<SUBMISSION>
<ACCESSION-NUMBER>0000891618-05-000375
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050512
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20050518
<DATE-OF-FILING-DATE-CHANGE>20050518
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>NETWORK APPLIANCE INC
<CIK>0001002047
<ASSIGNED-SIC>3572
<IRS-NUMBER>770307520
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>0430
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27130
<FILM-NUMBER>05842663
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>495 EAST JAVA DR
<CITY>SUNNYVALE
<STATE>CA
<ZIP>94089
<PHONE>4088226000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>495 EAST JAVA DR
<CITY>SUNNYVALE
<STATE>CA
<ZIP>94089
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f09347e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="26%" align="center" color="#000000">


<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="26%" align="center" color="#000000">



<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>


<P align="center" style="font-size: 10pt">Date of Report (date of earliest event reported): <B>May&nbsp;12, 2005</B>


<P align="center" style="font-size: 24pt"><B>NETWORK APPLIANCE, INC.</B>


<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or other jurisdiction of<BR>
incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0-27130</B><BR>
(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>77-0307520</B><BR>
(I.R.S. Employer<BR>
Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>495 East Java Drive<BR>
Sunnyvale, CA 94089</B><BR>
(Address of principal executive offices) (Zip Code)



<P align="center" style="font-size: 10pt"><B>(408)&nbsp;822-6000</B><BR>
(Registrant&#146;s telephone number, including area code)

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><FONT face="wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17
CFR 230.425)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><FONT face="wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR
240.14a-12)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><FONT face="wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right"><FONT face="wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
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	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000"><U>Item&nbsp;1.01. Entry into a Material Definitive Agreement</U>.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001"><U>Item&nbsp;9.01. Financial Statements and Exhibits</U>.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"><U>Index to Exhibits</U></A></TD></TR>
<TR><TD colspan="9"><A HREF="f09347exv10w1.htm">EXHIBIT 10.1</A></TD></TR>
</TABLE>
</CENTER>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "<U>Item&nbsp;1.01. Entry into a Material Definitive Agreement</U>." -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B><U>Item&nbsp;1.01. Entry into a Material Definitive Agreement</U>.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;12, 2005, the Compensation Committee (the &#147;<B>Committee</B>&#148;) of the board of directors of
Network Appliance, Inc. (the &#147;<B>Company</B>&#148;) approved a $5,000 increase in the annual cash compensation
to be paid to the Company&#146;s Audit Committee chairperson, Nicholas Moore, raising the annual cash
compensation payable to him for his services as the Audit Committee&#146;s chairperson from $10,000 to
$15,000, effective immediately.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;12, 2005, the Committee also approved the following compensation arrangements for its
executive officers:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>The Committee approved an annual salary increase and a target incentive compensation
increase for each of the Company&#146;s currently-serving executive officers, as follows:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>FY05 Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>FY06 Target</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Executive Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>FY 05 Annual Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>FY06 Annual Salary</B>*</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Incentive Compensation</B>**</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Incentive Compensation</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Daniel Warmenhoven
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">500,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">600,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Thomas Mendoza
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">340,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">380,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">70</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">80</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jeffry Allen
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">330,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">330,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steven Gomo
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">315,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">345,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David Hitz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">315,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">325,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James Lau
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">290,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">310,000.00</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<HR size="1" width="18%" align="left" noshade color="#000000">

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="left">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Effective as of August&nbsp;1, 2005.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="left">**</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Percentage is used to calculate the annual incentive compensation amounts as
described below.</TD>
</TR>

