Sample Business Contracts


Construction Management Agreement [Phase II - Improvements] - BNP Leasing Corp. and Network Appliance Inc.

Construction Contract: Customize your construction contract to avoid misunderstandings on project scope, timelines and payment terms.




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






                        CONSTRUCTION MANAGEMENT AGREEMENT
                            (PHASE II - IMPROVEMENTS)





                                     BETWEEN





                             BNP LEASING CORPORATION

                                    ("BNPLC")



                                       AND



                             NETWORK APPLIANCE, INC.

                                     ("NAI")






                                   MAY 3, 1999

                             (SUNNYVALE, CALIFORNIA)






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



<PAGE>   2


                               TABLE OF CONTENTS



                                                                                     Page
                                                                                     ----
                                                                                  
RECITALS                                                                               1

CONSENT AND AUTHORIZATION                                                              1

GENERAL TERMS AND CONDITIONS                                                           1

1.      CONSTRUCTION BY NAI                                                            1

        (A)    The Construction Project                                                1

               (1)    Construction Approvals by BNPLC                                  1

                      (a)   Preconstruction Approvals by BNPLC                         1

                      (b)   Definition of Scope Change                                 2

                      (c)   Approval of Scope Changes                                  2

               (2)    NAI's Right to Control and Responsibility for Construction       2

                      (a)   Performance of the Work                                    2

                      (b)   Third Party Contracts                                      3

                      (c)   Third Party Estoppels                                      4

                      (d)   Adequacy of Drawings, Specifications and Budgets           4

                      (e)   Existing Condition of the Land and Improvements            4

                      (f)   Correction of Defective Work                               4

                      (g)   Clean Up.                                                  4

                      (h)   No Damage for Delays                                       5

                      (i)   No Fee For Construction Management                         5

               (3)    Quality of Work                                                  5

        (B)    Completion Notice                                                       5

2.      CONSTRUCTION ADVANCES                                                          5

        (A)    Costs Subject to Reimbursement Through Construction Advances            5

        (B)    Exclusions From Reimbursable Construction-Period Costs                  6

        (C)    Conditions to NAI's Right to Receive Construction Advances              7

               (1)    Construction Advance Requests                                    7

               (2)    Amount of the Advances                                           7

                      (a) Limit Dependent Upon the Maximum Construction
                          Allowance                                                    7

                      (b) Limit Dependent Upon Costs Previously
                          Incurred by NAI                                              7

                      (c) Limit During CMA Suspension Period                           8

                      (d) Restrictions Imposed for Administrative Convenience          9

               (3)    No Advances After Certain Dates                                  9

        (D)    Breakage Costs for Construction Advances Requested But Not Taken        9

        (E)    No Third Party Beneficiaries                                            9

        (F)    No Waiver                                                               9

        (G) Funding by Participants                                                    9

3.      NORMAL TENANT IMPROVEMENTS                                                    11

        (A)    Definition of Normal Tenant Improvements                               11

        (B)    Advances for Normal Tenant Improvements                                11




<PAGE>   3



                                                                                     Page
                                                                                     ----
                                                                                  
        (C)    Tenant's Obligation to Construct Normal Tenant Improvements            11

4.      COST OVERRUNS                                                                 11

        (A)    Definition of Projected Cost Overruns                                  11

        (B)    Notice of Projected Cost Overruns                                      12

        (C)    Election to Make a Voluntary NAI Construction Contribution             12

5.      SUSPENSION AND TERMINATION                                                    12

        (A)    CMA Suspension Events                                                  12

               (1)    Projection of Cost Overruns                                     12

               (2)    Interruption of Construction                                    12

               (3)    Failure of NAI to Correct Defective Work                        13

               (4)    Failure of NAI to Provide Evidence of Costs and Expenses        13

        (B)    FOCB Notices, Preemptive Notices and CMA Termination Events            13

        (C)    Rights and Obligations of NAI During a CMA Suspension Period           14

        (D)    Election by NAI to Terminate                                           14

        (E)    BNPLC's Right to Terminate                                             14

        (F)    Rights and Obligations Surviving Termination                           14

        (G)    Cooperation by NAI Following any Termination                           15



                                    EXHIBITS


Exhibit A             Legal Description

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

Exhibit C             Form of Contractor Estoppel

Exhibit D             Form of Design Professional Estoppel

Exhibit E             Notice Requesting Advance to Cover Insurance Deductible

Exhibit F             Construction Advance Request Form

Exhibit G             Notice of Voluntary NAI Funding Commitment

Exhibit H             Preemptive Notice by NAI

Exhibit I             Notice of Termination by NAI



                                      (2)

