Purchase Agreement (Moffett Business Center) Between Network Appliance, Inc. and BNP Paribas Leasing Corporation
This agreement is between Network Appliance, Inc. (NAI) and BNP Paribas Leasing Corporation (BNPPLC) regarding the Moffett Business Center property. BNPPLC acquires and leases the property to NAI, and this contract sets out the terms under which NAI can purchase or arrange the purchase of the property. It details purchase options, remarketing rights, obligations, and conditions for both parties, including procedures for sale, transfer, and termination. The agreement also references related documents and defines key terms and rights for both NAI and BNPPLC.
(MOFFETT BUSINESS CENTER)
(NAI)
(BNPPLC)
Page | ||||||||
1 | Additional Definitions | 1 | ||||||
97-1/Default (100%) | 2 | |||||||
Applicable Purchaser | 3 | |||||||
BNPPLCs Actual Out of Pocket Costs | 3 | |||||||
Break Even Price | 3 | |||||||
Committed Price | 3 | |||||||
Conditions to NAIs Initial Remarketing Rights | 3 | |||||||
Decision Not to Sell at a Loss | 3 | |||||||
Deemed Sale | 3 | |||||||
Extended Remarketing Period | 3 | |||||||
Fair Market Value | 3 | |||||||
Final Sale Date | 3 | |||||||
Initial Remarketing Notice | 4 | |||||||
Initial Remarketing Price | 4 | |||||||
Lease Balance | 4 | |||||||
Make Whole Amount | 4 | |||||||
Maximum Remarketing Obligation | 5 | |||||||
Must Sell Price | 5 | |||||||
NAIs Extended Remarketing Right | 5 | |||||||
NAIs Initial Remarketing Rights | 5 | |||||||
NAIs Target Price | 5 | |||||||
Notice of Sale | 6 | |||||||
Proposed Sale | 6 | |||||||
Proposed Sale Date | 6 | |||||||
Purchase Option | 6 | |||||||
Put Option | 6 | |||||||
Qualified Sale | 6 | |||||||
Sale Closing Documents | 7 | |||||||
Supplemental Payment | 7 | |||||||
Supplemental Payment Obligation | 7 | |||||||
Valuation Procedures | 7 | |||||||
2 | NAIs Options and Obligations on the Designated Sale Date | 7 | ||||||
(A) | Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation | 7 | ||||||
(B) | Designation of the Purchaser | 9 | ||||||
(C) | Delivery of Property Related Documents If BNPPLC Retains the Property | 9 | ||||||
(D) | Effect of the Purchase Option and NAIs Initial Remarketing Rights on Subsequent Title Encumbrances | 9 | ||||||
(E) | Security for NAIs Purchase Option | 10 |
(Continued)
Page | ||||||||
3 | NAIs Rights, Options and Obligations After the Designated Sale Date | 10 | ||||||
(A) | NAIs Right to Buy During the Thirty Days After the Designated Sale Date | 10 | ||||||
(B) | NAIs Obligation to Buy if Certain Conditions are Satisfied | 10 | ||||||
(C) | NAIs Extended Right to Remarket | 11 | ||||||
(D) | Deemed Sale On the Second Anniversary of the Designated Sale Date | 12 | ||||||
(E) | NAIs Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale | 12 | ||||||
4 | Transfers By BNPPLC After the Designated Sale Date | 12 | ||||||
(A) | BNPPLCs Right to Sell | 12 | ||||||
(B) | Survival of NAIs Rights and the Supplemental Payment Obligation | 13 | ||||||
(C) | Easements and Other Transfers in the Ordinary Course of Business | 13 | ||||||
5 | Terms of Conveyance Upon Purchase | 13 | ||||||
(A) | Tender of Sale Closing Documents | 13 | ||||||
(B) | Delivery of Escrowed Proceeds | 14 | ||||||
6 | Survival and Termination of the Rights and Obligations of NAI and BNPPLC | 14 | ||||||
(A) | Status of this Agreement Generally | 14 | ||||||
(B) | Automatic Termination of NAIs Rights | 15 | ||||||
(C) | Payment Only to BNPPLC | 15 | ||||||
(D) | Preferences and Voidable Transfers | 15 | ||||||
(E) | Remedies Under the Other Operative Documents | 16 | ||||||
7 | Certain Remedies Cumulative | 16 | ||||||
8 | Attorneys Fees and Legal Expenses | 16 | ||||||
