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EXHIBIT 10.49
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CLOSING CERTIFICATE
(PHASE IV)
AND
AGREEMENT
BETWEEN
NETWORK APPLIANCE, INC.,
("NAI")
AND
BNP LEASING CORPORATION
("BNPLC")
DECEMBER ___, 1999
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TABLE OF CONTENTS
Page
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1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF NAI CONCERNING THE PROPERTY.............1
(A) Condition of the Property.....................................................1
(B) Title to the Property.........................................................2
(C) Title Insurance...............................................................2
(D) Environmental Representations.................................................2
(E) Cooperation by NAI and its Affiliates.........................................2
2 OTHER REPRESENTATIONS, WARRANTIES, COVENANTS AND ACKNOWLEDGMENTS OF NAI..............3
(A) No Default or Violation of Other Agreements...................................3
(B) No Suits......................................................................3
(C) Enforceability................................................................3
(D) Solvency......................................................................3
(E) Organization..................................................................4
(F) Existence.....................................................................4
(G) Not a Foreign Person..........................................................4
(H) Investment Company Act........................................................4
(I) ERISA.........................................................................4
(J) Use of Proceeds...............................................................4
(K) Omissions.....................................................................5
(L) Y2000 Issues..................................................................5
(M) Further Assurances............................................................5
(N) No Implied Representations or Promises by BNPLC...............................5
3 LIMITED COVENANTS AND REPRESENTATIONS BY BNPLC.......................................5
(A) Cooperation of BNPLC to Facilitate Use........................................5
(B) Actions Permitted by NAI Without BNPLC's Consent..............................7
(C) Waiver of Landlord's Liens....................................................7
(D) Estoppel Letter...............................................................7
(E) Limited Representations by BNPLC Concerning Accounting Matters................8
(F) Other Limited Representations by BNPLC........................................9
(1) No Default or Violation................................................9
(2) No Suits...............................................................9
(3) Enforceability.........................................................9
(4) Organization...........................................................9
(5) Existence..............................................................9
(6) Not a Foreign Person...................................................9
(7) Bankruptcy.............................................................9
4 OBLIGATIONS OF NAI UNDER OTHER OPERATIVE DOCUMENTS NOT LIMITED BY THIS
AGREEMENT..........................................................................10
5 OBLIGATIONS OF NAI HEREUNDER NOT LIMITED BY OTHER OPERATIVE DOCUMENTS...............10
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EXHIBITS AND SCHEDULES
Exhibit A......................................................Legal Description
Exhibit B.............................................Permitted Encumbrance List
Exhibit C..............................................Development Document List
Exhibit D.........................Standard Notice of Request for Action by BNPLC
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CLOSING CERTIFICATE AND AGREEMENT
This CLOSING CERTIFICATE AND AGREEMENT (this "AGREEMENT"), by and between
NETWORK APPLIANCE, INC., a California corporation ("NAI"), and BNP LEASING
CORPORATION, a Delaware corporation ("BNPLC"), is made and dated as of December
___, 1999 (the "EFFECTIVE DATE").
RECITALS
A. Contemporaneously with the execution of this Agreement, BNPLC and NAI
are executing a Common Definitions and Provisions Agreement (Phase IV -
Improvements) (the "IMPROVEMENTS CDPA"), and a Common Definitions and Provisions
Agreement (Phase IV - Land) (the "LAND CDPA"), each dated as of the Effective
Date, which are each incorporated into and made a part of this Agreement for all
purposes. Capitalized terms defined in the Improvements CDPA and used but not
otherwise defined herein are intended in this Agreement to have the respective
meanings ascribed to them in the Improvements CDPA. Any capitalized terms
defined in the Land CDPA and used but not otherwise defined herein or in the
Improvements CDPA are intended in this Agreement to have the respective meanings
ascribed to them in the Land CDPA. As used in this Agreement, "PROPERTY" is
intended to mean, collectively, the Property as defined in the Improvements CDPA
and the Property as defined in the Land CDPA; "IMPROVEMENT DOCUMENTS" is
intended to mean, collectively, the Operative Documents as defined in the
Improvements CDPA; "LAND DOCUMENTS" is intended to mean the Operative Documents
as defined in the Land CDPA; "OPERATIVE DOCUMENTS" is intended to mean the
Improvement Documents and the Land Documents, collectively; "IMPROVEMENTS LEASE"
is intended to mean the Lease as defined in the Improvements CDPA; "LEASES" is
intended to mean the Improvements Lease and the Lease as defined in the Land
CDPA, collectively; "PURCHASE AGREEMENTS" is intended to mean the Purchase
Agreement as defined in the Improvements CDPA and the Purchase Agreement as
defined in the Land CDPA, collectively; and "DESIGNATED SALE DATE" is intended
to mean the earlier of the Designated Sale Date as defined in the Improvements
CDPA or the Designated Sale Date as defined in the Land CDPA.
B. As a condition to its execution of other Operative Documents, BNPLC
requires the representations, warranties and covenants of NAI set out below. At
the request of NAI and to facilitate the transactions contemplated in the other
Operative Documents, BNPLC is acquiring the Land described in Exhibit A attached
hereto from Seller and any interest of Seller in any existing Improvements
thereon, subject to the Permitted Encumbrances described in Exhibit B attached
hereto and with the understanding that development and use of such Land may be
subject to or benefitted by the Development Documents described in Exhibit C
attached hereto (if any).
C. As a condition to its execution of other Operative Documents, NAI
requires the representations and covenants of BNPLC set out below.
NOW, THEREFORE, in consideration of the above recitals and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF NAI CONCERNING THE PROPERTY.
