EXHIBIT 10.8
EFFICIENT NETWORKS, INC.
AMENDMENT NO. 4 TO THE INVESTORS' RIGHTS AGREEMENT
This Amendment No. 4 ("Amendment") to the Investors' Rights Agreement dated
as of July 30, 1993, as previously amended by Amendments No. 1, 2 and 3 thereto
dated February 9, 1994, September 30, 1994 and September 1, 1995, respectively
(together the "Agreement"), is made as of this 31st day of December, 1996 by and
among Efficient Networks, Inc., a Delaware corporation (the "Company"), each of
the entities listed on Schedule I hereto (the "Existing Investors") and each of
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the individuals and entities listed on Schedule II hereto (the "Series E
------------
Investors"). Capitalized terms used herein which are not defined herein shall
have the definition ascribed to them in the Agreement.
RECITALS
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A. The Company desires to sell and issue to the Series E Investors, and
the Series E Investors desire to purchase from the Company, 3,091,430 shares of
the Company's Series E Preferred Stock pursuant to the Series E Preferred Stock
Purchase Agreement dated of even date herewith (the "Series E Agreement").
B. The Existing Investors desire for the Series E Investors to invest in
the Company and, as a condition thereof and to induce such investment, the
Existing Investors are willing to enter into this Amendment to permit the Series
E Investors to become a party to the Agreement, as amended.
In consideration of the foregoing and the promises and covenants contained
herein and other good and valuable consideration the receipt of which is hereby
acknowledged, the parties hereto agree as follows:
1. ADDITIONAL PARTY TO THE AGREEMENT.
---------------------------------
The Series E Investors hereby enter into and become parties to the
Agreement. Schedule A to the Agreement is amended to include the Series E
----------
Investors.
2. AMENDMENTS TO AGREEMENT.
-----------------------
2.1 The Series E Investors and the Existing Investors are collectively
referred to as "Investors" for the purposes of the Agreement, as amended.
2.2 Section 1.1(c) of the Agreement is amended in its entirety to read as
follows:
"(c) The term "Registrable Securities" means (1) the Common Stock
issuable or issued upon conversion of the Series A Preferred Stock, Series
B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and
Series E Preferred Stock and (2) any Common Stock of the Company issued as
(or issuable upon the conversion or exercise of any warrant, right or other
security which is issued as) a dividend or other distribution with respect
to, or in exchange for or in replacement of, such Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock, Series D Preferred
Stock, Series E Preferred Stock or Common Stock, excluding in all cases,
however, any Registrable Securities sold by a person in a transaction in
which his rights under this Section 1 are not assigned;"
2.3 The first sentence of Section 2.1 of the Agreement is amended in its
entirety to read as follows:
"2.1 Delivery of Financial Statements. The Company shall deliver to
--------------------------------
each Investor holding at least 750,000 shares of Series A Preferred Stock,
375,000 shares of Series B Preferred Stock, 250,000 shares of Series C
Preferred Stock, 250,000 shares of Series D Preferred Stock or 200,000
shares of Series E Preferred Stock;"
2.4 All references to "Series A Preferred Stock" in Sections 2.4, 2.7 and
2.10 shall be deemed to include and make reference to the Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred
Stock.
3. WAIVER AND CONSENT.
------------------
Each Existing Investor, pursuant to any rights such Existing Investor may
have under the Agreement, hereby, on behalf of himself and the other Investors
under the Agreement, (a) waives all rights under, and any notice required by,
Section 3 of the Agreement relating to any rights to purchase or rights of first
refusal with respect to the sale of the shares of Series E Preferred Stock, (b)
consents to adding as a party to the Agreement the Series E Investor, and (c)
consents to the registration rights hereby provided the Series E Investor, which
consent is given pursuant to Section 1.14 of the Agreement.
4. EFFECT OF AMENDMENT.
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Except as amended and set forth above, the Agreement shall continue in full
force and effect.
5. COUNTERPARTS.
------------
This Amendment may be executed in any number of counterparts, each which
will be deemed an original, and all of which together shall constitute one
instrument.
6. SEVERABILITY.
------------
If one or more provisions of this Amendment are held to be unenforceable
under applicable law, such provision shall be excluded from this Amendment and
the balance of the Amendment shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.
7. ENTIRE AGREEMENT.
----------------
This Amendment, together with the Agreement, constitutes the full and
entire understanding and agreement between the parties with regard to the
subjects hereof and thereof.
8. GOVERNING LAW.
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This Amendment shall be governed by and construed under the laws of the
State of Texas.
[signatures on following page]
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This Amendment is hereby executed as of the date first above written.
EFFICIENT NETWORKS, INC., a Delaware corporation
By:_______________________________________
Xxxx X. Xxxxx, President
Address: 0000 Xxxxxx Xxxxxx Xxxx
Xxxxx 0000
Xxxxxx, Xxxxx 00000
EXISTING INVESTORS: CROSSPOINT VENTURE PARTNERS 1993
------------------
By:_______________________________________
General Partner
Address: 00000 XxxXxxxxx Xxxx., Xxx. 000
Xxxxxx, Xxxxxxxxxx 00000
CROSSPOINT 1993 ENTREPRENEURS FUND
By:_______________________________________
General Partner
Address: 00000 XxxXxxxxx Xxxx., Xxx. 000
Xxxxxx, Xxxxxxxxxx 00000
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ENTERPRISE PARTNERS II L.P.