<PAGE>   4

                        CONSTRUCTION MANAGEMENT AGREEMENT
                            (PHASE II - IMPROVEMENTS)

        This CONSTRUCTION MANAGEMENT AGREEMENT (PHASE II - IMPROVEMENTS) (this
"AGREEMENT"), by and between BNP LEASING CORPORATION, a Delaware corporation
("BNPLC"), and NETWORK APPLIANCE, INC., a California corporation ("NAI"), is
made and dated as of May 3, 1999, the Effective Date. ("EFFECTIVE DATE" and
other capitalized terms used and not otherwise defined in this Agreement are
intended to have the meanings assigned to them in the Common Definitions and
Provisions Agreement (Phase II - Improvements) executed by BNPLC and NAI
contemporaneously with this Agreement. By this reference, the Common Definitions
and Provisions Agreement (Phase II - Improvements) is incorporated into and made
a part of this Agreement for all purposes.)

                                    RECITALS

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

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

                            CONSENT AND AUTHORIZATION

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

                          GENERAL TERMS AND CONDITIONS



                                      (3)
<PAGE>   5

1       CONSTRUCTION BY NAI.

(A)     The Construction Project.

        (1)     Construction Approvals by BNPLC.

                (a)     Preconstruction Approvals by BNPLC. NAI submitted and
                obtained BNPLC's approval of the site plan and descriptions of
                the Construction Project referenced in Exhibit B. Also set forth
                in Exhibit B is a general description of the Construction
                Project. The Construction Project, as constructed by NAI
                pursuant to this Agreement, and all construction contracts and
                other agreements executed or adopted by NAI in connection
                therewith, shall be not materially inconsistent with the plans
                or other items referenced in Exhibit B, except to the extent
                otherwise provided by any Scope Change (as defined below)
                approved by BNPLC and except as otherwise provided in
                subparagraph 6(d) of the Improvements Lease if BNPLC should make
                a Landlord's Election to Continue Construction after any
                termination of this Agreement.

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

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

        (2)     NAI's Right to Control and Responsibility for Construction.
        Subject to the terms and conditions set forth in this Agreement and in
        the Improvements Lease, and prior to any termination of this Agreement
        as provided in subparagraphs 5(D) and 5(E), NAI shall have the sole
        right to control and the sole responsibility for the design and
        construction of the Construction Project, including the means, methods,
        sequences and procedures implemented to accomplish such design and
        construction. Although title to all Improvements will pass directly to
        BNPLC (as more particularly provided in Paragraph 7 of the Improvements
        Lease), BNPLC's obligation with respect to the Construction Project
        shall be limited to the making of advances under and subject to the
        conditions set forth in this Agreement and in Paragraph 6 of the
        Improvements Lease. Without limiting the foregoing, NAI acknowledges and
        agrees that:

                (a)     Performance of the Work. Except as provided in
                subparagraphs 5(C) and 5(F), NAI must, using its best skill and
                judgment and in an expeditious and economical manner not
                inconsistent with the interests of BNPLC, perform or cause to be
                performed all work required, and will provide or cause to be
                provided all supplies and materials



                                       2
<PAGE>   6

                required, to design and complete construction of the
                Construction Project (collectively "WORK"). The Work will
                include obtaining all necessary building permits and other
                governmental approvals required in connection with the design
                and construction of the Construction Project, including the
                design and construction of Normal Tenant Improvements (as
                defined below), or required in connection with the use and
                occupancy thereof (e.g., final certificates of occupancy). The
                Work will also include any repairs or restoration required
                because of damage to Improvements by fire or other casualty
                prior to the Base Rent Commencement Date (a "PRE-COMMENCEMENT
                CASUALTY"); however, the cost of any such repairs or restoration
                will be subject to reimbursement not only through Construction
                Advances made on and subject to the terms and conditions of this
                Agreement, but also through the application of Escrowed Proceeds
                as provided in the Improvements Lease. NAI will carefully
                schedule and supervise all Work, will check all materials and
                services used in connection with all Work and will keep full and
                detailed accounts as may be necessary to document expenditures
                made or expenses incurred for the Work. Subject to delays beyond
                the reasonable control of NAI, NAI shall cause all Work to be
                completed on or before July 1, 2000.