NAI represents, warrants and covenants as follows:
(A) Condition of the Property. The Land as described in Exhibit A is the
same as the land shown on the plat included as part of the survey titled
"ALTA/ACSM LAND TITLE SURVEY FOR NETWORK APPLIANCE, 0000 XXXXXXXX XXXXXX, 0000
XXXXXXXX XXXXXX, 0000 XXXXXX XXXXX, AND 0000
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XXXXXX XXXXX" made by Xxxx & Xxxxxx, Licensed Land Surveyor, dated December 2,
1999, as Job No. 97208-16, which survey was delivered to BNPLC at the request of
NAI, and except as shown on the survey there are to the best of NAI's knowledge
no easements or encroachments visible or apparent from an inspection of the
Land. No significant encroachment of building Improvements exist across the
boundaries of the Land described in Exhibit A, and no significant building
Improvements that presently exist on the Land may be disturbed by reason of the
exercise of easement or other rights created by any of the Permitted
Encumbrances. Adequate provision has been made for the Land and the Property to
be served by electric, gas, storm and sanitary sewers, sanitary water supply,
telephone and other utilities required for the use thereof. All streets, alleys
and easements necessary to serve the Land and Improvements contemplated by the
Improvements Lease have been completed and are serviceable. To the best of NAI's
knowledge, no extraordinary circumstances (including any use of the Land as a
habitat for endangered species) exists that would materially and adversely
affect the use of any Improvements for their intended purposes or other
reasonable future development of the Land. NAI is not aware of any latent or
patent material defects or deficiencies in the Property that, either
individually or in the aggregate, could materially and adversely affect the use
or occupancy of the Property or the construction or use of Improvements as
permitted by the Improvements Lease or could reasonably be anticipated to
endanger life or limb. No part of the Land is within a flood plain as designated
by any governmental authority.
(B) Title to the Property. The deed that Seller is executing in favor of
BNPLC pursuant to the Existing Contract shall vest in BNPLC good and marketable
title to the Land and Improvements, subject only to the Permitted Encumbrances,
the Development Documents and any Liens Removable by BNPLC. NAI shall not,
without the prior consent of BNPLC, create, place or authorize, or through any
act or failure to act, acquiesce in the placing of, any deed of trust, mortgage
or other Lien, whether statutory, constitutional or contractual against or
covering the Property or any part thereof (other than Permitted Encumbrances and
Liens Removable by BNPLC), regardless of whether the same are expressly or
otherwise subordinate to the Operative Documents or BNPLC's interest in the
Property.
(C) Title Insurance. Without limiting NAI's obligations under the preceding
subparagraph, contemporaneously with the execution of this Agreement NAI shall
provide to BNPLC a title insurance policy (or binder committing the applicable
title insurer to issue a title insurance policy, without the payment of further
premiums) in the amount of no less than $62,000,000, in form and substance
satisfactory to BNPLC, written by one or more title insurance companies
satisfactory to BNPLC and insuring BNPLC's fee estate in the Land and
Improvements.
(D) Environmental Representations. To the knowledge of NAI except as
otherwise disclosed in the Environmental Report: (i) no Hazardous Substances
Activity has occurred prior to the Effective Date; (ii) no owner or operator of
the Property has reported or been required to report any release of any
Hazardous Substances on or from the Property pursuant to any Environmental Law;
and (iii) no owner or operator of the Property has received from any federal,
state or local governmental authority any warning, citation, notice of violation
or other communication regarding a suspected or known release or discharge of
Hazardous Substances on or from the Property or regarding a suspected or known
violation of Environmental Laws concerning the Property. Further, NAI represents
that to its knowledge, the Environmental Report taken as a whole is not
misleading or inaccurate in any material respect.
(E) Cooperation by NAI and its Affiliates. If neither NAI nor an Applicable
Purchaser purchases the Property pursuant to the Purchase Agreements on the
Designated Sale Date, then after the Designated Sale Date:
(1) if a use of the Property by BNPLC or any removal or modification
of Improvements proposed by BNPLC would violate any Permitted Encumbrance,
Development Document or Applicable Law unless NAI or any of its Affiliates,
as an owner of adjacent property or otherwise, gave its consent or approval
thereto or agreed to join in a modification of a Permitted Encumbrance or
Development Document, then
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NAI shall, to the extent it can without violating Applicable Law, give
and cause its Affiliates to give such consent or approval or join in such
modification;
(2) to the extent, if any, that any Permitted Encumbrance, Development
Document or Applicable Law requires the consent or approval of NAI or any
of its Affiliates or of the City of Sunnyvale or any other Person to a
transfer of any interest in the Property by BNPLC or its successors or
assigns, NAI will without charge give and cause its Affiliates to give such
consent or approval and will cooperate in any way reasonably requested by
BNPLC to assist BNPLC to obtain such consent or approval from the City or
any other Person; and
(3) NAI's obligations under this subparagraph 1(E) shall be binding
upon any successor or assign of NAI with respect to the Land and other
properties encumbered by the Permitted Encumbrances or subject to the
Development Documents.
2 OTHER REPRESENTATIONS, WARRANTIES, COVENANTS AND ACKNOWLEDGMENTS OF NAI.
NAI represents, warrants, covenants and acknowledges as follows:
(A) No Default or Violation of Other Agreements. The execution, delivery
and performance by NAI of this Agreement and the other Operative Documents do
not and will not constitute a breach or default under any other material
agreement or contract to which NAI is a party or by which NAI is bound or which
affects the Property, and do not violate or contravene any law, order, decree,
rule or regulation to which NAI is subject, and such execution, delivery and
performance by NAI will not result in the creation or imposition of (or the
obligation to create or impose) any lien, charge or encumbrance on, or security
interest in, NAI's property pursuant to the provisions of any such other
material agreement.
(B) No Suits. Other than as previously disclosed in NAI's most recent 10-K
filings with the Securities and Exchange Commission (copies of which have been
delivered to BNPLC), there are no judicial or administrative actions, suits,
proceedings or investigations pending or, to NAI's knowledge, threatened that
will adversely affect the Property or the validity or enforceability or priority
of this Agreement or any other Operative Document, and NAI is not in default
with respect to any order, writ, injunction, decree or demand of any court or
other governmental or regulatory authority that could materially and adversely
affect the use, occupancy or operation of the Property for the purposes
contemplated in the Leases. No condemnation or other like proceedings are
pending or, to NAI's knowledge, threatened against the Property.
(C) Enforceability. The execution, delivery and performance of each of the
Operative Documents by NAI are duly authorized, are not in contravention of or
conflict with any term or provision of NAI's articles of incorporation or bylaws
and do not, to NAI's knowledge, conflict with any Applicable Laws or require the
consent or approval of any governmental body or other regulatory authority that
has not heretofore been obtained; provided, some consents or approvals which are
readily obtainable and which are required for NAI's performance under the
Operative Documents may not have been heretofore obtained, but NAI shall obtain
such consents or approvals as required in connection with its performance of the
Operative Documents. Each of the Operative Documents are valid, binding and
legally enforceable obligations of NAI except as such enforcement is affected by
bankruptcy, insolvency and similar laws affecting the rights of creditors,
generally, and equitable principles of general application.
