Exhibit 10.14
Execution Copy
--------------
EFFICIENT NETWORKS, INC.
AMENDMENT NO. 10 TO THE INVESTORS' RIGHTS AGREEMENT
This Amendment No. 10 ("Amendment") to the Investors' Rights Agreement
dated July 30, 1993, as previously amended by Amendments No. 1 through 7 and 9
thereof [there is no Amendment No. 8, the eighth Amendment was mistakenly
numbered No. 9] (together, as amended the "Agreement"), is made as of this 20th
day of November, 1999, by and among Efficient Networks, Inc., a Delaware
corporation (the "Company") and each of the entities listed on Exhibit A hereto
---------
(the "Existing Investors"). Capitalized terms used herein which are not defined
herein shall have the definition ascribed to them in the Agreement.
RECITALS
--------
A. WHEREAS, the Company intends to enter into an Agreement and Plan of
Reorganization by and among the Company, Fire Acquisition Corporation, a
California corporation and a wholly-owned subsidiary of the Company, Comet
Company, Inc., a Delaware corporation, and Fire Company, Inc., a California
corporation and a wholly-owned subsidiary of Comet Company, Inc., whereby the
Company shall acquire Fire Company, Inc. by merging Fire Company, Inc. into Fire
Acquisition Corporation (the "Merger").
B. WHEREAS, pursuant to the terms of the Merger, the Company shall
grant certain registration rights as contained in that certain Standstill &
Disposition Agreement set forth as Attachment I hereto (the "Senior &
------------
Controlling Registration Rights"), which Senior & Controlling Registration
Rights conflict with or are senior to the the registration rights granted to the
Existing Investors in Section 1 of the Agreement (the "Pre-Existing Registration
Rights").
C. WHEREAS, in order to induce Comet Company, Inc. and Fire Company,
Inc. to enter into the Agreement and Plan of Reorganization and consummate the
Merger, the Existing Investors hereby shall agree to New & Controlling
Registration Rights and subordinate the Pre-Existing Registration Rights to the
New & Controlling Registration Rights.
D. WHEREAS, in addition, the Company completed its initial public
offering of shares of its Common Stock in July 1999, and consequently, the
affairs of the Company should be governed by its charter documents, and
therefore the Company and the Existing Investors desire to amend the Agreement
in certain other respects, as set forth below.
IN CONSIDERATION OF THE FOREGOING, THE PARTIES HERETO AGREE AS FOLLOWS:
Pursuant to Section 3.7 of the Agreement, any term of the Agreement may be
amended, and the observance of any term may be waived, by the written consent of
the Company and a majority of the holders of Registrable Securities then
outstanding, (provided that the effect of such amendment or waiver will be that
all holders of Registrable Securities are treated equally)
and any amendment or waiver effected in accordance therewith shall be binding
upon the Company and each holder of any Registrable Securities then outstanding;
provided, however, that any amendment to or waiver of any term of the Agreement
-------- -------
that adversely affects the rights of Covad (as defined in Amendment No. 9) shall
require the written consent of Covad.
1. AGREEMENT WITH NEW & CONTROLLING REGISTRATION RIGHTS AND SUBORDINATION
----------------------------------------------------------------------
OF PRE-EXISTING REGISTRATION RIGHTS.
------------------------------------
The Existing Investors and Covad, on behalf of themselves and the other
holders of Registrable Securities under the Agreement, hereby (i) consent to the
Senior & Controlling Registration Rights, which consent is given pursuant to
Section 1.14 of the Agreement, and (ii) agree to the Senior & Controlling
Registration Rights, (iii) and, to the extent that the Senior & Controlling
Registration Rights may, by any means of construction or interpretation,
conflict with the Pre-Existing Registration Rights, agree to subordinate in all
respects the Pre-Existing Registration Rights to avoid any conflict whatsoever
with the rights to be granted in Attachment I. The consents and agreements set
forth in this paragraph are made on behalf of each of the Existing Investors
themselves and on behalf of all holders of Registrable Securities (to ensure
compliance with the amendment and waiver requirements provisions of Section 3.7
and, with respect to Covad, as required by Section 3 of Amendment No. 9).
