Land under and around the building purchased, as determined by BNPLC in its
reasonable discretion (each such building and portion of the Land under and
around it being hereinafter referred to, collectively, as a "RELEASE TARGET"),
provided that NAI shall have satisfied the following terms and conditions:

               (1) Before exercising any such option, NAI must have obtained all
        requisite governmental approvals for (and recorded) a new plat or map of
        the Land, showing the Release Target to be purchased as a separate
        platted lot such that it can be sold under Applicable Laws separate and
        apart from the rest of the Land, all in a manner satisfactory to BNPLC.
        Also, NAI, BNPLC and any other parties with interests in the Property
        affected thereby must have agreed upon, entered into and recorded such
        reciprocal easements and restrictive covenants relating to any Release
        Target to be so sold and the remainder of the Property as BNPLC shall
        deem necessary or reasonably required to preserve the utility and value
        of the Property remaining after the conveyance. Such easements may
        include utility easements, drainage easements, access easements, parking
        easements, signage easements and lateral support easements. Such
        restrictive covenants may, among other things, prohibit residential uses
        and other uses of the Release Target that are reasonably objectionable
        to BNPLC, as the record owner of the fee interest in adjacent property,
        including any of the following uses:

                                      -10-
<PAGE>   14

               (a) "headshops"; x-rated theaters; establishments for the sale
               of pornographic materials; massage parlors; steam baths; nude
               modeling studios or establishments with nude or semi-nude
               waiters, waitresses or entertainers; adult bookstores; billiard
               rooms; drive-in or drive through restaurants; bowling alleys;
               skating rinks; discount stores; second-hand stores; army/navy
               type stores; governmental "surplus" stores; wholesale or factory
               outlet stores; cooperative stores; and any similar
               establishments;

               (b) auctions, fire sales, "going out of business" sales, "tent"
               sales, bankruptcy sales or outdoor sales of merchandise;

               (c) the use of machines or devices (including video games)
               operated by insertion of a coin, token, or similar object for
               the purpose of amusement;

               (d) the use of any of the following advertising audible or
               visible outside any building: loudspeakers, music or other
               noise-making devices; balloons or flying objects; mechanical or
               moving display devices; unusually bright or flashing lights and
               similar devices; and

               (e) the solicitation of business in the parking or other outside
               areas or the distribution of handbills or other advertising
               matter in said areas; and

               (f) any use that results in objectionable or unpleasant odors of
               the type that a prudent owner of a multi-tenant project of
               comparable quality and size to the Property would not allow in
               its project.

               (2)BNPLC and NAI must also have agreed upon the price (the
        "PARTIAL RELEASE PRICE") for the Release Target. After the construction
        contemplated by the Construction Management Agreement is completed by
        NAI as provided therein, the Partial Release Price shall be as set forth
        below for the applicable Release Target, unless some casualty,
        condemnation or other event has occurred that, in the reasonable
        judgment of BNPLC, made the allocations of BNPLC's projected investment
        in the Property as set forth below disproportionate to the then
        respective fair market values of the various Release Targets.

<TABLE>
<CAPTION>

       Release Target                                                    Partial Release Price
       --------------                                                    ---------------------
       <S>                                                               <C>
       Existing Buildings.................................................      $  26,700,000
       Building 6.........................................................         32,970,000
       Building 7.........................................................         34,700,000
       Building 8.........................................................         31,630,000
               Total......................................................       $126,000,000
</TABLE>

               (3)BNPLC and NAI must also have agreed upon appropriate
        amendments to the Operative Documents, each in form and substance
        satisfactory to BNPLC, that will exclude the Release Target being
        purchased from the Property after the date BNPLC conveys the Release
        Target. Notwithstanding such exclusion, however, the amendments to the
        Operative Documents will expressly preserve for BNPLC and other
        Interested Parties the benefits of indemnities given by NAI in the
        Operative Documents with respect to the Release Target.

               (4)To exercise such option, NAI must deliver notice thereof to
        BNPLC not less than ninety days prior to the date upon which NAI intends
        to acquire the applicable Release Target, and such notice must describe
        (1) the Release Target to be purchased, (2) the date upon which the
        Release Target is to be conveyed by BNPLC, (3) the Partial Release Price
        that NAI believes will apply, (4) whether the conveyance will be to NAI
        or to a third party designated by NAI in such

                                      -11-
<PAGE>   15

        notice, and (5) all easements and restrictive covenants that Extremes
        proposes to satisfy the conditions of subparagraph (1) above.

                (5) In each case, before BNPLC conveys any Release Target to NAI
        or a third party designated by NAI, NAI or its designee must have paid
        to BNPLC the Partial Release Price for such Release Target and, in
        addition to the Partial Release Price, all costs and expenses incurred
        by BNPLC in connection with or necessary to consummate the sale,
        including all Attorneys' Fees and any transfer taxes that of BNPLC may
        be required to pay because of the sale.

        If NAI properly exercises its option under this subparagraph and
satisfies or causes the satisfaction of each of the foregoing terms and
conditions, BNPLC shall convey the applicable Release Target to NAI or the third
party designated by NAI pursuant to a quitclaim transfer of all of BNPLC's
right, title and interest therein on as "as is, where is, with all faults" basis
free and clear of the Leases, the Purchase Agreements and any Liens Removable by
BNPLC, but otherwise without recourse, representation or warranty of any kind.

        Any Losses incurred by BNPLC because of any action taken pursuant to
this subparagraph 3(G) shall be covered by the indemnification provisions set
forth in subparagraph 5(c) of each of the Leases. Further, for purposes of such
indemnification provisions, any action taken by BNPLC to accomplish a sale as
described in this subparagraph will be deemed to have been made at the request
of NAI if made pursuant to any request of counsel to or any officer of NAI (or
with their knowledge, and without their objection).

