Document:

exv10w65

 

Exhibit 10.65

PURCHASE AGREEMENT

(MOFFETT BUSINESS CENTER)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	1	 	Additional Definitions	 	 	1	 
	 	 	“97-1/Default (100%)”	 	 	2	 
	 	 	“Applicable Purchaser”	 	 	3	 
	 	 	“BNPPLC’s Actual Out of Pocket Costs”	 	 	3	 
	 	 	“Break Even Price”	 	 	3	 
	 	 	“Committed Price”	 	 	3	 
	 	 	“Conditions to NAI’s Initial Remarketing Rights”	 	 	3	 
	 	 	“Decision Not to Sell at a Loss”	 	 	3	 
	 	 	“Deemed Sale”	 	 	3	 
	 	 	“Extended Remarketing Period”	 	 	3	 
	 	 	“Fair Market Value”	 	 	3	 
	 	 	“Final Sale Date”	 	 	3	 
	 	 	“Initial Remarketing Notice”	 	 	4	 
	 	 	“Initial Remarketing Price”	 	 	4	 
	 	 	“Lease Balance”	 	 	4	 
	 	 	“Make Whole Amount”	 	 	4	 
	 	 	“Maximum Remarketing Obligation”	 	 	5	 
	 	 	“Must Sell Price”	 	 	5	 
	 	 	“NAI’s Extended Remarketing Right”	 	 	5	 
	 	 	“NAI’s Initial Remarketing Rights”	 	 	5	 
	 	 	“NAI’s Target Price”	 	 	5	 
	 	 	“Notice of Sale”	 	 	6	 
	 	 	“Proposed Sale”	 	 	6	 
	 	 	“Proposed Sale Date”	 	 	6	 
	 	 	“Purchase Option”	 	 	6	 
	 	 	“Put Option”	 	 	6	 
	 	 	“Qualified Sale”	 	 	6	 
	 	 	“Sale Closing Documents”	 	 	7	 
	 	 	“Supplemental Payment”	 	 	7	 
	 	 	“Supplemental Payment Obligation”	 	 	7	 
	 	 	“Valuation Procedures”	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	2	 	NAI’s Options and Obligations on the Designated Sale Date	 	 	7	 
	 

	 	(A)
	 	Purchase Option; Initial Remarketing Rights; Supplemental
Payment Obligation
	 	 	7	 
	 

	 	(B)
	 	Designation of the Purchaser
	 	 	9	 
	 

	 	(C)
	 	Delivery of Property Related Documents If BNPPLC Retains
the Property
	 	 	9	 
	 

	 	(D)
	 	Effect of the Purchase Option and NAI’s Initial Remarketing
Rights on Subsequent Title Encumbrances
	 	 	9	 
	 

	 	(E)
	 	Security for NAI’s Purchase Option
	 	 	10	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	3	 	NAI’s Rights, Options and Obligations After the Designated
Sale Date	 	 	10	 
	 

	 	(A)
	 	NAI’s Right to Buy During the Thirty Days After the
Designated Sale Date
	 	 	10	 
	 

	 	(B)
	 	NAI’s Obligation to Buy if Certain Conditions are
Satisfied
	 	 	10	 
	 

	 	(C)
	 	NAI’s Extended Right to Remarket
	 	 	11	 
	 

	 	(D)
	 	Deemed Sale On the Second Anniversary of the
Designated Sale Date
	 	 	12	 
	 

	 	(E)
	 	NAI’s Right to Share in Sales Proceeds Received By BNPPLC
From any Qualified Sale
	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	4	 	Transfers By BNPPLC After the Designated Sale Date	 	 	12	 
	 

	 	(A)
	 	BNPPLC’s Right to Sell
	 	 	12	 
	 

	 	(B)
	 	Survival of NAI’s Rights and the Supplemental Payment Obligation
	 	 	13	 
	 

	 	(C)
	 	Easements and Other Transfers in the Ordinary Course of Business
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	5	 	Terms of Conveyance Upon Purchase	 	 	13	 
	 

	 	(A)
	 	Tender of Sale Closing Documents
	 	 	13	 
	 

	 	(B)
	 	Delivery of Escrowed Proceeds
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	6	 	Survival and Termination of the Rights and Obligations of NAI
and BNPPLC	 	 	14	 
	 

	 	(A)
	 	Status of this Agreement Generally
	 	 	14	 
	 

	 	(B)
	 	Automatic Termination of NAI’s Rights
	 	 	15	 
	 

	 	(C)
	 	Payment Only to BNPPLC
	 	 	15	 
	 

	 	(D)
	 	Preferences and Voidable Transfers
	 	 	15	 
	 

	 	(E)
	 	Remedies Under the Other Operative Documents
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	7	 	Certain Remedies Cumulative	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	8	 	Attorneys’ Fees and Legal Expenses	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	9	 	Successors and Assigns	 	 	16	 

(ii)

 

TABLE OF CONTENTS
(Continued)

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Legal Description
	 
	 	 
	Exhibit B

	 	Valuation Procedures
	 
	 	 
	Exhibit C

	 	Form of Deed With Limited Title Warranties
	 
	 	 
	Exhibit D

	 	Bill of Sale and Assignment
	 
	 	 
	Exhibit E

	 	Acknowledgment of Disclaimer of Representations and Warranties
	 
	 	 
	Exhibit F

	 	Secretary’s Certificate
	 
	 	 
	Exhibit G

	 	FIRPTA Statement

(iii)

 

PURCHASE AGREEMENT

(MOFFETT BUSINESS CENTER)

     This PURCHASE AGREEMENT (MOFFETT BUSINESS CENTER) (this “Agreement”), dated as of November 29,
2007 (the “Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a
Delaware corporation, and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

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

     Contemporaneously with this Agreement, at the request of NAI BNPPLC is acquiring the Land
described in Exhibit A and existing Improvements on the Land pursuant to the Existing
Contract.

     Also contemporaneously with this Agreement, BNPPLC and NAI are executing a Lease Agreement
(Moffett Business Center) dated as of the Effective Date (the “Lease”), pursuant to which NAI is
leasing from BNPPLC the Land described in Exhibit A and all Improvements on such Land. (As
used herein, “Property” means (i) all of BNPPLC’s interests, including those conveyed to it by the
Prior Owner, in the Land and in the Improvements and in all other real and personal property from
time to time covered or to be covered by the Lease and included within the “Property” as defined
therein, and (ii) BNPPLC’s interest in any Escrowed Proceeds yet to be applied as a Qualified
Prepayment or to the cost of repairs to or restoration of the Improvements or other property
covered by the Lease.)

     NAI and BNPPLC have agreed on the terms and conditions upon which NAI may purchase or arrange
for the purchase of the Property, and by this Agreement they desire to confirm all such terms and
conditions.

AGREEMENTS

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

 

 

     “97-1/Default (100%)” means a Default that is or results from any of the following:

     (A) a failure of NAI to make any payment required by any Operative Document, including
any payment of Rent required by the Lease or any Supplemental Payment required by this
Agreement;

     (B) any Hazardous Substance Activities on or about the Land;

     (C) any failure of NAI to insure, maintain, operate or repair the Property in
accordance with all terms and conditions of the Lease;

     (D) any failure of NAI to apply insurance or condemnation proceeds received by NAI as
required by the Lease;

     (E) any breach by NAI of the provisions in Paragraph 1 of the Closing Certificate;

     (F) any bankruptcy or insolvency proceeding involving NAI or any of its Subsidiaries,
as the debtor, or any of the events or circumstances described in clauses (G), (H) or (I) of
the definition of Event of Default in the Common Definitions and Provisions Agreement;

     (G) any breach by NAI of the financial covenants in subparagraph 3(C) of the Closing
Certificate;

     (H) a failure of NAI or any of its Subsidiaries to pay when due a regularly scheduled
payment of the principal of or premium or interest on any of its Indebtedness which is
outstanding in a principal amount of at least $25,000,000, as described in clause (F) of the
definition of Event of Default in the Common Definitions and Provisions Agreement;

     (I) a failure of NAI or any of its Subsidiaries to pay any judgment or order for the
payment of money rendered against it in an amount (not covered by insurance) which exceeds
$25,000,000, as described in clause (J) of the definition of Event of Default in the Common
Definitions and Provisions Agreement; or

     (J) subject to the proviso at the end of Exhibit B, any breach by NAI of the
provisions set forth in Exhibit B.

Except as provided in subparagraph 3(B), the characterization of any Default as a
97-1/Default (100%) will not affect the rights or remedies available to BNPPLC because of
the Default.

 

Purchase Agreement (Moffett Business Center) — Page 2

 

 

“Applicable Purchaser” means (1) the third party designated by NAI to purchase the
Property at any sale arranged by NAI as provided in this Agreement, or (2) the third party
designated by BNPPLC as the purchaser at any Qualified Sale not arranged by NAI.

“BNPPLC’s Actual Out of Pocket Costs” means the out-of-pocket costs and expenses, if any,
incurred by BNPPLC in connection with a sale of the Property under this Agreement or in
connection with the collection of payments due to it under this Agreement (including any
Breakage Costs; Attorneys’ Fees; appraisal costs; and income, transfer, withholding or other
taxes which do not constitute Excluded Taxes; but not including Excluded Taxes or costs of
removing any Lien Removable by BNPPLC).

“Break Even Price” means an amount equal to:

	 	•	 	the Lease Balance, plus
	 
	 	•	 	BNPPLC’s Actual Out of Pocket Costs.

“Committed Price” has the meaning indicated in subparagraph 3(C)(3).

“Conditions to NAI’s Initial Remarketing Rights” has the meaning indicated in subparagraph
2(A)(2)(a).

“Decision Not to Sell at a Loss” means a decision by BNPPLC not to sell the Property on the
Designated Sale Date to an Applicable Purchaser as provided in subparagraph 2(A)(2), despite
NAI’s satisfaction of the Conditions to NAI’s Initial Remarketing Rights.

“Deemed Sale” has the meaning indicated in subparagraph 3(D).

“Extended Remarketing Period” means a period beginning on the Designated Sale Date and
ending on the Final Sale Date.

“Fair Market Value” has the meaning indicated in Exhibit B.

“Final Sale Date” means the earliest of:

	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property
to consummate a sale of the Property to NAI because of BNPPLC’s exercise of the Put
Option as provided in subparagraph 3(B); or
	 
	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property to
consummate a sale of the Property to NAI or to any Affiliate of NAI,

 

Purchase Agreement (Moffett Business Center) — Page 3

 

 

	 	 	 	including any such
sale resulting from NAI’s exercise of its rights under subparagraph 3(A); or
	 
	 	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property
to consummate a Qualified Sale, or would have done so but for a material breach of this
Agreement by NAI (including any breach of its obligation to make any Supplemental
Payment required in connection with such Qualified Sale); or
	 
	 	•	 	the second anniversary of the Designated Sale Date, which will be the date of a
Deemed Sale as provided in subparagraph 3(D) if no earlier date qualifies as the Final
Sale Date and the entire Property is not sold by BNPPLC to NAI or an Applicable
Purchaser prior to the second anniversary of the Designated Sale Date.

“Initial Remarketing Notice” means a notice delivered to BNPPLC by NAI prior to the
Designated Sale Date in which NAI confirms NAI’s decision to exercise NAI’s Initial
Remarketing Rights and the amount of the Initial Remarketing Price. (Once given, any such
notice may not be rescinded or modified without BNPPLC’s consent.)

“Initial Remarketing Price” means the cash price set forth in an Initial Remarketing Notice
delivered by NAI to BNPPLC as the price for which NAI has arranged a sale of the Property on
the Designated Sale Date to an Applicable Purchaser which is not an Affiliate of NAI. Such
price may be any price negotiated by the Applicable Purchaser in good faith and on an arms
length basis with NAI.

“Lease Balance” means the Lease Balance (as defined in the Common Definitions and Provisions
Agreement) on the Designated Sale Date, but computed without deduction for any Supplemental
Payment or other amount paid to BNPPLC pursuant to this Agreement on the Designated Sale
Date.

“Make Whole Amount” means the sum of the following:

     (1) the amount (if any) by which the Lease Balance exceeds any Supplemental Payment
which was actually paid to BNPPLC on the Designated Sale Date, together with interest on
such excess computed at the Default Rate for the period commencing on the Designated Sale
Date and ending on the Final Sale Date; plus

     (2) any unpaid Base Rent or other amounts due to BNPPLC pursuant to the other Operative
Documents; plus

     (3) BNPPLC’s Actual Out of Pocket Costs; plus

 

Purchase Agreement (Moffett Business Center) — Page 4

 

 

 

     (4) the amount, but not less than zero, by which (i) all Local Impositions, insurance
premiums and other Losses of every kind suffered or incurred by BNPPLC
(whether or not reimbursed in whole or in part by another Interested Party) with
respect to the ownership, operation or maintenance of the Property during the Extended
Remarketing Period, exceeds (ii) any rents or other sums collected by BNPPLC during such
period from third parties as consideration for any lease or other contracts made by BNPPLC
that authorize the use and enjoyment of the Property by such parties; together with interest
on such excess computed at the Default Rate for each day prior to the Final Sale Date.

“Maximum Remarketing Obligation” means a dollar amount equal to the following (but not less
than zero):

	 	•	 	85% of the Lease Balance; less
	 
	 	•	 	any Fixed Rate Settlement Amount that NAI is required to pay pursuant to the
Lease because of any acceleration of the Designated Sale Date which causes it to occur
prior to the date upon which the Term of the Lease is scheduled to expire (as such date
is confirmed in clause (1) of the definition of Designated Sale Date in the Common
Definitions and Provisions Agreement).

“Must Sell Price” means, with respect to any Proposed Sale arranged by NAI pursuant to
subparagraph 3(C), a cash price to BNPPLC equal to the Make Whole Amount, computed as of the
Proposed Sale Date applicable to such Proposed Sale.

“NAI’s Extended Remarketing Right” has the meaning indicated in subparagraph 3(C).

“NAI’s Initial Remarketing Rights” has the meaning indicated in subparagraph 2(A)(2).

