ARUBA NETWORKS, INC. INDEMNIFICATION AGREEMENT
Exhibit 10.1
This Indemnification Agreement (the “Agreement”) is effective as of ____________,
20__, by and between Aruba Networks, Inc., a Delaware corporation (the “Company”), and
______________ (the “Indemnitee”).
WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its related entities;
WHEREAS, in order to induce Indemnitee to continue to provide services to the Company, the
Company wishes to provide for the indemnification of, and the advancement of expenses to,
Indemnitee to the maximum extent permitted by law;
WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors, officers, employees, agents and fiduciaries, the significant
increases in the cost of such insurance and the general reductions in the coverage of such
insurance;
WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and coverage of liability insurance
has been severely limited; and
WHEREAS, in view of the considerations set forth above, the Company desires that Indemnitee
shall be indemnified and advanced expenses by the Company as set forth herein;
NOW, THEREFORE, the Company and the Indemnitee hereby agree as set forth below.
1. Certain Definitions
(a) A “Change in Control” shall be deemed to occur upon the earliest to occur, on or
after the date of this Agreement, of any of the following events:
(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), other than (x) the Company, (y) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company acting in such
capacity or (z) a corporation or other entity owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of stock of the Company,
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 40% of the total voting power
represented by the Company’s then outstanding Voting Securities;
(ii) during any period of two consecutive years, individuals who at the beginning of such
period constitute the Board of Directors of the Company and any new director whose election by the
Board of Directors or nomination for election by the Company’s stockholders was approved by a vote
of at least two thirds (2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority of the members of the Company’s board of
directors;
(iii) the effective date of a merger or consolidation of the Company with any other entity,
other than a merger or consolidation which would result in the Voting Securities of the Company
outstanding or immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into Voting Securities of the surviving entity) at least 80% of the total
voting power represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation and with the power to elect at least a
majority of the board of directors or other governing body of such surviving entity;
(iv) the stockholders of the Company approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of (in one transaction or a series of
related transactions) all or substantially all of the Company’s assets; or
(v) any other event of a nature that would be required to be reported in response to Item 6(e)
of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or
form) promulgated under the Exchange Act, whether or not the Company is then subject to such
reporting requirement.
(b) “Claim” shall mean, with respect to a Covered Event, any threatened, pending or
completed action, suit, proceeding or alternative dispute resolution mechanism, or any hearing,
inquiry or investigation that Indemnitee in good faith believes might lead to the institution of
any such action, suit, proceeding or alternative dispute resolution mechanism, whether civil,
criminal, administrative, investigative or other.
(c) References to the “Company” shall include, in addition to Aruba Networks, Inc.,
any constituent corporation (including any constituent of a constituent) absorbed in a
consolidation or merger to which Aruba Networks, Inc. (or any of its wholly owned subsidiaries) is
a party which, if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees, agents or fiduciaries, so that if Indemnitee is or
was a director, officer, employee, agent or fiduciary of such constituent corporation, or is or was
serving at the request of such constituent corporation as a director, officer, employee, agent or
fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with
respect to the resulting
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or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.
(d) “Covered Event” shall mean any event or occurrence related to the fact that
Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, or any
subsidiary of the Company, or is or was serving at the request of the Company as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of Indemnitee while serving in
such capacity.
(e) “DGCL” shall mean the General Corporation Law of the State of Delaware.
(f) “Expenses” shall mean any and all expenses (including attorneys’ fees and all
other costs, expenses and obligations incurred in connection with investigating, prosecuting,
defending, being a witness in or participating in (including on appeal), or preparing for any of
the foregoing in, any action, suit, proceeding, alternative dispute resolution mechanism, hearing,
inquiry or investigation), judgments, fines, penalties and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be unreasonably
withheld), actually and reasonably incurred, of any Claim and any federal, state, local or foreign
taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement.
(g) “Expense Advance” shall mean a payment to Indemnitee, pursuant to Section 3
hereof, of Expenses in advance of the settlement of or final judgment in any action, suit,
proceeding or alternative dispute resolution mechanism, hearing, inquiry or investigation which
constitutes a Claim.
(h) “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected
in accordance with the provisions of Section 2(d) hereof, that is experienced in matters of
corporation law and shall not have otherwise performed services for the Company or Indemnitee
within the last three years (other than with respect to matters concerning the rights of Indemnitee
under this Agreement, or of other indemnitees under similar indemnity agreements). Notwithstanding
the foregoing, the term “Independent Legal Counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, would have a conflict of interest
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement.