        (b)     Third Party Contracts.

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

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

                3)      As necessary to limit the total Reimbursable Third Party
                Contract Termination Fees (as defined below) for which BNPLC may
                be required to provide Construction Advances to no more than
                $7,000,000 (the "MAXIMUM PERMITTED TERMINATION FEES"), NAI shall
                reserve in every significant Third Party Contract an absolute
                express right to terminate such contract at any time, without
                cause. Although any Third Party Contract (other than an
                Affiliate's Contract) may require NAI to pay a specified
                Termination Fee in the event of such a termination, the
                specified Termination Fee must not exceed the difference
                computed by subtracting (I) the aggregate of all Termination
                Fees that have been paid or would become payable by NAI if NAI
                terminated all other Third Party Contracts, from (II) the
                Maximum Permitted Termination Fees. Without limiting the
                foregoing, NAI will manage and administer all Third Party
                Contracts as necessary to ensure that, at any point in time, NAI
                can terminate all such contracts without becoming liable for
                Termination Fees in excess of the Maximum Permitted Termination
                Fees.

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



                                       3
<PAGE>   7

                to such contract for purposes of this Agreement will be the
                amount of damages that NAI could be required to pay (in addition
                to payments required for Prior Work) upon an anticipatory
                repudiation of the Third Party Contract by NAI.

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

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

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

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

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

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

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

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



                                       4
<PAGE>   8

(B)     Completion Notice . NAI shall provide a notice (a "COMPLETION NOTICE")
to BNPLC promptly after construction of the Construction Project is
substantially complete, advising BNPLC of the substantial completion.

2       CONSTRUCTION ADVANCES.

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

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

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

        (3)     Commitment Fees;

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

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

                -       site preparation costs, and

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

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

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

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

In addition to other Construction Advances required by this subparagraph 2A, but
subject to the other terms and conditions hereof, a Construction Advance will be
provided by BNPLC on the Base Rent Commencement Date in the form of additional
Escrowed Proceeds (to be held and applied like other Escrowed Proceeds pursuant
to the Improvements Lease) equal to any



                                       5
<PAGE>   9

reduction in property insurance proceeds paid or payable with respect to the
Property because of a property insurance deductible permitted by Exhibit B
attached to the Improvements Lease, if:

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

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

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

        (1)     Environmental Losses;

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

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

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

        (5)     costs of Normal Tenant Improvements (as defined below), except
        to the extent that BNPLC agrees to allow the reimbursement of such costs
        from the Construction Allowance as provided in subparagraph 3(B).

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

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


                                       6
<PAGE>   10

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

        (2)     Amount of the Advances.

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

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

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

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

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



                                       7
<PAGE>   11

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

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

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

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

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

        (3) No Advances After Certain Dates. BNPLC shall have no obligation to
        make any Construction Advance (x) after the Base Rent Commencement Date,
        (y) on or after the Designated Sale Date, or (z) on or after the date of
        any termination of this Agreement pursuant to subparagraph 5(D) or
        subparagraph 5(E).

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

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

                                       8
<PAGE>   12


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

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

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

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

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

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

          (b) BNPLC shall not unreasonably withhold its approval for the
          substitution of any new participant proposed by NAI for Defaulting
          Participants, if (A) the proposed substitution does not require BNPLC
          to waive rights against the Defaulting Participants, (B) the new
          participant will agree (by executing supplement to the Participation
          Agreement as provided in the Participation Agreement) to provide funds
          to replace the payments that would otherwise be required of the
          Defaulting Participants with respect to future Construction Advances,
          (C) the new participant (or NAI) provides the funds (if any) needed to
          terminate the Defaulting Participants' rights to receive payments of
          "Net Cash Flow" (as defined in the Participation Agreement) that BNPLC
          will be required to pay the new participant under the terms of the
          substitution reasonably proposed by NAI, (D) the new participant (or
          NAI) provides and agrees in writing to provide funds needed to
          reimburse BNPLC for any and all Losses incurred by BNPLC in connection
          with or because of the substitution of the new participant for the
          Defaulting Participants, including any cost of defending and paying
          any claim asserted by Defaulting Participants because of the


