Summary of NETAPP, INC. - Yahoo! Finance

Termination of a Material Definitive Agreement, Amendments to Articles of Inc. or By

Item 1.02 Termination of a Material Definitive Agreement.
On April 1, 2009, NetApp, Inc. (the "Company") terminated two of its existing financing and leasing arrangements with BNP Paribas Leasing Corporation ("BNPPLC"), in furtherance of the Company's effort to manage its capital structure in light of the current economic environment.
The first terminated agreement, the Amended and Restated Ground Lease (Building
8), dated as of November 29, 2007, as amended, by and between BNPPLC and the Company, related to a $58.3 million financing and leasing arrangement for a building located in Sunnyvale, California. Under the terms of the transaction documents, the Company had agreed to lease its land to BNPPLC for a period of 99 years, as the construction manager for BNPPLC, to complete construction of an office building in Sunnyvale, California by January 2009, and to lease the completed building from BNPPLC for a term expiring in December 2013. The second terminated agreement, the Amended and Restated Ground Lease (RTP Data Center), dated as of November 29, 2007, as amended, by and between BNPPLC and the Company, related to a $61.0 million financing and leasing arrangement for a building located in Research Triangle Park, North Carolina. Under the terms of the transaction documents, the Company had agreed to lease its land to BNPPLC for a period of 99 years, as the construction manager for BNPPLC, to complete construction of a data center in Research Triangle Park, North Carolina by January 2009, and to lease the completed building from BNPPLC for a term expiring in August 2014. As a result of the termination of the leases, the Company repaid approximately $119.3 million of the outstanding lease balances related thereto, and BNPPLC's rights, title and interest in and to the other associated financing and leasing arrangement agreements reverted back to the Company. No early termination penalties were incurred by the Company as a result of these terminations. In connection with these terminations, the Company's future real estate lease payments as disclosed in the Contractual Obligations within Item 2. Management's Discussion and Analysis of the Company's Quarterly Report on Form 10-Q for the quarterly period ended January 23, 2009, as filed on March 2, 2009, will be reduced by a total of approximately $109.2 million for the lease periods beginning January 2009 through August 2014. The foregoing description of the termination agreements does not purport to be complete and is qualified in its entirety by the terms and conditions of the Agreement Concerning Ground Lease (For Building 8) dated April 1, 2009, and the Agreement Concerning Ground Lease (For RTP Data Center) dated April 1, 2009, each of which will be filed as an exhibit to the Company's Annual Report on Form 10-K for the period ending April 24, 2009.
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement. The disclosure provided in Item 1.02 "Termination of a Material Definitive Agreement" is incorporated by reference into this Item 2.04 as if fully set forth herein.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. Resignation of Director
As previously reported, on February 9, 2009, Carol Bartz notified the Company of her intention to resign from the Board of Directors (the "Board") of the Company, including all committees thereof, prior to the end of the Company's fiscal year. Ms. Bartz resigned from the Board on April 1, 2009.

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