        4 OBLIGATIONS OF NAI UNDER OTHER OPERATIVE DOCUMENTS NOT LIMITED BY THIS
AGREEMENT. Nothing contained in this Agreement shall limit, modify or otherwise
affect any of NAI's obligations under the other Operative Documents, which
obligations are intended to be separate, independent and in addition to, and not
in lieu of, those established by this Agreement.

        5 OBLIGATIONS OF NAI HEREUNDER NOT LIMITED BY OTHER OPERATIVE DOCUMENTS.
Recognizing that but for this Agreement (including the representations of NAI
set forth in Paragraphs 1 and 2) BNPLC would not acquire the Property or enter
into the other Operative Documents, NAI agrees that BNPLC's rights for any
breach of this Agreement (including a breach of such representations) shall not
be limited by any provision of the other Operative Documents that would limit
NAI's liability thereunder, including any provision therein that would limit
NAI's liability in the event of a termination of the Leases or of any of NAI's
rights or obligations under the Purchase Agreements.

        6 WAIVER OF JURY TRIAL. BY ITS EXECUTION OF THIS AGREEMENT, EACH OF NAI
AND BNPLC HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THE OPERATIVE DOCUMENTS OR ANY OF
THEM OR ANY OTHER DOCUMENT OR DEALINGS BETWEEN THEM RELATING TO THE PROPERTY.
The scope of this waiver is intended to be all-encompassing of any and all
disputes that may be filed in any court and that relate to the subject matter of
this transaction, including contract claims, tort claims, breach of duty claims,
and all other common law and statutory claims. This waiver is a material
inducement to each of BNPLC and NAI as they enter into a business relationship;
each has already relied on the waiver in entering into the Operative Documents;
and each will continue to rely on the waiver in their related future dealings.
NAI and BNPLC, each having reviewed this waiver with its legal counsel,
knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO EACH OF THE
OPERATIVE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING

                                      -12-
<PAGE>   16

TO THE PROPERTY. In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.

        7 AMENDMENT AND RESTATEMENT. This Agreement amends, restates and
replaces the Prior Closing Certificate and Agreement.

                          [The signature pages follow.]

                                      -13-
<PAGE>   17

        IN WITNESS WHEREOF, this Closing Certificate and Agreement (Phase IV) is
hereby executed in multiple originals as of the Effective Date above set forth.

                                        "NAI"

                                        NETWORK APPLIANCE, INC.

                                        By:
                                            ------------------------------------
                                                Name (print):
                                                             -------------------
                                                Title:
                                                      --------------------------

<PAGE>   18

[Continuation of signature pages to Closing Certificate and Agreement dated to
be effective October 2, 2000]

                                  "BNPLC"

                                  BNP LEASING CORPORATION

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

<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:

TRACT 1:

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

TRACT 2:

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

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

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

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

TRACT 3:

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

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

TRACT 4:

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

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

                                      -1-
<PAGE>   20

TRACT 5:

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

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

                                      -2-
<PAGE>   21

                                    EXHIBIT B

                             PERMITTED ENCUMBRANCES

TRACT 1 and 2:

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

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

4.      AGREEMENT on the terms and conditions contained therein,
        For           : Waiver of Construction Credits
        Between       : Moffett Park Associates
        And           : None Shown
        Recorded      : September 28, 1976 in Book C307, page 346, Official
                        Records.

5.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose       : Construction, reconstruction, operation, repair,
                        maintenance, replacement, relocation and enlargement of
                        Public Utilities
        Granted to    : The City of Sunnyvale, a municipal corporation
        Recorded      : November 16, 1976 in Book C414, page 105, Official
                        Records
        Affects       : as follows:

        Being a portion of Parcel B as shown on that certain Parcel Map recorded
        August 28, 1974 in Book of Maps, at page 20, Santa Clara County Records;
        a strip of land 10 feet in width, measured at right angles lying
        Northerly and Easterly of and contiguous to the following described
        line; beginning at the intersection of the Westerly line of Crossman
        Road, 90 feet in width, with the Northerly line of Parcel A as shown on
        said Map; thence North 75(degrees) 7' 58" West along said Northerly line
        of Parcel A 450.13 feet; thence leaving said Northerly line, North
        30(degrees) 7' 48" West 210.69 feet; thence North 75(degrees) 8' 27"
        West 391.04 feet to a point on the Easterly line of the proposed Geneva
        Drive, 60 feet wide, said point being the terminus of said easement.

6.      ANY RIGHTS, interests, or claims adverse to those of the vestee herein
        which may exist or arise by reason of the following facts shown on a
        survey plat entitled ALTA/ACSM Land Title Survey for: Network Appliance,
        1345 Crossman Avenue, dated September 20, 2000, prepared by Kier &
        Wright, Job No. 97208-16.

                                      -1-
<PAGE>   22

TRACT 3:

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     : Slope Easement
        In favor of : City of Sunnyvale
        Recorded    : October 9, 1964 in Book 6695, page 430, Official Records
        Affects     : Easterly 18 feet, as shown on a survey plat entitled
                    ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                    Crossman Avenue, dated September 20, 2000, prepared by
                    Kier & Wright, Job No. 97208-16.

4.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose     : Public utilities easement
        In favor of : City of Sunnyvale
        Recorded    : October 9, 1964 in Book 6695, page 450, Official Records
        Affects     : Easterly 7 feet, as shown on a survey plat entitled
                    ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                    Crossman Avenue, dated September 20, 2000, prepared by
                    Kier & Wright, Job No. 97208-16.

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

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

6.      EASEMENT for the purposes stated herein and incidents thereto

        Purpose     : Public utilities
        Granted to  : City of Sunnyvale
        Recorded    : November 16, 1976 in Book C414, page 105, Official Records
        Affects     : Southerly 10 feet, as shown on a survey plat entitled
                    ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                    Crossman Avenue, dated September 20, 2000, prepared by
                    Kier & Wright, Job No. 97208-16.