(i) References to “other enterprises” shall include employee benefit plans; references
to “fines” shall include any excise taxes assessed on Indemnitee with respect to an
employee benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the Company which
imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary
with respect to an employee benefit plan, its participants or its beneficiaries; and if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an
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employee benefit plan, Indemnitee shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.
(j) “Reviewing Party” shall mean, subject to the provisions of Section 2(d) hereof,
any person or body appointed by the Board of Directors in accordance with applicable law to review
the Company’s obligations hereunder and under applicable law, which may include a member or
members of the Company’s Board of Directors or Independent Legal Counsel.
(k) “To the fullest extent permitted by applicable law” shall include, but not be
limited to:
(i) the fullest extent permitted by the provision of the DGCL that authorizes or contemplates
additional indemnification by agreement, or the corresponding provision of any amendment to or
replacement of the DGCL; and
(ii) the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify its officers and directors.
(l) “Section” refers to a section of this Agreement unless otherwise indicated.
(m) “Voting Securities” shall mean any securities of the Company that vote generally
in the election of directors.
2. Indemnification.
(a) Indemnification of Expenses. Subject to the provisions of Section 2(b) below, the
Company shall indemnify Indemnitee for Expenses to the fullest extent permitted by law if
Indemnitee was or is or becomes a party to or witness or other participant in, or is threatened to
be made a party to or witness or other participant in, any Claim (whether by reason of or arising
in part out of a Covered Event), including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses.
(b) Review of Indemnification Obligations. Notwithstanding the foregoing, in the
event any Reviewing Party shall have determined pursuant to Section 145(d) of the General
Corporation Law of the State of Delaware (in a written opinion, in any case in which Independent
Legal Counsel is the Reviewing Party) that Indemnitee is not entitled to be indemnified hereunder
under applicable law, (i) the Company shall have no further obligation under Section 2(a) hereof to
make any payments to Indemnitee not made prior to such determination by such Reviewing Party, and
(ii) the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse
the Company) for all Expenses theretofore paid in indemnifying Indemnitee; provided,
however, that if Indemnitee has commenced or thereafter commences legal proceedings in a
court of competent jurisdiction to secure a determination that Indemnitee is entitled to be
indemnified hereunder under applicable law in accordance with Section 2(c) hereof, then (w) any
determination made by any Reviewing Party that, under applicable law, Indemnitee is not entitled to
be
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indemnified hereunder shall not be binding until a final judicial determination is made with
respect to such legal proceedings (as to which all rights of appeal therefrom have been exhausted
or lapsed), (x) Indemnitee shall not be required to reimburse the Company for any Expenses
theretofore paid in indemnifying Indemnitee and (y) Indemnitee shall be entitled to receive interim
payments of Expenses pursuant to Section 2(a) hereof and Expense Advances pursuant to Section 3(a)
hereof.
Indemnitee’s obligation to reimburse the Company for any Expenses shall be unsecured and no
interest shall be charged thereon.
(c) Indemnitee Rights on Unfavorable Determination; Binding Effect. If any Reviewing
Party determines that Indemnitee is not entitled to be indemnified hereunder in whole or in part
under applicable law, Indemnitee shall have the right to commence litigation in the Delaware Court
of Chancery seeking an initial determination by the court or challenging any such determination by
such Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and,
subject to the provisions of Section 15 hereof, the Company hereby consents to service of process
and to appear in any such proceeding. Absent such litigation, any determination by any Reviewing
Party shall be conclusive and binding on the Company and Indemnitee.
