Document:

Prepared by R.R. Donnelley Financial -- Termination letter releating to Financing Agreement

 Exhibit 10.14 
  
 January 2, 2004 
  
 Redback Networks Inc. 
 300 Holger Way 
 San Jose, California 95134 
 Attn: Chief Financial Officer 
  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Financing Agreement, dated as of November 12, 2003, as amended and currently in effect (the “Financing
Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Financing Agreement) by and among, on the one hand, the lenders from time to time a party thereto (each a
“Lender”, and collectively the “Lenders”), Ableco Finance LLC, a Delaware limited liability company as collateral agent for such Lenders (in such capacity, together with its successors and assigns, if any, in such capacity,
“Collateral Agent”), Wells Fargo Foothill, Inc., as administrative agent for such Lenders (in such capacity, in such capacity, together with its successors and assigns, if any, in such capacity, “Administrative Agent”; together
with the Collateral Agent, the “Agents”), Redback Networks Inc., a Delaware corporation as borrower, and Redback Networks International Inc., a Delaware corporation and Merlin Systems, Inc., a Delaware corporation as guarantors (together,
the “Guarantors”; together with Borrower, each a “Loan Party”, and individually and collectively, and jointly and severally, the “Loan Parties”) have advised the Agents that the Loan Parties desire to repay all of the
Obligations, including but not limited to, principal, interest, expenses, fees and other charges, owing by the Loan Parties to the Agents and Lenders. 
  
 1.    This letter will confirm that, upon receipt by Agents of: 
  
 (a)    no later than 3:00 p.m., New York time, on January 2, 2004, a wire transfer of immediately
available funds to: 
  
 Bank: JPMorgan Chase
Bank of Texas, N.A. 
 ABA #.: 113000609 
 Acct. #: 00102619468 
 Acct. Name: Wires-Clearing-Asset Backed Securities 
 Sub Acct. #: 10200637.2 
 Sub Acct Name: Ableco Finance 
 Ref: Margaret Askandari/Ableco Finance/Redback DIP 
  
 in the amount of $5,000 representing costs and expenses payable to the Agents and Lenders in respect of the Expense Reserve, defined below; 
  
 (b)    no later than 3:00 p.m., New York time, on January 2, 2004, a wire transfer of immediately available funds to: 

 Bank: JPMorgan Chase Bank 
 4 New York Plaza, 15th Floor 
 New York, NY 10004 
 ABA #: 021000021 
 Crediting: Wells Fargo Foothill, Inc. 
 Account #: 323-266193 
 Reference: Redback Networks Inc. 
  
 in the amount of $55,264.96 representing costs and expenses payable to the Agents and Lenders by the Loan Parties pursuant to the Loan Documents and $100,000 in respect
of the Expense Reserve, defined below; 
  
 (d)    confirmation, in form and substance satisfactory to Agents, that the original letter of credit dated as of April 4, 2002 issued by Wells Fargo Bank, National Association (“Wells Fargo Bank”) for the
benefit of Jabil Circuit, Inc. in the face amount of $10,000,000 (and as amended, $15,700,000) has been returned undrawn to Wells Fargo Bank; and 
  
 (e)    a fully-executed counterpart of this letter agreement signed by the Loan Parties, 
  
 (the date on which all of the foregoing conditions shall first be satisfied herein called
the “Payoff Date”), all of the Obligations shall be terminated and satisfied in full; provided, however, that (A) all Indebtedness of any Loan Party in respect of the Loan Parties’ Obligations to indemnify each
Indemnitee under Section 12.15 of the Financing Agreement and to reimburse the Agents and Lenders for fees and costs shall remain in full force and effect and (B) to the extent that any payments or proceeds (or any portion thereof) received
by Agents or Lenders shall be subsequently invalidated, declared to be fraudulent or a fraudulent conveyance or preferential, set aside or required to be repaid to a trustee, receiver, debtor-in-possession or any other party under any bankruptcy
law, state or federal law, common law or equitable cause, then to the extent that the payment or proceeds is rescinded or must otherwise be restored by such Agent or Lender, whether as a result of any Insolvency Proceeding or otherwise, the
Obligations, other Indebtedness of any Loan Party to the Agents and Lenders, or part thereof which were intended to be satisfied by any such payment or proceeds shall be revived and continue to be in full force and effect, as if the payment or
proceeds had never been received by the Agents and Lenders, and this Agreement shall in no way impair the claims of the Agents and Lenders with respect to the revived Obligations or other Indebtedness of any Loan Party to the Agents and Lenders.