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

                                      -2-
<PAGE>   23

8.      ANY RIGHTS, interests, or claims adverse to those of the vestee herein
        which may exist or arise by reason of the following facts shown on a
        survey plat entitled ALTA/ACSM Land Title Survey for: Network Appliance,
        1345 Crossman Avenue, dated September 20, 2000, prepared by Kier &
        Wright, Job No. 97208-16.

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

TRACT 4:

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      : Slope Easement
        In favor of  : City of Sunnyvale
        Recorded     : November 16, 1976 in Book C414, page 90, Official Records
        Affects      : Westerly 5 feet, as shown on a survey plat entitled
                     ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                     Crossman Avenue, dated September 20, 2000, prepared by
                     Kier & Wright, Job No. 97208-16.

4.      EASEMENT recorded on that certain Map for the purposes stated herein and
        incidents thereto
        Purpose     : Public utilities easement
        Recorded    : July 7, 1994 in Book 657 of Maps, page 9, Official Records
        Affects     : Westerly 10 feet, as shown on a survey plat entitled
                    ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                    Crossman Avenue, dated September 20, 2000, prepared by
                    Kier & Wright, Job No. 97208-16.

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

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

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

                                      -3-
<PAGE>   24

TRACT 5:

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       : Slope Easement
        In favor of   : City of Sunnyvale
        Recorded      : October 9, 1964 in Book 6695, page 430, Official Records
        Affects       : The Northeasterly and Easterly 18 feet, as shown on a
                      survey plat entitled ALTA/ACSM Land Title Survey for:
                      Network Appliance, 1345 Crossman Avenue, dated September
                      20, 2000, prepared by Kier & Wright, Job No. 97208-16.

4.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose       : Public utilities easement
        In favor of   : City of Sunnyvale
        Recorded      : October 9, 1964 in Book 6695, page 450, Official Records
        Affects       : The Northeasterly and Easterly 7 feet, as shown on a
                      survey plat entitled ALTA/ACSM Land Title Survey for:
                      Network Appliance, 1345 Crossman Avenue, dated September
                      20, 2000, prepared by Kier & Wright, Job No. 97208-16.

5.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose       : Sidewalk and sign easement
        Recorded      : July 7, 1994, in Book 657 of Maps, page 9, Official
                      Records
        Affects       : The Northerly 2 feet, as shown on a survey plat entitled
                      ALTA/ACSM Land Title Survey for: Network Appliance, 1345
                      Crossman Avenue, dated September 20, 2000, prepared by
                      Kier & Wright, Job No. 97208-16.

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

7.      EASEMENT for the purposes stated herein and incidents thereto
        Purpose       : Public utilities easement
        Recorded      : October 7, 1998, in Book 708 of Maps, pages 51-52,
                      Official Records
        Affects       : The Northerly 15 feet, as shown on a survey plat
                      entitled ALTA/ACSM Land Title Survey for: Network
                      Appliance, 1345 Crossman Avenue, dated September 20,
                      2000, prepared by Kier & Wright, Job No. 97208-16.

                                      -4-
<PAGE>   25

                                    EXHIBIT C

                              DEVELOPMENT DOCUMENTS

--NONE--

                                      -1-
<PAGE>   26

                                    EXHIBIT D

                      NOTICE OF REQUEST FOR ACTION BY BNPLC

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

        Re: Closing Certificate and Agreement dated as of October 2, 2000,
between Network Appliance, Inc. and BNP Leasing Corporation

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Closing Certificate and Agreement referenced above.
Pursuant to subparagraph 3(A) of the Closing Certificate and Agreement, NAI
requests the following of BNPLC:

        [INSERT HERE A SPECIFIC DESCRIPTION OF THE ACTION REQUESTED - E.G.,
        "PLEASE EXECUTE THE ENCLOSED APPLICATION FOR BUILDING PERMIT REQUIRED BY
        THE CITY OF SUNNYVALE IN CONNECTION WITH CONSTRUCTION OF CERTAIN
        IMPROVEMENTS WHICH ARE PART OF THE INITIAL CONSTRUCTION PROJECT."]

PLEASE NOTE: SUBPARAGRAPH 3(A) OF THE CLOSING CERTIFICATE OBLIGATES BNPLC NOT TO
UNREASONABLY REFUSE TO COMPLY WITH THE FOREGOING REQUEST, SUBJECT TO TERMS AND
CONDITIONS SET FORTH IN THAT SUBPARAGRAPH. NAI HEREBY CERTIFIES TO BNPLC THAT
AFTER CAREFUL CONSIDERATION NAI BELIEVES THAT ALL SUCH TERMS AND CONDITIONS ARE
SATISFIED IN THE CASE OF THE FOREGOING REQUEST, AND NAI HEREBY RATIFIES AND
CONFIRMS ITS OBLIGATION TO INDEMNIFY BNPLC AGAINST ANY LOSSES BNPLC MAY INCUR OR
SUFFER BECAUSE OF ITS COMPLIANCE WITH SUCH REQUEST AS PROVIDED IN SUBPARAGRAPH
5(c) OF THE LEASE.

        NAI respectfully requests that BNPLC respond to this notice as soon as
        reasonably possible.

        Executed this _____ day of ______________, 20___.

                                                  NETWORK APPLIANCE, INC.

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

                                                  Title:
                                                        ------------------------<PAGE>   1
                                                                   EXHIBIT 10.68

                       CONSTRUCTION MANAGEMENT AGREEMENT
                           (PHASE IV -- IMPROVEMENTS)

                                     BETWEEN

                             BNP LEASING CORPORATION

                                    ("BNPLC")

                                       AND

                            NETWORK APPLIANCE, INC.