“NAI’s Target Price” means the cash purchase price that, according to NAI, should
reasonably be expected for the Property during the Extended Remarketing Period if the
parties make a reasonable marketing effort to sell the Property, as such price is set forth
in a notice given by NAI to BNPPLC after the Designated Sale Date. Once established by any
such notice, the amount of NAI’s Target Price will not be increased, although nothing in
this definition will be construed to prevent NAI from arranging a sale of the Property
pursuant to this Agreement at a price higher than NAI’s Target Price. After providing a
notice of NAI’s Target Price to BNPPLC, NAI may later decrease NAI’s Target Price by another
notice to BNPPLC, but only if the decrease is justified by a material adverse change in the
physical condition of the Property (e.g., significant damage to the Property by fire or
other casualty).

“Notice of Sale” has the meaning indicated in subparagraph 3(C)(3).

 

Purchase Agreement (Moffett Business Center) — Page 5

 

 

“Proposed Sale” has the meaning indicated in subparagraph 3(C).

“Proposed Sale Date” has the meaning indicated in subparagraph 3(C)(3).

“Purchase Option” has the meaning indicated in subparagraph 2(A)(1).

“Put Option” has the meaning indicated in subparagraph 3(B).

“Qualified Sale” means any (1) Deemed Sale as described in subparagraph 3(D), or (2) actual
sale (prior to any such Deemed Sale) of all or substantially all of the Property to an
Applicable Purchaser that occurs after the thirty day period specified in subparagraph 3(A)
and that:

	 	•	 	results from NAI’s exercise of NAI’s Extended Remarketing Right as described in
subparagraph 3(C); or
	 
	 	•	 	is approved in advance as a Qualified Sale by NAI; or
	 
	 	•	 	is to a third party which is not an Affiliate of BNPPLC and, if it is completed
by a conveyance from BNPPLC prior to eighteen months after the Designated Sale Date, is
for a price not less than the least of the following amounts:

	 	(a)	 	the lowest price at which BNPPLC will be obligated, pursuant to
clause (3) of subparagraph 3(E), to reimburse to NAI the entire amount of any
Supplemental Payment theretofore made by NAI to BNPPLC; or
	 
	 	(b)	 	(i) if NAI notified BNPPLC of NAI’s Target Price prior to the
date BNPPLC and the third party agreed to a price for the sale, NAI’s Target
Price, or (ii) if NAI did not notify BNPPLC of NAI’s Target Price prior to the
date BNPPLC and the third party agreed to a price for the sale, any price
satisfactory to BNPPLC in its sole good faith business judgment; or
	 
	 	(c)	 	90% of the Fair Market Value of the Property.

NAI acknowledges that BNPPLC’s own marketing efforts after the Designated Sale Date
will depend upon the minimum price required for a Qualified Sale, and such efforts could be
hampered if NAI’s Target Price is too high. Thus, after receipt of any notice of NAI’s
Target Price from NAI, BNPPLC may (but will not be obligated to) invoke the Valuation
Procedures in order to determine the minimum price permitted under clause (c) preceding.

“Sale Closing Documents” means the following documents, which BNPPLC must

 

Purchase Agreement (Moffett Business Center) — Page 6

 

 

tender pursuant to
Paragraph 5(A) to consummate any sale of the Property pursuant to this Agreement: (1) a
Deed With Limited Title Warranties in the form attached as Exhibit C, (2) a Bill of
Sale and Assignment in the form attached as Exhibit D, (3) an Acknowledgment of
Disclaimer of Representations and Warranties in the form attached as Exhibit E, (4)
a Secretary’s Certificate in the form attached as Exhibit F, and (5) a certificate
concerning tax withholding in the form attached as Exhibit G.

“Supplemental Payment” has the meaning indicated in subparagraph 2(A)(3).

“Supplemental Payment Obligation” has the meaning indicated in subparagraph 2(A)(3).

“Valuation Procedures” means procedures set forth in Exhibit B, which are to be
followed in the event a determination of the Fair Market Value of the Property or any
portion thereof is required by this Agreement.

	2	 	NAI’s Options and Obligations on the Designated Sale Date.

     (A) Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation.
Whether or not an Event of Default has occurred and is continuing, but subject to Paragraph 6
below:

     (1) NAI will have the right (the “Purchase Option”) to purchase or cause an Affiliate
of NAI, as the Applicable Purchaser, to purchase the Property on the Designated Sale Date
for a cash price equal to the Break Even Price.

     (2) If NAI does not exercise the Purchase Option, NAI will have the following rights
(collectively, “NAI’s Initial Remarketing Rights”):

     (a) First, NAI will have the right to designate a third party, other
than an Affiliate of NAI, as the Applicable Purchaser and to cause such Applicable
Purchaser to purchase the Property on the Designated Sale Date for a cash price
equal to the Initial Remarketing Price. Such right, however, will be subject to the
conditions (the “Conditions to NAI’s Initial Remarketing Rights”) that (i) NAI
deliver an Initial Remarketing Notice to BNPPLC within the thirty days prior to the
Designated Sale Date, (ii) on the Designated Sale Date the Applicable Purchaser
tenders to BNPPLC a payment equal to the Initial Remarketing Price, and (iii) NAI
itself tenders to BNPPLC the Supplemental Payment, if any, which will be required by
subparagraph 2(A)(3) in the event BNPPLC completes the sale to the Applicable
Purchaser. Further, notwithstanding the satisfaction of the
Conditions to NAI’s Initial Remarketing Rights on the Designated Sale Date, if
the sum of the price to be paid by the Applicable Purchaser for the Property (i.e.,

 

Purchase Agreement (Moffett Business Center) — Page 7

 

 

the Initial Remarketing Price) and any Supplemental Payment required by subparagraph
2(A)(3) is less than the Break Even Price, then BNPPLC may affirmatively elect not
to complete the sale of the Property to the Applicable Purchaser on the Designated
Sale Date (and thereby defer the sale of the Property pursuant to this Agreement) by
making a Decision Not to Sell at a Loss.

     (b) Second, if BNPPLC completes a sale of the Property to an Applicable
Purchaser on the Designated Sale Date pursuant to subparagraph 2(A)(2)(a) and the
price paid by the Applicable Purchaser for the Property (i.e., the Initial
Remarketing Price) is greater than the Break Even Price, then BNPPLC will pay the
excess to NAI or as otherwise required by Applicable Law.

     (3) If for any reason whatsoever BNPPLC does not receive a cash price for the Property
on the Designated Sale Date equal to or in excess of the Break Even Price in connection with
a sale made pursuant to subparagraph 2(A)(1) or subparagraph 2(A)(2)(a), then NAI will have
the obligation (the “Supplemental Payment Obligation”) to pay to BNPPLC on the Designated
Sale Date a supplemental payment (the “Supplemental Payment”) equal to the lesser of:

     (a) the amount by which the Break Even Price exceeds any such cash price
actually received by BNPPLC on the Designated Sale Date; or

     (b) the Maximum Remarketing Obligation.

Without limiting the generality of the foregoing, NAI must make the Supplemental Payment
even if BNPPLC does not sell the Property to NAI or an Applicable Purchaser on the
Designated Sale Date because of (A) a Decision Not to Sell at a Loss, or (B) a failure of
NAI to exercise, or a decision by NAI not to exercise, the Purchase Option or NAI’s Initial
Remarketing Rights, or (C) a failure of NAI or any Applicable Purchaser to tender the price
required by the forgoing provisions on the Designated Sale Date following any exercise of or
attempt by NAI to exercise the Purchase Option or NAI’s Initial Remarketing Rights.

NAI acknowledges that it is undertaking the Supplemental Payment Obligation in
consideration of the rights afforded to it by this Agreement, but that such obligation is
not contingent upon any exercise by NAI of such rights or upon any purchase of the Property
by NAI or an Applicable Purchaser. If any Supplemental Payment due according to this
subparagraph 2(A)(3) is not actually paid to BNPPLC on the Designated Sale Date, then NAI
must pay interest on the past due amount computed at the Default Rate. However,
NAI will be entitled to a credit against the interest required by the preceding sentence
equal to the Base Rent, if any, actually paid by NAI pursuant to the Lease for any period

 

Purchase Agreement (Moffett Business Center) — Page 8

 

 

after the Designated Sale Date.

     (4) For the avoidance of doubt, BNPPLC acknowledges that NAI may elect not to exercise
the Purchase Option or NAI’s Initial Remarketing Rights and instead pay to BNPPLC a
Supplemental Payment equal to the Maximum Remarketing Obligation on the Designated Sale Date
in full satisfaction of its obligations under this subparagraph 2(A).

     (B) Designation of the Purchaser. To give BNPPLC the opportunity before the Designated
Sale Date to prepare the Sale Closing Documents, NAI must, by a notice to BNPPLC given at least ten
days prior to the Designated Sale Date, specify irrevocably, unequivocally and with particularity
any party who will purchase the Property because of NAI’s exercise of its Purchase Option or of
NAI’s Initial Remarketing Rights. If NAI fails to do so, BNPPLC may postpone the delivery of the
Sale Closing Documents until a date after the Designated Sale Date and not more than ten days after
NAI finally does so specify a party, but such postponement will not relieve or postpone the
obligation of NAI to make a Supplemental Payment on the Designated Sale Date as provided in
subparagraph 2(A)(3).

     (C) Delivery of Property Related Documents If BNPPLC Retains the Property. Unless NAI
or its Affiliate or another Applicable Purchaser purchases the Property pursuant to subparagraph
2(A), promptly after the Designated Sale Date NAI must deliver and assign to BNPPLC all plans and
specifications for the Property previously prepared for NAI or otherwise available to NAI, together
with all other files, documents and permits of NAI (including all Existing Leases and any subleases
then in force) which may be necessary or useful to any future owner’s or occupant’s use of the
Property. Without limiting the foregoing, NAI will transfer or arrange the transfer to BNPPLC of
all utility, building, health and other operating permits required by any municipality or other
governmental authority having jurisdiction over the Property for uses of the Property permitted by
the Lease if neither NAI nor any Affiliate or other Applicable Purchaser purchases the Property
pursuant to subparagraph 2(A).

     (D) Effect of the Purchase Option and NAI’s Initial Remarketing Rights on
Subsequent Title Encumbrances. Any conveyance made to consummate a sale of the Property to NAI
or any Applicable Purchaser pursuant to subparagraph 2(A) will cut off and terminate all interests
in the Property claimed by, through or under BNPPLC, including Liens Removable by BNPPLC (including
any leasehold estate or other interests conveyed by BNPPLC to third parties, even if conveyed in
the ordinary course of BNPPLC’s business, and including any judgment liens established against the
Property because of a judgment rendered against BNPPLC), but not personal obligations of NAI to
BNPPLC under the Lease or other Operative Documents (including obligations of NAI arising under the
indemnities in the Lease, which indemnities will survive any such sale). Anyone accepting or taking any interest in the Property through or
under BNPPLC on or after the Effective Date will acquire such interest subject to the Purchase
Option.

 

Purchase Agreement (Moffett Business Center) — Page 9

 

 

     (E) Security for NAI’s Purchase Option. If (contrary to the intent of the parties as
expressed in subparagraph 4(C) of the Lease) it is determined that NAI is not, under
applicable state law as applied to the Operative Documents, the equitable owner of the Property and
the borrower from BNPPLC in a financing arrangement, but rather is a tenant under the Lease with an
option to purchase from BNPPLC as provided in subparagraph 2(A)(1), then the parties intend that
the Purchase Option be secured by a lien and security interest against the Property. Accordingly,
BNPPLC does hereby grant to NAI a lien and security interest against the Property, including all
rights, title and interests of BNPPLC from time to time in and to the Land and Improvements, in
order to secure (1) BNPPLC’s obligation to convey the Property to NAI or an Affiliate designated by
it if NAI exercises the Purchase Option and tenders payment of the Break Even Price to BNPPLC on
the Designated Sale Date as provided herein, and (2) NAI’s right to recover any damages from BNPPLC
caused by a breach of such obligation, including any such breach caused by a rejection or
termination of this Agreement in any bankruptcy or insolvency proceeding instituted by or against
BNPPLC, as debtor. NAI may enforce such lien and security interest judicially after any such
breach by BNPPLC, but not otherwise.

	3	 	NAI’s Rights, Options and Obligations After the Designated Sale Date.

     (A) NAI’s Right to Buy During the Thirty Days After the Designated Sale Date. Even
after a failure to pay any required Supplemental Payment on the Designated Sale Date, NAI may
tender (or cause an Applicable Purchaser to tender) to BNPPLC the full Make Whole Amount (including
all amounts then due under the other Operative Documents) on any Business Day within thirty days
after the Designated Sale Date. If presented with such a tender within thirty days after the
Designated Sale Date, BNPPLC must accept it and promptly thereafter deliver to NAI (or the
Applicable Purchaser) the Sale Closing Documents and any Escrowed Proceeds then constituting
Property held by BNPPLC. Otherwise, BNPPLC will have no further obligation to sell the Property
to NAI or to any Affiliate of NAI pursuant to this Agreement, although BNPPLC will continue to have
the option to require NAI to buy the Property if the conditions listed in the next subparagraph are
satisfied.

     (B) NAI’s Obligation to Buy if Certain Conditions are Satisfied. Regardless of
any prior Decision Not to Sell at a Loss, BNPPLC will have the option (the “Put Option”) to require
NAI to purchase the Property upon demand at any time after the Designated Sale Date for a cash
price equal to the Make Whole Amount if:

     (1) BNPPLC has not already conveyed the Property to consummate a sale of the Property
to NAI or an Applicable Purchaser pursuant to other provisions of this
Agreement; and

     (2) a 97-1/Default (100%) occurs or is continuing on or after the Designated Sale Date;
and

 

Purchase Agreement (Moffett Business Center) — Page 10

 

 

     (3) BNPPLC notifies NAI of BNPPLC’s exercise of the Put Option within two years
following the Designated Sale Date.

Further, and without limiting the foregoing, if any Event of Default occurs as described in clauses
(G), (H) or (I) of the definition Event of Default in the Common Definitions and Provisions
Agreement because of any bankruptcy proceeding instituted by or against NAI, as debtor, under Title
11 of the United States Code, then NAI will be obligated (without any further act or notice or
demand by BNPPLC) to pay to BNPPLC the Make Whole Amount and purchase the Property, as if (i)
BNPPLC had exercised the Put Option, and (ii) the second Business Day after the commencement of
such Event of Default was the Final Sale Date.