2. AMENDMENTS TO AGREEMENT.
-----------------------
In order that the Company's charter documents govern the affairs of the
Company, the Company and the Existing Investors desire to terminate the
following provisions in their entirety and waive any claim relating to any prior
non-compliance therewith:
Section 2.6 - Management Stock; Section 2.7 - Election of Directors; Board
Meeting Expenses; Indemnities; Board Observer Rights; Section 2.9 - Salaries of
Officers; Section 2.10 - Payment of Dividends.
3. EFFECT OF AMENDMENT.
-------------------
Except as amended and set forth above, the Agreement shall continue in full
force and effect. This Amendment No. 10 is binding on all Existing Investors.
4. 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.
5. 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.
6. ENTIRE AGREEMENT.
----------------
This Amendment, together with the Agreement and Attachment 1 hereto,
constitutes the full and entire understanding and agreement between the parties
with regard to the subjects hereof and thereof.
7. GOVERNING LAW.
-------------
This Amendment shall be governed by and construed under the laws of the
State of Delaware.
8. LEGAL REPRESENTATION. EACH OF THE EXISTING INVESTORS ACKNOWLEDGES AND
--------------------
UNDERSTANDS THAT (A) THE COMPANY HAS BEEN REPRESENTED BY XXXXXX XXXXXXX XXXXXXXX
& XXXXXX, PROFESSIONAL CORPORATION, (THE "REPRESENTATION") (B) IT OR HE OR SHE
HAS READ AND UNDERSTANDS THE AGREEMENT AND THIS AMENDMENT, (C) IT OR HE OR SHE
HAS BE REPRESENTED IN THE PREPARATION, NEGOTIATION AND EXECUTION OF THIS
AGREEMENT BY OTHER LEGAL COUNSEL OR HAS VOLUNTARILY DECLINED TO SEEK SUCH
REPRESENTATION, AND (D) HE, SHE OR IT EXPRESSLY WAIVES ANY CONFLICT BY VIRTUE OF
THE REPRESENTATION IN THE EVENT THAT HE, SHE, OR IT HAS BEEN, OR PRESENTLY IS, A
CLIENT OF XXXXXX XXXXXXX XXXXXXXX & XXXXXX, PROFESSIONAL CORPORATION.
[Remainder of Page Intentionally Left Blank]
This Amendment is hereby executed as of the date first above written.
EFFICIENT NETWORKS, INC.
a Delaware corporation
By: /s/ Xxxx X. Xxxxx
-----------------------------
Xxxx X. Xxxxx, President
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
EXISTING INVESTORS
COVAD *
a Delaware corporation
By: /s/ Xxxxxx X. Xxxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxxx
-------------------------------------
Title: E.V.P., Corporate Development
------------------------------------
*as defined in Amendment No. 9
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
CROSSPOINT VENTURE PARTNERS 1993
By: /s/ Xxxxxx X. Xxxx
---------------------------------------
Name: Xxxxxx X. Xxxx
-------------------------------------
Title: General Partner
------------------------------------
CROSSPOINT 1993 ENTREPRENEURS FUND
By: /s/ Xxxxxx X. Xxxx
---------------------------------------
Name: Xxxxxx X. Xxxx
-------------------------------------
Title: General Partner
------------------------------------
CROSSPOINT VENTURES LS 1997, L.P.
By: /s/ Xxxxxx X. Xxxx
---------------------------------------
Name: Xxxxxx X. Xxxx
-------------------------------------
Title: General Partner
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
ENTERPRISE PARTNERS II L.P.
By: Enterprise Management Partners II, L.P.,
Its General Partner
By: /s/ Xxxxxx Xxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxx
-------------------------------------
Title: General Partner
------------------------------------
ENTERPRISE PARTNERS II ASSOCIATES, L.P.
By: Enterprise Management Partners II, L.P.,
Its General Partner
By: /s/ Xxxxxx Xxxxxx
---------------------------------------
Name: Xxxxxx Xxxxxx
-------------------------------------
Title: General Partner
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
OCEAN PARK VENTURES, L.P.
By: /s/ Xxx Xxxxx
---------------------------------------
Name: Xxx Xxxxx
-------------------------------------
Title: General Partner
------------------------------------
PALOMAR VENTURES I, L.P.
