Document:

Lease Termination Agreement

 Exhibit 10.3 
  
 LEASE TERMINATION AGREEMENT 
  

This Lease Termination Agreement (“Agreement”) is entered into as of May 30, 2003, by and between AMB Property, L.P., a Delaware limited
partnership (“AMB” or “Landlord”) and Redback Networks, Inc., a Delaware corporation (“Redback” or “Tenant”). 
  
 Recitals 
  
 A. Landlord and Siara Systems, Inc., a Delaware corporation entered into the AMB Property Corporation Industrial Multi-Tenant Lease (“Lease”)
dated August 16, 1999, for the premises (“Premises”) located at 1195 Borregas Avenue, Sunnyvale, California, consisting of approximately 50,895 rentable square feet of space. 
  
 B. Tenant is the successor in interest to Siara Systems, Inc. 
  
 C. The term of the Lease is scheduled to expire on December 31, 2004. 
  
 D. Tenant subleased the Premises to Onetta, Inc. (“Onetta”) by the
Sublease (“Sublease”) dated March 14, 2001, and Onetta is currently in possession of the Premises. 
  
 E. Landlord and Tenant now desire an early termination of the Lease. 
  
 F. Tenant intends to terminate the Sublease with Onetta concurrently with the termination of the Lease. 
  
 G. Landlord intends to enter into a new lease with Onetta concurrently with
the termination of the Lease. 
  
 Agreement 
  
 In consideration of their mutual covenants and other valuable consideration,
thw receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows: 
  
 1. Recitals. The foregoing recitals are true and accurate. 
  

2. Termination. 
  
 2.1 Termination of Lease. Upon the satisfaction of the conditions set forth below in paragraphs 5.1 and 5.2, the Lease and all
rights, obligations and liabilities of Landlord and Tenant under the Lease, except those which arise from either party’s breach of this Lease Termination Agreement and those which would 

  

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survive the expiration of the Lease, shall terminate on May 31, 2003 at 11:59 P.M. (“Termination Date”). 
  
 2.2 Prorations. All rents and other income and all
expenses under the Lease shall be prorated as of the day before the Termination Date. 
  
 2.3 Security Deposits. The security deposits under the Lease shall be returned to Tenant within three business days of full
execution of this Agreement and occurrence of the conditions set forth herein In addition, Landlord agrees to cancel any outstanding letters of credit that Tenant has issued on Landlord’s behalf as of such date. 
  
 2.4 Release. From and after the Termination Date, all
rent and other payments due from Tenant to Landlord on the Premises and all other obligations of Tenant relating to periods after the Termination Date shall cease, except as set forth herein. However, Tenant shall continue to be subject to all
obligations and duties under the Lease which would survive the expiration or earlier termination of the Lease, including but not limited to all obligations relating to Hazardous Materials. 
  
 3. Surrender. Tenant shall surrender possession of the Premises to
Landlord on the Termination Date in substantially the same condition as existed on the date of this Agreement. Tenant shall require Onetta to maintain the Premises in its current condition, subject to reasonable wear and tear and unforeseen casualty
until the Termination Date. Any property of Tenant remaining on the Premises after surrender shall be deemed the property of Subtenant and Tenant waives any rights relating to abandoned property statutes. 
  
 4. Condition. 
  
 5.1 Tenant’s Conditions. Tenant’s
obligations under this Agreement are conditioned upon (1) Tenant and Onetta entering into an agreement to terminate the Sublease on terms satisfactory to Tenant and Onetta, (2) the execution of this Agreement by Landlord and Tenant, and (3) the
approval of the termination contemplated by this Agreement by Tenant’s board of directors, all on or before the Termination Date. 
  
 5.2 Landlord’s Conditions. Landlord’s obligations under this Agreement are conditioned upon (1) Landlord and Onetta
entering into a lease for the Premises on terms satisfactory to Landlord and Onetta, and (2) the execution of this Agreement by Landlord and Tenant, all on or before the Termination Date. 
  
 5.3 Satisfaction of Conditions. Landlord and Tenant
shall use commercially reasonable efforts to satisfy the conditions set forth in paragraphs 5.1(3) and 5.2(2) above. 
  

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 5. Conflicts. The provisions of this Agreement shall control any contrary provision in the Lease.

  
 6. Time for Performance. Time is of the essence of this
Agreement. 
  
 7. Attorneys’ Fees. If any claim or
dispute between the parties arises out of this Agreement or its breach, the prevailing party shall be entitled to recover from the other party all reasonable expenses, attorneys’ fees and costs, including those incurred in the enforcement of
any judgment. 
  