</TABLE>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>Pursuant to the Network Appliance, Inc. FY 2005 Incentive Compensation Plan (the
&#147;<B>2005 Plan</B>&#148;), a copy of which is attached hereto as Exhibit&nbsp;10.1, the Committee
anticipates awarding annual incentive compensation to each of the Company&#146;s executive
officers. Under the 2005 Plan, each executive officer is assigned annual Target
Incentive Compensation, which represents the percentage of such executive officer&#146;s base
salary he will receive as compensation if the 2005 Plan is fully funded by year end. The
2005 Plan is funded based upon the Company&#146;s operating profits, which financial measure
is the basis upon which such incentive compensation is calculated. To the extent that the 2005 Plan
is underfunded, each executive officer&#146;s Target Incentive Compensation will be proportionally
decreased; likewise, to the extent that the 2005 Plan is overfunded, each executive
officer&#146;s Target Incentive Compensation will be proportionally increased. For example, if the
2005 Plan is 80% funded, the executive officer is eligible to receive 80% of his Target
Incentive Compensation; likewise, if the 2005 Plan is 110% funded, the executive officer is
eligible to receive 110% of his Target Incentive Compensation. Although the Company has not yet
completed its year-end accounting procedures, the Company expects that the 2005 Plan
will be funded at approximately 100% or higher, and the incentive
compensation payable thereunder will
be calculated accordingly.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">3.&nbsp;&nbsp;</TD>
    <TD>The Committee adopted the Network Appliance, Inc. FY 2006 Incentive Compensation
Plan (the &#147;<B>2006 Plan</B>&#148;). Although not yet formally memorialized, the material terms and
conditions of the 2006 Plan approved by the Committee, as such terms and conditions
relate to the Company&#146;s executive officers, are similar in all material respects to
those set forth in the 2005 Plan as discussed above. Accordingly, under the 2006 Plan,
each executive officer will be eligible to receive annual
performance compensation based
upon his assigned Target Incentive Compensation and the funding of the 2006 Plan, the level of
which shall be determined by the Company&#146;s operating profits.</TD>
</TR>

</TABLE>

<!-- link2 "<U>Item&nbsp;9.01. Financial Statements and Exhibits</U>." -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B><U>Item&nbsp;9.01. Financial Statements and Exhibits</U>.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Exhibits</U>.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:30px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Network Appliance, Inc. FY2005 Incentive Compensation Plan</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>NETWORK APPLIANCE INC.<BR>
(Registrant)</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: May 18, 2005&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Steven J. Gomo
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><B>Steven J. Gomo</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><B>Executive Vice President of Finance and
Chief Financial Officer</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "<U>Index to Exhibits</U>" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt"><U><B>Index to Exhibits</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Network Appliance, Inc. FY 2005 Incentive Compensation Plan</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<TYPE>EX-10.1
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<DESCRIPTION>EXHIBIT 10.1
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<P align="right" style="font-size: 10pt"><B>Exhibit 10.1</B>

<P align="center" style="font-size: 10pt"><B>NETWORK APPLIANCE, INC.<BR>
FY 2005 INCENTIVE COMPENSATION PLAN</B>



<P align="left" style="font-size: 10pt"><B>I. OVERVIEW</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">A.&nbsp;&nbsp;</TD>
    <TD><B>Plan Objectives</B>. The objective of the <I>Network Appliance, Inc. FY 2005
Incentive Compensation </I>(the &#147;Plan&#148;) is to provide a means and guidelines under which
Network Appliance, Inc. can share, on a discretionary basis, its success with its
employees and the employees of its subsidiaries.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">B.&nbsp;&nbsp;</TD>
    <TD><B>Plan Period. </B>This Plan is effective for the period beginning May&nbsp;1, 2004 and
automatically ending April&nbsp;29, 2005 (&#147;Plan Period&#148; or &#147;Fiscal Year&#148;). Except for any
amounts payable under a sales incentive or commission plan, this Plan is the sole and
exclusive means by which any employee of Network Appliance, Inc. or of any of its
subsidiaries (collectively, the &#147;Company&#148;) may receive non-Base Pay incentive cash
compensation attributable to the Plan Period. With the exception of any sales
incentive or commission plan, this Plan replaces and supersedes all oral or written
representations, agreements and compensation plans, including but not limited to the <I>FY
2004 Incentive Plan, </I>that otherwise may have been in effect or provided non-Base Pay
cash compensation attributable to the Plan Period.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For the purposes of this Plan &#147;Base Pay&#148; cash compensation consists of actual gross
base salary, hourly wages, over-time pay, lead and shift differentials and paid
time-off for holidays, vacation and sick time. &#147;Base Pay&#148; excludes any other
compensation, including but not limited to bonus or incentive payments of any sort,
car allowances, relocation payments, expense reimbursements and advances, loans,
payments received in lieu of benefit plan participation, club membership
reimbursements and payments received from Company or government sponsored benefit
plans, including but not limited to disability pay, wage replacement benefits,
short-term/long-term disability payments, and workers&#146; compensation benefits.


