EX-10.1 LETTER OF CREDIT ISSUED BY SILICON VALLEY BANK ON BEHALF
OF THE REGISTRANT
Exhibit 10.1
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
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AMOUNT:
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US$15,700,000.00
(FIFTEEN MILLION SEVEN HUNDRED
THOUSAND AND NO/100 U.S. DOLLARS)
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EXPIRATION DATE:
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JANUARY 5, 2005
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LOCATION:
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SANTA CLARA,
CALIFORNIA
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LADIES AND GENTLEMEN:
WE HEREBY ESTABLISH OUR
IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVBSF 002602 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, 2
ND 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:
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1.
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THE ORIGINAL OF THIS LETTER OF
CREDIT AND ALL AMENDMENT (S), IF ANY.
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2.
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YOUR SIGHT DRAFT DRAWN ON US IN
THE FORM ATTACHED HERETO AS EXHIBIT "A" .
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3.
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A SIGNED AND DATED STATEMENT
WORDED AS FOLLOWS:
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"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, 2 ND
FLOOR, MAIL SORT HF210, SANTA CLARA,
CALIFORNIA 95054, ATTENTI