 8. Authority. Each individual executing
this Agreement on behalf of another entity warrants that he or she has the authority to execute this Agreement and that his or her signature is sufficient to bind the entity for whom he or she is signing. 
  
 9. Effect On Option And Right Of First Refusal. Effective on
execution and delivery of this Agreement, Tenant waives and gives up any and all options to extend or renew the Lease Term or expand the Premises, and any and all rights of first refusal or other options previously granted by Landlord. 

 
 10. Payment Obligations Pending Termination. Tenant is
obligated to and shall promptly meet all payment obligations to Landlord arising during the period prior to and including the Termination Date. Such obligations shall include, without limitation, the obligation to pay Base Monthly Rent and all
Additional Rent arising during such period. As soon as reasonably practicable after the Termination Date, Landlord will reconcile Common Operating Expenses and other items of Additional Rent relating to periods of time up to and including the
Termination Date, and Tenant shall promptly pay to Landlord any sums due pursuant to such reconciliation, not later than ten (10) days after presentation of Landlord’s statement (or, if such reconciliation shows an overpayment by Tenant,
Landlord shall reimburse Tenant for the overpayment within ten (10) days) 
  

	 LANDLORD
 AMB Property,
L.P., a Delaware
 limited partnership
  
	 	 	 	 TENANT
 Redback Networks,
Inc., a Delaware
 corporation

					
	By:	 	 /s/    MARTIN J. COYNE

	 	 	 	By:	 	 /s/    THOMAS L. CRONAN III

	 	 	 	 	 	 	 	 	 
	 	 	 Its    Vice President

	 	 	 	 	 	 Its    Senior Vice President of Finance and Administration
         and Chief Financial Officer (Principal Financial and
         Accounting Officer)    

  

 3Employment Agreement by and between Redback Networks, Inc.

 Exhibit 10.4 
  
 [REDBACK NETWORKS LOGO] 
  
 January 15, 2003 
  
 Thomas Cronan III 
  
 Dear Tom: 
  
 I am pleased to inform you that RedBack Networks, Inc. Board of
Director’s has approved your promotion to Senior Vice President of Finance and Administration and Chief Finance Officer. 
  

	 	1.	 	Compensation. You will be paid an annual salary of $275,000 payable in accordance with the Company’s standard payroll practices for salaried employees. This salary will
be subject to adjustment pursuant to the Company’s employee compensation policies on a periodic basis. 

  

	 	2.	 	Stock Options. You were granted an option to purchase an additional 400,000 shares of the Company’s Common Stock. The exercise price per share will be equal to the fair
market value per share at the close of market, on the date the option was approved by our Board of Directors; January 7, 2003. The option will be subject to the terms and conditions applicable to options granted under the Company’s 1999 Stock
Plan, as described in that Plan and the applicable stock option agreement. You will vest in 25% of the option shares after 12 months of service, and the balance will vest in monthly installments over the next 36 months of service, as described in
the applicable stock option agreement. 

  

	 	3.	 	Period of Employment. Your employment with the Company continues to be “at will”, meaning that either you or the Company will be entitled to terminate your
employment at any time for any reason, with or without cause. Any contrary representations, which may have been made to you, are superseded by this offer. Although your job duties, title, compensation and benefits, as well as the Company’s
personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express writing signed by you and the President of the Company. 

  

	 	4.	 	Option Agreement: In the event a Change in Control occurs (as defined by Redback’s Stock Option Plan) and (ii) within 12 months following such Change in Control, either
(A) your service with Redback is involuntarily terminated without cause or (B) there is an involuntary reduction in the nature or scope of your service to Redback (including a material reduction in your employment responsibilities) an additional 25%
of the shares shall become vested, provided that this Option shall not become vested with respect to more than 100% of the shares. In addition, the Company shall also continue your base pay (at the rate in effect at the time or the termination of
your employment) for a period of 12 months following the termination of your employment or, if earlier, until you secure new employment at similar compensation. Cause shall be deemed to mean your unauthorized use or disclosure of the confidential
information or trade secrets of Redback, your conviction of a felony under the laws of the United States or any state thereof or your gross negligence. 

  
  
 350 Holger Way 
 San Jose, CA 95134 USA 
 Tel: 408 571 5200 
 Fax: 408 571 5173 
 www.redback.com 

 Tom, I have personally appreciated the many significant contributions you have made to Redback in the time that you have
been with the company. I am looking forward to your continued leadership as you take on this new role within the company. 
  
 Very truly yours, 
  
 /s/ Kevin DeNuccio 
  
 Kevin DeNuccio 
 Chief Executive Officer 
 REDBACK NETWORKS, Inc. 
  
 AGREED AND ACCEPTED: 
  
 /s/ Thomas L Cronan III 
  
 Thomas Cronan III/Date

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