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">C.&nbsp;&nbsp;</TD>
    <TD><B>Participants. </B>All employees of the Company are eligible to participate in this
Plan <I>provided that </I>they meet each of the following requirements:</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>The individual is a regular employee of the Company</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 6%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For purposes of this Plan, &#147;regular employee&#148; means an individual who is in
the employ of the Company during the fiscal year and is subject to the
control and direction of the employing entity as to both the work to be
performed and the manner and method of performance. Persons who have been
designated by the Company as independent contractors, temporary employees,
consultants or advisors shall not be eligible to participate in this Plan,
regardless of whether such designation is upheld in any legal or
administrative proceeding.


<P align="center" style="font-size: 10pt">Page 1 of 5
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<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>The employee is employed by the Company in a position that is
<I>not </I>eligible for participation in a Company sales, sales incentive or sales
commission plan or program.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">3.&nbsp;&nbsp;</TD>
    <TD>The employee is employed by the Company in a Plan-eligible
position continuously from January&nbsp;28, 2005 through April&nbsp;29, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">4.&nbsp;&nbsp;</TD>
    <TD>The employee was not on a Performance Improvement Plan at any
time during the Plan Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">5.&nbsp;&nbsp;</TD>
    <TD>The employee was not rated &#147;needs improvement&#148; on the
employee&#146;s most recent written performance evaluation.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">D.&nbsp;&nbsp;</TD>
    <TD><B>Changes to and Termination of the Plan. </B>The Company reserves the right to
change or terminate this Plan, in whole or in part at any time during the Plan Period.
Any such change(s) or termination will be expressly memorialized in a writing signed by
an authorized member of the Compensation Committee of the Company&#146;s Board of Directors
(&#147;Committee&#148;).</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">E.&nbsp;&nbsp;</TD>
    <TD><B>Nature of the Plan. </B>Whether to grant any incentive payments under this Plan,
and in what amounts, are fully discretionary. Participation in this Plan is not
intended, nor should it be interpreted, to create any entitlement to participate in
this or any future incentive plans or to receive the same or similar incentive payments
that may be received under this Plan. Because this Plan is discretionary, no
Participant should make any decision based on any hope or expectation of receiving any
incentive under this Plan.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>II. INCENTIVE POOL GUIDELINES</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">A.&nbsp;&nbsp;</TD>
    <TD><B>Determination of Incentive Pool Amount. </B>At the end of the Plan Period and
closing of the Company&#146;s Fiscal Year financials, and provided that the Company&#146;s
Operating Profit meets or exceeds Plan, the Company may identify an amount that shall
be referred to as the &#147;Incentive Pool.&#148; In exercising its discretion to determine
whether to identify an Incentive Pool amount and, if so, in what amount, the Company
will consider all circumstances then-existing that it deems relevant, including, but
not limited to, market conditions and forecasts, and anticipated expenses to be
incurred or payable during the new fiscal year.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt">For the purposes of the Plan &#147;Operating Profits&#148; shall represent the company&#146;s
reported income from operations in accordance with generally accepted accounting
principles adjusted to exclude the following: (i)&nbsp;any amounts accrued by the
Company pursuant to the FY 2004 Incentive Plan; (ii)&nbsp;any operating profit items
excluded from the company&#146;s reported proforma result. These items can include
amortization of goodwill and intangibles, acquired in-process research &#038;
development, stock compensation and restructuring charges.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>III. INCENTIVE AWARDS</B>