     (C) NAI’s Extended Right to Remarket. If the Property is not sold to NAI or an
Applicable Purchaser on the Designated Sale Date pursuant to this Agreement, NAI will have the
right (“NAI’s Extended Remarketing Right”) during the Extended Remarketing Period to arrange a sale
of the Property to an Applicable Purchaser, other than an Affiliate of NAI, for a price equal to or
in excess of the Must Sell Price (a “Proposed Sale”). NAI’s Extended Remarketing Right will,
however, be subject to all of the following conditions:

     (1) BNPPLC has not exercised the Put Option as provided in subparagraph 3(B) or already
contracted with another Applicable Purchaser to convey the Property in connection with a
Qualified Sale.

     (2) NAI’s Extended Remarketing Right is not terminated pursuant to subparagraph 6(B)
because of NAI’s failure to pay any required Supplemental Payment.

     (3) NAI must have provided a notice to BNPPLC (a “Notice of Sale”) setting forth
(i) the date proposed by NAI as the Final Sale Date (the “Proposed Sale Date”), which must
be no sooner than thirty days after BNPPLC’s receipt of the Notice of Sale and no later than
the last Business Day of the Extended Remarketing Period, (ii) the full legal name of the
Applicable Purchaser and such other information as is needed to prepare the Sale Closing
Documents, and (iii) the cash price that will be tendered to BNPPLC for the Property (the
“Committed Price”).

     (4) The Committed Price must be no less than the Must Sell Price, computed as of the
Proposed Sale Date. Also, if NAI has notified BNPPLC of NAI’s Target Price, the Committed
Price must be no less than NAI’s Target Price.

     (D) Deemed Sale On the Second Anniversary of the Designated Sale Date. If no date
prior to the second anniversary of the Designated Sale Date qualifies as the Final Sale Date, then
on second anniversary of the Designated Sale Date BNPPLC will, for purposes of the next
subparagraph, be deemed to have sold the Property (a “Deemed Sale”) to an Applicable Purchaser at a
Qualified Sale for a net cash price equal to its Fair Market Value.

 

Purchase Agreement (Moffett Business Center) — Page 11

 

 

     (E) NAI’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale.
BNPPLC must apply the cash proceeds received by BNPPLC from any Qualified Sale (regardless of
whether the sale is arranged by NAI as provided in subparagraph 3(C) or by BNPPLC itself), or
deemed to be received in connection with any Deemed Sale, in the following order of priority:

     (1) first, to pay to BNPPLC the Make Whole Amount;

     (2) second, to pay to BNPPLC any other amounts then due from NAI to BNPPLC under any of
the Operative Documents;

     (3) third, to reimburse LRC for any Supplemental Payment previously made by LRC to
BNPPLC; and

     (4) last, if any such cash proceeds exceed all the payments and reimbursements that are
required or may be required as described in the preceding clauses of this subparagraph,
BNPPLC may retain the excess.

If, however, BNPPLC completes any sale and conveyance of the Property after the Extended
Remarketing Period expires or is terminated, BNPPLC will not be required by this subparagraph to
share any proceeds of the sale or conveyance with NAI or any other party claiming through or under
NAI.

	4	 	Transfers By BNPPLC After the Designated Sale Date.

     (A) BNPPLC’s Right to Sell. At any time more than thirty days after the
Designated Sale Date, if the Property has not already been sold and conveyed by BNPPLC pursuant to
Paragraph 2 or Paragraph 3, BNPPLC will have the right to sell the Property or offer the Property
for sale to any third party on any terms believed to be appropriate by BNPPLC in its sole good
faith business judgment.

     (B) Survival of NAI’s Rights and the Supplemental Payment Obligation. If the Property
is not sold on the Designated Sale Date, and if BNPPLC completes a sale or other transfer of the
Property after the Designated Sale Date, other than a Qualified Sale, the Supplemental Payment Obligation will survive in favor of BNPPLC’s successors and assigns with
respect to the Property, and BNPPLC’s successors and assigns will take the Property subject to
NAI’s rights under Paragraph 3, all on the same terms and conditions as would have applied to
BNPPLC itself if BNPPLC had not transferred or sold the Property. Without limiting the foregoing,
any purchaser that acquires the Property from BNPPLC during the Extended Remarketing Period, other
than at a Qualified Sale, will be obligated to distribute proceeds of a subsequent Qualified Sale
of the Property as described in the subparagraph 3(E) in the same manner and to the same extent
that BNPPLC itself would have been obligated if not for the sale

 

Purchase Agreement (Moffett Business Center) — Page 12

 

 

by BNPPLC to the purchaser.

     (C) Easements and Other Transfers in the Ordinary Course of Business. No “Permitted
Transfer” described in clause (5) (the last clause) of the definition thereof in the Common
Definitions and Provisions Agreement will constitute a Qualified Sale if it covers less than all or
substantially all of BNPPLC’s then existing interests in the Property. Any such Permitted Transfer
of less than all or substantially all of BNPPLC’s then existing interests in the Property will not
be prohibited by this Agreement during the Extended Remarketing Period or otherwise; provided,
however, any such Permitted Transfer made before the end of one hundred eighty days after the
Designated Sale Date, or made to an Affiliate of BNPPLC before the end of the Extended Remarketing
Period, or otherwise not made in the ordinary course of business, will be made subject to NAI’s
rights under Paragraph 3. Thus, for example, if the Property is not sold by BNPPLC to an Applicable
Purchaser on the Designated Sale Date, then at any time more than one hundred eighty days after the
Designated Sale Date BNPPLC may in the ordinary course of business convey a utility easement or a
lease of space in the Improvements to a Person not an Affiliate of BNPPLC free from NAI’s rights
under Paragraph 3, although following such conveyance of the lesser estate, NAI’s rights under
Paragraph 3 will continue during the Extended Remarketing Period as to BNPPLC’s remaining interest
in the Land and the Improvements.

	5	 	Terms of Conveyance Upon Purchase.

     (A) Tender of Sale Closing Documents. As necessary to consummate any sale of
the Property to NAI or an Applicable Purchaser pursuant to this Agreement, BNPPLC must, subject to
any postponement permitted by subparagraph 2(B), promptly after the tender of the purchase price
and any other payments to BNPPLC required pursuant to Paragraph 2 or Paragraph 3, as applicable,
convey the Property to NAI or the Applicable Purchaser, as the case may be, by BNPPLC’s execution,
acknowledgment (where appropriate) and delivery of the Sale Closing Documents. Such conveyance by
BNPPLC will be subject to the Permitted Encumbrances and any other encumbrances that do not
constitute Liens Removable by BNPPLC, and such conveyance will not include the rights of BNPPLC or
other Interested Parties under the indemnities provided in the Operative Documents, including
rights to any payments then due from NAI under the indemnities or that may become due thereafter
because of any Loss incurred by BNPPLC or another Interested Party resulting in whole or in part
from events or circumstances occurring or alleged to have occurred before such conveyance. The costs, both
foreseen and unforeseen, of any purchase by NAI or an Applicable Purchaser will be the
responsibility of the purchaser to the extent (if any) not included in any Break Even Price or Make
Whole Amount actually paid to BNPPLC. If for any reason BNPPLC fails to tender the Sale Closing
Documents as required by this Paragraph 5(A), BNPPLC will have the right and obligation to cure
such failure at any time before thirty days after receipt of a demand for such cure from NAI.
Prior to the end of such cure period, NAI may initiate appropriate legal action to specifically
enforce BNPPLC’s obligation to deliver the Sale Closing Documents or to foreclose

 

Purchase Agreement (Moffett Business Center) — Page 13

 

 

NAI’s liens or
security interests against the Property which secure such obligation, but if BNPPLC does cure
within such thirty day period, BNPPLC will not be liable for monetary damages because of its prior
failure to deliver the Sale Closing Documents.

     (B) Delivery of Escrowed Proceeds. BNPPLC may deliver any Escrowed Proceeds
constituting Property directly to NAI or to any Applicable Purchaser purchasing the Property
pursuant to this Agreement notwithstanding any prior actual or attempted conveyance or assignment
by NAI, voluntary or otherwise, of any right to receive the same; BNPPLC will not be responsible
for the proper distribution or application by NAI or any Applicable Purchaser of any such Escrowed
Proceeds; and any such payment of Escrowed Proceeds to NAI or an Applicable Purchaser will
discharge any obligation of BNPPLC to deliver the same to all Persons claiming an interest therein.

	6	 	Survival and Termination of the Rights and Obligations of NAI and BNPPLC.

     (A) Status of this Agreement Generally. Except as expressly provided in other
provisions of this Agreement, this Agreement will not terminate; nor will NAI have any right to
terminate this Agreement; nor will NAI be entitled to any reduction (by setoff or otherwise) of the
Break Even Price, the Make Whole Amount or any payment required under this Agreement; nor will any
of the obligations of NAI to BNPPLC under Paragraph 2 or Paragraph 3 be excused by reason of (i)
any damage to or the destruction of all or any part of the Property from whatever cause, (ii) the
taking of the Property or any portion thereof by eminent domain or otherwise for any reason, (iii)
the prohibition, limitation or restriction of NAI’s use or development of all or any portion of the
Property or any interference with such use by governmental action or otherwise, (iv) any eviction
of NAI or of anyone claiming through or under NAI, (v) any default on the part of BNPPLC under this
Agreement or any other Operative Document or any other agreement to which BNPPLC and NAI are
parties, (vi) the inadequacy in any way whatsoever of the design, construction, assembly or
installation of any improvements, fixtures or tangible personal property included in the Property
(it being understood that BNPPLC has not made, does not make and will not make any representation
express or implied as to the adequacy thereof), (vii) any latent or other defect in the Property or
any change in the condition thereof or the existence with respect to the Property of any violations
of Applicable Laws, or (viii) NAI’s prior acquisition or ownership of any interest in the Property, or (ix) any other cause, whether similar or dissimilar to the
foregoing, any existing or future law to the contrary notwithstanding. It is the intention of the
parties hereto that the obligations of NAI under this Agreement (including the obligation to make
any Supplemental Payment as provided in Paragraph 2) be separate from and independent of BNPPLC’s
obligations under this Agreement or any other agreement between BNPPLC and NAI; however, nothing in
this subparagraph will be construed as a waiver by NAI of any right NAI may have at law or in
equity to the following remedies, whether because of BNPPLC’s failure to remove a Lien Removable by
BNPPLC or because of any other default by BNPPLC under this Agreement: (A) the recovery of monetary
damages, (B) injunctive relief in

 

Purchase Agreement (Moffett Business Center) — Page 14

 

 

case of the violation, or attempted or threatened violation, by
BNPPLC of any of the express covenants, agreements, conditions or provisions of this Agreement
which are binding upon BNPPLC, or (C) a decree compelling performance by BNPPLC of any of the
express covenants, agreements, conditions or provisions of this Agreement which are binding upon
BNPPLC.

     (B) Automatic Termination of NAI’s Rights. If NAI fails to pay the full amount of any
Supplemental Payment required by subparagraph 2(A)(3) on the Designated Sale Date, then the
Purchase Option, NAI’s Initial Remarketing Rights, NAI’s Extended Remarketing Right and all other
rights of NAI under this Agreement, other than its rights under subparagraph 3(A), will terminate
automatically. No termination of NAI’s rights as described in this subparagraph will limit
BNPPLC’s other remedies, including its right to sue NAI for any amounts due from NAI pursuant to
any of the Operative Documents and its right to exercise the Put Option.

     (C) Payment Only to BNPPLC. All amounts payable under this Agreement by NAI and, if
applicable, by an Applicable Purchaser must be paid directly to BNPPLC. If paid to other parties,
such payments will not be effective for purposes of this Agreement.

     (D) Preferences and Voidable Transfers. If any payment to BNPPLC by an Applicable
Purchaser is held to constitute a preference or a voidable transfer under Applicable Laws, or must
for any other reason be refunded by BNPPLC to the Applicable Purchaser or to another Person, and if
such payment to BNPPLC reduced or had the effect of reducing a payment required of NAI by this
Agreement (e.g., the Supplemental Payment) or increased or had the effect of increasing any sale
proceeds paid over to NAI pursuant to subparagraph 2(A)(2)(b) or pursuant to subparagraph 3(E),
then NAI must pay to BNPPLC upon demand an amount equal to the reduction of the payment required of
NAI or to the increase of the excess sale proceeds paid to NAI, as applicable, and this Agreement
will continue to be effective or will be reinstated as necessary to permit BNPPLC to enforce its
right to collect such amount from NAI.

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

 

Purchase Agreement (Moffett Business Center) — Page 15

 

 

7 Certain Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy BNPPLC has with respect to the
Property, and each and every right and remedy of BNPPLC will be cumulative and in addition to any
other right or remedy given to it under this Agreement or now or hereafter existing in its favor at
law or in equity. In addition to other remedies available under this Agreement, either party may
obtain a decree compelling specific performance of any of the other party’s agreements hereunder.

8 Attorneys’ Fees and Legal Expenses. If BNPPLC commences any legal action or other
proceeding because of any breach of this Agreement by NAI, BNPPLC may recover all Attorneys’ Fees
incurred by it in connection therewith from NAI, whether or not such controversy, claim or dispute
is prosecuted to a final judgment. Any Attorneys’ Fees incurred by BNPPLC in enforcing a judgment
in its favor under this Agreement will be recoverable separately from such judgment, and the
obligation for such Attorneys’ Fees is intended to be severable from other provisions of this
Agreement and not to be merged into any such judgment.

9 Successors and Assigns. The terms, provisions, covenants and conditions hereof will be
binding upon NAI and BNPPLC and their respective permitted successors and assigns and will inure to
the benefit of NAI and BNPPLC and all permitted transferees, mortgagees, successors and assignees
of NAI and BNPPLC with respect to the Property; except that (A) the rights of BNPPLC hereunder will
not pass to NAI or any Applicable Purchaser or any subsequent owner claiming through NAI or an
Applicable Purchaser, (B) BNPPLC will not assign this Agreement or any rights hereunder except
pursuant to a Permitted Transfer, and (C) NAI will not assign this Agreement or any rights
hereunder without the prior written consent of BNPPLC.