  
 Each of the Loan Parties and the Agents and Lenders
acknowledge and agree that amounts in this Paragraph 1 include a fee, cost, and expense reserve in the amount of $105,000 (the “Expense Reserve”) which will be held by the Agents until all of the fees, costs, and expenses payable in
connection with the Loan Documents, the termination of the Loan Documents, or the performance of the parties under this payoff letter have been posted to the Borrower’s Loan Account with the balance, if any, remaining after such application to
be remitted by the Agents to Borrower. If the Agents or Lenders incur fees, costs, or expenses that exceed the Expense Reserve or if the Agents or Lenders incur fees, costs, or expenses after the 

 
balance of the Expense Reserve has been remitted to Borrower, including without limitation, fees, costs, or expenses that arise from or relate to litigation
or any other dispute resolution proceeding involving the Loan Documents, the termination of the Loan Documents or the performance of the parties under this payoff letter, the Loan Parties shall reimburse the Agents and Lenders, promptly after
receipt of a demand therefor (and in any event within three Business Days of the date of such demand), for the full amount of all such fees, costs, or expenses. 
  

2.    Upon receipt of the amounts in Paragraph 1 in accordance with Paragraph 1 and satisfaction of the other conditions referred
to herein, the Lenders hereby authorize Collateral Agent to release, and Collateral Agent hereby agrees to release, on and with effect from the Payoff Date, all of its security interests and liens created as security for the Obligations, including
without limitation all security interests in instruments, negotiable documents, cash, chattel paper, an other similar collateral in the possession or control of Collateral Agent (the “Possessory Collateral”). 
  
 3.    Each Loan Party hereby confirms that the
commitments of Lenders to make loans under the Loan Documents are terminated as of the Payoff Date. 
  
 4.    The Agents and Lenders, concurrently with the satisfaction of the conditions referred to in Paragraph 1 above, hereby authorize
the Loan Parties to prepare and, upon approval by Collateral Agent, file any Uniform Commercial Code termination statements that the Loan Parties reasonably may request to release, as of record, the financing statements previously filed by
Collateral Agent, with respect to the Obligations, and agree to execute and deliver any lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar discharge or release documents (and if
applicable, in recordable form) as are reasonably necessary to release, as of record, the security interests, and all other notices of security interests and liens previously filed by Collateral Agent with respect to the Obligations, and which are
prepared at the Loan Parties’ expense. 
  
 5.    Collateral Agent will, as promptly as practicable upon the satisfaction of the conditions referred to in Paragraph 1 above, deliver originals of all Possessory Collateral, or affidavits regarding lost documents, to
the Borrower at the address set forth on the first page of this letter. 
  
 6. The Lenders hereby authorize Agents to, and Agents hereby agree that they shall, execute and deliver such additional documents and shall provide additional information as the Loan Parties may reasonably require to carry out the terms of
this letter agreement at the Loan Parties’ expense. 
  
 7.    Each Loan Party each hereby waives, releases, remises and forever discharges each Agent and each Lender from any and all claims of any kind or character, known or unknown, which any Loan Party ever had, now has or
might hereafter have against either Agent, any or any Lender which relates, directly or indirectly, to the Financing Agreement, any other Loan Document, or to any acts or omissions of either Agent or any Lender. As to each and every claim released
hereunder, each Loan Party each hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, each of them specifically waives the benefit of the provisions of Section
1542 of the Civil Code 

 
of California, or any similar provision under New York law or otherwise, which provides as follows: 
  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  
 As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal
or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by their legal counsel with respect thereto. 
  
 8.    Each Loan Party hereto agrees, represents, and
warrants that such party has not voluntarily, by operation of law or otherwise, assigned, conveyed, transferred or encumbered, either directly or indirectly, in whole or in part, any right to or interest in any of the claims released pursuant to
Paragraph 7 hereof. 
  
 9.    The Loan Parties
acknowledge that the amounts referred to in Paragraph 1 above (other than amounts to be remitted to Borrower pursuant to Paragraph 1) are enforceable obligations of them owed to the Agents and Lenders pursuant to the provisions of the Financing
Agreement and confirm their agreement to the terms and provisions of this letter by returning to Agents a signed counterpart of this letter. This letter may be executed by each party on a separate counterpart, each of which when so executed and
delivered shall be an original, but all of which together shall constitute one agreement. Additionally, facsimile signature will be deemed an original. 
  
 10.    This letter agreement shall be governed by and construed in accordance with the laws of the State of New York as applied to
agreements among parties resident therein. Whenever possible, each provision of this letter agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this letter agreement shall be
prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this letter agreement.

  
 11.    This is the entire agreement
between the parties with respect to the subject matter of this letter agreement. There are no other agreements or understandings, written or oral, express or implied. 
  