9 | Successors and Assigns | 16 |
(ii)
(Continued)
Exhibit A | Legal Description | |
Exhibit B | Valuation Procedures | |
Exhibit C | Form of Deed With Limited Title Warranties | |
Exhibit D | Bill of Sale and Assignment | |
Exhibit E | Acknowledgment of Disclaimer of Representations and Warranties | |
Exhibit F | Secretarys Certificate | |
Exhibit G | FIRPTA Statement |
(iii)
(MOFFETT BUSINESS CENTER)
| the Lease Balance, plus | ||
| BNPPLCs Actual Out of Pocket Costs. |
| any date after the Designated Sale Date upon which BNPPLC conveys the Property to consummate a sale of the Property to NAI because of BNPPLCs exercise of the Put Option as provided in subparagraph 3(B); or | ||
| any date after the Designated Sale Date upon which BNPPLC conveys the Property to consummate a sale of the Property to NAI or to any Affiliate of NAI, |
including any such sale resulting from NAIs exercise of its rights under subparagraph 3(A); or | |||
| any date after the Designated Sale Date upon which BNPPLC conveys the Property to consummate a Qualified Sale, or would have done so but for a material breach of this Agreement by NAI (including any breach of its obligation to make any Supplemental Payment required in connection with such Qualified Sale); or | ||
| the second anniversary of the Designated Sale Date, which will be the date of a Deemed Sale as provided in subparagraph 3(D) if no earlier date qualifies as the Final Sale Date and the entire Property is not sold by BNPPLC to NAI or an Applicable Purchaser prior to the second anniversary of the Designated Sale Date. |
| 85% of the Lease Balance; less | ||
| any Fixed Rate Settlement Amount that NAI is required to pay pursuant to the Lease because of any acceleration of the Designated Sale Date which causes it to occur prior to the date upon which the Term of the Lease is scheduled to expire (as such date is confirmed in clause (1) of the definition of Designated Sale Date in the Common Definitions and Provisions Agreement). |
| results from NAIs exercise of NAIs Extended Remarketing Right as described in subparagraph 3(C); or | ||
| is approved in advance as a Qualified Sale by NAI; or | ||
| is to a third party which is not an Affiliate of BNPPLC and, if it is completed by a conveyance from BNPPLC prior to eighteen months after the Designated Sale Date, is for a price not less than the least of the following amounts: |
(a) | the lowest price at which BNPPLC will be obligated, pursuant to clause (3) of subparagraph 3(E), to reimburse to NAI the entire amount of any Supplemental Payment theretofore made by NAI to BNPPLC; or | ||
(b) | (i) if NAI notified BNPPLC of NAIs Target Price prior to the date BNPPLC and the third party agreed to a price for the sale, NAIs Target Price, or (ii) if NAI did not notify BNPPLC of NAIs Target Price prior to the date BNPPLC and the third party agreed to a price for the sale, any price satisfactory to BNPPLC in its sole good faith business judgment; or | ||
(c) | 90% of the Fair Market Value of the Property. |
2 | NAIs Options and Obligations on the Designated Sale Date. |
3 | NAIs Rights, Options and Obligations After the Designated Sale Date. |
4 | Transfers By BNPPLC After the Designated Sale Date. |
5 | Terms of Conveyance Upon Purchase. |
6 | Survival and Termination of the Rights and Obligations of NAI and BNPPLC. |
BNP PARIBAS LEASING CORPORATION, a Delaware corporation | ||||
By: | ||||
Lloyd G. Cox, Managing Director | ||||
NETWORK APPLIANCE, INC., a Delaware corporation | ||||
By: | ||||
Ingemar Lanevi, Vice President and Corporate Treasurer | ||||
1 | If, however, the use of the Property by BNPPLC or any tenant under any Replacement Lease after NAI vacated the Property has resulted in excess wear and tear, such excess wear and tear will be assumed not to have occurred for purposes of determining Fair Market Value. |