[The signature pages follow.]

 

Purchase Agreement (Moffett Business Center) — Page 16

 

 

     IN WITNESS WHEREOF, this Purchase Agreement (Moffett Business Center) is executed to be
effective as of November 29, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 

Purchase Agreement (Moffett Business Center) — Signature Page

 

 

[Continuation of signature pages for Purchase Agreement (Moffett Business Center) dated as of
November 29, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate
Treasurer 	 
	 

 

Purchase Agreement (Moffett Business Center) — Signature Page

 

 

 

Exhibit A

Legal Description

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SUNNYVALE, COUNTY OF SANTA CLARA,
STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL ONE:

All of Parcel 1 as shown upon that certain Map entitled, “Parcel Map being a resubdivision of
Parcel 6 as shown on Map recorded in Book 214 of Maps, at Page 23, 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 March 1, 1978 in Book 413, at Page 53.

PARCEL TWO:

All of Parcel A, as shown upon that certain Map entitled, “Parcel Map being a resubdivision of
Parcels 2 and 3, as shown on that certain Map recorded March 1, 1978 in Book 413 of Maps, at Page
53, 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 August 21, 1979 in Book 448 of Maps, at Pages 18
and 19.

APN: 110-36-014, 110-36-015

 

 

 

Exhibit B

Valuation Procedures

     This Exhibit explains the procedures to be used to determine Fair Market Value of the Property
if such a determination is required by this Agreement. In such event, either party may invoke the
procedures set out herein prior to the date the determination will be needed so as to minimize any
postponement of any payment, the amount of which depends upon Fair Market Value. In the event such
a payment becomes due before the required determination of Fair Market Value is complete, such
payment will be postponed until the determination is complete. But in that event, when the
required determination is complete, the payment will be made together with interest thereon,
computed at a rate equal to ABR, accruing over the period the payment was postponed.

     If any determination of Fair Market Value is required, NAI and BNPPLC will attempt in good
faith to reach a written agreement upon the Fair Market Value without unnecessary delay, and either
party may propose such an agreement to the other. If, however, for any reason whatsoever, they do
not execute such an agreement within seven days after the first such proposed agreement is offered
by one party to the other, then the determination will be made by independent appraisers in
accordance with the following procedures:

1. Definitions and Assumptions. For purposes of the determination, Fair Market Value will
be defined as follows, and all appraisers or others involved in the determination will be
instructed to use the following definition:

     “Fair Market Value” means the most probable net cash price, as of a specified
date, for which the Property should sell after reasonable exposure in a competitive
market under all conditions requisite to a fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and assuming that neither is
under undue duress.

In addition, the appraisers or others making the determination will be instructed to assume that
ordinary and customary brokerage fees, title insurance costs and other sales expenses will be
incurred and deducted in the calculation of such net cash price. Such appraisers or others making
the determination will also be instructed to assume that the value of the Property (or applicable
portion thereof) is neither enhanced nor reduced by any lease to another tenant that BNPPLC may
have executed subsequent to the termination or expiration of the Lease (a “Replacement Lease”).
In other words, rather than determine value in light of actual rents generated or to be generated
by any such Replacement Lease, the Property (or applicable portion thereof) will be valued in light
of the most probable rent that it should bring in a competitive and open market (in this section, a
“Fair Market Rental”), taking into account:

 

 

     (i) the actual physical condition of the Property 1 ; and

     (iii) that a reasonable period of time may be required to market the
Property (or applicable portion thereof) for lease and make it ready for use
or occupancy before it is leased at a Fair Market Rental.

2. Initial Selection of Appraisers; Appraiser’s Agreement as to Value. After having failed
to reach a written agreement upon Fair Market Value as described in the second paragraph of this
Exhibit, either party may deliver a notice to the other demanding the appointment of appraisers
(the “First Appraisal Notice”) pursuant to this Exhibit. In such event:

     (a) Within fifteen days after the First Appraisal Notice is delivered, NAI and BNPPLC must
each appoint an independent property appraiser who has experience appraising commercial properties
in California and notify the other party of such appointment, including the name of the appointed
appraiser (a “Notice of Appointment”).

     (b) If the appraiser appointed by NAI and the appraiser appointed by BNPPLC agree in writing
upon the Fair Market Value (an “Appraiser’s Agreement As To Value”), such agreement will be binding
upon NAI and BNPPLC. Both NAI and BNPPLC will instruct their respective appraisers to attempt in
good faith to quickly reach an Appraiser’s Agreement As To Value. Neither appraiser will be
required to produce a formal appraisal prior to reaching an Appraiser’s Agreement As To Value.

3. Selection of a Third Appraiser. If the two appraisers fail to deliver an Appraiser’s
Agreement As to Value within thirty days following the later of the dates upon which NAI or BNPPLC
delivers its Notice of Appointment, then either party (NAI or BNPPLC) may deliver another notice to
the other (a “Third Appraisal Notice”), demanding that the two appraisers appoint a third
independent property appraiser to help with the determination of Fair Market Value. Immediately
after the Third Appraisal Notice is delivered, each of the first two appraisers must act promptly,
reasonably and in good faith to try to reach agreement upon the third appraiser. If, however, the
two appraisers fail to reach agreement upon a third appraiser within ten days after the Third
Appraisal Notice is delivered:

     (a) NAI and BNPPLC will each cause its respective appraiser to deliver, no later than
fifteen days after the delivery of the Third Appraisal Notice, an unqualified written promise
addressed to both of NAI and BNPPLC: (i) to act promptly, reasonably and in good faith in trying to
reach agree upon the third appraiser, and (ii) to propose and consider proposals of persons as the
third appraiser on the basis of objectivity and competence, not on the basis of such

 

			
	1	 	If, however, the use of the Property by BNPPLC or any
tenant under any Replacement Lease after NAI vacated the Property has resulted
in excess wear and tear, such excess wear and tear will be assumed not to have
occurred for purposes of determining Fair Market Value.

 

Exhibit B to Purchase Agreement (Moffett Business Center) — Page 2

 

 

persons’
relationships with the other appraisers or with NAI or BNPPLC, and not on the basis of preferences
expressed by NAI or BNPPLC.

     (b) If, despite the delivery of the promises described in the preceding subsection, the two
appraisers fail to reach agreement upon a third appraiser within thirty days after the Third
Appraisal Notice is delivered, then each of the first two appraisers must immediately submit its
top choice for the third appraiser to the then highest ranking officer of the California Bar
Association who will agree to help and who has no attorney/client or other significant relationship
to either NAI or BNPPLC. Such officer will have complete discretion to select the most objective
and competent third appraiser from between the choice of each of the first two appraisers, and will
do so within ten days after such choices are submitted to him.

4. Resolution of Issues by the Third Appraiser. If a third appraiser is selected under the
procedure set out above:

     (a) No later than thirty days after a third appraiser is selected, each of the first two
appraisers must submit (and NAI and BNPPLC will each cause its appointed appraiser to submit) his
best estimate of Fair Market Value, together with a written report supporting such estimate. (Such
report need not be in the form of a formal appraisal, and may contain any qualifications the
submitting appraiser deems necessary under the circumstances. Any such qualifications, however,
may be considered by the third appraiser for purposes of the selection required by the next
subsection.)

     (b) After receipt of the two estimates required by the preceding subsection, and no later than
forty-five days after the third appraiser is selected, he must (i) choose one or the other of the
two estimates of Fair Market Value submitted by the first two appraisers as being the more accurate
in his opinion, and (ii) notify NAI and BNPPLC of which estimate he chose. The third appraiser
will not be asked or allowed to specify an amount as Fair Market Value that is different than an
estimate provided by one of the other two appraisers (either by averaging the two estimates or
otherwise). The estimate of Fair Market Value thus chosen by the third appraiser as being the more
accurate will be binding upon NAI and BNPPLC.

5. Criteria For Selecting Appraisers; Cost of Appraisals. All appraisers selected for the
appraisal process set out in this Exhibit will be disinterested, reputable, qualified appraisers
with the designation of MAI or equivalent and with at least five years experience in appraising
commercial properties comparable to the Property. NAI and BNPPLC will each bear the expense of the
appraiser appointed by it, and the expense of the third appraiser and of any officer of the
California Bar Association who participates in the appraisal process described above will be shared
equally by NAI and BNPPLC.

6. Time is of the Essence; Defaults.

     (a) All time periods and deadlines specified in this Exhibit are of the essence.

 

Exhibit B to Purchase Agreement (Moffett Business Center) — Page 3

 

 

     (b) Each party must cause the appraiser appointed by it (as set forth in Section 2(a)) to
comply in a timely manner with the requirements of this Exhibit applicable to such appraiser.
Accordingly, if an appraiser appointed by one of the parties as provided in Section 2(a) fails to
comply in a timely manner with any provision of this Exhibit, such failure will be considered a
default by the party who appointed such appraiser.

     (c) Any breach of or default under this Exhibit by either party will be construed as a breach
of the Purchase Agreement to which this Exhibit is attached.

     (d) Any such breach or default by NAI will constitute a 97-1/Default (100%); provided,
however:

     (1) Before characterizing any such breach or default as a 97-1/Default (100%), BNPPLC
must first notify NAI of the breach or default and give NAI the opportunity, during the five
days after delivery of such notice, to fully rectify the breach or default.

     (2) Any breach or default by NAI under this Exhibit will be deemed rectified if, within
such five day period, NAI offers BNPPLC an unqualified written agreement that all
determinations of Fair Market Value required by this Agreement will, if made by the
appraiser appointed by BNPPLC as hereinabove provided, be binding upon BNPPLC and NAI. (It
is understood that following the delivery of any such agreement by NAI, no further input
from NAI’s appraiser or from any official of the California bar association or from a third
appraiser will be required for any required determination of Fair Market Value.)

 

Exhibit B to Purchase Agreement (Moffett Business Center) — Page 4

 

 

Exhibit C

Form of Deed

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

	 	 	 	 	 
	NAME:	 	[NAI or the Applicable Purchaser]
	ADDRESS:

	 	 

	 	 
	ATTN:

	 	 

	 	 
	CITY:

	 	 

	 	 
	STATE:

	 	 

	 	 
	Zip:

	 	 

	 	 
	

	 	 

	 	 

DEED WITH LIMITED TITLE WARRANTIES

     BNP Paribas Leasing Corporation (“Grantor”), a Delaware corporation, for and in consideration
of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Grantor by [NAI or the
Applicable Purchaser] (hereinafter called “Grantee”), the receipt and sufficiency of which are
hereby acknowledged, does hereby GRANT, SELL, CONVEY, ASSIGN and DELIVER to Grantee (1) the land
described in Annex A attached hereto and hereby made a part hereof, and (2) all other rights,
titles and interests of Grantor in and to (a) such land, (b) the buildings and other improvements
situated on such land, (c) any fixtures and other property affixed thereto and (d) the adjacent
streets, alleys and rights-of-way (all of the property interests conveyed hereby being hereinafter
collectively referred to as the “Property”); however, this conveyance is made by Grantor and
accepted by Grantee subject to all general or special assessments due and payable after the date
hereof, all encroachments, variations in area or in measurements, boundary line disputes, roadways
and other matters not of record which would be disclosed by a current survey and inspection of the
Property, and the encumbrances listed in Annex B attached hereto and made a part hereof
(collectively, the “Permitted Encumbrances”).

     TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances
thereto belonging unto Grantee, its successors and assigns, forever, and Grantor does hereby bind
Grantor and Grantor’s successors and assigns to warrant and forever defend all and singular the
said premises unto Grantee, its successors and assigns against every person whomsoever lawfully
claiming, or to claim the same, or any part thereof by, through or under Grantor, but not
otherwise; subject, however, to the Permitted Encumbrances. Except as expressly set forth in the
preceding sentence, Grantor makes no warranty of title, express or implied.

     Grantee hereby assumes the obligations (including any personal obligations) of Grantor, if
any, created by or under, and agrees to be bound by the terms and conditions of, the Permitted
Encumbrances to the extent that the same concern or apply to the land or improvements

 

 

 

 

     conveyed by this Deed.

[Signature pages follow.]

 

Exhibit C to Purchase Agreement (Moffett Business Center) — Page 2

 

 

IN WITNESS WHEREOF, Grantor and Grantee have signed this Deed to be effective as of ______,
20___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

STATE OF                                              )

                                                                 )     SS

COUNTY OF                                          )

On ______, 20______, before me _____________, a Notary Public in and for the
County and State aforesaid, personally appeared ___________, who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit C to Purchase Agreement (Moffett Business Center) — Page 3

 

 

[Continuation of signature pages to Deed dated to be effective as of ______, 20__.]

[NAI or the Applicable Purchaser]

	 	 	 	 	 
	By:  	 	 	 
	 	Name: 	 	 	 
	 	Title:	 	 	 

STATE OF                                              )

                                                                 )     SS

COUNTY OF                                          )

On _______, 20___, before me ____________, a Notary Public in and for the
County and State aforesaid, personally appeared ________, who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit C to Purchase Agreement (Moffett Business Center) — Page 4

 

 

Annex A

LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE “LAND” COVERED BY THE LEASE BECAUSE OF ADJUSTMENTS
FOR WHICH NAI REQUESTS BNPPLC’S CONSENT OR APPROVAL AS PROVIDED IN THE CLOSING CERTIFICATE, SO TOO
WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH CHANGES WILL BE INCORPORATED INTO THE
DESCRIPTION BELOW AND THIS “DRAFTING NOTE” WILL BE DELETED BEFORE THE ASSIGNMENT TO WHICH THIS
DESCRIPTION IS ATTACHED IS ACTUALLY EXECUTED AND DELIVERED.]

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SUNNYVALE, COUNTY OF SANTA CLARA,
STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL ONE:

All of Parcel 1 as shown upon that certain Map entitled, “Parcel Map being a resubdivision of
Parcel 6 as shown on Map recorded in Book 214 of Maps, at Page 23, 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 March 1, 1978 in Book 413, at Page 53.

PARCEL TWO:

All of Parcel A, as shown upon that certain Map entitled, “Parcel Map being a resubdivision of
Parcels 2 and 3, as shown on that certain Map recorded March 1, 1978 in Book 413 of Maps, at Page
53, 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 August 21, 1979 in Book 448 of Maps, at Pages 18
and 19.