(D) Solvency. NAI is not "insolvent" on the date hereof (that is, the sum
of NAI's absolute and contingent liabilities - including the obligations of NAI
under this Agreement and the other Operative Documents - does not exceed the
fair market value of NAI's assets) and has no outstanding liens, suits,
garnishments or court actions which could render NAI insolvent or bankrupt.
NAI's capital is adequate for the businesses in which NAI is engaged and intends
to be engaged. NAI has not incurred (whether hereby or otherwise), nor does NAI
intend to
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incur or believe that it will incur, debts which will be beyond its
ability to pay as such debts mature. There has not been filed by or, to NAI's
knowledge, against NAI a petition in bankruptcy or a petition or answer seeking
an assignment for the benefit of creditors, the appointment of a receiver,
trustee, custodian or liquidator with respect to NAI or any significant portion
of NAI's property, reorganization, arrangement, rearrangement, composition,
extension, liquidation or dissolution or similar relief under the federal
Bankruptcy Code or any state law. The financial statements and all financial
data heretofore delivered to BNPLC relating to NAI are true, correct and
complete in all material respects. No material adverse change has occurred in
the financial position of NAI as reflected in NAI's financial statements
covering the most recent fiscal period for which NAI's financial statements have
been published.
(E) Organization. NAI is duly incorporated and legally existing under the
laws of the State of California. NAI has all requisite corporate power and has
procured or will procure on a timely basis all governmental certificates of
authority, licenses, permits, qualifications and similar documentation required
to fulfill its obligations under this Agreement and the other Operative
Documents. Further, NAI has the corporate power and adequate authority, rights
and franchises to own NAI's property and to carry on NAI's business as now
conducted and is duly qualified and in good standing in each state in which the
character of NAI's business makes such qualification necessary (including the
State of California) or, if it is not so qualified in a state other than
California, such failure does not have a material adverse effect on the
properties, assets, operations or businesses of NAI and its Subsidiaries, taken
as a whole.
(F) Existence. So long as any of the Operative Documents continue in force,
NAI shall continuously maintain its existence and its qualification to do
business in the State of California.
(G) Not a Foreign Person. NAI is not a "foreign person" within the meaning
of Sections 1445 and 7701 of the Code (i.e. NAI is not a non-resident alien,
foreign corporation, foreign partnership, foreign trust or foreign estate as
those terms are defined in the Code and regulations promulgated thereunder).
(H) Investment Company Act. NAI is not an "investment company" or a company
"controlled" by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.
(I) ERISA. NAI is not and will not become an "employee benefit plan" (as
defined in Section 3(3) of ERISA) which is subject to Title I of ERISA. The
assets of NAI do not and will not in the future constitute "plan assets" of one
or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. NAI is
not and will not become a "governmental plan" within the meaning of Section
3(32) of ERISA. Transactions by or with NAI are not subject to state statutes
regulating investments of and fiduciary obligations with respect to governmental
plans. Each Plan and, to the knowledge of NAI, any Multiemployer Plan, is in
compliance with, and has been administered in compliance with, the applicable
provisions of ERISA, the Code and any other applicable Federal or state law in
all respects, the failure to comply with which would have a material adverse
effect upon the properties, assets, operations or businesses of NAI and its
Subsidiaries taken as a whole. As of the date hereof no event or condition is
occurring or exists which would require a notice from NAI under subparagraph
15(c)(vi) of the Leases.
(J) Use of Proceeds. In no event shall the funds advanced to NAI pursuant
to the Operative Documents be used directly or indirectly for personal, family,
household or agricultural purposes or for the purpose, whether immediate,
incidental or ultimate, of purchasing, acquiring or carrying any "margin stock"
or any "margin securities" (as such terms are defined respectively in Regulation
U and Regulation G promulgated by the Board of Governors of the Federal Reserve
System) or to extend credit to others directly or indirectly for the purpose of
purchasing or carrying any such margin stock or margin securities. NAI
represents and warrants that NAI is not engaged principally, or as one of NAI's
important activities, in the business of extending credit to others for the
purpose of purchasing or carrying such margin stock or margin securities.
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(K) Omissions. None of NAI's representations or warranties contained in
this Agreement or any other Operative Document or any other document,
certificate or written statement furnished to BNPLC by or on behalf of NAI
contains any untrue statement of a material fact or omits a material fact
necessary in order to make the statements contained herein or therein (when
taken in their entireties) not misleading.
(L) Y2000 Issues. As necessary to avoid any material adverse impact upon
any activity significant to the business of NAI and its Subsidiaries, taken as
whole, and as necessary to insure the full and prompt compliance with and
performance of NAI's obligations under the Operative Documents, on or before
June 30, 1999, the software and other processing capabilities of NAI and its
Subsidiaries shall have the ability to correctly interpret and manipulate all
data (in whatever form, including printed form, screen displays, financial
records, calculations and loan-related data) so as to avoid errors in processing
that may otherwise occur because of the inability of the software or other
processing capabilities to recognize accurately the year 2000 or subsequent
dates.
(M) Further Assurances. NAI shall, on request of BNPLC, (i) execute,
acknowledge, deliver and record or file such further instruments and do such
further acts as may be necessary, desirable or proper to carry out more
effectively the purposes of this Agreement or any other Operative Document and
to subject to this Agreement or any other Operative Document any property
intended by the terms hereof or thereof to be covered hereby or thereby,
including specifically, but without limitation, any renewals, additions,
substitutions, replacements or appurtenances to the Property; (ii) execute,
acknowledge, deliver, procure and record or file any document or instrument
deemed advisable by BNPLC to protect its rights in and to the Property against
the rights or interests of third persons; and (iii) provide such certificates,
documents, reports, information, affidavits and other instruments and do such
further acts as may be necessary, desirable or proper in the reasonable
determination of BNPLC to enable BNPLC to comply with the requirements or
requests of any agency or authority having jurisdiction over it.