                                     ("NAI")

                                 OCTOBER 2, 2000

                             (SUNNYVALE, CALIFORNIA)

<PAGE>   2

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                                                                          Page
<S>                                                                                       <C>
RECITALS.....................................................................................1

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

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

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

2.      CONSTRUCTION ADVANCES................................................................6
               (A)    Costs Subject to Reimbursement Through Construction Advances...........6
               (B)    Exclusions From Reimbursable Construction-Period Costs.................7
               (C)    Conditions to NAI's Right to Receive Construction Advances.............8
                      (1)    Construction Advance Requests...................................8
                      (2)    Amount of the Advances..........................................8
                             (a)    Limit Dependent Upon the Maximum Construction
                                    Allowance................................................8
                             (b)    Limit Dependent Upon Costs Previously Incurred by
                                    NAI......................................................9
                             (c)    Limit During Suspension Period...........................9
                             (d)    Restrictions Imposed for Administrative
                                    Convenience.............................................10
                      (3)    No Advances After Certain Dates................................10
               (D)    Breakage Costs for Construction Advances Requested But Not Taken......10
               (E)    No Third Party Beneficiaries..........................................10
               (F)    No Waiver.............................................................10
               (G)    Funding by Participants...............................................10
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<CAPTION>

<S>     <C>                                                                                 <C>
3.      COST OVERRUNS.......................................................................12
               (A)    Definition of Projected Cost Overruns.................................12
               (B)    Notice of Projected Cost Overruns.....................................12
               (C)    Election to Make a Voluntary NAI Construction Contribution............13

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

                                    EXHIBITS

Exhibit A   Legal Description

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

Exhibit C   Form of Contractor Estoppel

Exhibit D   Form of Design Professional Estoppel

Exhibit E   Notice Requesting Advance to Cover Insurance Deductible

Exhibit F   Construction Advance Request Form

Exhibit G   Notice of Voluntary NAI Funding Commitment

Exhibit H   Preemptive Notice by NAI

Exhibit I   Notice of Termination by NAI

                                       ii

<PAGE>   4

                       CONSTRUCTION MANAGEMENT AGREEMENT
                            (PHASE IV -- IMPROVEMENTS)

        This CONSTRUCTION MANAGEMENT AGREEMENT (PHASE IV -- IMPROVEMENTS) (this
"AGREEMENT"), by and between BNP LEASING CORPORATION, a Delaware corporation
("BNPLC"), and NETWORK APPLIANCE, INC., a California corporation ("NAI"), is
made and dated as of October 2, 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 IV -- Improvements) executed by BNPLC and NAI
contemporaneously with this Agreement. By this reference, the Common Definitions
and Provisions Agreement (Phase IV -- Improvements) is incorporated into and
made a part of this Agreement for all purposes.)

                                    RECITALS

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

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

                            CONSENT AND AUTHORIZATION

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

                          GENERAL TERMS AND CONDITIONS

        1.      CONSTRUCTION BY NAI

        (A)     The Construction Project.

                (1) Construction Approvals by BNPLC.

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

<PAGE>   5

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

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

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

                (2) NAI's Right to Control and Responsibility for Construction.
        Subject to the terms and conditions set forth in this Agreement and in
        the Improvements Lease, and prior to any termination of this Agreement
        as provided in subparagraphs 4(D) and 4(E), NAI shall have the sole
        right to control and the sole responsibility for the design and
        construction of the Construction Project, including the means, methods,
        sequences and procedures implemented to accomplish such design and
        construction. Although title to all Improvements will pass directly to
        BNPLC (as more particularly provided in Paragraph 7 of the Improvements
        Lease), BNPLC's obligation with respect to the Construction Project
        shall be limited to the making of advances under and subject to the
        conditions set forth in this Agreement and in Paragraph 6 of the
        Improvements Lease. Without limiting the foregoing, NAI acknowledges and
        agrees that:

                                       2
<PAGE>   6

                        (a) Performance of the Work. Except as provided in
                subparagraphs 4(C) and 4(F), NAI must, using its best skill and
                judgment and in an expeditious and economical manner not
                inconsistent with the interests of BNPLC, perform or cause to be
                performed all work required, and will provide or cause to be
                provided all supplies and materials required, to design and
                complete construction of the Construction Project (collectively
                "WORK"). The Work will include obtaining all necessary building
                permits and other governmental approvals required in connection
                with the design and construction of the Construction Project, or
                required in connection with the use and occupancy thereof (e.g.,
                final certificates of occupancy). The Work will also include any
                repairs or restoration required because of damage to
                Improvements by fire or other casualty prior to the Base Rent
                Commencement Date (All Buildings) (a "PRE-COMMENCEMENT
                CASUALTY"); however, the cost of any such repairs or restoration
                will be subject to reimbursement not only through Construction
                Advances made on and subject to the terms and conditions of this
                Agreement, but also through the application of Escrowed Proceeds
                as provided in the Improvements Lease. NAI will carefully
                schedule and supervise all Work, will check all materials and
                services used in connection with all Work and will keep full and
                detailed accounts as may be necessary to document expenditures
                made or expenses incurred for the Work. Subject to delays beyond
                the reasonable control of NAI, NAI shall cause all Work to be
                completed on or before the first Business Day of November 2002.

                        (b) Third Party Contracts.

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

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

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

                                       3
<PAGE>   7

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

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

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

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

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

                                       4
<PAGE>   8

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

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

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

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

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

        (B) Completion Notices. NAI shall provide a notice (a "COMPLETION NOTICE
(BUILDING 6)") to BNPLC promptly after renovation of the portion of the
Improvements designated by NAI as "Building 6" are substantially complete and
ready for occupancy by NAI. Such notice will include a determination by NAI of
the amount of Stipulated Loss Value (Building 6), as defined in the Common
Definitions and Provisions Agreement, and of Stipulated Loss Value (Building
6/Land), as defined in the other Common Definitions and Provisions Agreement. In
addition, NAI shall provide a notice (a "COMPLETION NOTICE (BUILDING 6)") to
BNPLC promptly after construction of the Construction Project relating to the
portion of the Improvements designated by NAI as "Building 6" is substantially
complete, advising BNPLC of the substantial completion.