                                       9
<PAGE>   13

          substitution (but not including any liability of BNPLC to the
          Defaulting Participants for damages caused by BNPLC's bad faith or
          gross negligence in the performance of BNPLC's obligations to the
          Defaulting Participants), (E) the obligations of BNPLC to the new
          participant per dollar of the new participant's "investment" (it being
          understood that such investment will be computed in a manner
          consistent with the examples set forth in Exhibit A to the
          Participation Agreement, but net of reimbursements to BNPLC under
          clause (D) preceding) shall not exceed the obligations per dollar of
          investment by the Defaulting Participants that BNPLC would have had to
          the Defaulting Participants if there had been no Participant Default,
          and (F) the new participant shall be a reputable financial institution
          having a net worth of no less than seven and one half percent (7.5%)
          of total assets and total assets of no less than $10,000,000,000.00
          (all according to then recent audited financial statements).

3 NORMAL TENANT IMPROVEMENTS.

(A) Definition of Normal Tenant Improvements. As used herein, "NORMAL TENANT
IMPROVEMENTS" shall mean any "below-ceiling" interior finishes and special
fixtures or equipment to be constructed for NAI within the Improvements as part
of the Construction Project, BUT WILL NOT INCLUDE (1) costs of structural
elements of the Construction Project, or (2) equipment that would be necessary
for the use of the Improvements by any lessee (e.g., HVAC equipment, elevators,
standard electrical wiring).

(B) Advances for Normal Tenant Improvements. Nothing herein shall be construed
as a commitment or an agreement by BNPLC to pay for Normal Tenant Improvements,
other than Normal Tenant Improvements contemplated in the description of the
Construction Project set forth in Exhibit B and the attachments thereto. BNPLC
does, however, acknowledge that incorporated into the total Construction
Allowance is an amount for contingencies (e.g., cost overruns related to
structural components of Improvements, HVAC equipment, elevators, etc.), for
which BNPLC shall be obligated to provide Construction Advances on and subject
to the terms and conditions set forth in Paragraph 2. To the extent, if any,
that NAI does not exhaust the Construction Allowance by using Construction
Advances for other costs (e.g., the actual costs incurred for structural
components of Improvements, HVAC equipment, elevators, etc.), BNPLC will allow
NAI to reimburse itself through Construction Advances funded on and subject to
the terms and conditions of Paragraph for the costs of any Normal Tenant
Improvements in addition to those contemplated in the description of the
Construction Project set forth in Exhibit B and the attachments thereto.
Otherwise, any such additional Normal Tenant Improvements will be paid for by
NAI.

(C) Tenant's Obligation to Construct Normal Tenant Improvements. NAI shall
construct all Normal Tenant Improvements in a good and workmanlike manner and in
accordance with the same standards and requirements imposed by this Agreement
for other Work.


4 COST OVERRUNS.

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



                                       10
<PAGE>   14
(B) Notice of Projected Cost Overruns . If for any reason (including any damage
to the Property by fire or other casualty or any taking of any part of the
Property by condemnation) NAI believes (after taking into account any Voluntary
NAI Construction Contributions NAI has made or committed to make as provided in
subparagraph 4(C)) that Projected Cost Overruns are more likely than not at the
time NAI submits any Construction Advance Request, NAI shall state such belief
in the Construction Advance Request and, if NAI can reasonably do so, NAI will
estimate the approximate amount of such Projected Cost Overruns.

(C) Election to Make a Voluntary NAI Construction Contribution . As used in this
Agreement, "VOLUNTARY NAI CONSTRUCTION CONTRIBUTION" shall mean a voluntary,
nonrefundable payment made to BNPLC by NAI prior to the Base Rent Commencement
Date and delivered with or pursuant to a notice in the form of Exhibit G,
confirming that a Voluntary NAI Construction Contribution is being paid or will
be paid pursuant to this subparagraph. To prevent the occurrence of or to cure
any CMA Suspension Event described in subparagraph 5(A)(1), NAI shall be
entitled (but not obligated) to make or commit to make a Voluntary NAI
Construction Contribution in addition to (and, except as provided in the
definition of Issue 97-10 Prepayment in the Common Definitions and Provisions
Agreement (Phase II - Improvements), without reducing or excusing) any other
amounts then due from NAI to BNPLC pursuant to the Operative Documents. Like
other Qualified Prepayments, any Voluntary NAI Construction Contribution will
reduce the Outstanding Construction Allowance as described in the definition
thereof in the Common Definitions and Provisions Agreement (Phase II -
Improvements). In contrast, however, to other Qualified Prepayments, Voluntary
NAI Construction Contributions will be subtracted for purposes of calculating
the Funded Construction Allowance and, thus, will effectively increase the
subsequent Construction Advances available under the limit established by
subparagraph 2(C)(2)(a).