APN: 110-36-014, 110-36-015

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 5

 

 

Annex B

Permitted Encumbrances

[DRAFTING NOTE: BEFORE THIS ASSIGNMENT IS ACTUALLY EXECUTED AND DELIVERED BY BNPPLC: ALL
PERMITTED ENCUMBRANCES LISTED IN EXHIBIT B TO THE CLOSING CERTIFICATE WILL BE SET OUT BELOW, IN
ADDITION TO THE ITEMS ALREADY LISTED. ALSO, IF ANY ENCUMBRANCES (OTHER THAN “LIENS REMOVABLE BY
BNPPLC”) ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW OR IN EXHIBIT B TO THE CLOSING
CERTIFICATE, SUCH ADDITIONAL ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW. AFTER SUCH ADJUSTMENTS
ARE MADE, THIS “DRAFTING NOTE” WILL BE DELETED. THE ADDITIONAL ENCUMBRANCES TO BE LISTED BELOW
WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPPLC AS “PERMITTED ENCUMBRANCES” FROM TIME TO TIME
OR BECAUSE OF XYZ’s REQUEST FOR BNPPLC’S CONSENT OR APPROVAL TO AN ADJUSTMENT.]

     This conveyance is subject to all encumbrances not constituting a “Lien Removable by BNPPLC”
(as defined in the Common Definitions and Provisions Agreement (Moffett Business Center)
incorporated by reference into the Lease Agreement (Moffett Business Center) referenced in the last
item of the list below), including the following matters to the extent the same are still valid and
in force:

1. Property taxes, which are a lien not yet due and payable, including any assessments collected
with taxes to be levied for the fiscal year 20___-20___.

2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5
(Commencing with Section 75) of the Revenue and Taxation code of the State of California. (None
currently assessed.)

3. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document:

	 	 	 
	Granted to:

	 	City of Sunnyvale, A Municipal Corporation
	Purpose:

	 	Slope easement
	Recorded:

	 	October 9, 1964, Book 6695, Page 389, of Official Records
	Affects:

	 	as described therein

4. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document:

	 	 	 
	Granted to:

	 	City of Sunnyvale, A Municipal Corporation
	Purpose:

	 	Slope easement

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 6

 

 

	 	 	 
	Recorded:

	 	October 9, 1964, Book 6695, Page 409, of Official Records
	Affects:

	 	A portion of Parcel One

5. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document:

	 	 	 
	Granted to:

	 	City of Sunnyvale, A Municipal Corporation
	Purpose:

	 	Public Utilities
	Recorded:

	 	October 9, 1964, Book 6695, Page 457, of Official Records
	Affects:

	 	A portion of Parcel One

6. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document:

	 	 	 
	Granted to:

	 	City of Sunnyvale, A Municipal Corporation
	Purpose:

	 	Public Utilities
	Recorded:

	 	September 24, 1965, Book 7116, Page 489, of Official Records
	Affects:

	 	As described therein

7. Easement(s) for the purpose(s) shown below and rights incidental thereto as delineated or as
offered for dedication, on the Map Recorded in Book 413 of Maps, Page 53:

	 	 	 
	Purpose:

	 	Public Utility Easement
	Affects:

	 	The Southwesterly 10 feet and the Northwesterly 9 feet of Parcel One; and the
Southwesterly 15 feet of the Northeasterly 31 feet of the Northwesterly 492.14 feet and
a portion of a strip 10 feet wide across a Southerly portion of Parcel Two
	Purpose:

	 	Ingress and Egress
	Affects:

	 	the Southeasterly 15 feet of Parcel One and the Northwesterly 15 feet of Parcel Two

8. Covenants, conditions and restrictions in the declaration of restrictions:

	 	 	 
	Recorded:

	 	March 8, 1978, Instrument No. 5947371, Book D511, Page 396, of Official Records

Modifications of said covenants, conditions and restrictions:

	 	 	 
	Recorded:

	 	August 19, 1980, Instrument No. 6808622, Book F514, Page 328, of Official Records

	Affects:

	 	Parcel One and other property

9. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 7

 

 

document:

	 	 	 
	Granted to:

	 	The Prudential Insurance Company of America, a New Jersey Corporation
	Purpose:

	 	Ingress and Egress
	Recorded:

	 	August 24, 1978, Book D908, Page 20, of Official Records
	Affects:

	 	A portion of Parcel Two

10. Covenants, conditions and restrictions in the declaration of restrictions:

	 	 	 
	Recorded:

	 	November 17, 1978, Book E102, Page 686, of Official Records

Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the
lien of any mortgage or deed of trust made in good faith and for value.

The provisions of said covenants, conditions and restrictions were extended to include the herein
described land by an instrument:

	 	 	 
	Recorded:

	 	August 22, 1979, Instrument No. 6477044, of Official Records
	Affects:

	 	Parcel Two and other property

11. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document:

	 	 	 
	Granted to:

	 	Pacific Gas and Electric Company, a California corporation
	Purpose:

	 	One or more underground pipes with suitable service pipes and connections for the
conveyance of gas by Pacific Gas and Electric Company
	Recorded:

	 	April 20, 1979, Book E434, Page 278, of Official Records

The exact location and extent of said easement is not disclosed of record.

12. Covenants, conditions and restrictions in the declaration of restrictions:

	 	 	 
	Recorded:

	 	August 22, 1979, Book E740, Page 437, of Official Records

Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the
lien of any mortgage or deed of trust made in good faith and for value.

The provisions of said covenants, conditions and restrictions were extended to include the herein
described land by an instrument:

	 	 	 
	Recorded:

	 	May 5, 1980, Book F309, Page 39, of Official Records

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 8

 

 

13. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Subordination, Non-Disturbance and Attornment Agreement
	Lessor:

	 	Moffett Business Center, Inc., a Delaware Corporation
	Lessee:

	 	Harmonic Lightwaves, Inc.
	Recorded:

	 	December 18, 1996, Instrument No. 13555124, of Official Records

An agreement (and the provisions contained therein) which states that said lease is subordinate to
the Deed of Trust:

	 	 	 
	Recorded:

	 	December 17, 1996, Instrument No. 13553142, of Official Records
	By document
	 	 
	Recorded:

	 	December 18, 1996, Instrument No. 13555124, of Official Records

14. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Subordination, Non-Disturbance and Attornment Agreement
	Lessor:

	 	Moffett Business Center, Inc., a Delaware Corporation
	Lessee:

	 	Volex Group, P.L.C.
	Recorded:

	 	December 18, 1996, Instrument No. 13555120, of Official Records

An agreement (and the provisions contained therein) which states that said lease is subordinate to
the Deed of Trust:

	 	 	 
	Recorded:

	 	December 17, 1996, Instrument No. 13553142, of Official Records
	By document
	 	 
	Recorded:

	 	December 18, 1996, Instrument No. 13555120, of Official Records

15. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Subordination, Non-Disturbance and Attornment Agreement
	Lessor:

	 	Moffett Business Center, Inc., a Delaware Corporation
	Lessee:

	 	TRW Inc.
	Recorded:

	 	December 18, 1996, Instrument No. 13555122, of Official Records

An agreement (and the provisions contained therein) which states that said lease is
subordinate to
the Deed of Trust:

	 	 	 
	Recorded:

	 	December 17, 1996, Instrument No. 13553142, of Official Records
	By document
	 	 

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 9

 

 

	 	 	 
	Recorded:

	 	December 18, 1996, Instrument No. 13555122, of Official Records

16. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Subordination, Non-Disturbance and Attornment Agreement
	Lessor:

	 	Moffett Business Center, Inc., a Delaware Corporation
	Lessee:

	 	TRW Inc.
	Recorded:

	 	December 18, 1996, Instrument No. 13555123, of Official Records

An agreement (and the provisions contained therein) which states that said lease is subordinate to
the Deed of Trust:

	 	 	 
	Recorded:

	 	December 17, 1996, Instrument No. 13553142, of Official Records
	By document
	 	 
	Recorded:

	 	December 18, 1996, Instrument No. 13555123, of Official Records

17. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Subordination, Non-Disturbance and Attornment Agreement
	Lessor:

	 	Moffett Business Center, Inc., a Delaware Corporation
	Lessee:

	 	Digital Equipment Corporation
	Recorded:

	 	December 18, 1996, Instrument No. 13555121, of Official Records

An agreement (and the provisions contained therein) which states that said lease is subordinate to
the Deed of Trust:

	 	 	 
	Recorded:

	 	December 17, 1996, Instrument No. 13553142, of Official Records
	By document
	 	 
	Recorded:

	 	December 18, 1996, Instrument No. 13555121, of Official Records

18. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
as disclosed by the document:

	 	 	 
	Entitled:

	 	Notice of Non-Responsibility
	Lessor:

	 	AMB Property, L.P., a Delaware limited partnership
	Lessee:

	 	Harmonics, Incorporated
	Recorded:

	 	July 19, 2006, Instrument No. 19026667, of Official Records

 
Exhibit C to Purchase Agreement (Moffett Business Center) — Page 10

 

 

Exhibit D

BILL OF SALE AND ASSIGNMENT

     Reference is made to: (1) that certain Purchase Agreement (Moffett Business Center) dated as
of November 29, 2007, (the “Purchase Agreement”) between BNP Paribas Leasing Corporation
(“Assignor”), a Delaware corporation, and Network Appliance, Inc., a Delaware corporation, and (2)
that certain Lease Agreement (Moffett Business Center) dated as of November 29, 2007 (the “Lease”)
between Assignor, as landlord, and Network Appliance, Inc., a Delaware corporation, as tenant.
(Capitalized terms used and not otherwise defined in this document are intended to have the
meanings assigned to them in the Common Definitions and Provisions Agreement (Moffett Business
Center) incorporated by reference into both the Purchase Agreement and Lease.)

     As contemplated by the Purchase Agreement, Assignor hereby sells, transfers and assigns unto
[NAI or the Applicable Purchaser], a _________ (“Assignee”), all of Assignor’s right, title and
interest in and to the following property, if any, to the extent such property is assignable:

	 	(a)	 	the Lease;
	 
	 	(b)	 	any pending or future award made because of any condemnation affecting the
Property or because of any conveyance to be made in lieu thereof, and any unpaid award
for damage to the Property and any unpaid proceeds of insurance or claim or cause of
action for damage, loss or injury to the Property; and
	 
	 	(c)	 	all other personal or intangible property included within the definition of
“Property” as set forth in the Purchase Agreement, including but not limited to any of
the following transferred to Assignor by the tenant pursuant to Paragraph 6 of
the Lease or otherwise acquired by Assignor, at the time of the execution and delivery
of the Lease and Purchase Agreement or thereafter, by reason of Assignor’s status as
the owner of any interest in the Property: (1) any goods, equipment, furnishings,
furniture, chattels and tangible personal property of whatever nature that are located
on the Property and all renewals or replacements of or substitutions for any of the
foregoing; (ii) the rights of Assignor, existing at the time of the execution of the
Lease and Purchase Agreement or thereafter arising, under Permitted Encumbrances; and
(iii) any general intangibles, other permits, licenses, franchises, certificates, and
other rights and privileges related to the Property that Assignee would have acquired
if Assignee had itself acquired the interest of Assignor in and to the Property instead
of Assignor.

Provided, however, excluded from this conveyance and reserved to Assignor are any rights or
privileges of Assignor under the following: (1) the indemnities set forth in the Lease, whether
such rights are presently known or unknown, including rights of the Assignor to be indemnified
against environmental claims of third parties as provided in the Lease which may not presently be
known, all of which indemnities will survive the deliver of this Bill of Sale and Assignment

 

 

and
other documents required by the Purchase Agreement, (2) provisions in the Lease that establish the
right of Assignor to recover any accrued unpaid rent under the Lease which may be outstanding as of
the date hereof, (3) agreements between Assignor and Assignor’s Parent or any Participant, or (4)
any other instrument being delivered to Assignor contemporaneously herewith pursuant to the
Purchase Agreement.[Drafting Note: The following sentence will be included unless the
Property is being sold to NAI or an Affiliate pursuant to subparagraph 2(A)(1), 3(A) or 3(B) of the
Purchase Agreement: Also excluded from this conveyance and reserved to Assignor are (i) the right
to retain Escrowed Proceeds, if any, that consist of condemnation or insurance proceeds resulting
from a Pre-completion Force Majeure Event, and (ii) any right to receive future payments of any
such condemnation or insurance proceeds. ].

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

     Assignee hereby assumes and agrees to keep, perform and fulfill Assignor’s obligations, if
any, relating to any permits or contracts (including the Lease), under which Assignor has rights
being assigned herein.

[Signature pages follow.]

 
Exhibit D to Purchase Agreement (Moffett Business Center) — Page 2

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Bill of Sale and Assignment to be
effective as of _________, 20___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	STATE OF __________________
	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF __________________

	 	 	)	 	 	 	 	 

On _____________________,
20___, before me ________________________, a Notary Public in and for the
County and State aforesaid, personally appeared ______________________________, who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

______________________________

 
Exhibit D to Purchase Agreement (Moffett Business Center) — Page 3

 

 

[Continuation of signature pages to Bill of Sale and Assignment dated to be effective as of
_________, 20__.]

	 	 	 	 	 
	[NAI or the Applicable Purchaser]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	STATE OF __________________

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF __________________

	 	 	)	 	 	 	 	 

On ___________________, 20___, before me __________________________, a Notary Public in and for the
County and State aforesaid, personally appeared ______________________________, who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

___________________________

 
Exhibit D to Purchase Agreement (Moffett Business Center) — Page 4

 

 

Exhibit E

ACKNOWLEDGMENT OF DISCLAIMER

OF REPRESENTATIONS AND WARRANTIES

     THIS ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES (this “Certificate”) is
made as of __________________, ___, by [NAI or the Applicable Purchaser], a _____________________
(“Assignee”).

     Contemporaneously with the execution of this Certificate, BNP Paribas Leasing Corporation
(“Assignor”), a Delaware corporation, is executing and delivering to Assignee (1) a Deed With
Limited Title Warranties, and (2) a Bill of Sale and Assignment (the foregoing documents and any
other documents to be executed in connection therewith are herein called the “Conveyancing
Documents” and any of the properties, rights or other matters assigned, transferred or conveyed
pursuant thereto are herein collectively called the “Subject Property”).