        NAI shall provide a notice (a "COMPLETION NOTICE (BUILDING 7)") to BNPLC
promptly after renovation of the portion of the Improvements designated by NAI
as "Building 7" are substantially complete and ready for occupancy by NAI. Such
notice will include a

                                       5
<PAGE>   9

determination by NAI of the amount of Stipulated Loss Value (Building 7), as
defined in the Common Definitions and Provisions Agreement, and of Stipulated
Loss Value (Building 7/Land), as defined in the other Common Definitions and
Provisions Agreement. In addition, NAI shall provide a notice (a "COMPLETION
NOTICE (BUILDING 7)") to BNPLC promptly after construction of the Construction
Project relating to the portion of the Improvements designated by NAI as
"Building 7" is substantially complete, advising BNPLC of the substantial
completion.

        NAI shall provide a notice (a "COMPLETION NOTICE (BUILDING 8)") to BNPLC
promptly after renovation of the portion of the Improvements designated by NAI
as "Building 8" are substantially complete and ready for occupancy by NAI. Such
notice will include a determination by NAI of the amount of Stipulated Loss
Value (Building 8), as defined in the Common Definitions and Provisions
Agreement, and of Stipulated Loss Value (Building 8/Land), as defined in the
other Common Definitions and Provisions Agreement. In addition, NAI shall
provide a notice (a "COMPLETION NOTICE (BUILDING 8)") to BNPLC promptly after
construction of the Construction Project relating to the portion of the
Improvements designated by NAI as "Building 8" is substantially complete,
advising BNPLC of the substantial completion.

        2. CONSTRUCTION ADVANCES.

        (A) Costs Subject to Reimbursement Through Construction Advances.
Subject to the terms and conditions set forth herein, NAI shall be entitled to a
Construction Allowance, from which BNPLC will make Construction Advances on
Advance Dates from time to time to pay or reimburse NAI for the following costs
("REIMBURSABLE CONSTRUCTION-PERIOD COSTS") to the extent the following costs are
not already included in Prior Funding Advances:

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

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

               (3) Commitment Fees;

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

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

                        -       site preparation costs, and

                                       6
<PAGE>   10

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

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

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

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

It is understood that $1,150,000 will be advanced as a Construction Advance to
or on behalf of NAI on the first Advance Date (October 16, 2000) to cover the
Arrangement Fee, legal fees of NAI and BNPLC related to the preparation and
negotiation of the Operative Documents, related appraisal fees, the fee payable
to Craig Lund and Associates for arranging the transactions contemplated by the
Operative Documents, and other costs.

In addition to other Construction Advances required by this subparagraph 2(A),
but subject to the other terms and conditions hereof, a Construction Advance
will be provided by BNPLC on the Base Rent Commencement Date (All Buildings) in
the form of additional Escrowed Proceeds (to be held and applied like other
Escrowed Proceeds pursuant to the Improvements Lease) equal to any reduction in
property insurance proceeds paid or payable with respect to the Property because
of a property insurance deductible permitted by Exhibit B attached to the
Improvements Lease, if:

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

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

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

                                       7
<PAGE>   11

Construction Obligations required because of or in connection with or arising
out of any of the following:

               (1) Environmental Losses;

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

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

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

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

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

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

               (2) Amount of the Advances.

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

                                       8
<PAGE>   12

               Funded Construction Allowance to exceed the Maximum Construction
               Allowance.

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

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

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

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

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

                                       9
<PAGE>   13

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

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

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

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

               (3) No Advances After Certain Dates. BNPLC shall have no
        obligation to make any Construction Advance (x) after the Base Rent
        Commencement Date (All Buildings), (y) on or after the Designated Sale
        Date, or (z) on or after the date of any termination of this Agreement
        pursuant to subparagraph 4(D) or subparagraph 4(E).

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

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

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

        (G) Funding by Participants. NAI acknowledges that, as provided in the
Participation Agreement, each Participant has agreed to pay to BNPLC a
Percentage (under and as defined in the Participation Agreement) of the
Construction Advances required by this Agreement. NAI also acknowledges that
BNPLC will not be responsible to NAI for any failure of any Participant to
provide advances required by the Participation Agreement. So long as any
Participant fails

                                       10
<PAGE>   14

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

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

                      (2) BNPLC will to the extent possible postpone reductions
        of Construction Advances because of the failure by any one or more
        Participants ("DEFAULTING PARTICIPANTS") to make required advances under
        the Participation Agreement (a "PARTICIPANT DEFAULT") by adjusting (and
        readjusting from time to time, as required) the funding "Percentages" of
        other Participants, and by requesting the other Participants to make
        advances to BNPLC on the basis of such adjusted Percentages, in each
        case as provided in the Participation Agreement; however, so long as a
        Participant Default continues, no Construction Advance shall be required
        that would cause the Outstanding Construction Allowance to exceed (1)
        the Maximum Construction Allowance available under this Agreement, less
        (2) all amounts that should have been, but because of a continuing
        Participant Default have not been, advanced by any one or more of the
        Participants to BNPLC under the Participation Agreement with respect to
        Construction Advances.

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

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

                       (b) BNPLC shall not unreasonably withhold its approval
               for the substitution of any new participant proposed by NAI for
               Defaulting Participants, if (A) the proposed substitution does
               not require BNPLC to waive rights against the Defaulting
               Participants, (B) the new participant will agree (by executing
               supplement to the Participation Agreement as provided in the
               Participation Agreement) to provide funds to replace the
               payments that would otherwise be required of the Defaulting
               Participants with respect to future Construction

                                       11
<PAGE>   15

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

        3.     COST OVERRUNS.

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

        (B) Notice of Projected Cost Overruns. If for any reason (including any
damage to the Property by fire or other casualty or any taking of any part of
the Property by condemnation) NAI believes (after taking into account any
Voluntary NAI Construction Contributions NAI has made or committed to make as
provided in subparagraph 3(C)) that Projected Cost Overruns are more likely than
not at the time NAI submits any Construction Advance Request, NAI shall state
such belief in the Construction Advance Request and, if NAI can reasonably do
so, NAI will estimate the approximate amount of such Projected Cost Overruns.