<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">A.&nbsp;&nbsp;</TD>
    <TD><B>Calculation of Incentive Awards. </B>The Company reserves full discretion to
determine the number and the amounts of incentive awards to be made under this Plan.
The Company may decide to make awards based on position level or any one or more other
factors, including but not limited to Participants&#146; performance rating for the Plan
Period, in whole or in part, or the amount of Base Pay received by Participants during
the Plan Period.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">B.&nbsp;&nbsp;</TD>
    <TD><B>Adjustments to Calculation of Incentive Awards</B>. If the Company elects to use
any factor other than Base Pay as the basis to determine the amount of incentive awards
to be made under this Plan, or elects to use Base Pay and one or more other factors as
the bases to determine the amount of incentive awards to be made under this Plan, any
incentive award to be made to a Participant will be adjusted to reflect the amount of
time during the Plan Period that the Participant was actively employed in a
Plan-eligible position:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>if the Participant commenced Plan participation after the
beginning of the Plan Period due to hire or transfer into a Plan eligible
position after the Plan Period began; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>if the Participant, while employed in a Plan-eligible position,
was on an approved leave of absence with a statutory or written contractual
guarantee of reinstatement.</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt">If the Company elects to use only Base Pay as the basis to determine the amount of
incentive awards to be made under this Plan, no pro-rata adjustment will be made to
a Participant&#146;s incentive award amount due to late entry into Plan Participation or
due to a leave of absence during the Plan Period.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">C.&nbsp;&nbsp;</TD>
    <TD><B>Payment of Incentive Awards</B>. No special fund shall be established, and no
segregation of assets shall be made, to assure payment of any incentive awards under
this Plan. Any incentive awards paid under this Plan shall be made in cash.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">D.&nbsp;&nbsp;</TD>
    <TD><B>Timing of Incentive Awards. </B>Any incentive awards that may be made under this
Plan likely will be made on a date that is within approximately two (2)&nbsp;months after
the end of the Fiscal Year.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">E.&nbsp;&nbsp;</TD>
    <TD><B>Deductions from Incentive Awards</B>. Any Incentive award paid under this Plan is
subject to the following: (i)&nbsp;tax withholdings, (ii)&nbsp;such other withholdings authorized
in writing by the Plan Participant, and (iii)&nbsp;withholdings required by wage garnishment
or other court or government orders received by the Company.</TD>
</TR>

</TABLE>


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<P align="left" style="font-size: 10pt"><B>IV. MISCELLANEOUS</B>



<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">A.&nbsp;&nbsp;</TD>
    <TD><B>Plan Administration</B>. The Committee administers this Plan on behalf of the
Company, including but not limited to interpreting this Plan document, adopting
policies and procedures for administration of this Plan, making any and all
determinations to be made under this Plan, including changes to and termination of this
Plan during the Plan Period. The Committee reserves the right to delegate any or all
administration duties and responsibilities under this Plan to any officer or employee
of the Company, and to revoke any such delegation at any time.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">B.&nbsp;&nbsp;</TD>
    <TD><B>Limitations:</B></TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.&nbsp;&nbsp;</TD>
    <TD>Neither this Plan, nor any term, condition or provision of this
Plan is intended to create any entitlement of any employee of the Company to
any incentive award or other benefit under this Plan, or in lieu of an award or
benefit under this Plan. It is the Company&#146;s intent that this Plan be a fully
discretionary incentive plan.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.&nbsp;&nbsp;</TD>
    <TD>Neither this Plan, nor any term, condition or provision of this
Plan is intended to terminate or change any right or obligation existing under
a non-disclosure/confidential/proprietary/trade secrets information and
inventions assignment agreement between any individual and the Company.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">3.&nbsp;&nbsp;</TD>
    <TD>Incentive awards made under this Plan are not considered for
the purpose of calculating any extra benefits; any termination, severance,
redundancy, or end-of-service premium payments; other bonuses or long-service
awards; overtime premiums; pension or retirement benefits; or future Base Pay
or any other payment to be made by the Company to a Participant or former
Participant.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">4.&nbsp;&nbsp;</TD>
    <TD>(U.S. Only) Neither this Plan, nor any term, condition or
provision of this Plan is intended to alter the at-will nature of employment
with the Company. All employment with the Company is for an indefinite period
of time and may terminated by the employee or the Company at any time, with or
without cause or advance notice. The at-will nature of employment with the
Company can only be changed by an individualized, express written agreement
signed by the President of Network Appliance, Inc. and by the employee.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">C.&nbsp;&nbsp;</TD>
    <TD><B>Severability &#038; Conformance to Applicable Law. </B>If any one or more terms,
conditions or provision of this Plan is contrary to applicable law, this Plan shall be
interpreted to exclude any such term, condition or provision and the remainder of this
Plan shall remain in full force and effect as if such term, condition or provision was
never contained herein. Alternatively, and <I>only if </I>any such term, condition or
provision is not severable, this Plan shall be conformed to applicable</TD>
</TR>

</TABLE>


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<P>
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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;&nbsp;&nbsp;</TD>
    <TD>law so that all of its terms, conditions and provisions are enforceable under
applicable law <I>and are </I>consistent with the Company&#146;s intent to maintain and
administer a fully discretionary bonus plan for the Plan Period.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">D.&nbsp;&nbsp;</TD>
    <TD><B>Applicable Law</B>. This Plan is governed by the law of the locality(ies) where
the Plan Participant was last employed by the Company as a Plan Participant on April
30, 2005.</TD>
</TR>

</TABLE>



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