5 SUSPENSION AND TERMINATION.

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

    (1) Projection of Cost Overruns . Either (a) BNPLC shall receive any
    Construction Advance Request stating that NAI believes Projected Cost
    Overruns are more likely than not, as provided in subparagraph 4(B), or (b)
    (i) BNPLC shall otherwise determine in good faith that significant Projected
    Cost Overruns are likely (taking into account any failure of a Defaulting
    Participant to provide funds to BNPLC as required by the Participation
    Agreement and any prior Voluntary NAI Construction Contributions NAI has
    made or committed to make as provided in subparagraph 4(C)), (ii) BNPLC
    shall notify NAI of such determination and the basis therefor, and (iii) NAI
    shall fail to give any notice pursuant to subparagraph 4(C) that, by
    committing NAI to make or increase Voluntary NAI Construction Contributions,
    effectively eliminates the likelihood of the Projected Cost Overruns on or
    before five Business Days after BNPLC's notice to NAI of such determination.

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

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

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


                                       11
<PAGE>   15

    canceled checks, lien waivers and other evidence reasonably establishing
    that all prior Construction Advances have been used by NAI to pay, and only
    to pay, the Reimbursable Construction-Period Costs for which the prior
    advances were requested and made.

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

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

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

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

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

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

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

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

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

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

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

(C) Rights and Obligations of NAI During a CMA Suspension Period . As used
herein, "CMA SUSPENSION PERIOD" shall mean any period (1) beginning with the
date of any CMA Suspension Notice, FOCB Notice or Notice of NAI's Intent to
Terminate, and (2) ending on the earlier of (a) the first date upon which (i) no
CMA Suspension Events shall be continuing, and (ii) no CMA Termination Events
shall have occurred, or (b) the effective date of any termination of this
Agreement as described in subparagraph 5(D) or subparagraph 5(E). During any CMA
Suspension Period, NAI shall have the right to suspend the


                                       12
<PAGE>   16

Work; provided, however, the obligations of NAI which are to survive any
termination of this Agreement shall also continue and survive during any such
suspension of the Work.

(D) Election by NAI to Terminate. NAI may elect to terminate this Agreement at
any time prior to the Base Rent Commencement Date when NAI has determined that
(1) the Construction Advances to be provided to it hereunder will not be
sufficient to cover all Reimbursable Construction-Period Costs, whether because
the cost of the Work exceeds budgeted expectations (resulting in Projected Cost
Overruns), because of damage to the Property by fire or other casualty (other
than damage that would not have occurred, or been uninsured or under-insured,
but for an act or omission of NAI), because of a taking of any part of the
Property by condemnation, or because NAI can no longer satisfy conditions to
BNPLC's obligation to provide Construction Advances herein, or (2) the
Construction Project cannot be substantially completed before the Base Rent
Commencement Date for reasons other than a breach by NAI of this Agreement. To
be effective, however, any such election to terminate this Agreement must be
made by giving BNPLC and the Participants a notice thereof prior to the Base
Rent Commencement Date in the form of Exhibit I (a "NOTICE OF NAI'S INTENT TO
TERMINATE"), stating that NAI intends to terminate this Agreement pursuant to
this subparagraph on a date specified therein, which date is not less than
thirty days after the date of such notice. Unless terminated sooner pursuant to
subparagraph 5(E), this Agreement will automatically terminate on the effective
date so specified in any Notice of NAI's Intent to Terminate.

(E) BNPLC's Right to Terminate. BNPLC shall be entitled to terminate this
Agreement at any time (x) more than ninety days after BNPLC has given an FOCB
Notice as described in subparagraph 5(B)(1) (regardless of whether at the time
of such termination by BNPLC an Event of Default or other event or circumstance
described in subparagraph 5(B)(1) is continuing), provided that BNPLC shall not
have received an effective Preemptive Notice within thirty days after its
delivery of the FOCB Notice to NAI, (y) after the Designated Sale Date, or (z)
after BNPLC's receipt of a Notice of NAI's Intent to Terminate.