By: /s/ Xxx Xxxxx
---------------------------------------
Name: Xxx Xxxxx
-------------------------------------
Title: General Partner
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
EL DORADO VENTURES III, L.P.
By: El Dorado Venture Partners III,
Its General Partner
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
-------------------------------------
Title: General Partner
------------------------------------
EL DORADO C & L FUND, L.P.
By: El Dorado Venture Partners III,
Its General Partner
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
-------------------------------------
Title: General Partner
------------------------------------
EL DORADO TECHNOLOGY IV, L.P.
By: El Dorado Venture Partners III,
Its General Partner
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
-------------------------------------
Title: General Partner
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
EL DORADO VENTURES IV, L.P.
By: El Dorado Venture Partners IV, LLC,
Its General Partner
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
-------------------------------------
Title: Managing Member
------------------------------------
EL DORADO TECHNOLOGY 98, L.P.
By: El Dorado Venture Partners IV, LLC,
Its General Partner
By: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxxxx
-------------------------------------
Title: Managing Member
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
MENLO ENTREPRENEURS FUND VI
By: MV Management VI, L.P.
Its General Partner
By: /s/ General Partner
---------------------------------------
Name:
-------------------------------------
Title: General Partner
------------------------------------
MENLO VENTURES VI
By: MV Management VI, L.P.
Its General Partner
By: /s/ General Partner
---------------------------------------
Name:
-------------------------------------
Title: General Partner
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
ADC TELECOMMUNICATIONS, INC.
By:
---------------------------------------
Name:
-------------------------------------
Title:
------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
SIEMENS AG
By: /s/ Xxxxxxx Xxxxx
---------------------------------------
Name: Xxxxxxx Xxxxx
-------------------------------------
Title: Member of the Executive Board
------------------------------------
TEXAS INSTRUMENTS, INC.
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------------
Name: Xxxxxx X. Xxxxxx
-------------------------------------
Title: Vice President, Mgr. Treasury Services
----------------------------------------
[Signature Page to Amendment No. 10 to Investors' Rights Agreement]
EXHIBIT "A"
-----------
SCHEDULE OF EXISTING INVESTORS
Name and Address
----------------
Covad Communications, Inc.
0000 Xxxxxxx Xxxxxxxxxx
Xxxxx Xxxxx, XX 00000
Crosspoint Venture Partners 1993
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Crosspoint 1993 Entrepreneurs Fund
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Crosspoint Ventures LS 1997, L.P.
00000 XxxXxxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Enterprise Partners II, L.P.
0000 Xxxxxxx Xxxxxx, Xxxxx 000
Xx Xxxxx, XX 00000
Enterprise Partners II Associates, L.P.
0000 Xxxxxxx Xxxxxx, Xxxxx 000
Xx Xxxxx, XX 00000
Ocean Park Ventures, L.P.
000 Xxxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxx Xxxxxx, XX 00000
El Dorado Ventures III, L.P.
0000 Xxxx Xxxx Xxxx, Xxxxx 000
Xxxxx Xxxx, XX 00000
El Dorado Ventures IV, L.P.
0000 Xxxx Xxxx Xxxx, Xxxxx 000
Xxxxx Xxxx, XX 00000
El Dorado C & L Fund, L.P.
0000 Xxxx Xxxx Xxxx, Xxxxx 000
Xxxxx Xxxx, XX 00000
EXHIBIT "A"
-----------
(CONT).
Name and Address
----------------
El Dorado Technology IV, L.P.
0000 Xxxx Xxxx Xxxx, Xxxxx 000
Xxxxx Xxxx, XX 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
Siemens Aktiengesellschaft
Xxxxxxxxxxxxxx 00
00000 Xxxxxx Xxxxxxx
Aperture Associates, L.P.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Texas Instruments Incorporated
0000 Xxxxxxxxx Xxx
Attn: Corporate Development
Mail Stop 3995
Xxxxxx, Xxxxx 00000
ADC Telecommunications, Inc.
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Palomar Ventures I, L.P.
000 Xxxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxx Xxxxxx, XX 00000
ATTACHMENT I
------------
Standstill & Disposition Agreement
----------------------------------