Without limiting the forgoing, NAI shall cooperate with BNPLC as reasonably
required to allow BNPLC to induce banks not affiliated with BNPLC to become
Participants. Such cooperation will include the payment of fees ("UPFRONT
SYNDICATION FEES") as provided under the heading "Upfront Fees for the
Participants" in the letter from BNPLC to NAI dated October 20, 1999. Such
cooperation will also include the execution of one or more modification
agreements proposed by BNPLC to any of the Operative Documents, which agreements
may change the Spread, Unsecured Spread, Commitment Fee Rate or may limit NAI's
right to designate a new Collateral Percentage under Section 3.1 of the Pledge
Agreement or may otherwise modify terms and conditions of the Operative
Documents as requested by a prospective Participant; provided, however, that the
form and substance of any such modification agreements is approved by NAI (which
approval will not be unreasonably withheld); and, provided further, that NAI
will have no obligation to join with BNPLC in executing any such modification
agreement to satisfy a prospective Participant after the earlier of (1) the date
that is one hundred twenty days after the Effective Date, or (2) the date upon
which other banks not affiliated with BNPLC have become Participants with
aggregate Percentages under (and as defined in) the Participation Agreement of
no less than eighty percent (80%).
(N) No Implied Representations or Promises by BNPLC. BNPLC AND BNPLC'S
AGENTS HAVE MADE NO REPRESENTATIONS OR PROMISES WITH RESPECT TO THE PROPERTY
EXCEPT AS EXPRESSLY SET FORTH IN THE OTHER OPERATIVE DOCUMENTS, AND NO RIGHTS,
EASEMENTS OR LICENSES ARE BEING ACQUIRED BY NAI BY IMPLICATION OR OTHERWISE
EXCEPT AS EXPRESSLY SET FORTH IN THE OTHER OPERATIVE DOCUMENTS.
3 LIMITED COVENANTS AND REPRESENTATIONS BY BNPLC.
(A) Cooperation of BNPLC to Facilitate Use. So long as the Leases remain in
force and NAI remains in possession of the Property, BNPLC shall take any action
reasonably requested by NAI to facilitate the use of the Property permitted by
the Leases; provided, however, that:
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(1) This subparagraph 3(A) shall not impose upon BNPLC the obligation
to take any action that can be taken by NAI, NAI's Affiliates or anyone
else other than BNPLC as the owner of the Property.
(2) BNPLC shall not be required by this subparagraph 3(A) to make any
payment to another Person unless BNPLC shall first have received funds from
NAI, in excess of any other amounts due from NAI under any of the Operative
Documents, sufficient to make the payment.
(3) BNPLC shall have no obligations whatsoever under this subparagraph
3(A) at any time after an Event of Default shall have occurred and be
continuing.
(4) NAI must request any action to be taken by BNPLC pursuant to this
subparagraph 3(A), and such request must be specific and in writing, if
required by BNPLC at the time the request is made. A suggested form for
such a request is attached as Exhibit D.
(5) No action may be required of BNPLC pursuant to this subparagraph
3(A) that could constitute a violation of any Applicable Laws or compromise
or constitute a waiver of BNPLC's rights under other provisions of this
Agreement or any of the other Operative Documents or that for any other
reason is reasonably objectionable to BNPLC.
The actions BNPLC shall take pursuant to this subparagraph 3(A) if
reasonably requested by NAI will include, subject to the conditions listed in
the proviso above, executing or consenting to, or exercising or assisting NAI to
exercise rights under any (I) grant of easements, licenses, rights of way, and
other rights in the nature of easements encumbering the Land or the
Improvements, (II) release or termination of easements, licenses, rights of way
or other rights in the nature of easements which are for the benefit of the Land
or Improvements or any portion thereof, (III) dedication or transfer of portions
of the Land not improved with a building, for road, highway or other public
purposes, (IV) agreements (other than with NAI or its Affiliates) for the use
and maintenance of common areas, for reciprocal rights of parking, ingress and
egress and amendments to any covenants and restrictions affecting the Land or
any portion thereof, (V) documents required to create or administer a
governmental special benefit district or assessment district for public
improvements and collection of special assessments, (VI) instruments necessary
or desirable for the exercise or enforcement of rights or performance of
obligations under any Permitted Encumbrance or any contract, permit, license,
franchise or other right included within the term "Property" (including, without
limitation, under the Development Documents), (VII) modifications of Permitted
Encumbrances or Development Documents, (VIII) [intentionally deleted], (IX)
confirmations of NAI's rights under any particular provisions of the Operative
Documents which NAI may wish to provide to a third party or (X) execution or
filing of a tract or parcel map subdividing the Land into lots or parcels or to
adjust boundary lines of the Land to facilitate construction thereon or on
adjacent land which NAI leases from BNPLC. However, the determination of whether
any such action is reasonably requested or reasonably objectionable to BNPLC may
depend in whole or in part upon the extent to which the requested action shall
result in a lien to secure payment or performance obligations against BNPLC's
interest in the Property, shall cause a decrease in the value of the Property to
less than forty-five percent (45%) of Stipulated Loss Value after any Qualified
Prepayments that may result from such action are taken into account, or shall
impose upon BNPLC any present or future obligations greater than the obligations
BNPLC is willing to accept in reliance on the indemnifications provided by NAI
under the Operative Documents.
Any Losses incurred by BNPLC because of any action taken pursuant to this
subparagraph 3(A) shall be covered by the indemnifications set forth in
subparagraph 5(c) of the Leases. Further, for purposes of such indemnification,
any action taken by BNPLC will be deemed to have been made at the request of NAI
if made pursuant to any request of counsel to or any officer of NAI (or with
their knowledge, and without their objection) in connection with the execution
or administration of the Leases or the other Operative Documents.