     Notwithstanding any provision contained in the Conveyancing Documents to the contrary,
Assignee acknowledges that Assignor makes no representations or warranties of any nature or kind,
whether statutory, express or implied, with respect to environmental matters or the physical
condition of the Subject Property, and Assignee, by acceptance of the Conveyancing Documents,
accepts the Subject Property “AS IS,” “WHERE IS,” “WITH
ALL FAULTS” and without any such representation or warranty by Grantor as to
environmental matters, the physical condition of the Subject Property, compliance with subdivision
or platting requirements or construction of any improvements. Without limiting the generality of
the foregoing, Assignee hereby further acknowledges and agrees that warranties of merchantability
and fitness for a particular purpose are excluded from the transaction contemplated by the
Conveyancing Documents, as are any warranties arising from a course of dealing or usage of trade.
Assignee hereby assumes all risk and liability (and agrees that Assignor will not be liable for any
special, direct, indirect, consequential, or other damages) resulting or arising from or relating
to the ownership, use, condition, location, maintenance, repair, or operation of the Subject
Property, except for damages proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of Assignor. As used in the preceding sentence,
“Established Misconduct” is intended to have, and be limited to, the meaning given to it in the
Common Definitions and Provisions Agreement (Moffett Business Center) incorporated by reference
into the Purchase Agreement (Moffett Business Center) dated as of November 29, 2007 between
Assignor and Network Appliance, Inc., pursuant to which Purchase Agreement Assignor is delivering
the Conveyancing Documents.

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

[Signature page follows.]

 

 

IN WITNESS WHEREOF, Assignor and Assignee have
signed this Acknowledgment of Disclaimer to be
effective as of _______________, 20___.

	 	 	 	 	 
	[NAI or the Applicable Purchaser]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	STATE OF __________________

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS
	 	 
	COUNTY OF __________________

	 	 	)	 	 	 	 	 

On __________________, 20___, before me __________________, a Notary Public in and for the
County and State aforesaid, personally appeared ________________________, who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

______________________________

 
Exhibit E to Purchase Agreement (Moffett Business Center) — Page 2

 

 

Exhibit F

SECRETARY’S CERTIFICATE

     The undersigned, [Secretary or Assistant Secretary] of BNP Paribas Leasing Corporation
(“BNPPLC”), a Delaware corporation, hereby certifies as follows:

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

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

[The following blanks must be completed with the names and signatures of the officers who will be
signing the Sale Closing Documents on behalf of BNPPLC.]

	 	 	 	 	 
	Name	 	Title	 	Signature
	 	 	 	 	 
	 	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 

	 	 

	 	 

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

     IN
WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the Corporation on
this ________, day of ________, 20__.

	 	 	 	 	 
	 

	 	_________________________
	 	 
	 

	 	[signature and title]	 	 

 

 

CORPORATE RESOLUTIONS OF

BNP PARIBAS LEASING CORPORATION

[DRAFTING NOTE: INSERT HERE COPIES OF RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS OF
BNPPLC SUFFICIENT TO AUTHORIZE THE DELIVERY OF SALE CLOSING DOCUMENTS. SUCH RESOLUTIONS MAY BE AS
FOLLOWS:

     WHEREAS, pursuant to that certain Purchase Agreement (Moffett Business Center) (herein called
the “Purchase Agreement”) dated as of November 29, 2007, by and between BNP Paribas Leasing
Corporation (“BNPPLC”) and Network Appliance, Inc. (“NAI”) , BNPPLC agreed to sell and Purchaser
agreed to purchase or cause the Applicable Purchaser (as defined in the Purchase Agreement) to
purchase the Corporation’s interest in the property (the “Property”) located in Santa Clara County,
California, more particularly described therein.

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

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

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

 
Exhibit F to Purchase Agreement (Moffett Business Center) — Page 2

 

 

Exhibit G

CERTIFICATION OF NON-FOREIGN STATUS

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

     To inform [NAI or the Applicable Purchaser] (“Transferee”) that withholding of tax is not
required upon the disposition of a U.S. real property interest by BNP PARIBAS LEASING CORPORATION
(“Transferor”), a Delaware corporation, the undersigned hereby certifies the following on behalf of
Transferor:

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

2. Transferor is not a disregarded entity (as defined in Section 1.1445-2(b)(2)(iii) of the Income
Tax Regulations);

3. Transferor’s U.S. employer identification number is 75-2252918; and

4. Transferor’s office address is:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Transferor understands that this Certification of Non-Foreign Status may be disclosed to the
Internal Revenue Service by Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this Certification of Non-Foreign Status
and to the best of my knowledge and belief it is true, correct and complete, and I further
declare that I have authority to sign this document on behalf of the Transferor.

     Dated: ____________, 20___.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w66

 

Exhibit 10.66

CLOSING CERTIFICATE

AND AGREEMENT

(1299 ORLEANS)

BETWEEN

NETWORK APPLIANCE, INC.

(“NAI”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

November 29, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	 
	1	 	Representations, Covenants and Acknowledgments of NAI Concerning the Property	 	 	2	 
	 	 	(A)	 	Prior Inspections and Investigations Concerning the Property	 	 	2	 
	 	 	(B)	 	Title	 	 	2	 
	 	 	(C)	 	Title Insurance	 	 	2	 
	 	 	(D)	 	Condition of the Property	 	 	2	 
	 	 	(E)	 	Environmental Representations	 	 	3	 
	 	 	(F)	 	Cooperation by NAI and its Affiliates	 	 	3	 
	 	 	(G)	 	Compliance with Covenants and Laws	 	 	4	 
	 
	2	 	Representations and Covenants by NAI	 	 	4	 
	 	 	(A)	 	Concerning NAI and the Operative Documents	 	 	4	 
	 

	 	 	 	 	(1)	 	 	Entity Status
	 	 	4	 
	 

	 	 	 	 	(2)	 	 	Authority
	 	 	4	 
	 

	 	 	 	 	(3)	 	 	Solvency
	 	 	4	 
	 

	 	 	 	 	(4)	 	 	Financial Reports
	 	 	5	 
	 

	 	 	 	 	(5)	 	 	Pending Legal Proceedings
	 	 	5	 
	 

	 	 	 	 	(6)	 	 	No Default or Violation
	 	 	5	 
	 

	 	 	 	 	(7)	 	 	Use of Proceeds
	 	 	5	 
	 

	 	 	 	 	(8)	 	 	Enforceability
	 	 	6	 
	 

	 	 	 	 	(9)	 	 	Pari Passu
	 	 	6	 
	 

	 	 	 	 	(10	)	 	Conduct of Business and Maintenance of Existence
	 	 	6	 
	 

	 	 	 	 	(11	)	 	Investment Company Act, etc
	 	 	6	 
	 

	 	 	 	 	(12	)	 	Not a Foreign Person
	 	 	6	 
	 

	 	 	 	 	(13	)	 	ERISA
	 	 	6	 
	 

	 	 	 	 	(14	)	 	Compliance With Laws
	 	 	7	 
	 

	 	 	 	 	(15	)	 	Payment of Taxes Generally
	 	 	7	 
	 

	 	 	 	 	(16	)	 	Maintenance of Insurance Generally
	 	 	7	 
	 

	 	 	 	 	(17	)	 	Franchises, Licenses, etc
	 	 	7	 
	 

	 	 	 	 	(18	)	 	Patents, Trademarks, etc
	 	 	7	 
	 

	 	 	 	 	(19	)	 	Labor
	 	 	8	 
	 

	 	 	 	 	(20	)	 	Title to Properties Generally
	 	 	8	 
	 

	 	 	 	 	(21	)	 	Books and Records
	 	 	8	 
	 	 	(B)	 	Further Assurances	 	 	8	 
	 	 	(C)	 	Syndication	 	 	9	 
	 	 	(D)	 	Financial Statements; Required Notices; Certificates	 	 	9	 
	 	 	(F)	 	OFAC	 	 	11	 
	 
	3	 	Financial Covenants and Negative Covenants of NAI	 	 	12	 
	 	 	(B)	 	Negative Covenants	 	 	21	 
	 

	 	 	 	 	(1)	 	 	Subsidiary Indebtedness
	 	 	21	 
	 

	 	 	 	 	(2)	 	 	Liens
	 	 	22	 
	 

	 	 	 	 	(3)	 	 	Fundamental Changes and Asset Sales
	 	 	24	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	 
	 

	 	 	 	 	(4	)	 	Speculative Swap Agreements
	 	 	25	 
	 

	 	 	 	 	(5	)	 	Transactions with Affiliates
	 	 	25	 
	 

	 	 	 	 	(6	)	 	Restrictive Agreements
	 	 	25	 
	 	 	(C)	 	Financial Covenants	 	 	26	 
	 

	 	 	 	 	(1	)	 	Maximum Leverage Ratio
	 	 	26	 
	 

	 	 	 	 	(2	)	 	Minimum Liquidity
	 	 	26	 
	 
	4	 	Limited Representations and Covenants of BNPPLC	 	 	26	 
	 	 	(A)	 	Concerning Accounting Matters	 	 	26	 
	 	 	(B)	 	Other Limited Representations	 	 	29	 
	 

	 	 	 	 	(1	)	 	Entity Status
	 	 	29	 
	 

	 	 	 	 	(2	)	 	Authority
	 	 	29	 
	 

	 	 	 	 	(3	)	 	Solvency
	 	 	29	 
	 

	 	 	 	 	(4	)	 	Pending Legal Proceedings
	 	 	29	 
	 

	 	 	 	 	(5	)	 	No Default or Violation
	 	 	30	 
	 

	 	 	 	 	(6	)	 	Enforceability
	 	 	30	 
	 

	 	 	 	 	(7	)	 	Conduct of Business and Maintenance of Existence
	 	 	30	 
	 

	 	 	 	 	(8	)	 	Not a Foreign Person
	 	 	30	 
	 	 	(C)	 	Further Assurances	 	 	30	 
	 	 	(D)	 	Actions Permitted by NAI Without BNPPLC’s Consent	 	 	32	 
	 	 	(E)	 	Waiver of Landlord’s Liens	 	 	33	 
	 	 	(F)	 	Estoppel Letters	 	 	34	 
	 	 	(G)	 	No Implied Representations or Promises by BNPPLC	 	 	34	 
	 
	5	 	Usury Savings Provision	 	 	34	 
	 
	6	 	Obligations of NAI Under Other Operative Documents Not Limited by this Certificate	 	 	35	 
	 
	7	 	Obligations of NAI Hereunder Not Limited by Other Operative Documents	 	 	35	 
	 
	8	 	Waiver of Jury Trial	 	 	35	 

(ii)

 

 TABLE OF CONTENTS
(Continued)

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Legal Description
	 
	 	 
	Exhibit B

	 	Permitted Encumbrances
	 
	 	 
	Exhibit C

	 	Quarterly Certificate
	 
	 	 
	Exhibit D

	 	Form of Disclosure Letter
	 
	 	 
	Exhibit E

	 	Certificate to be Provided by BNPPLC Re: Accounting

(iii)

 

CLOSING CERTIFICATE

AND AGREEMENT

(1299 ORLEANS)

     This CLOSING CERTIFICATE AND AGREEMENT (1299 ORLEANS) (this “Certificate”), dated as of
November 29, 2007 (the “Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION
(“BNPPLC”), a Delaware corporation, and NETWORK APPLIANCE, INC. (“NAI”), a Delaware corporation.

RECITALS

     Contemporaneously with the execution of this Certificate, BNPPLC and NAI are executing a
Common Definitions and Provisions Agreement (1299 Orleans) dated as of the Effective Date (the
“Common Definitions and Provisions Agreement”), which by this reference is incorporated into and
made a part of this Certificate for all purposes. As used in this Certificate, capitalized terms
defined in the Common Definitions and Provisions Agreement and not otherwise defined in this
Certificate are intended to have the respective meanings assigned to them in the Common Definitions
and Provisions Agreement.

     Also contemporaneously with this Certificate, BNPPLC is acquiring the Land described in
Exhibit A and existing Improvements on the Land pursuant to the Existing Contract.

     Also contemporaneously with this Certificate, BNPPLC and NAI are executing a Lease Agreement
(1299 Orleans) dated as of the Effective Date (the “Lease”), pursuant to which NAI is leasing from
BNPPLC the Land, which is described in Exhibit A, and all Improvements on such Land.

     Also contemporaneously with this Certificate, BNPPLC and NAI are executing a Purchase
Agreement (1299 Orleans) dated as of the Effective Date (the “Purchase Agreement”), pursuant to
which NAI may purchase or arrange for the purchase of the Property and BNPPLC may collect a
Supplemental Payment from NAI sufficient to cover all or a substantial portion of the Lease Balance
not otherwise repaid to BNPPLC from the proceeds of any sale of the Property.

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

AGREEMENTS

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

 

 

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

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

     (B) Title. Because of the conveyance from the Prior Owner to BNPPLC contemporaneously
with the execution of this Certificate, good and indefeasible title to the Land and Improvements is
currently vested in BNPPLC, subject only to the Permitted Encumbrances described in Exhibit
B, the rights of NAI itself under the Operative Documents and any Liens Removable by BNPPLC.
NAI will not, without the prior consent of BNPPLC, create, place or authorize, or through any act
or failure to act, acquiesce to or suffer 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 BNPPLC), regardless of whether
the same are expressly or otherwise subordinate to the Operative Documents or BNPPLC’s interest in
the Property.

     (C) Title Insurance. Without limiting NAI’s obligations under the preceding
subparagraph, contemporaneously with the execution of this Certificate NAI must provide to BNPPLC a
title insurance policy or binder committing the applicable title insurer to issue a title insurance
policy, without the payment of further premiums (as the case may be, the “Title Policy”) in an
amount equal to the purchase price paid by BNPPLC to the Prior Owner for the Property, in form and
substance satisfactory to BNPPLC (including comprehensive, survey, variable rate, access, and such
other endorsements as may be requested by BNPPLC), written by one or more title insurance companies
satisfactory to BNPPLC and insuring BNPPLC’s fee estate in the Land and Improvements.