                                       12
<PAGE>   16

        (C) Election to Make a Voluntary NAI Construction Contribution. As used
in this Agreement, "VOLUNTARY NAI CONSTRUCTION CONTRIBUTION" shall mean a
voluntary, nonrefundable payment made to BNPLC by NAI prior to the Base Rent
Commencement Date (All Buildings) and delivered with or pursuant to a notice in
the form of Exhibit G, confirming that a Voluntary NAI Construction Contribution
is being paid or will be paid pursuant to this subparagraph. To prevent the
occurrence of or to cure any CMA Suspension Event described in subparagraph
4(A)(1), NAI shall be entitled (but not obligated) to make or commit to make a
Voluntary NAI Construction Contribution in addition to (and, except as provided
in the definition of Issue 9710 Prepayment in the Common Definitions and
Provisions Agreement (Phase IV - Improvements), without reducing or excusing)
any other amounts then due from NAI to BNPLC pursuant to the Operative
Documents. Like other Qualified Prepayments, any Voluntary NAI Construction
Contribution will reduce the Outstanding Construction Allowance as described in
the definition thereof in the Common Definitions and Provisions Agreement (Phase
IV - Improvements). In contrast, however, to other Qualified Prepayments,
Voluntary NAI Construction Contributions will be subtracted for purposes of
calculating the Funded Construction Allowance and, thus, will effectively
increase the subsequent Construction Advances available under the limit
established by subparagraph 2(C)(2)(a).

        4.     SUSPENSION AND TERMINATION.

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

               (1) Projection of Cost Overruns. Either (a) BNPLC shall receive
        any Construction Advance Request stating that NAI believes Projected
        Cost Overruns are more likely than not, as provided in subparagraph
        3(B), or (b) (i) BNPLC shall otherwise determine in good faith that
        significant Projected Cost Overruns are likely (taking into account any
        failure of a Defaulting Participant to provide funds to BNPLC as
        required by the Participation Agreement and any prior Voluntary NAI
        Construction Contributions NAI has made or committed to make as provided
        in subparagraph 3(C)), (ii) BNPLC shall notify NAI of such determination
        and the basis therefor, and (iii) NAI shall fail to give any notice
        pursuant to subparagraph 3(C) that, by committing NAI to make or
        increase Voluntary NAI Construction Contributions, effectively
        eliminates the likelihood of the Projected Cost Overruns on or before
        five Business Days after BNPLC's notice to NAI of such determination.

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

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

                                       13
<PAGE>   17

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

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

               (1) As used herein, "FOCB NOTICE" means a notice from BNPLC to
        NAI that BNPLC is considering a termination of this Agreement pursuant
        to subparagraph 4(E) below, provided that the notice is given prior to
        BNPLC's receipt from NAI of a Completion Notice and is given when:

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

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

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

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

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

               (2) As used herein, "PREEMPTIVE NOTICE" means a notice from NAI
        to BNPLC in the form attached hereto as Exhibit H, given after BNPLC has
        given any FOCB Notice, but before NAI has made any Issue 97-10 Election,
        that is sufficient and effective under clause (2) of the definition of
        Designated Sale Date in the Common Definitions and Provisions Agreement
        (Phase IV - Improvements) to accelerate the Designated Sale Date to a
        date that is less than ninety days after the date of BNPLC's FOCB
        Notice.

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

                                       14
<PAGE>   18

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

                      or

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

        (C) Rights and Obligations of NAI During a CMA Suspension Period. As
used herein, "CMA SUSPENSION PERIOD" shall mean any period (1) beginning with
the date of any CMA Suspension Notice, FOCB Notice or Notice of NAI's Intent to
Terminate, and (2) ending on the earlier of (a) the first date upon which (i) no
CMA Suspension Events shall be continuing, and (ii) no CMA Termination Events
shall have occurred, or (b) the effective date of any termination of this
Agreement as described in subparagraph 4(D) or subparagraph 4(E). During any CMA
Suspension Period, NAI shall have the right to suspend the Work; provided,
however, the obligations of NAI which are to survive any termination of this
Agreement shall also continue and survive during any such suspension of the
Work.

        (D) Election by NAI to Terminate. NAI may elect to terminate this
Agreement at any time prior to the Base Rent Commencement Date (All Buildings)
when NAI has determined that (1) the Construction Advances to be provided to it
hereunder will not be sufficient to cover all Reimbursable Construction-Period
Costs, whether because the cost of the Work exceeds budgeted expectations
(resulting in Projected Cost Overruns), because of damage to the Property by
fire or other casualty (other than damage that would not have occurred, or been
uninsured or under-insured, but for an act or omission of NAI), because of a
taking of any part of the Property by condemnation, or because NAI can no longer
satisfy conditions to BNPLC's obligation to provide Construction Advances
herein, or (2) the Construction Project cannot be substantially completed before
the Base Rent Commencement Date (All Buildings) for reasons other than a breach
by NAI of this Agreement. To be effective, however, any such election to
terminate this Agreement must be made by giving BNPLC and the Participants a
notice thereof prior to the Base Rent Commencement Date (All Buildings) in the
form of Exhibit I (a "NOTICE OF NAI'S INTENT TO TERMINATE"), stating that NAI
intends to terminate this Agreement pursuant to this subparagraph on a date
specified therein, which date is not less than thirty days after the date of
such notice. Unless terminated sooner pursuant to subparagraph 4(E), this
Agreement will automatically terminate on the effective date so specified in any
Notice of NAI's Intent to Terminate.