(F) Rights and Obligations Surviving Termination. Following any termination of
this Agreement as provided in subparagraph 5(D) or in 5(E), NAI shall have no
obligation to continue or complete any Work; provided, however, no termination
of this Agreement shall reduce or excuse the following rights and obligations of
the parties, it being intended that all such rights and obligations shall
survive and continue after any such termination:

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

        (2) NAI's obligations described in the next subparagraph 5(G).

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

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

    (2) Promptly after any request from BNPLC made with respect to any Third
    Party Contract, NAI shall deliver a letter confirming: (i) that NAI has not
    performed any act or executed any other instrument which invalidates or
    modifies such contract in whole or in part (or, if so, the nature of such
    modification); (ii) the extent to which such contract is valid and


                                       13
<PAGE>   17

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

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

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

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

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



                                       14
<PAGE>   18



IN WITNESS WHEREOF, NAI and BNPLC have caused this Agreement to be executed as
of May 3, 1999.

                                                  "NAI"

                                                  NETWORK APPLIANCE, INC.

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


                                       15
<PAGE>   19


[Continuation of signature pages to Construction Management Agreement (Phase II
- Improvements) dated to be effective May 3, 1999]

                                                  "BNPLC"

                                                  BNP LEASING CORPORATION

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

               Lloyd G. Cox, Vice President



                                       16
<PAGE>   20




                                   Exhibit A

                                LEGAL DESCRIPTION

All that certain real property situate in the City of Sunnyvale, State of
California, described as follows:

PARCEL ONE

All of Parcel "A" as said Parcel is shown upon that certain Parcel Map entitled
"For: Moffett Park Association, being a Redivision of Parcel "B" of Parcel Map
recorded in Book 292 of Maps in Page 41", which Map was filed for record in the
Office of the Recorder of the County of Santa Clara, State of California, on
August 28, 1974 in Book 345 of Map, at Page 20.

PARCEL TWO

An Easement for pedestrian and motor vehicle Right-of-Way for the purpose of
ingress over a portion of land more particularly described as follows:

A 15 foot strip of land over a portion of "Parcel "A", as said Parcel "A" is
shown on that certain Parcel Map filed for record on October 25, 1966 in Book
216 of Maps, at Page 2, records of Santa Clara County, and being more
particularly described as follows:

Commencing at the Northeast corner of said Parcel "A", said Northeast corner
also being a point on the center line of Crossman Road (90.00 feet wide); thence
North 75 deg 07' 58" West along the Northerly line of said parcel "A", a
distance of 85.00 feet to the True Point of Beginning of this description;
thence continuing along said Northerly line North 75 deg 07' 58" West, a
distance of 322.50 feet; thence South 14 deg 52' 02" West, a distance of 15.00
feet; thence South 75 deg 07' 58" East parallel with and distance 15.00 feet
Southerly measured at right angles from the Northerly line of said Parcel "A" a
distance of 322.50 feet; thence North 14 deg 52' 02" East, a distance of 15.00
feet to the True Point of Beginning.

                                Exhibit - Page 1


<PAGE>   21




                                   Exhibit B

                     DESCRIPTION OF THE CONSTRUCTION PROJECT

        Subject to future Scope Changes, the Construction Project will be
substantially consistent with the following general description and with the
Site Plan attached to this Exhibit.

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

The improvements will consist of one, proposed, three-story, office/research and
development building to be occupied by NAI. It will be located along the west
side of Crossman Avenue, just north of Java Drive and, in the City of Sunnyvale,
Santa Clara County, California. It is Phase II of the NAI corporate
headquarters. Phase I is currently under construction adjacent to the subject
property. The subject property is currently improved with as 25-year old,
one-story industrial building containing 78,818 square feet. It is currently
leased to TRW. The lease will terminate, the building will be vacated and then
razed for the construction of the proposed improvements. Upon completion, the
proposed building will contain 130,680 square feet of gross building area. The
proposed improvements will be sited on a total of 5.99 acres.