     (D) Condition of the Property. The Land described in Exhibit A is the
same as the land described in the Title Policy and as shown on the plat included as part of the
ALTA/ACSM Survey prepared by Kier & Wright, Civil Engineers & Surveyors, Inc., dated October 3,
2007, Job No. A03080-1 (the “Survey”), which survey was delivered to BNPPLC at the request of NAI.
All material improvements on the Land as of the Effective Date are as shown on the Survey, and
except as shown on the Survey there are no easements or encroachments encumbering or affecting the
Property. No part of the Land is within a flood plain as designated by any governmental authority.
The Improvements are in good condition, free from latent or patent defects or deficiencies that,
either individually or in the aggregate, could materially and adversely affect the use or occupancy
of the Property as permitted by the Lease or could

 
Closing Certificate and Agreement (1299 Orleans)
— Page 2

 

 

reasonably be anticipated to cause injury or death to any person. The Property and use
thereof permitted by the Lease comply in all material respects with all Applicable Laws, including
laws regarding access and use by disabled persons and local zoning ordinances. Adequate provision
has been made for 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 Property for the uses permitted by the Lease have been completed
and are serviceable. No extraordinary circumstances (including any use of the Land as a habitat
for endangered species) exist that would materially and adversely affect such uses of the Property.
The Improvements are useable for their intended purpose without the need to obtain any additional
easements, rights-of-way or concessions from any third party or parties.

     (E) Environmental Representations. Except as otherwise disclosed in the Environmental
Report, to the knowledge of NAI: (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 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, to its knowledge, that the Environmental Report taken as a whole is not misleading
or inaccurate in any material respect.

     (F) Cooperation by NAI and its Affiliates.

     (1) After the Designated Sale Date, if neither NAI nor an Applicable Purchaser has
purchased BNPPLC’s interest in the Property pursuant to the Purchase Agreement, and if a use
of the Property by BNPPLC or any new Improvements or any removal or modification of
Improvements proposed by BNPPLC would violate any Permitted Encumbrance 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,
then NAI must give and cause its Affiliates to give such consent or approval or join in such
modification.

     (2) After the Designated Sale Date, if neither NAI nor an Applicable Purchaser
has purchased BNPPLC’s interest in the Property pursuant to the Purchase Agreement, and if
any Permitted Encumbrance or Applicable Law requires the consent or approval of NAI or any
of its Affiliates or of any other Person to an assignment of any interest in the Property by
BNPPLC or by any of 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 BNPPLC to assist BNPPLC to obtain such consent or approval from the other
Person.

 
Closing Certificate and Agreement (1299 Orleans)
— Page 3

 

 

     (3) NAI’s obligations under this subparagraph 1(F) will be binding upon any successor
or assign of NAI or its Affiliates with respect to the Land and other properties encumbered
or benefitted by the Permitted Encumbrances, and such obligations will survive any sale of
the Property by BNPPLC, other than to NAI or an Applicable Purchaser under the Purchase
Agreement, for the benefit of BNPPLC’s assignees.

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

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

     (A) Concerning NAI and the Operative Documents.

     (1) Entity Status. NAI is a corporation duly incorporated and validly existing in the
State of Delaware and is authorized to do business in and is in good standing under the laws
of California.

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 4

 

 

NAI’s property, a reorganization, arrangement, rearrangement, composition, extension,
liquidation or dissolution of NAI or similar relief under the federal Bankruptcy Code or any
state law.

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

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 5

 

 

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

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

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

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

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

     (14) Compliance With Laws. NAI and its Subsidiaries comply and will comply with all
Applicable Laws (including environmental laws and ERISA and the rules and

 
Closing Certificate and Agreement (1299 Orleans)
— Page 6

 

 

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

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

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

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

     (18) Patents, Trademarks, etc. Except when the failure to do so does not have
and could not reasonably be expected to have a Material Adverse Effect, NAI and its
Subsidiaries have and will have and maintain in full force and effect all patents,
trademarks, service marks, trade names, copyrights, licenses and other such rights, free
from burdensome restrictions, which are necessary for the operation of its businesses.
Without limiting the foregoing, to the knowledge of NAI, no product, process, method,
service or other item presently sold by or employed by NAI or any Subsidiary in

 
Closing Certificate and Agreement (1299 Orleans)
— Page 7

 

 

connection
with its business as presently conducted infringes any patents, trademark, service mark,
trade name, copyright, license or other right owned by any other Person. No claim or
litigation is presently pending, or to the knowledge of NAI, threatened against or affecting
NAI or any Subsidiary that contests its right to sell or use any such product, process,
method, substance or other item and that has or could reasonably be expected to have a
Material Adverse Effect.

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 8

 

 

any agency
or authority having jurisdiction over it.

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 9

 

 

same annual
report and report and opinion of accountants that NAI delivers to its shareholders;

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

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

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

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

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

     (8) such other information respecting the condition or operations, financial or
otherwise, of NAI, of its Subsidiaries or of the Property as BNPPLC or BNPPLC’s Parent

 
Closing Certificate and Agreement (1299 Orleans)
— Page 10

 

 

or any Participant through BNPPLC may from time to time reasonably request.

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

BNPPLC is hereby authorized to deliver a copy of any information or certificate delivered to it
pursuant to this subparagraph 2(D) to any Participant and to any regulatory body having
jurisdiction over BNPPLC, BNPPLC’s Parent or any Participant that requires or requests it.

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 11

 

 

permitted by the Patriot Act to
notify NAI of the request or demand for disclosure.

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

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

     “Accepted Contest Requirements” means, with respect to any Tax or other payment due or
claimed to be due from NAI or any Subsidiary or any demand for payment made upon NAI or any
Subsidiary, that (a) NAI or such Subsidiary must contest the validity or amount thereof in
good faith by appropriate proceedings, (b) NAI or such Subsidiary has set aside on its books
adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make
payment thereof pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

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

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

     “Consolidated Debt for Borrowed Money” means at any time (1) the sum,
without duplication, of (a) items that, in accordance with GAAP, would be classified as
indebtedness on the consolidated balance sheet of NAI and its Subsidiaries and (b) the
capitalized portion of any synthetic leases, minus (2) the then aggregate outstanding
principal amount of Indebtedness under NAI’s Secured Revolver and under that certain Loan
Agreement dated as of March 31, 2006 by and among Network Appliance Global Ltd. and JPMorgan
Chase Bank, National Association as initial lender and as

 
Closing Certificate and Agreement (1299 Orleans)
— Page 12

 

 

administrative agent. (In clause
(b) of this definition, “capitalized portion” means, with respect to any synthetic lease,
the price for which the lessee can purchase the leased property or could purchase it if the
synthetic lease expired on the date of the applicable calculation of the Consolidated Debt
for Borrowed Money. Thus, for example, the “capitalized portion” of the transactions
governed by the Operative Documents will equal the Lease Balance.)

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

     “Consolidated Interest Expense” means, with reference to any period, the

 
Closing Certificate and Agreement (1299 Orleans)
— Page 13

 

 

interest expense (including without limitation interest expense under Capital Lease Obligations that
is treated as interest in accordance with GAAP) of NAI and its Subsidiaries calculated on a
consolidated basis for such period with respect to (a) all outstanding Indebtedness of NAI
and its Subsidiaries allocable to such period in accordance with GAAP and (b) Swap
Agreements (including, without limitation, all commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers acceptance financing and net
costs under interest rate Swap Agreements to the extent such net costs are allocable to such
period in accordance with GAAP). In addition, for purposes of calculating the Leverage
Ratio only, rents payable for any period pursuant to NAI’s synthetic leases shall be
included in Consolidated Interest Expense for such period; excluding, however, any amounts
(whether on not designated as rents) paid or to be paid as compensation for or reimbursement
of any Losses, and also excluding any payments which reduce or will reduce the outstanding
lease balance of any synthetic lease. For example, Base Rents payable under the Lease will
be included in Consolidated Interest Expense, but not Additional Rents.

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

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

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

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

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

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity

 
Closing Certificate and Agreement (1299 Orleans)
— Page 14

 

 

exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, direct or
indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply funds for the
purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (d) as an account party in
respect of any letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for collection
or deposit in the ordinary course of business.

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 15

 

 

of
such fiscal quarter.

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

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

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

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

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 16

 

 

date of determination
(assuming such transaction were to be terminated as of that date), and “unrealized profits”
means the fair market value of the gain to such Person of replacing such transaction as of
the date of determination (assuming such transaction was to be terminated as of that date).

     “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person
that is related to retained credit risk, or (b) any indebtedness, liability or obligation
under any so-called “synthetic lease” transaction entered into by such Person.

     “Permitted Liens or Encumbrances” means:

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

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

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

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans)
— Page 17

 

 

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

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

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

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

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

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

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

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

     “Permitted Investments” means:

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

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

     (c) investments in certificates of deposit, banker’s acceptances and time
deposits maturing within 180 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or

 
Closing Certificate and Agreement (1299 Orleans)
— Page 18

 

 

offered by, any domestic office of any commercial bank organized under the laws of the
United States of America or any State thereof or any other country which has a
combined capital and surplus and undivided profits of not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than
thirty (30) days for securities described in clause (a) above and entered into with
a financial institution satisfying the criteria described in clause (c) above;

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

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

     (g) investments described in the following table:

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

	 	Less than 30 years
	 
	 	 
	USD Commercial Paper

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

	 	US Gov’t
	 	Treasury Plus
	 

	 	Cash Management
	 

	 	100% US Treasury
	 

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

	 	A or better

 
Closing Certificate and Agreement (1299 Orleans)
— Page 19

 

 

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

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

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

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

     “Subsidiary” means any subsidiary of NAI.

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

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 20

 

 

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

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

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

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

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

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

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

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

     
(g) Indebtedness of any Subsidiary as an account party in respect of

 
Closing Certificate and Agreement (1299 Orleans) — Page 21

 

 

letters
of credit, bank guarantees and bankers’ acceptances;

     (h) Indebtedness in respect of Swap Agreements permitted under subparagraph
3(B)(4);

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

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

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

     (a) Permitted Liens or Encumbrances;

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 22

 

 

thereof;

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

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

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

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

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

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

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

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

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 23

 

 

     (3) Fundamental Changes and Asset Sales.

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

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

     (c) NAI will not, and will not permit any of its Subsidiaries to, change its
fiscal year to end on a day other than as such fiscal year end is currently
determined or change NAI’s method of determining fiscal quarters.

 
Closing Certificate and Agreement (1299 Orleans) — Page 24

 

 

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

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 25

 

 

foregoing shall not apply to customary
provisions in leases, licenses, joint venture agreements and other agreements entered into
in the ordinary course of business restricting the assignment thereof.

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

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

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

4 Limited Representations and Covenants of BNPPLC

     (A) Concerning Accounting Matters.

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 26

 

 

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

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

     (3) BNPPLC covenants that, as reasonably requested by NAI from time to
time with respect to any accounting period during which the Lease is or was in effect,
BNPPLC will provide to NAI confirmation of facts concerning BNPPLC and its assets as
necessary to permit NAI to determine the proper accounting for the Lease (including updates
of the facts set forth in clauses (1) and (2) above); except that BNPPLC will not be
required by this provision to (w) provide any information that is not in the possession

 
Closing Certificate and Agreement (1299 Orleans) — Page 27

 

 

or
control of BNPPLC or its Affiliates, (x) disclose the specific terms and conditions of its
leases or other transactions with other parties or the names of such parties, (y) make
disclosures prohibited by any law applicable to BNPPLC or BNPPLC’s Parent, or (z) disclose
any other information that is protected from disclosure by confidentiality provisions in
favor of such other parties or would be protected if their agreements with BNPPLC contained
confidentiality provisions similar in scope and substance to any confidentiality provisions
set forth in the Operative Documents for the benefit of NAI or its Affiliates. BNPPLC will
represent that information provided by it pursuant to this clause is true and complete in
all material respects, but only to the knowledge of BNPPLC as of the date it is provided,
utilizing the form of the certificate attached hereto as Exhibit E (signed by an
officer of BNPPLC), which certificate will be provided periodically by BNPPLC within five
business days of reasonable written request therefor by NAI as provided above, or such
longer period of time as may be reasonably necessary under the circumstances in order for
BNPPLC to confirm such information.

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

     (B) Other Limited Representations. BNPPLC represents that:

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

     (2) Authority. The Constituent Documents of BNPPLC permit the execution, delivery and
performance of the Operative Documents by BNPPLC, and all actions and approvals necessary to
bind BNPPLC under the Operative Documents have been taken and obtained. Without limiting
the foregoing, the Operative Documents will be binding upon BNPPLC when signed on behalf of
BNPPLC by Lloyd G. Cox, Managing Director of BNPPLC. BNPPLC has all requisite power and all
governmental certificates of authority, licenses, permits and qualifications to carry on its
business as now conducted and contemplated to be conducted and to perform the Operative
Documents, except that BNPPLC makes no representation as to whether it has obtained
governmental certificates of authority, licenses, permits, qualifications or other
documentation required by state or local Applicable Laws. With regard to any such state or
local requirements, NAI may
require that BNPPLC obtain a specific governmental certificates of authority, licenses,
permits, qualifications or other documentation pursuant to subparagraph 4(C), subject to the
conditions set forth in that subparagraph.

     (3) Solvency. BNPPLC is not “insolvent” on the Effective Date (that is, the

 
Closing Certificate and Agreement (1299 Orleans) — Page 28

 

 

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

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

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

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

     (7) Conduct of Business and Maintenance of Existence. So long as any of the

 
Closing Certificate and Agreement (1299 Orleans) — Page 29

 

 

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

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

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

     (C) Further Assurances. During the Term of the Lease BNPPLC will take any
action reasonably requested by NAI to facilitate the use of the Property permitted by the Lease;
subject, however, to the following terms and conditions:

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

     (2) BNPPLC will not be required by this subparagraph 4(C) to incur any expense or to
make any payments to another Person unless BNPPLC has received funds from NAI, in excess of
any other amounts due from NAI under any of the Operative Documents, sufficient to cover all
such expenses or payments or other Persons.

     (3) BNPPLC will not be required by this subparagraph 4(C) to incur or assume any
significant potential liability to another Person.

     (4) BNPPLC will have no obligations whatsoever under this subparagraph 4(C) at any time
when a Default has occurred and is continuing.