        (E) BNPLC's Right to Terminate. BNPLC shall be entitled to terminate
this Agreement at any time (x) more than ninety days after BNPLC has given an
FOCB Notice as described in subparagraph 4(B)(1) (regardless of whether at the
time of such termination by BNPLC an Event of Default or other event or
circumstance described in subparagraph 4(B)(1) is continuing), provided that
BNPLC shall not have received an effective Preemptive Notice within thirty days
after its delivery of the FOCB Notice to NAI, (y) after the Designated Sale
Date, or (z) after BNPLC's receipt of a Notice of NAI's Intent to Terminate.

                                       15
<PAGE>   19

        (F) Rights and Obligations Surviving Termination. Following any
termination of this Agreement as provided in subparagraph 4(D) or in 4(E), NAI
shall have no obligation to continue or complete any Work; provided, however, no
termination of this Agreement shall reduce or excuse the following rights and
obligations of the parties, it being intended that all such rights and
obligations shall survive and continue after any such termination:

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

               (2)    NAI's obligations described in the next subparagraph 4(G).

        (G) Cooperation by NAI Following Any Termination. After any termination
of this Agreement as provided in subparagraph 4(D) or subparagraph 4(E), NAI
shall comply with the following terms and conditions, all of which shall survive
any such termination:

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

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

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

                                       16
<PAGE>   20

        from any cancellation of a Third Party Contract after the effective date
        of a termination of this Agreement.

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

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

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

                                       17
<PAGE>   21

        IN WITNESS WHEREOF, NAI and BNPLC have caused this Construction
Management Agreement to be executed effective as of October 2, 2000.

                                     "NAI"

                                     NETWORK APPLIANCE, INC.

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

                                       18
<PAGE>   22

[Continuation of signature pages to Construction Management Agreement (Phase IV
- Improvements) dated to be effective October 2, 2000]

                            "BNPLC"

                             BNP LEASING CORPORATION

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

                                       19
<PAGE>   23

                                    Exhibit A

                                LEGAL DESCRIPTION

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

TRACT 1:

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

TRACT 2:

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

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

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

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

TRACT 3:

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

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

TRACT 4:

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

<PAGE>   24

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

TRACT 5:

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

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

                               Exhibit A - Page 2
<PAGE>   25

                                    Exhibit B

                     DESCRIPTION OF THE CONSTRUCTION PROJECT

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

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

        The improvements will consist of Phase IV improvements, consisting of
        (a) the construction of one three-story office/research and development
        building, known as Building 6, located on the southeast corner of the
        Land, containing approximately 121,355 square feet, together with
        related parking and other facilities, (b) the construction of one
        three-story office/research and development building, known as Building
        7, located to the north of Building 6, containing approximately 121,355
        square feet, together with related parking and other facilities, and (c)
        the construction of one three-story office/research and development
        building, known as Building 8, located on the northeast corner of the
        Land, on the corner of Crossman Avenue and Caribbean Drive, containing
        approximately 121,355 square feet, together with related parking and
        other facilities.

        Each of the buildings will be of Type II, Fire Resistive construction.

Also, it is understood that buildings presently on the Land where the new
buildings are shown on the Site Plan will be demolished and removed as part of
the Construction Project.

<PAGE>   26

                                    Exhibit C

                            ESTOPPEL FROM CONTRACTOR

                                _________, 200___

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

        Re:    Assignment of Construction Contract

Ladies and Gentlemen:

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

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

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

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

<PAGE>   27

BNP Leasing Corporation
__________, 200_
Page 2

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

        The undersigned acknowledges and agrees that:

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

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

                               Exhibit C - Page 2
<PAGE>   28

BNP Leasing Corporation
__________, 200_
Page 3

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

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

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

        e) No action taken by BNPLC or the undersigned with respect to the
Construction Contract shall prejudice any other rights or remedies of BNPLC or
the undersigned provided by

                               Exhibit C - Page 3
<PAGE>   29
BNP Leasing Corporation
__________, 200_
Page 4

law, by the Improvements Lease Documents, by the Construction Contract or
otherwise against NAI.

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

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

To the undersigned:
                                         --------------------------------

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

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

                                         Telecopy: (___) _____-______

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

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

                               Exhibit C - Page 4
<PAGE>   30
BNP Leasing Corporation
__________, 200_
Page 5

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

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

                                  Very truly yours,

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

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

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

                                  Network Appliance, Inc.

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

                               Exhibit C - Page 5

<PAGE>   31

                                    Exhibit D

                       ESTOPPEL FROM DESIGN PROFESSIONALS

                                _________, 200___

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

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

Ladies and Gentlemen:

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

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

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

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

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

<PAGE>   32
BNP Leasing Corporation
__________, 200_
Page 2

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

The undersigned acknowledges and agrees that:

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

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

                               Exhibit D - Page 2
<PAGE>   33
BNP Leasing Corporation
__________, 200_
Page 3

nature, but rather the undersigned shall look solely to NAI (and statutory lien
rights, if any, of the undersigned against the Land and any improvements
thereon) for the recovery of any such damages or other amounts.

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

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

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

        f) The undersigned agrees promptly to notify BNPLC of any material
default or claimed material default by NAI under the Agreement of which the
undersigned is aware, describing with particularity the default and the action
the undersigned believes is necessary to cure the same. The undersigned will
send any such notice to BNPLC prominently marked "URGENT - NOTICE OF NAPS
DEFAULT UNDER DESIGN AGREEMENT WITH NETWORK APPLIANCE, INC. - SUNNYVALE,
CALIFORNIA" at the address specified for notice below (or at such other
addresses as BNPLC shall designate in notice sent to the undersigned), by
certified or registered mail, return receipt requested. Following receipt of
such

                               Exhibit D - Page 3
<PAGE>   34
BNP Leasing Corporation
__________, 200_
Page 4

notice, the undersigned will permit BNPLC or its designee to cure any such
default within the time period reasonably required for such cure, but in no
event less than thirty days.