AND WHEN RECORDED MAIL TO:
NAME: | [NAI or the Applicable Purchaser] | |||
ADDRESS: | ||||
ATTN: | ||||
CITY: | ||||
STATE: | ||||
Zip: | ||||
BNP PARIBAS LEASING CORPORATION, a Delaware corporation | ||||
By: | ||||
Lloyd G. Cox, Managing Director | ||||
) SS
COUNTY OF )
By: | ||||
Name: | ||||
Title: |
) SS
COUNTY OF )
Granted to: | City of Sunnyvale, A Municipal Corporation | |
Purpose: | Slope easement | |
Recorded: | October 9, 1964, Book 6695, Page 389, of Official Records | |
Affects: | as described therein |
Granted to: | City of Sunnyvale, A Municipal Corporation | |
Purpose: | Slope easement |
Recorded: | October 9, 1964, Book 6695, Page 409, of Official Records | |
Affects: | A portion of Parcel One |
Granted to: | City of Sunnyvale, A Municipal Corporation | |
Purpose: | Public Utilities | |
Recorded: | October 9, 1964, Book 6695, Page 457, of Official Records | |
Affects: | A portion of Parcel One |
Granted to: | City of Sunnyvale, A Municipal Corporation | |
Purpose: | Public Utilities | |
Recorded: | September 24, 1965, Book 7116, Page 489, of Official Records | |
Affects: | As described therein |
Purpose: | Public Utility Easement | |
Affects: | The Southwesterly 10 feet and the Northwesterly 9 feet of Parcel One; and the Southwesterly 15 feet of the Northeasterly 31 feet of the Northwesterly 492.14 feet and a portion of a strip 10 feet wide across a Southerly portion of Parcel Two | |
Purpose: | Ingress and Egress | |
Affects: | the Southeasterly 15 feet of Parcel One and the Northwesterly 15 feet of Parcel Two |
Recorded: | March 8, 1978, Instrument No.  ###-###-####, Book D511, Page 396, of Official Records |
Recorded: | August 19, 1980, Instrument No.  ###-###-####, Book F514, Page 328, of Official Records | |
Affects: | Parcel One and other property |
Granted to: | The Prudential Insurance Company of America, a New Jersey Corporation | |
Purpose: | Ingress and Egress | |
Recorded: | August 24, 1978, Book D908, Page 20, of Official Records | |
Affects: | A portion of Parcel Two |
Recorded: | November 17, 1978, Book E102, Page 686, of Official Records |
Recorded: | August 22, 1979, Instrument No.  ###-###-####, of Official Records | |
Affects: | Parcel Two and other property |
Granted to: | Pacific Gas and Electric Company, a California corporation | |
Purpose: | One or more underground pipes with suitable service pipes and connections for the conveyance of gas by Pacific Gas and Electric Company | |
Recorded: | April 20, 1979, Book E434, Page 278, of Official Records |
Recorded: | August 22, 1979, Book E740, Page 437, of Official Records |
Recorded: | May 5, 1980, Book F309, Page 39, of Official Records |
Entitled: | Subordination, Non-Disturbance and Attornment Agreement | |
Lessor: | Moffett Business Center, Inc., a Delaware Corporation | |
Lessee: | Harmonic Lightwaves, Inc. | |
Recorded: | December 18, 1996, Instrument No. 13555124, of Official Records |
Recorded: | December 17, 1996, Instrument No. 13553142, of Official Records | |
By document | ||
Recorded: | December 18, 1996, Instrument No. 13555124, of Official Records |
Entitled: | Subordination, Non-Disturbance and Attornment Agreement | |
Lessor: | Moffett Business Center, Inc., a Delaware Corporation | |
Lessee: | Volex Group, P.L.C. | |
Recorded: | December 18, 1996, Instrument No. 13555120, of Official Records |
Recorded: | December 17, 1996, Instrument No. 13553142, of Official Records | |
By document | ||
Recorded: | December 18, 1996, Instrument No. 13555120, of Official Records |
Entitled: | Subordination, Non-Disturbance and Attornment Agreement | |