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

     (6) No action may be required of BNPPLC pursuant to this subparagraph 4(C) that could
constitute a violation of any Applicable Laws or compromise or constitute a

 
Closing Certificate and Agreement (1299 Orleans) — Page 30

 

 

waiver of
BNPPLC’s rights under other provisions of this Certificate or any of the other Operative
Documents or that for any other reason is reasonably objectionable to BNPPLC.

     The actions BNPPLC will take pursuant to this subparagraph 4(C) if reasonably requested
by NAI will include, subject to the conditions listed in the proviso above, executing or consenting
to, or exercising or assisting NAI to exercise rights under any: (I) grant of easements, licenses,
rights of way, and other rights in the nature of easements encumbering the Land or the
Improvements, (II) release, relocation or termination of easements, licenses, rights of way or
other rights in the nature of easements which are for the benefit of the Land or Improvements or
any portion thereof, (III) dedication or transfer of portions of the Land not improved with a
building, for road, highway or other public purposes, (IV) agreements (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”, (VII) modifications of Permitted Encumbrances, (VIII) permit
applications or other documents required to accommodate any construction permitted by the Lease,
(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) tract or parcel map subdividing the Land into lots
or parcels. However, the determination of whether any such action is reasonably requested or
reasonably objectionable to BNPPLC may depend in whole or in part upon the extent to which the
requested action may result in a lien to secure payment or performance obligations against BNPPLC’s
interest in the Property, may cause the value of the Property to be less than the Lease Balance
after any Qualified Prepayments that may result from such action are taken into account, or may
impose upon BNPPLC any present or future obligations greater than the obligations BNPPLC is willing
to accept, taking into consideration the indemnifications provided by NAI under the Lease. In
addition, with respect to any request made by NAI to facilitate a relocation of any easements, the
following will be relevant to the determination of whether the request is reasonable:

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

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 31

 

 

request); and

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

     Any and all Losses incurred by BNPPLC because of any action taken pursuant to this
subparagraph 4(C) will be covered by the indemnification set forth in subparagraph 5(C) of
the Lease. Further, for purposes of such indemnification, any such action taken by BNPPLC will be
deemed to have been made at the request of NAI if made pursuant to any request of counsel to or any
officer of NAI (or with their knowledge, and without their objection) in connection with the
execution or administration of the Lease or the other Operative Documents.

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

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

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

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

     (E) Waiver of Landlord’s Liens. BNPPLC waives any security interest, statutory
landlord’s lien or other interest BNPPLC may have in or against computer equipment and other

 
Closing Certificate and Agreement (1299 Orleans) — Page 32

 

 

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

     Without limiting the foregoing, BNPPLC acknowledges that NAI may obtain financing from
other parties for inventory, furnishings, equipment, machinery and other personal property that is
located in or about the Improvements, but that is not included in or integral to the Property, and
to secure such financing NAI may grant a security interest under the California Uniform Commercial
Code in such inventory, furnishings, equipment, machinery and other personal property. Further,
BNPPLC acknowledges that the lenders providing such financing may require confirmation from BNPPLC
of its agreements concerning landlord’s liens and other matters set forth in this subparagraph
4(E), and NAI may obtain such confirmation in any statement required of BNPPLC by the next
subparagraph.

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

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

5 Usury Savings Provision. Notwithstanding anything to the contrary in any of the
Operative Documents, BNPPLC does not intend to contract for, charge or collect any amount of money
from NAI that constitutes interest in excess of the maximum nonusurious rate of interest, if any,
allowed by applicable usury laws (the “Maximum Rate”). BNPPLC and NAI agree that

 
Closing Certificate and Agreement (1299 Orleans) — Page 33

 

 

it is their intent
in the execution of the Lease, the Purchase Agreement and other Operative Documents to contract in
strict compliance with applicable usury laws, if any. In furtherance thereof, BNPPLC and NAI
stipulate and agree that none of the provisions of the Lease, the Purchase Agreement or the other
Operative Documents shall ever be construed to create a contract requiring compensation for the
use, forbearance or detention of money at a rate in excess of the Maximum Rate, and the provisions
of this paragraph shall control over all other provisions of this Certificate or other Operative
Documents which may be in apparent conflict herewith. All interest paid or agreed to be paid by
NAI to BNPPLC shall, to the extent permitted by applicable usury laws, be amortized, prorated,
allocated, and spread throughout the period that any principal upon which such interest accrues is
expected to be outstanding (including without limitation any renewal or extension of the term of
the Lease) so that the amount of interest included in such payments does not exceed the maximum
nonusurious amount permitted by applicable usury laws. If the Designated Sale Date is accelerated
and as a result thereof amounts paid by NAI to BNPPLC as interest are determined to exceed the
interest that would have accrued at the Maximum Rate for the period prior to the Designated Sale
Date, then BNPPLC shall, at its option, either refund to NAI the amount of such excess or credit
such excess as a Qualified Prepayment (and thus reduce the Lease Balance and other amounts, the
determination of which depend upon Qualified Prepayments credited to NAI) and thereby shall render
inapplicable any and all penalties of any kind provided by applicable usury laws as a result of
such excess interest. If BNPPLC receives money (or anything else) that is determined to constitute
interest and that would, but for this provision, increase the effective interest rate received by
BNPPLC under or in connection with the Operative Documents to a rate in excess of the Maximum Rate,
then the amount determined to constitute interest in excess of the maximum nonusurious interest
shall, immediately following such determination, be returned to NAI or be credited as a Qualified
Prepayment, in which event any and all penalties of any kind under applicable usury law shall be
inapplicable. If BNPPLC does not actually receive, but shall contract for, request or demand, a
payment of money (or anything else) which is determined to constitute interest and to increase the
effective interest rate contracted for or charged to a rate in excess of the Maximum Rate, BNPPLC
shall be entitled, following such determination, to waive or rescind the contractual claim, request
or demand for the amount determined to exceed the Maximum Rate, in which event any and all
penalties of any kind under applicable usury law shall be inapplicable. If at any
time NAI should have reason to believe that the transactions evidenced by the Operative Documents
are in fact usurious, NAI shall promptly give BNPPLC notice of such condition, after which BNPPLC
shall have ninety days in which to make appropriate refund or other adjustment in order to correct
such condition if it in fact exists.

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

 
Closing Certificate and Agreement (1299 Orleans) — Page 34

 

 

 

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

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

[The signature pages follow.]

 
Closing Certificate and Agreement (1299 Orleans) — Page 35

 

 

     IN WITNESS WHEREOF, this Closing Certificate and Agreement (1299 Orleans) is executed to be
effective as of November 29, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 

 
Closing Certificate and Agreement (1299 Orleans) — Signature Page

 

 

	 	 	 	 	 

[Continuation of signature pages for Closing Certificate and Agreement (1299 Orleans) dated as of
November 29, 2007.]

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Ingemar Lanevi, Vice President and Corporate Treasurer 	 
	 	 	 	 

 
Closing Certificate and Agreement (1299 Orleans) — Signature Page

 

 

	 	 	 	 	 

Exhibit A

Legal Description

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SUNNYVALE, COUNTY OF SANTA CLARA,
STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

All of Parcel 1, as shown upon that certain Map entitled, “Parcel Map being a Resubdivision of
Parcel A as shown on Map recorded in Book 431 of Maps, at page 32, 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 March 8, 1979 in Book 437 of Maps, at Page 9.

APN 110-36-007

 

 

Exhibit B

Permitted Encumbrances

1. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5
(Commencing with Section 75) of the Revenue and Taxation code of the State of California. (none
currently assessed)

2. Covenants, conditions and restrictions in the declaration of restrictions:

	 	 	 
	Recorded:

	 	March 8, 1978, Book D511, Page 396, of Official Records
	and re-recorded:

	 	December 12,1978, Book E157, Page 147, of Official Records

Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the
lien of any mortgage or deed of trust made in good faith and for value.

3. Easement for the purposes stated herein, and incidental purposes, shown or dedicated by the Map
recorded in Book 431 of Maps, at Page 32

	 	 	 
	For:

	 	Public Utility Easement
	Affects:

	 	The Easterly 10 feet of Said Land

Said easement is as depicted on the ALTA/ACSM Survey by Kier & Wright, Civil Engineers & Surveyors,
Inc., dated October 1, 2007, Job No. A03080-1

 

 

Exhibit C

Quarterly Certificate

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Gentlemen:

     This Certificate is furnished pursuant to subparagraph 2(D)(3) of the Closing Certificate and
Agreement (1299 Orleans) dated as of November 29, 2007 between Network Appliance, Inc. and BNP
Paribas Leasing Corporation(as amended, the “Closing Certificate”). Terms defined in the Closing
Certificate and used but not otherwise defined in this Certificate are intended to have the
respective meanings ascribed to them in the Closing Certificate.

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

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

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

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

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

     Executed this ______ day of ____________, 20___.

[INSERT SIGNATURE BLOCK FOR A
RESPONSIBLE FINANCIAL OFFICER]

 

 

Exhibit D

Form of Disclosure Letter

 

NETWORK APPLIANCE, INC.

DISCLOSURE LETTER

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

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

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

	 	 	 	 	 
	 	NETWORK APPLIANCE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Ingemar Lanevi 	 
	 	 	Title:  	Treasurer 	 
	 

 

 

Schedule 3.01

Subsidiaries

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

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

	 	N
	 	Cyprus
	 	Network Appliance
Global Ltd.
	 	100%
	Network Appliance 

Holding & Manufacturing 

BV

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

	 	N
	 	Netherlands
	 	Network Appliance

Holding & Mfg BV
	 	100%
	Network Appliance ApS

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

	 	N
	 	UK
	 	Network Appliance BV
	 	100%
	Network Appliance SAS

	 	N
	 	France
	 	Network Appliance BV
	 	100%
	Network Appliance GmbH

	 	N
	 	Germany
	 	Network Appliance BV
	 	100%
	Network Appliance Srl.

	 	N
	 	Italy
	 	Network Appliance BV
	 	100%
	Network Appliance GmbH

	 	N
	 	Switzerland
	 	Network Appliance BV
	 	100%

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 2

 

 

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

(Sales) Limited

	 	N
	 	Ireland
	 	Network Appliance BV
	 	100%
	Network Appliance GesmbH

	 	N
	 	Austria
	 	Network Appliance BV
	 	100%
	Network Appliance SL

	 	N
	 	Spain
	 	Network Appliance BV
	 	100%
	Network Appliance BVBA

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

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

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

	 	N
	 	Poland
	 	Network Appliance BV
	 	100%
	Network Appliance 

Sweden AB

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

	 	N
	 	South Africa
	 	Network Appliance BV
	 	100%
	Network Appliance 

Finland Oy

	 	N
	 	Finland
	 	Network Appliance BV
	 	100%
	Network Appliance 

Norway AS

	 	N
	 	Norway
	 	Network Appliance BV
	 	100%
	Network Appliance BV

(Representative Office)

	 	N
	 	UAE
	 	Network Appliance BV
	 	100%

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 3

 

 

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

(Representative Office)

	 	N
	 	Turkey
	 	Network Appliance BV
	 	100%
	Network Appliance BV

(Representative Office)

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

	 	N
	 	Luxembourg
	 	Network Appliance BV
	 	100%
	Network Appliance BV

(Representative Office)

	 	N
	 	Indonesia
	 	Network Appliance BV
	 	100%
	Network Appliance BV

(Representative Office

	 	N
	 	Philippines
	 	Network Appliance BV
	 	100%
	Network Appliance KK

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

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

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

	 	N
	 	Singapore
	 	Network Appliance
Inc.
	 	100%
	Network Appliance Sdn 

Bhd

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

	 	N
	 	India
	 	Network Appliance
Inc.
	 	100%
	Network Appliance 

Argentina Srl

	 	N
	 	Argentina
	 	Network Appliance
Inc.
	 	100%

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 4

 

 

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

	 	N
	 	Brazil
	 	Network Appliance
Inc.
	 	100%
	Network Appliance
Canada Ltd.

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

	 	N
	 	China
	 	Network Appliance BV
	 	100%
	Network Appliance (Hong 

Kong) Limited

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

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

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

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

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

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

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

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

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	100%

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 5

 

 

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

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

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

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

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	100%
	Decru BV

	 	N
	 	Netherlands
	 	Network Appliance

Holding & Mfg BV
	 	100%
	Network Appliance 

Limited

	 	N
	 	Thailand
	 	Network Appliance
Inc.
	 	100%
	Network Appliance Saudi 

Arabia LLFC

	 	N
	 	Saudi Arabia
	 	Network Appliance BV
	 	100%
	Decru Ltd.

	 	N
	 	U.K.
	 	Decru Inc.
	 	100%
	Topio, Inc.

	 	N
	 	Delaware
	 	Network Appliance
Inc.
	 	100%

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

     None.

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

     None.

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 6

 

 

Schedule 3.06

Disclosed Matters

None.

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 7

 

 

Schedule 6.01

Existing Indebtedness

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

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

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

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 8

 

 

Schedule 6.02

Existing Liens

Liens in connection with items disclosed on Schedule 6.01.

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 9

 

 

Schedule 6.05

Existing Affiliate Transactions

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

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

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

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

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

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

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

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 10

 

 

Schedule 6.06

Existing Restrictive Agreements

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

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

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

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

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

 
Exhibit D to Closing Amended and Restated
Certificate and Agreement (1299 Orleans) — Page 11

 

 

Exhibit E

Certificate of BNPPLC Re: Accounting

Network Appliance, Inc.

7301 Kit Creek Road

Research Triangle Park, NC 27709

Attention: Ingemar Lanevi

Gentlemen:

     This certificate is furnished pursuant to subparagraph 4(A) of the Closing Certificate and
Agreement (1299 Orleans) dated as of November 29, 2007 between BNP Paribas Leasing Corporation and
Network Appliance, Inc. (as amended, the “Closing Certificate”). Terms defined in the Closing
Certificate and used but not otherwise defined in this certificate are intended to have the
respective meanings ascribed to them in the Closing Certificate.

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

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

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

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

 

 

     Executed this _________ day of __________________, 20___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 
Exhibit E to Closing Certificate and Agreement (1299 Orleans) — Page 2

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