Exhibit 10.2

 

AMENDMENT TO LOCK-UP AGREEMENT

 

This AMENDMENT TO LOCK-UP AGREEMENT (this “Amendment”) is made and entered into
as of September 30, 2003 by and among Redback Networks Inc., a Delaware
corporation (the “Company”) and each Noteholder that executes a counterpart
signature page to this Amendment. Capitalized terms used and not defined in this
Amendment shall have the same meanings assigned to them in the Lock-Up Agreement
(together with the Restructuring Term Sheet attached as Annex A thereto,
collectively, the “Lock-Up Agreement”), by and among the Company and the
signatories thereto, which is being amended by this Amendment.

 

WHEREAS, the Company and the Noteholders desire to amend the Lock-Up Agreement
as set forth in this Amendment on the terms and subject to the conditions set
forth below; and

 

WHEREAS, Noteholders holding a majority of the aggregate principal amount of,
and accrued interest on, the Notes represent the Required Creditors for purposes
of amending the Lock-Up Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and
covenants set forth herein, the parties hereto agree as provided below. Any
terms of the Lock-Up Agreement in conflict or otherwise inconsistent with this
Amendment are hereby superseded and replaced by the terms of this Amendment.

 

1. Prepackaged Plan. In the event that the Company satisfies the conditions to
the Exchange Offer on or before October 31, 2003 (the “New Deadline”), the
Company shall have no obligation to commence a Case. In the event that by the
New Deadline the Company

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has failed to satisfy the conditions to the Exchange Offer but has secured
acceptances of the Prepackaged Plan from holders of Outstanding Indebtedness in
numbers and holding amounts that are sufficient to confirm the Prepackaged Plan
under applicable provisions of chapter 11 of the Bankruptcy Code (the “Required
Acceptances”), then on or before November 3, 2003, the Company shall commence a
Case in which it shall file the Prepackaged Plan, and the Company shall use its
commercially reasonable best efforts to confirm before the Prepackaged
Proceeding Confirmation Deadline and implement the Prepackaged Plan.

 

2. Pre-Negotiated Proceeding. In the event that by the New Deadline the Company
has failed to satisfy the conditions to the Exchange Offer and has failed to
secure the Required Acceptances, then on or before November 3, 2003, the Company
shall commence a Case and file a pre-negotiated plan of reorganization under
Chapter 11 of the Bankruptcy Code, consistent in all material respects with the
Restructuring Term Sheet (a “Pre-Negotiated Plan”), to effectuate the
Restructuring, and the Company shall use its commercially reasonable best
efforts to confirm before February 27, 2004 (the “Pre-Negotiated Proceeding
Confirmation Deadline”) and implement such Pre-Negotiated Plan.

 

3. Termination. The Lock-Up Agreement shall remain effective until and terminate
and expire upon November 3, 2003, unless: (a) on or before that date, (i) the
Company has commenced a Case and filed the Prepackaged Plan, in which case the
Lock-Up Agreement shall terminate on the Prepackaged Proceeding Confirmation
Deadline, or (ii) the Company has commenced a Case and filed the Pre-Negotiated
Plan, in which case the Lock-Up Agreement shall terminate on the Pre-Negotiated
Proceeding Confirmation Deadline; or (b) any other condition or event set forth
in Section 8(a) of the Lock-Up Agreement, excluding Section 8(a)(i) and Section
8(a)(ii), has occurred.

 

4. Amendment and References. Each reference in the Lock-Up Agreement to “this
Agreement”, “the Lock-Up Agreement”, the “Restructuring Term Sheet”,
“hereunder”, “hereof”, “herein” or words of like import shall mean and be a
reference to the Lock-Up Agreement as amended by this Amendment. The Lock-Up
Agreement is amended only as specifically amended by this Amendment and shall
remain in full force and effect except as otherwise provided herein. By
executing this Amendment, each of the signatories to this Amendment agrees to be
bound by the Lock-Up Agreement as though it had been an original signatory
thereto, except as amended by this Amendment.

 

5. Representations and Warranties. a. Each of the signatories to this Amendment
represents and warrants to the other signatories to this Amendment that:

 

(i) if an entity, it is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization and has all requisite
corporate, partnership or other power and authority to enter into this Amendment
and to carry out the transactions contemplated by, and perform its respective
obligations under, this Amendment;

 

(ii) if an entity, the execution and delivery of this Amendment and the
performance of its obligations hereunder have been duly authorized by all
necessary corporate, partnership or other action on its part;

 

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(iii) the execution, delivery and performance by it of this Amendment do not and
shall not (A) violate any provision of law, rule or regulation applicable to it
or any of its affiliates or its certificate of incorporation or bylaws or other
organizational documents or those of any of its subsidiaries or (B) conflict
with, result in the breach of or constitute (with due notice or lapse of time or
both) a default under any material contractual obligations to which it or any of
its affiliates is a party or under its certificate of incorporation, bylaws or
other governing instruments; and

 

(iv) assuming the due execution and delivery of this Amendment by each of the
other parties hereto, this Amendment is the legally valid and binding obligation
of it, enforceable against it in accordance with its terms (except insofar as
indemnification for liability under securities and similar laws may be
unenforceable as against public policy).

 

b. Each of the Noteholders further represents and warrants to the other
signatories to this Amendment that as of the date of this Amendment, such
Noteholder is the beneficial owner of, or the investment adviser or manager for
the beneficial owner(s) of, the principal amount at maturity of the Notes, set
forth below such Noteholder’s name on Schedule A hereto, with the power and
authority to vote and dispose of such Notes.

 

6. No Waiver. Each of the signatories to this Amendment expressly acknowledges
and agrees that, except as expressly provided in this Amendment, nothing in this
Amendment is intended to, nor does, in any manner waive, limit, impair or
restrict the ability of any party to this Amendment to protect and preserve all
of its rights, remedies and interests, including, without limitation, with
respect to its ownership of claims against or equity securities of the Company.

 

7. Miscellaneous. This Amendment shall be governed in all respects by the laws
of the State of California, except to the extent such law is preempted by the
Bankruptcy Code. This Amendment is not intended to be, and each signatory to
this Amendment acknowledges that it is not, a solicitation of the acceptance or
rejection of any Prepackaged Plan of reorganization for the Company pursuant to
Section 1125 of the Bankruptcy Code. This Amendment may be executed in one or
more counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page of this Amendment by facsimile shall be
effective as delivery of a manually executed counterpart.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed
by its duly authorized officers as of the date first written above.

 

REDBACK NETWORKS INC.

By:

 

/s/ Thomas L. Cronan III

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Its:

 

Senior Vice President & CEO

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Schedule A

 

Noteholders and Aggregate Principal Amount of Notes Held

 

Noteholder:

 

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By:

 

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Its:

 

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Aggregate Principal Amount of Notes held by such Noteholder as beneficial owner
(or as investment manager or advisor for the beneficial owner):

 

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