Lessor: | Moffett Business Center, Inc., a Delaware Corporation | |
Lessee: | TRW Inc. | |
Recorded: | December 18, 1996, Instrument No. 13555122, of Official Records |
Recorded: | December 17, 1996, Instrument No. 13553142, of Official Records | |
By document |
Recorded: | December 18, 1996, Instrument No. 13555122, of Official Records |
Entitled: | Subordination, Non-Disturbance and Attornment Agreement | |
Lessor: | Moffett Business Center, Inc., a Delaware Corporation | |
Lessee: | TRW Inc. | |
Recorded: | December 18, 1996, Instrument No. 13555123, of Official Records |
Recorded: | December 17, 1996, Instrument No. 13553142, of Official Records | |
By document | ||
Recorded: | December 18, 1996, Instrument No. 13555123, of Official Records |
Entitled: | Subordination, Non-Disturbance and Attornment Agreement | |
Lessor: | Moffett Business Center, Inc., a Delaware Corporation | |
Lessee: | Digital Equipment Corporation | |
Recorded: | December 18, 1996, Instrument No. 13555121, of Official Records |
Recorded: | December 17, 1996, Instrument No. 13553142, of Official Records | |
By document | ||
Recorded: | December 18, 1996, Instrument No. 13555121, of Official Records |
Entitled: | Notice of Non-Responsibility | |
Lessor: | AMB Property, L.P., a Delaware limited partnership | |
Lessee: | Harmonics, Incorporated | |
Recorded: | July 19, 2006, Instrument No. 19026667, of Official Records |
(a) | the Lease; | ||
(b) | any pending or future award made because of any condemnation affecting the Property or because of any conveyance to be made in lieu thereof, and any unpaid award for damage to the Property and any unpaid proceeds of insurance or claim or cause of action for damage, loss or injury to the Property; and | ||
(c) | all other personal or intangible property included within the definition of Property as set forth in the Purchase Agreement, including but not limited to any of the following transferred to Assignor by the tenant pursuant to Paragraph 6 of the Lease or otherwise acquired by Assignor, at the time of the execution and delivery of the Lease and Purchase Agreement or thereafter, by reason of Assignors status as the owner of any interest in the Property: (1) any goods, equipment, furnishings, furniture, chattels and tangible personal property of whatever nature that are located on the Property and all renewals or replacements of or substitutions for any of the foregoing; (ii) the rights of Assignor, existing at the time of the execution of the Lease and Purchase Agreement or thereafter arising, under Permitted Encumbrances; and (iii) any general intangibles, other permits, licenses, franchises, certificates, and other rights and privileges related to the Property that Assignee would have acquired if Assignee had itself acquired the interest of Assignor in and to the Property instead of Assignor. |
BNP PARIBAS LEASING CORPORATION, a Delaware corporation | ||||
By: | ||||
Lloyd G. Cox, Managing Director | ||||
STATE OF __________________ | ) | |||||||
) | SS | |||||||
COUNTY OF __________________ | ) |
[NAI or the Applicable Purchaser] | ||||
By: | ||||
Name: | ||||
Title: | ||||
STATE OF __________________ | ) | |||||||
) | SS | |||||||
COUNTY OF __________________ | ) |
OF REPRESENTATIONS AND WARRANTIES
[NAI or the Applicable Purchaser] | ||||
By: | ||||
Name: | ||||
Title: | ||||
STATE OF __________________ | ) | |||||||
) | SS | |||||||
COUNTY OF __________________ | ) |
Name | Title | Signature | ||
_________________________ | ||||
[signature and title] |
BNP PARIBAS LEASING CORPORATION
12201 Merit Drive, Suite 860
Dallas, Texas 75251
Attention: Lloyd G. Cox, Managing Director
Telecopy: (972)  ###-###-####
Name: | ||||
Title: | ||||