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

To the undersigned:
                                      --------------------------------

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

                                      --------------------------------
                                      Telecopy: (___) _____-______

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

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

                                      Network Appliance, Inc.
                                      Attn: Corporate Secretary
                                      2770 San Thomas Expressway
                                      Santa Clara, CA 95051
                                      Telecopy:

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

                                       Very truly yours,

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

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

                               Exhibit D - Page 4
<PAGE>   35
BNP Leasing Corporation
__________, 200_
Page 5

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

                                       Network Appliance, Inc.

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

                               Exhibit D - Page 5
<PAGE>   36

                                    Exhibit E

        NOTICE REQUESTING ADVANCE TO COVER PROPERTY INSURANCE DEDUCTIBLE

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

        Re: Construction Management Agreement (Phase IV - Improvements) dated as
of October 2, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC ")

Gentlemen:

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

                               $________________,

on the Base Rent Commencement Date (All Buildings), which will occur on:

                               ___________,200___.

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

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

<PAGE>   37
BNP Leasing Corporation
__________, 200_
Page 2

        Executed this ____ day of ______________, 20___.

                                      Network Appliance, Inc.
                                         Name:
                                               ---------------------------------
                                         Title:
                                               ---------------------------------

[cc all Participants]

                               Exhibit E - Page 2
<PAGE>   38

                                    Exhibit F

                        CONSTRUCTION ADVANCE REQUEST FORM

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

        Re: Construction Management Agreement (Phase IV - Improvements) dated as
of October 2, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

                               $________________,

on the Advance Date that will occur on:

                               ___________,200___.

Such total amount can be properly allocated between what we call "Building 6",
"Building 7" and "Building 8" as follows:

<TABLE>
<CAPTION>

<S>      <C>                                                   <C>
Building 6.................................................    $ __________

Building 7.................................................    $ __________

Building 8.................................................    $ __________

                          Total (as set forth above).........  $ __________
</TABLE>

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

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

<PAGE>   39
BNP Leasing Corporation
__________, 200_
Page 2

<TABLE>
<CAPTION>

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

(2) NAI has paid or incurred bona fide Reimbursable Construction-Period
Costs for Prior Work of no less than ...................................    $ __________

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

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

II.     PROJECTED COST OVERRUNS:

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

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

III.    ABSENCE OF CERTAIN CMA SUSPENSION EVENTS:

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

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

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

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

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

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

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

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

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

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

                               Exhibit F - Page 2
<PAGE>   40
BNP Leasing Corporation
__________, 200_
Page 3

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

        Executed this _____ day of ___________, 20 __.

                                   NETWORK APPLIANCE, INC.

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

                               Exhibit F - Page 3

<PAGE>   41

                                    Exhibit G

                      NOTICE OF VOLUNTARY NAI CONSTRUCTION CONTRIBUTION

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

        Re: Construction Management Agreement (Phase IV - Improvements) dated as
of October 2, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase IV - Improvements) referenced in the
Construction Management Agreement. This letter shall constitute notice, given as
described in subparagraph 3(C) of the Construction Management Agreement, that
NAI is paying with this letter, or unconditionally and irrevocably committing to
pay as described below, a Voluntary NAI Construction Contribution in the amount
of $ _______________.

        Such payment by NAI will be in addition to any Voluntary NAI
Construction Contributions required by other notices given by NAI as described
in subparagraph 3(C) of the Construction Management Agreement.

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

Executed this _____ day of ___________, 20 __.

                              NETWORK APPLIANCE, INC.

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

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

[cc all Participants]

<PAGE>   42

                                    Exhibit H

                            PREEMPTIVE NOTICE BY NAI

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

        Re: Construction Management Agreement (Phase IV - Improvements) dated as
of October 2, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

        Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Construction Management Agreement or in the Common
Definitions and Provisions Agreement (Phase IV - Improvements) referenced in the
Construction Management Agreement. This letter is intended to constitute a
Preemptive Notice, given as described in subparagraph 4(B) of the Construction
Management Agreement. As provided in clause (2) of the definition of Designated
Sale Date in the Common Definitions and Provisions Agreement (Phase IV -
Improvements), this letter shall constitute notice, given in accordance with
clause (2) of the definition of Common Definitions and Provisions Agreement
(Phase IV - Improvements), that NAI designates the following date as the
Designated Sale Date:

                                           ___________, ___.

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

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

Executed this _____ day of ___________, 20 __.

                                   Network Appliance, Inc.

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

<PAGE>   43

                                    Exhibit I

                          NOTICE OF TERMINATION BY NAI

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

        Re: Construction Management Agreement (Phase IV - Improvements) dated as
of October 2, 2000 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

        NAI has determined that (1) the Construction Advances to be provided to
it under the Construction Management Agreement will not be sufficient to cover
all Construction-Period Reimbursable Costs, whether because the cost of the Work
exceeds budgeted expectations (resulting in Projected Cost Overruns) or because
NAI can no longer satisfy conditions to BNPLC's obligation to provide
Construction Advances in the Construction Management Agreement, or (2) the
Construction Project cannot be substantially completed before the Base Rent
Commencement Date (All Buildings) for reasons other than a breach by NAI of the
Construction Management Agreement. Accordingly, this letter shall constitute a
Notice of NAI's Election to Terminate the Construction Management Agreement,
given as provided in subparagraph 4(D) of the Construction Management Agreement.

        NAI irrevocably and unconditionally elects to terminate the Construction
Management Agreement effective as of the following date (which, as required by
subparagraph 4(D) thereof is a date not less than thirty days after the date
this notice is given):

                               ___________,200___.

        NAI ACKNOWLEDGES THAT THE ELECTION MADE BY NAI DESCRIBED ABOVE
CONSTITUTES AN ISSUE 97-1O ELECTION UNDER AND AS DEFINED IN THE OPERATIVE
DOCUMENTS.

Executed this _____ day of ___________, 20 __.

                         NETWORK APPLIANCE, INC.

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

[cc all Participants]

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