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(B) Actions Permitted by NAI Without BNPLC's Consent. No refusal by BNPLC
to execute or join in the execution of any agreement, application or other
document requested by NAI pursuant to the preceding subparagraph 3(A) shall
preclude NAI from itself executing such agreement, application or other
document; provided, that in doing so NAI is not purporting to act for BNPLC and
does not thereby create or expand any obligations or restrictions that encumber
BNPLC's title to the Property. Further, subject to the other terms and
conditions of the Leases and other Operative Documents, NAI shall be entitled to
do any of the following in NAI's own name and to the exclusion of BNPLC without
any notice to or consent of BNPLC, provided, that (i) the Leases remain in
force, (ii) NAI remains in possession of the Property, (iii) no Event of Default
has occurred and is continuing, and (iv) NAI is not purporting to act for BNPLC
and does not thereby create or expand any obligations or restrictions that
encumber BNPLC's title to the Property:
(1) perform obligations arising under and exercise and enforce the
rights of NAI or the owner of the Property under the Development Documents
and Permitted Encumbrances;
(2) perform obligations arising under and exercise and enforce the
rights of NAI or the owner of the Property with respect to any other
contracts or documents (such as building permits) included within the
Personal Property;
(3) recover and retain any monetary damages or other benefit inuring
to NAI or the owner of the Property through the enforcement of any rights,
contracts or other documents included within the Personal Property
(including the Development Documents and Permitted Encumbrances); provided,
that to the extent any such monetary damages may become payable as
compensation for an adverse impact on value of the Property, the rights of
BNPLC and NAI hereunder with respect to the collection and application of
such monetary damages shall be the same as for condemnation proceeds
payable because of a taking of all or any part of the Property; and
(4) without limiting the foregoing, as tenant under the Improvements
Lease, (i) collect and retain all rents paid under the Premises Leases;
(ii) recover and retain any monetary damages or other benefit inuring to
NAI or the owner of the Real Property through the enforcement of any rights
under the Premises Leases (provided that this subsection (ii) shall not
apply to any damages or benefits that are required by the terms of the
Lease to be paid over to BNPLC); (iii) cancel or accept the surrender of
any space under any Premises Lease; and (iv) enforce any guaranties or
other collateral provided by Lessees under the Premises Leases and retain
the proceeds thereof.
(C) Waiver of Landlord's Liens. BNPLC waives any security interest,
statutory landlord's lien or other interest BNPLC may have in or against
computer equipment and other tangible personal property placed on the Land from
time to time that NAI or its Affiliates own or lease from other lessors;
provided, however, that BNPLC does not waive its interest in or rights with
respect to equipment or other property included within the "Property" as
described in Paragraph 7 of the Improvements Lease. Although computer equipment
or other tangible personal property may be "bolted down" or otherwise firmly
affixed to Improvements, it shall not by reason thereof become part of the
Improvements if it can be removed without causing structural or other material
damage to the Improvements and without rendering HVAC or other major building
systems inoperative and if it does not otherwise constitute "Property" as
provided in Paragraph 7 of the Improvements Lease.
(D) Estoppel Letter. Upon thirty days written request by NAI at any time
and from time to time prior to the Designated Sale Date, BNPLC shall provide a
statement in writing certifying that the Operative Documents are unmodified and
in full effect (or, if there have been modifications, that the Operative
Documents are in full effect as modified, and setting forth such modifications),
certifying the dates to which the rents payable by NAI under the Leases has been
paid, stating whether BNPLC is aware of any default by NAI that may exist under
the
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Leases and confirming BNPLC's agreements concerning landlord's liens and
other matters set forth in subparagraph 3(C). It being intended that any such
statement by BNPLC may be relied upon by anyone with whom NAI may intend to
enter into an agreement for construction of the Improvements or other
significant agreements concerning the Property.
(E) Limited Representations by BNPLC Concerning Accounting Matters. BNPLC
is not expected or required to represent or warrant that the Leases or the
Purchase Agreements will qualify for any particular accounting treatment under
GAAP. However, to permit NAI to determine for itself the appropriate accounting
for the Leases and the Purchase Agreements, BNPLC does represent to NAI the
following as of the Effective Date:
(1) Equity capital invested in BNPLC is greater than three percent
(3%) of the aggregate of all lease funding amounts (including
participations) of BNPLC. Such equity capital investments constitute equity
in legal form and are reflected as shareholders' equity in the financial
statements and accounting records of BNPLC.
(2) BNPLC is one hundred percent (100%) owned by French American Bank
Corporation, which is one hundred percent (100%) owned by BNPLC's Parent.
(3) BNPLC leases properties of substantial value to more than fifteen
tenants.
(4) All parties to whom BNPLC has any material obligations known to
BNPLC are (and are expected to be) Affiliates of BNPLC's Parent,
Participants, or participants with BNPLC in other leasing deals or loans
made by BNPLC, or other tenants or borrowers in such other leasing deals or
loans.
(5) BNPLC has substantial assets in addition to the Property, assets
which BNPLC believes to have a value far in excess of the value of the
Property.
(6) Other than any Funding Advances provided from time to time by
Participants under the Participation Agreement, BNPLC expects to obtain all
Funding Advances from Banque Nationale de Paris or other Affiliates of
BNPLC, and to the extent that Banque Nationale de Paris or such other
Affiliates themselves borrow or accept bank deposits to obtain the funds
needed to provide such Funding Advances, the obligation to repay such funds
shall not be limited, by agreement or corporate structure, to payments
collected from NAI or otherwise recovered from the Property.
(7) BNPLC has not obtained residual value insurance or a residual
value guarantee from any third party to ensure the recovery of its
investment in the Property.
(8) BNPLC does not intend to take any action during the terms of the
Leases that would change, or anticipate any change in, any of the facts
listed above in this subparagraph.
NAI shall have the right to ask BNPLC questions from time to time concerning
BNPLC's financial condition, concerning matters relevant to the proper
accounting treatment of the Leases on NAI's financial statements and accounting
records (including the amount of BNPLC's equity capital as a percentage of the
aggregate of all lease funding amounts [including participations] by BNPLC) or
concerning BNPLC's ability to perform under the Leases or the Purchase
Agreements, to which questions BNPLC shall promptly respond. Such response,
however, may be limited to a statement that BNPLC will not provide requested
information; provided, however, BNPLC must notify NAI in writing if at any time
during the terms of the Leases BNPLC ceases to be 100% owned, directly or
indirectly, by Banque Nationale de Paris, or if at any time during the terms of
the Leases BNPLC believes it could not represent that the statements in clauses
(1), (5) and (7) above continue to be accurate, whether because of a
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12
change in the capital structure of BNPLC, a purchase of residual value insurance
with respect to the Property or otherwise.