                                Exhibit - Page 1

<PAGE>   22


                                   Exhibit C
                            ESTOPPEL FROM CONTRACTOR

                                _________, 199__



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

        Re: Assignment of Construction Contract

Ladies and Gentlemen:

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


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

2 The undersigned has been advised that, by a Lease Agreement (Phase II -
Improvements) and a Construction Management Agreement (Phase II - Improvements),
both dated as of May 3, 1999 (collectively, the "IMPROVEMENTS LEASE DOCUMENTS"),
BNPLC is leasing the Project to NAI and has agreed, subject to the terms and
conditions of the Improvements Lease Documents, to provide a construction
allowance for the design and construction of the Improvements. The undersigned
has also been advised that the Improvements Lease Documents expressly provide
that third parties (including the undersigned) are not intended as beneficiaries
of the Improvements Lease Documents and, thus, will have no standing to enforce
any obligations of NAI or BNPLC under the Improvements Lease Documents,
including any such obligation that BNPLC may have to provide the construction
allowance. The undersigned understands that the Improvements Lease Documents
expressly provide that NAI is not authorized to enter into any construction
contract or other agreement with any third party in the name of BNPLC or to
otherwise bind BNPLC to any contract with a third party.

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

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


                                Exhibit - Page 1

<PAGE>   23


BNP Leasing Corporation
______________, 199____
Page 2


    The undersigned acknowledges and agrees that:

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

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

    c) If BNPLC notifies the undersigned that BNPLC shall not assume the
Construction Contract pursuant to the preceding paragraph following the
termination of NAI's right to possession of the Project under the Improvements
Lease Documents, the undersigned shall immediately discontinue the work under
the Construction Contract and remove its personnel from the Project, and BNPLC
shall be entitled to take exclusive possession of the Project. The undersigned
shall also, upon request by BNPLC, deliver and assign to BNPLC all plans and
specifications and other contract documents previously delivered to the
undersigned (except that the undersigned may keep an original set of the
Construction Contract and other contract documents executed by NAI), all other
material relating to the work which belongs to BNPLC or NAI, and all

                                 Exhibit-Page 2
<PAGE>   24
BNP Leasing Corporation
______________, 199____
Page 3


papers and documents relating to governmental permits, orders placed, bills and
invoices, lien releases and financial management under the Construction
Contract. Notwithstanding the undersigned's receipt of any notice from BNPLC
that BNPLC declines to assume the Construction Contract, the undersigned shall
for a period not to exceed fifteen days after receipt of such notice take such
steps, at BNPLC's expense, as are reasonably necessary to preserve and protect
work completed and in progress and to protect materials, equipment and supplies
at the site or in transit.

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

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

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

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

To the undersigned:              ______________________

                                 ______________________

                                 ______________________

                            Telecopy: (___) ___-_____


                                 Exhibit-Page 3

<PAGE>   25

BNP Leasing Corporation
______________, 199____
Page 4


To BNPLC:              BNP Leasing Corporation

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

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

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

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

                                        Very truly yours,

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



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

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

                                        Network Appliance, Inc.

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

                                 Exhibit-Page 4

<PAGE>   26



BNP Leasing Corporation
_______________, 199___

Page 1


                                   Exhibit D

                       ESTOPPEL FROM DESIGN PROFESSIONALS

                                _________, 199__

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


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

Ladies and Gentlemen:

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

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

2 The undersigned has been advised that, by a Lease Agreement (Phase II
Improvements) and a Construction Management Agreement (Phase II - Improvements),
both dated as of May 3, 1999 (collectively, the "IMPROVEMENTS LEASE DOCUMENTS"),
BNPLC is leasing the Project to NAI and has agreed, subject to the terms and
conditions of the Improvements Lease Documents, to provide a construction
allowance for the design and construction of the Improvements. The undersigned
has also been advised that the Improvements Lease Documents expressly provide
that third parties (including the undersigned) are not intended as beneficiaries
of the Improvements Lease Documents and, thus, will have no standing to enforce
any obligations of NAI or BNPLC under the Improvements Lease Documents,
including any such obligation that BNPLC may have to provide the construction
allowance. The undersigned understands that the Improvements Lease Documents
expressly provide that NAI is not authorized to enter into any Agreement or
other agreement with any third party in the name of BNPLC or to otherwise bind
BNPLC to any contract with a third party.

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

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

                                 Exhibit-Page 1

<PAGE>   27

BNP Leasing Corporation
______________, 199____
Page 2


    The undersigned acknowledges and agrees that:

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

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

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

                                 Exhibit-Page 2

<PAGE>   28
BNP Leasing Corporation
______________, 199____
Page 3


days after receipt of such notice take such steps, at BNPLC's expense, as are
reasonably necessary to preserve the utility and value of services completed and
in progress and to protect plans and specifications and other materials
described in the preceding sentence.