By: Enterprise Management Partners II,
L.P., Its General Partner
By:_________________________________
General Partner
Address: 00000 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Los Angeles, California 90049
ENTERPRISE PARTNERS II ASSOCIATES, L.P.
By: Enterprise Management Partners II,
L.P., Its General Partner
By:_________________________________
General Partner
Address: 00000 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
OCEAN PARK VENTURES, L.P.
By:_______________________________________
General Partner
Address: 00000 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
5
EL DORADO VENTURES III, L.P.
By: El Dorado Venture Partners III, Its
General Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
EL DORADO C & L FUND, L.P.
By: El Dorado Venture Partners III, Its General
Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
EL DORADO TECHNOLOGY IV, L.P., a California
Limited Partnership
By: El Dorado Venture Partners III, Its
General Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
MENLO VENTURES VI, L.P.
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By: MV Management VI, L.P.
By:_________________________________
General Partner
Address: 0000 Xxxx Xxxx Xxxx
Xxxxxxxx 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
MENLO ENTREPRENEURS FUND VI, L.P.
By: MV Management VI, L.P., Its General
Partner
By:_________________________________
General Partner
Address: 0000 Xxxx Xxxx Xxxx
Xxxxxxxx 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
APERTURE ASSOCIATES, L.P.
By:_______________________________________
General Partner
Address: 000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
TEXAS INSTRUMENTS INCORPORATED
By:_______________________________________
Address: 0000 Xxxxxxxxx Xxx
Attn: Corp. Development
Mail Stop 3995
Xxxxxx, Xxxxx 00000
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SERIES E INVESTORS: CROSSPOINT VENTURE PARTNERS 1993
------------------
By:_______________________________________
General Partner
Address: 00000 XxxXxxxxx Xxxx., Xxx. 000
Xxxxxx, Xxxxxxxxxx 00000
CROSSPOINT 1993 ENTREPRENEURS FUND
By:_______________________________________
General Partner
Address: 00000 XxxXxxxxx Xxxx., Xxx. 000
Xxxxxx, Xxxxxxxxxx 00000
ENTERPRISE PARTNERS II L.P.
By: Enterprise Management Partners II,
L.P., Its General Partner
By:_________________________________
General Partner
Address: 00000 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Los Angeles, California 90049
ENTERPRISE PARTNERS II ASSOCIATES, L.P.
By: Enterprise Management Partners II,
L.P., Its General Partner
By:_________________________________
General Partner
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Address: 12011 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
OCEAN PARK VENTURES, L.P.
By:_______________________________________
General Partner
Address: 00000 Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
EL DORADO VENTURES III, L.P.
By: El Dorado Venture Partners III, Its
General Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
0
XX XXXXXX X & X XXXX, X.X.
By: El Dorado Venture Partners III, Its
General Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
EL DORADO TECHNOLOGY IV, L.P., a
California Limited Partnership
By: El Dorado Venture Partners III, Its
General Partner
By:_________________________________
General Partner
Address: 00000 Xxxxxxx Xxxxx Xxxx.
Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
MENLO VENTURES VI, L.P.
By: MV Management VI, L.P.
By:_________________________________
General Partner
Address: 0000 Xxxx Xxxx Xxxx
Xxxxxxxx 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
00
XXXXX XXXXXXXXXXXXX XXXX XX, X.X.
By: MV Management VI, L.P., Its General
Partner
By:_________________________________
General Partner
Address: 0000 Xxxx Xxxx Xxxx
Xxxxxxxx 0, Xxxxx 000
Xxxxx Xxxx, Xxxxxxxxxx 00000
APERTURE ASSOCIATES, L.P.
By:_______________________________________
General Partner
Address: 000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
ADC TELECOMMUNICATIONS, INC.
By:_______________________________________
Address: 0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
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SCHEDULE I
SCHEDULE OF INVESTORS
Name and Address
-------------------------------------
Crosspoint Venture Partners 1993
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Crosspoint 1993 Entrepreneurs Fund
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Enterprise Partners II, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
Enterprise Partners II Associates, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
Ocean Park Ventures, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
El Dorado Ventures III, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
El Dorado C & L Fund, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
El Dorado Technology IV, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
Menlo Ventures VI, L.P.
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, XX 00000
Menlo Entrepreneurs Fund VI, L.P.
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, XX 00000
C.D. Technicom X.X.
Xxxxxx Xxxxxxxx, 00
0000 XXXXX, Xxxxxxx
Aperture Associates, L.P.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Texas Instruments Incorporated
0000 Xxxxxxxxx Xxx
12
Mail Stop 39951
Xxxxxx, Xxxxx 00000
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SCHEDULE II
SCHEDULE OF INVESTORS
Name and Address
-------------------------------------
Crosspoint Venture Partners 1993
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Crosspoint 1993 Entrepreneurs Fund
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Enterprise Partners II, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
Enterprise Partners II Associates, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
Ocean Park Ventures, L.P.
00000 Xxx Xxxxxxx Xxxx., Xxxxx 000
Xxx Xxxxxxx, XX 00000
El Dorado Ventures III, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
El Dorado C & L Fund, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
El Dorado Technology IV, L.P.
00000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
Menlo Ventures VI, L.P.
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, XX 00000
Menlo Entrepreneurs Fund VI, L.P.
0000 Xxxx Xxxx Xxxx
Xxxx. 0, Xxxxx 000
Xxxxx Xxxx, XX 00000
Aperture Associates, L.P.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
ADC Telecommunications, Inc.
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
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