(F) Other Limited Representations by BNPLC. BNPLC represents that:
(1) No Default or Violation. The execution, delivery and performance
by BNPLC of this Agreement and the other Operative Documents do not and
will not constitute a breach or default under any material contract or
agreement to which BNPLC is a party or by which BNPLC is bound and do not,
to the knowledge of BNPLC, violate or contravene any law, order, decree,
rule or regulation to which BNPLC is subject. (As used in this subparagraph
3(F), "BNPLC'S KNOWLEDGE" means the present actual knowledge of Xxxxx Xxx,
the current officer of BNPLC having primary responsibility for the
negotiation of the Operative Documents.)
(2) No Suits. There are no judicial or administrative actions, suits,
proceedings or investigations pending or, to BNPLC's knowledge, threatened
against BNPLC that are reasonably likely to affect BNPLC's interest in the
Property or the validity, enforceability or priority of the Leases or the
Purchase Agreements, and BNPLC is not in default with respect to any order,
writ, injunction, decree or demand of any court or other governmental or
regulatory authority that could materially and adversely affect the
business or assets of BNPLC or its interest in the Property.
(3) Enforceability. The execution, delivery and performance of each of
the Operative Documents by BNPLC are duly authorized, are not in
contravention of or conflict with any term or provision of BNPLC's articles
of incorporation or bylaws and do not, to BNPLC's knowledge, require the
consent or approval of any governmental body or other regulatory authority
that has not heretofore been obtained or conflict with any Applicable Laws.
Each of the Operative Documents are valid, binding and legally enforceable
obligations of BNPLC except as such enforcement is affected by bankruptcy,
insolvency and similar laws affecting the rights of creditors, generally,
and equitable principles of general application; provided, BNPLC makes no
representation or warranty that conditions imposed by zoning ordinances or
other state or local Applicable Laws to the purchase, ownership, lease or
operation of the Property have been satisfied.
(4) Organization. BNPLC is duly incorporated and legally existing
under the laws of Delaware and is duly qualified to do business in the
State of California. BNPLC has or will obtain on a timely basis, at NAI's
expense to the extent so provided in the Leases, all requisite power and
all governmental certificates of authority, licenses, permits,
qualifications and other documentation necessary to own and lease the
Property and to perform its obligations under the Operative Documents.
(5) Existence. So long as NAI continues to have rights under the
Leases or Purchase Agreements, BNPLC shall continuously maintain its
existence and, to the extent required to comply with its obligations under
the Operative Documents, its qualification to do business in the State of
California.
(6) Not a Foreign Person. BNPLC is not a "foreign person" within the
meaning of Sections 1445 and 7701 of the Code (i.e., BNPLC is not a
non-resident alien, foreign corporation, foreign partnership, foreign trust
or foreign estate as those terms are defined in the Code and regulations
promulgated thereunder).
(7) Bankruptcy. BNPLC's capital is adequate for the businesses in
which BNPLC is engaged and intends to be engaged. BNPLC has not incurred
(whether hereby or otherwise), nor does BNPLC intend to incur or believe
that it will incur, debts which will be beyond its ability to pay as such
debts mature. There has not been filed by or, to BNPLC's knowledge, against
BNPLC a petition in bankruptcy or
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13
a petition or answer seeking an assignment for the benefit of creditors,
the appointment of a receiver, trustee, custodian or liquidator with
respect to BNPLC or any significant portion of BNPLC's property,
reorganization, arrangement, rearrangement, composition, extension,
liquidation or dissolution or similar relief under the federal Bankruptcy
Code or any state law.
4 OBLIGATIONS OF NAI UNDER OTHER OPERATIVE DOCUMENTS NOT LIMITED BY THIS
AGREEMENT. Nothing contained in this Agreement shall limit, modify or otherwise
affect any of NAI's obligations under the other Operative Documents, which
obligations are intended to be separate, independent and in addition to, and not
in lieu of, those established by this Agreement.
5 OBLIGATIONS OF NAI HEREUNDER NOT LIMITED BY OTHER OPERATIVE DOCUMENTS.
Recognizing that but for this Agreement (including the representations of NAI
set forth in Paragraphs 1 and 2) BNPLC would not acquire the Property or enter
into the other Operative Documents, NAI agrees that BNPLC's rights for any
breach of this Agreement (including a breach of such representations) shall not
be limited by any provision of the other Operative Documents that would limit
NAI's liability thereunder, including any provision therein that would limit
NAI's liability in the event of a termination of the Leases or of any of NAI's
rights or obligations under the Purchase Agreements.
[The signature pages follow.]
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14
IN WITNESS WHEREOF, this Closing Certificate and Agreement is hereby
executed in multiple originals as of the Effective Date above set forth.
"NAI"
NETWORK APPLIANCE, INC.
By:
---------------------------------
Name (print):
--------------------
Title:
---------------------------
15
[Continuation of signature pages to Closing Certificate and Agreement dated to
be effective December ___, 1999]
"BNPLC"
BNP LEASING CORPORATION
By:
---------------------------------
Xxxxx X. Xxx, Vice President
16
EXHIBIT A
LEGAL DESCRIPTION
The real property located in the City of Sunnyvale, County of Santa Xxxxx, State
of California, described as follows:
TRACT 1:
All of Parcel 2, as shown upon that certain Map entitled, "Parcel Map lying
within the City of Sunnyvale, being a resubdivision of a portion of Parcel B, as
shown upon that certain Parcel Map recorded in Book 345 of Maps, at page 20,
Santa Xxxxx County Records", which Map was filed for record in the Office of the
Recorder of the County of Santa Xxxxx, State of California, on November 17,
1976, in Book 383 of Maps, at page 35.
TRACT 2:
Together with an easement for vehicles parking over the following described
property:
A 7-foot strip of land for parking easement purposes over a portion of Parcel A,
as said Parcel A is shown on that certain Parcel Map filed for record on
November 10, 1974 in Book 292 of Maps, at page 41, records of said County, and
being more particularly described as follows:
Commencing at the Northeast corner of said Parcel A; thence North 75~8'27" West
500.00 feet along the Northeasterly line of said Parcel A; thence South
14~51'33" West 7.00 feet; thence parallel to Northeasterly line of said Parcel
A, South 75~08'27" East 500.00 feet to the Southeast line of said Parcel A,
North 14~51'33" East 7.00 feet to the point of beginning.