 [Signatures Continued On Next Page] 
  

 Very truly yours, 
  
 ABLECO FINANCE LLC, 
 a Delaware limited liability company, 
 as Collateral Agent 
  
 By:                                      
                                        
                                        
                   
 Name:                                     
                                        
                                        
              
 Its:                                      
                                        
                                        
                    
  
 ABLECO FINANCE LLC, 
 a Delaware limited liability company, on behalf of itself 
 and its Affiliate assigns, as
Lenders 
  
 By:                                      
                                        
                                        
                   
 Name:                                     
                                        
                                        
              
 Its:                                      
                                        
                                        
                    
  
 WELLS FARGO FOOTHILL, INC., 
 a California corporation, 
 as Administrative Agent and a Lender 
  
 By:                                      
                                        
                                        
                   
 Name:                                     
                                        
                                        
              
 Its:                                      
                                        
                                        
                    

	
	 ACCEPTED and AGREED to as of the
 date first set forth
above:
  
 REDBACK NETWORKS INC.,
 a Delaware corporation
  
 By:                                      
                                        
                  
 Name:                                     
                                        
             
 Its:                                      
                                        
                   
  
 REDBACK NETWORKS INTERNATIONAL INC.,
 a Delaware corporation

 
 By:                                      
                                        
                  
 Name:                                     
                                        
             
 Its:                                      
                                        
                   
  
 MERLIN SYSTEMS, INC.,
 a Delaware corporation
  
 By:                                      
                                        
                  
 Name:                                     
                                        
             
 Its:Prepared by R.R. Donnelley Financial -- Letter of Credit issued by Silicon Valley Bank on behalf of the Registrant

 Exhibit 10.15 
  
 IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 
  
 DATE: JANUARY 5, 2004 
  
 BENEFICIARY: 
 JABIL CIRCUIT, INC. 
 30 GREAT OAKS BOULEVARD 
 SAN JOSE, CALIFORNIA 95119 
  
 APPLICANT: 
 REDBACK NETWORKS, INC. 
 300 HOLGER WAY 
 SAN JOSE, CALIFORNIA 95134 
  

			
	AMOUNT:	  	US$15,700,000.00 (FIFTEEN MILLION SEVEN HUNDRED THOUSAND AND NO/100 U.S. DOLLARS)
		
	EXPIRATION DATE:	  	JANUARY 5, 2005
		
	LOCATION:	  	SANTA CLARA, CALIFORNIA

  
 LADIES AND GENTLEMEN: 
  
 WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 IN
YOUR FAVOR FOR ACCOUNT OF REDBACK NETWORKS, INC. IN THE AMOUNT OF US$15,700,000.00 (FIFTEEN MILLION SEVEN HUNDRED THOUSAND AND NO/100 U.S. DOLLARS). THIS LETTER OF CREDIT IS AVAILABLE BY SIGHT PAYMENT WITH US AT OUR OFFICE AT 3003 TASMAN DRIVE,
2ND FLOOR, MAIL SORT HF210, SANTA CLARA, CALIFORNIA 95054, ATTENTION: INTERNATIONAL DIVISION – STANDBY LETTER
OF CREDIT NEGOTIATION DEPARTMENT (THE “BANK’S OFFICE) ONLY AGAINST PRESENTATION OF THE FOLLOWING DOCUMENTS: 
  

	 	1.	THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT (S), IF ANY. 

  

	 	2.	YOUR SIGHT DRAFT DRAWN ON US IN THE FORM ATTACHED HERETO AS EXHIBIT “A”. 

  

	 	3.	A SIGNED AND DATED STATEMENT WORDED AS FOLLOWS: 

  
 “THE UNDERSIGNED, AN AUTHORIZED REPRESENTATIVE OF THE JABIL CIRCUIT, INC. (“BENEFICIARY”) HEREBY CERTIFIES THAT
BENEFICIARY IS ENTITLED TO DRAW THE AMOUNT OF THE ACCOMPANYING DRAFT UNDER SILICON VALLEY BANK IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 UNDER THE TERMS OF THAT CERTAIN LETTER AGREEMENT DATED MARCH 26, 2002 SIGNED BY AND BETWEEN
BENEFICIARY AND REDBACK NETWORKS, INC.” 
  
 PARTIAL DRAWINGS ARE PERMITTED
(MORE THAN ONE DRAFT MAY BE DRAWN AND PRESENTED UNDER THIS LETTER OF CREDIT). 
  
 THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE BENEFICIARY UNLESS IT IS FULLY UTILIZED. 

 IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 
  
 DATE: JANUARY 5, 2004 
  
 THIS LETTER OF CREDIT EXPIRES AT THE BANKS OFFICE ON JANUARY 5, 2005. THE DATE THIS LETTER OF CREDIT EXPIRES, JANUARY 5, 2005, IS THE “FINAL EXPIRY DATE”. UPON
THE OCCURRENCE OF THE FINAL EXPIRY DATE THIS LETTER OF CREDIT SHALL FULLY AND FINALLY EXPIRE AND NO PRESENTATIONS MADE UNDER THIS LETTER OF CREDIT AFTER SUCH DATE WILL BE HONORED. 
  
 DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF CREDIT. 
  
 DOCUMENTS MUST BE DELIVERED TO US DURING REGULAR BUSINESS HOURS ON A BUSINESS DAY OR
FORWARDED TO US BY OVERNIGHT DELIVERY SERVICE TO: SILICON VALLEY BANK, 3003 TASMAN DRIVE, 2ND FLOOR, MAIL SORT
HF210, SANTA CLARA, CALIFORNIA 95054, ATTENTION: INTERNATIONAL DIVISION – STANDBY LETTER OF CREDIT NEGOTIATION DEPARTMENT (THE “BANK’S OFFICE). 
  

AS USED HEREIN, THE TERM “BUSINESS DAY” MEANS A DAY ON WHICH WE ARE OPEN AT OUR ABOVE ADDRESS IN SANTA CLARA, CALIFORNIA TO CONDUCT OUR LETTER OF CREDIT
BUSINESS. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THE UCP (AS HEREINAFTER DEFINED), IF THE EXPIRY DATE OR THE FINAL EXPIRY DATE IS NOT A BUSINESS DAY THEN SUCH DATE SHALL BE AUTOMATICALLY EXTENDED TO THE NEXT SUCCEEDING DATE WHICH IS A
BUSINESS DAY. 
  
 WE HEREBY ENGAGE WITH YOU THAT DRAFT(S) DRAWN AND/OR DOCUMENTS
PRESENTED UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO SILICON VALLEY BANK, IF PRESENTED ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT. 
  
 THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS
(1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 500 (THE “UCP”). 
  

							
	 SILICON VALLEY BANK,
  
  
	 	 	 	 	 	 
	
 AUTHORIZED SIGNATURE
	 	 	 	
 AUTHORIZED SIGNATURE
	 	 

  
  

					
	 	  	 	  	PAGE 2

 IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF002602 
  
 DATE: JANUARY 5, 2004 
  
 EXHIBIT “A” 
  
  

 SIGHT DRAFT/BILL OF
EXCHANGE 
  

			
	DATE:                         	 	REF. NO.
                            
	
	 AT SIGHT OF THIS BILL OF EXCHANGE
  

	
	 PAY TO THE ORDER OF
                                        
                                        
     US$                                
 US DOLLARS
                                        
                                        
                                        
                        
  

	
	 “DRAWN UNDER SILICON VALLEY BANK, SANTA CLARA, CALIFORNIA, IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER NO.
SVBSF             DATED                     
    , 2004”
  

		
	 TO:   SILICON VALLEY BANK
          3003 TASMAN DRIVE
          SANTA CLARA, CA 95054
	 	
 [INSERT NAME OF BENEFICIARY]
  
  

 Authorized Signature

  

  
 GUIDELINES TO PREPARE THE SIGHT DRAFT OR BILL OF EXCHANGE: 
  

	1.	DATE INSERT ISSUANCE DATE OF DRAFT OR BILL OF EXCHANGE. 

  

	2.	REF. NO. INSERT YOUR REFERENCE NUMBER IF ANY. 

  

	3.	PAY TO THE ORDER OF: INSERT NAME OF BENEFICIARY 

  

	4.	US$ INSERT AMOUNT OF DRAWING IN NUMERALS/FIGURES. 

  

	5.	USDOLLARS INSERT AMOUNT OF DRAWING IN WORDS. 

  

	6.	LETTER OF CREDIT NUMBER INSERT THE LAST DIGITS OF OUR STANDBY L/C NUMBER THAT PERTAINS TO THE DRAWING. 

  

	7.	DATED INSERT THE ISSUANCE DATE OF OUR STANDBY L/C. 

  

	NOTE:	BENEFICIARY SHOULD ENDORSE THE BACK OF THE SIGHT DRAFT OR BILL OF EXCHANGE AS YOU WOULD A CHECK. 

  
 IF YOU NEED FURTHER ASSISTANCE IN COMPLETING THIS SIGHT DRAFT OR BILL OF EXCHANGE, PLEASE CALL OUR L/C PAYMENT SECTION AND ASK FOR: ALICE
DALUZ AT (408) 654-7120 OR EFRAIN TUVILLA AT (408) 654-6349. 
  
  

					
	 	  	 	  	PAGE 3

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