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

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

    f) The undersigned agrees promptly to notify BNPLC of any material default
or claimed material default by NAI under the Agreement of which the undersigned
is aware, describing with particularity the default and the action the
undersigned believes is necessary to cure the same. The undersigned will send
any such notice to BNPLC prominently marked "URGENT - NOTICE OF NAI'S DEFAULT
UNDER DESIGN AGREEMENT WITH NETWORK APPLIANCE, INC. - SUNNYVALE, CALIFORNIA" at
the address specified for notice below (or at such other addresses as BNPLC
shall designate in notice sent to the undersigned), by certified or registered
mail, return receipt requested. Following receipt of such notice, the
undersigned will permit BNPLC or its designee to cure any such default within
the time period reasonably required for such cure, but in no event less than
thirty days.

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

To the undersigned:              ______________________

                                 ______________________

                                 ______________________

                            Telecopy: (___) ___-_____



                                 Exhibit-Page 3
<PAGE>   29
BNP Leasing Corporation
______________, 199__
Page 4

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

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

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

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

                                        Very truly yours,

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


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

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

                                        Network Appliance, Inc.

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

                                 Exhibit-Page 4

<PAGE>   30


                                   Exhibit E

        NOTICE REQUESTING ADVANCE TO COVER PROPERTY INSURANCE DEDUCTIBLE

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

    Re: Construction Management Agreement (Phase II - Improvements) dated as of
May 3, 1999 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

                            $______________________,



on the Base Rent Commencement Date, which will occur on:

                              _______________, 199  .

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

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

    Executed this _____ day of ______________, 19___.

                                               NETWORK APPLIANCE, INC.

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


                                 Exhibit-Page 1

<PAGE>   31




                                   Exhibit F

                        CONSTRUCTION ADVANCE REQUEST FORM


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

    Re: Construction Management Agreement (Phase II - Improvements) dated as of
May 3, 1999 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

                                 $____________________,



on the Advance Date that will occur on:

                                 ______________, 199  .

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

I.  CALCULATION OF LIMIT IMPOSED BY SUBPARAGRAPH  OF THE CONSTRUCTION MANAGEMENT
AGREEMENT:

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

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

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


        LIMIT (1 + 2 - 3) $________________



                                 Exhibit-Page 1

<PAGE>   32



II. PROJECTED COST OVERRUNS:

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

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

III. ABSENCE OF CERTAIN CMA SUSPENSION EVENTS:

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

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

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

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

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

    Executed this _____ day of ______________, 19___.

                                               NETWORK APPLIANCE, INC.

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

                                 Exhibit-Page 2

<PAGE>   33



                                   Exhibit G

                     NOTICE OF VOLUNTARY NAI CONSTRUCTION CONTRIBUTION

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


    Re: Construction Management Agreement (Phase II - Improvements) dated as of
May 3, 1999 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

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

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

    Executed this _____ day of ______________, 19___.

                                               NETWORK APPLIANCE, INC.

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


                                 Exhibit Page 1


<PAGE>   34


                                   Exhibit H

                            PREEMPTIVE NOTICE BY NAI

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

    Re: Construction Management Agreement (Phase II - Improvements) dated as of
May 3, 1999 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

                             ----------------, ----.



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

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

    Executed this _____ day of ______________, 19___.


                                               NETWORK APPLIANCE, INC.

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

[cc all Participants]

                                 Exhibit-Page 1

<PAGE>   35



                                   Exhibit I

                          NOTICE OF TERMINATION BY NAI

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

    Re: Construction Management Agreement (Phase II - Improvements) dated as of
May 3, 1999 (the "CONSTRUCTION MANAGEMENT AGREEMENT"), between Network
Appliance, Inc. ("NAI") and BNP Leasing Corporation ("BNPLC")

Gentlemen:

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

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

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

    ______________, 19___

    NAI ACKNOWLEDGES THAT THE ELECTION MADE BY NAI DESCRIBED ABOVE CONSTITUTES
AN ISSUE 97-10 ELECTION UNDER AND AS DEFINED IN THE OPERATIVE DOCUMENTS.

    Executed this _____ day of ______________, 19___.

                                               NETWORK APPLIANCE, INC.

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

[cc all Participants]

                                 Exhibit - Page 1


ClubJuris.Com