APN: 000-00-000
ARB: 110-3-65.02
TRACT 3:
Parcel 1, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Xxxxx, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.
APN: 110-32-6
ARB: 110-3-x65
TRACT 4:
Parcel 2, as shown on that certain Parcel Map which filed for record in the
office of the recorder of the County of Santa Xxxxx, State of California on July
7, 1994, in Book 657 of Parcel Maps, Page 9.
APN: 110-32-7
ARB: 110-3-x65
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17
TRACT 5:
Parcel 2, as shown on that certain parcel Map which filed for record in the
office of the recorder of the County of Santa Xxxxx, State of California on
October 7, 1998, in Book 708 of Parcel Maps, Pages 51 and 52.
APN: 000-00-00
ARB: 110-03-65.11
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18
EXHIBIT B
PERMITTED ENCUMBRANCES
TRACT 1 and 2:
1. TAXES for the fiscal year 1999-2000, a lien not yet due or payable.
2. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5
commencing with Section 75 of the California Revenue and Taxation Code,
resulting from changes of ownership or completion of construction on or
after the date hereof.
3. LIMITATIONS, covenants, conditions, restrictions, reservations, exceptions
or terms, but deleting any covenant, condition or restriction indicating a
preference, limitation or discrimination based on race, color, religion,
sex, handicap, familial status, or national origin to the extent such
covenants, conditions or restrictions violate 42 USC 3604(c), contained in
the document recorded December 23, 1971 in Book 9640, page 443, Official
Records.
Assignments and Assumption, executed by Xxxxxxx Park Associates, a
partnership to Prudential Insurance Company of America, recorded February 8,
1977 in Book C583, page 685, Official Records.
4. AGREEMENT on the terms and conditions contained therein,
For : Waiver of Construction Credits
Between : Xxxxxxx Park Associates
And : None Shown
Recorded : September 28, 1976 in Book C307, page 346, Official Records.
5. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Construction, reconstruction, operation, repair,
maintenance, replacement, relocation and enlargement of
Public Utilities
Granted to : The City of Sunnyvale, a municipal corporation
Recorded : November 16, 1976 in Book C414, page 105, Official Records
Affects : as follows:
Being a portion of Parcel B as shown on that certain Parcel Map recorded
August 28, 1974 in Book of Maps, at page 20, Santa Xxxxx County Records; a
strip of land 10 feet in width, measured at right angles lying Northerly and
Easterly of and contiguous to the following described line; beginning at the
intersection of the Westerly line of Xxxxxxxx Road, 90 feet in width, with
the Northerly line of Parcel A as shown on said Map; thence North 75~ 7' 58"
West along said Northerly line of Parcel A 450.13 feet; thence leaving said
Northerly line, North 30~ 7' 48" West 210.69 feet; thence North 75~ 8' 27"
West 391.04 feet to a point on the Easterly line of the proposed Xxxxxx
Xxxxx, 00 feet wide, said point being the terminus of said easement.
6. ANY RIGHTS, interests, or claims adverse to those of the vestee herein which
may exist or arise by reason of the following facts shown on a survey plat
entitled ALTA/ACSM Land Title Survey for: Network Appliance, 0000 Xxxxxxxx
Xxxxxx, dated December 2, 1999, prepared by Xxxx & Xxxxxx, Job Xx. 00000-00.
-0-
00
XXXXX 0:
1. TAXES for the fiscal year 1999-2000, a lien not yet due or payable.
2. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5
commencing with Section 75 of the California Revenue and Taxation Code,
resulting from changes of ownership or completion of construction on or
after the date hereof.
3. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Slope Easement
In favor of : City of Sunnyvale
Recorded : October 9, 1964 in Book 6695, page 430, Official Records
Affects : Easterly 18 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
4. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Public utilities easement
In favor of : City of Sunnyvale
Recorded : October 9, 1964 in Book 6695, page 450, Official Records
Affects : Easterly 7 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
5. Covenants, Conditions and Restrictions in the Declaration of Protective
Covenants - Xxxxxxx Industrial Park No. 2) recorded December 23, 1971 in
Book 9640, page 443, Official Records; which provide that a violation
thereof shall not defeat or render invalid the lien of any Mortgage or Deed
of Trust made in good faith and for value. Said Covenants, Conditions and
Restrictions do not provide for reversion of title in the event of a breach
thereof. Restrictions, if any, based upon race, color, religion, sex,
handicap, familial status, or national origin are deleted, unless and only
to the extent that said covenant (a) is exempt under Chapter 42, Section
3607, of the United States Code, or (b) related to handicap but does not
discriminate against handicapped persons.
ASSIGNMENT AND ASSUMPTION of the rights, powers, duties, obligations, and
reservations of Xxxxxxx Park Associates, in favor of The Prudential
Insurance Company of America, recorded February 8, 1977 in Book C583, page
685, Official Records.
6. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Public utilities
Granted to : City of Sunnyvale
Recorded : November 16, 1976 in Book C414, page 105, Official Records
Affects : Southerly 10 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
7. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but
deleting any covenant, condition or restriction indicating a preference,
limitation or discrimination based on race, color, religion, sex, handicap,
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20
familial status, or national origin to the extent such covenants, conditions
or restrictions violate 42 USC 3604(c), contained in the document recorded
February 5, 1980 in Book F122, page 460, Official Records.
8. ANY RIGHTS, interests, or claims adverse to those of the vestee herein which
may exist or arise by reason of the following facts shown on a survey plat
entitled ALTA/ACSM Land Title Survey for: Network Appliance, 0000 Xxxxxxxx
Xxxxxx, dated December 2, 1999, prepared by Xxxx & Xxxxxx, Job No. 97208-16.
(a) The fact that a chain link fence extends across the southerly
boundary of said land.
TRACT 4:
9. TAXES for the fiscal year 1999-2000, a lien not yet due or payable.
10. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5
commencing with Section 75 of the California Revenue and Taxation Code,
resulting from changes of ownership or completion of construction on or
after the date hereof.
11. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Slope Easement
In favor of : City of Sunnyvale
Recorded : November 16, 1976 in Book C414, page 90, Official Records
Affects : Westerly 5 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
12. EASEMENT recorded on that certain Map for the purposes stated herein and
incidents thereto
Purpose : Public utilities easement
Recorded : July 7, 1994 in Book 657 of Maps, page 9, Official Records
Affects : Westerly 10 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
13. Covenants, Conditions and Restrictions in the Declaration of Protective
Covenants - Xxxxxxx Industrial Park No. 2) recorded December 23, 1971 in
Book 9640, page 443, Official Records; which provide that a violation
thereof shall not defeat or render invalid the lien of any Mortgage or Deed
of Trust made in good faith and for value. Said Covenants, Conditions and
Restrictions do not provide for reversion of title in the event of a breach
thereof. Restrictions, if any, based upon race, color, religion, sex,
handicap, familial status, or national origin are deleted, unless and only
to the extent that said covenant (a) is exempt under Chapter 42, Section
3607, of the United States Code, or (b) related to handicap but does not
discriminate against handicapped persons.
ASSIGNMENT AND ASSUMPTION of the rights, powers, duties, obligations, and
reservations of Xxxxxxx Park Associates, in favor of The Prudential
Insurance Company of America, recorded February 8, 1977 in Book C583, page
685, Official Records.
14. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but
deleting any covenant, condition or restriction indicating a preference,
limitation or discrimination based on race, color, religion, sex, handicap,
familial status, or national origin to the extent such covenants, conditions
or restrictions violate 42 USC
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3604(c), contained in the document recorded February 5, 1980 in Book F122,
page 460, Official Records.
TRACT 5:
15. TAXES for the fiscal year 1999-2000, a lien not yet due or payable.
16. THE LIEN of supplemental taxes, if any, assessed pursuant to Chapter 3.5
commencing with Section 75 of the California Revenue and Taxation Code,
resulting from changes of ownership or completion of construction on or
after the date hereof.
17. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Slope Easement
In favor of : City of Sunnyvale
Recorded : October 9, 1964 in Book 6695, page 430, Official Records
Affects : The Northeasterly and Easterly 18 feet, as shown on a survey
plat entitled ALTA/ACSM Land Title Survey for: Network
Appliance, 0000 Xxxxxxxx Xxxxxx, dated December 2, 1999,
prepared by Xxxx & Xxxxxx, Job No. 97208-16.
18. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Public utilities easement
In favor of : City of Sunnyvale
Recorded : October 9, 1964 in Book 6695, page 450, Official Records
Affects : The Northeasterly and Easterly 7 feet, as shown on a survey
plat entitled ALTA/ACSM Land Title Survey for: Network
Appliance, 0000 Xxxxxxxx Xxxxxx, dated December 2, 1999,
prepared by Xxxx & Xxxxxx, Job No. 97208-16.
19. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Sidewalk and sign easement
Recorded : July 7, 1994, in Book 657 of Maps, page 9, Official Records
Affects : The Northerly 2 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
20. LIMITATIONS, covenants, restrictions, reservations, exceptions or terms, but
deleting any covenant, condition or restriction indicating a preference,
limitation or discrimination based on race, color, religion, sex, handicap,
familial status, or national origin to the extent such covenants, conditions
or restrictions violate 42 USC 3604(c), contained in the document recorded
February 5, 1980 in Book F122, page 460, Official Records.
21. EASEMENT for the purposes stated herein and incidents thereto
Purpose : Public utilities easement
Recorded : October 7, 1998, in Book 708 of Maps, pages 51-52, Official
Records
Affects : The Northerly 15 feet, as shown on a survey plat entitled
ALTA/ACSM Land Title Survey for: Network Appliance,
0000 Xxxxxxxx Xxxxxx, dated December 2, 1999, prepared by
Xxxx & Xxxxxx, Job No. 97208-16.
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EXHIBIT C
DEVELOPMENT DOCUMENTS
-NONE-
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23
EXHIBIT D
NOTICE OF REQUEST FOR ACTION BY BNPLC
BNP Leasing Corporation
00000 Xxxxx Xxxxx
Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxx X. Xxx
Re: Closing Certificate and Agreement dated as of December ___, 1999,
between Network Appliance, Inc. and BNP Leasing Corporation
Gentlemen:
Capitalized terms used in this letter are intended to have the meanings
assigned to them in the Closing Certificate and Agreement referenced above.
Pursuant to subparagraph 3(A) of the Closing Certificate and Agreement, NAI
requests the following of BNPLC:
[INSERT HERE A SPECIFIC DESCRIPTION OF THE ACTION REQUESTED - E.G., "PLEASE
EXECUTE THE ENCLOSED APPLICATION FOR BUILDING PERMIT REQUIRED BY THE CITY
OF SUNNYVALE IN CONNECTION WITH CONSTRUCTION OF CERTAIN IMPROVEMENTS WHICH
ARE PART OF THE INITIAL CONSTRUCTION PROJECT."]
PLEASE NOTE: SUBPARAGRAPH 3(A) OF THE CLOSING CERTIFICATE OBLIGATES BNPLC NOT TO
UNREASONABLY REFUSE TO COMPLY WITH THE FOREGOING REQUEST, SUBJECT TO TERMS AND
CONDITIONS SET FORTH IN THAT SUBPARAGRAPH. NAI HEREBY CERTIFIES TO BNPLC THAT
AFTER CAREFUL CONSIDERATION NAI BELIEVES THAT ALL SUCH TERMS AND CONDITIONS ARE
SATISFIED IN THE CASE OF THE FOREGOING REQUEST, AND NAI HEREBY RATIFIES AND
CONFIRMS ITS OBLIGATION TO INDEMNIFY BNPLC AGAINST ANY LOSSES BNPLC MAY INCUR OR
SUFFER BECAUSE OF ITS COMPLIANCE WITH SUCH REQUEST AS PROVIDED IN SUBPARAGRAPH
5(c) OF THE LEASE.
NAI respectfully requests that BNPLC respond to this notice as soon as
reasonably possible.
Executed this _____ day of ______________, 19___.
NETWORK APPLIANCE, INC.
Name:
-------------------------------
Title:
------------------------------
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