(d) Selection of Reviewing Party; Change in Control. If there has not been a Change
in Control, any Reviewing Party shall be selected by the Board of Directors. If there has been
such a Change in Control, any Reviewing Party with respect to all matters thereafter arising
concerning the rights of Indemnitee to indemnification of Expenses under this Agreement or any
other agreement, or under the Company’s Certificate of Incorporation or Bylaws as now or hereafter
in effect, or under any other applicable law, the Reviewing Party, if desired by Indemnitee, shall
be Independent Legal Counsel selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld), and who has not otherwise performed services for the Company
or the Indemnitee (other than in connection with indemnification matters) within the last three
years. Such counsel, among other things, shall render its written opinion to the Company and
Indemnitee as to whether and to what extent Indemnitee would be entitled to be indemnified
hereunder under applicable law, and the Company agrees to abide by such opinion. The Company
agrees to pay the reasonable fees of the Independent Legal Counsel referred to above and to
indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto. Notwithstanding any other provision of this Agreement, the Company shall not be required
to pay Expenses of more than one Independent Legal Counsel in connection with all matters
concerning a single Indemnitee, and such Independent Legal Counsel shall be the Independent Legal
Counsel for any or all other Indemnitees unless (i) the Company otherwise determines or (ii) any
Indemnitee shall provide a written statement setting forth in detail a reasonable objection to such
Independent Legal Counsel representing other indemnitees.
(e) Mandatory Payment of Expenses. Notwithstanding any other provision of this
Agreement other than Section 10 hereof, to the extent that Indemnitee has been successful on the
merits or otherwise, including, without limitation, the dismissal of an action without prejudice,
in defense of any Claim, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.
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3. Expense Advances.
(a) Obligation to Make Expense Advances. Upon request by Indemnitee, the Company
shall advance (within 15 business days of such request) any and all Expenses incurred by
Indemnitee. The Indemnitee shall qualify for such Expense Advance upon the execution and delivery
of this Agreement to the Company which shall constitute an undertaking that the Indemnitee
undertakes to repay such Expense Advances if and to the extent it shall ultimately be
determined in a final judicial determination as to which all rights of appeal therefrom have been
exhausted or lapsed that the Indemnitee is not entitled to be indemnified therefor by the Company.
In the event that Indemnitee has commenced legal proceedings to secure a determination that
Indemnitee is entitled to be indemnified hereunder under applicable law in accordance with Section
2(c) hereof, until it is so finally determined by the court that Indemnitee is not entitled to
indemnification, Indemnitee shall not be required to repay such Expense Advances to the Company and
Indemnitee shall continue to receive Expense Advances pursuant to this Section 3(a).
(b) Form of Undertaking. The obligation to repay any Expense Advances hereunder shall
be unsecured, and no interest shall be charged thereon.
(c) Determination of Reasonable Expense Advances. The parties agree that for the
purposes of any Expense Advance for which Indemnitee has made written demand to the Company in
accordance with this Agreement, all Expenses included in such Expense Advance that are certified by
affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be
reasonable.
4. Procedures for Indemnification and Expense Advances.
(a) Timing of Payments. All payments of Expenses (including, without limitation,
Expense Advances) by the Company to the Indemnitee pursuant to this Agreement shall be made to the
fullest extent permitted by law as soon as practicable after written demand by Indemnitee therefor
is presented to the Company, but in no event later than 15 business days after such written demand
by Indemnitee is presented to the Company.
(b) Notice/Cooperation by Indemnitee. Indemnitee shall give the Company notice (based
upon information then available to Indemnitee) in writing as soon as practicable of any Claim made
against Indemnitee for which indemnification will or could be sought under this Agreement. Notice
to the Company shall include, in reasonable detail, a description of the nature of the Claim and
the facts underlying the Claim and shall be directed to the Chief Executive Officer of the Company
at the address shown on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). In addition, Indemnitee shall give the Company such
information and cooperation as it may reasonably require and as shall be within Indemnitee’s power.
The failure by Indemnitee to timely notify the Company of any Claim will not relieve the Company
from any liability hereunder unless, and only to the extent that, the Company did not otherwise
learn of such Claim and such failure results in forfeiture by the Company of substantial defenses,
rights or insurance coverage.
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(c) No Presumptions; Burden of Proof. For purposes of this Agreement, the termination
of any Claim by judgment, order, settlement (whether with or without court approval) or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that
Indemnitee did not meet any particular standard of conduct or have any particular belief or that a
court has determined that indemnification is not permitted by this Agreement or applicable law. In
addition, it is the parties’ intention that if Indemnitee commences legal proceedings to secure a
judicial determination that Indemnitee should be indemnified under this Agreement or applicable
law, the question of Indemnitee’s right to indemnification shall be for the court to decide,
and neither the failure of any Reviewing Party to have made a determination as to whether
Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual
determination by any Reviewing Party that Indemnitee has not met such standard of conduct or did
not have such belief, shall be a defense to Indemnitee’s claim or create a presumption that
Indemnitee has not met any particular standard of conduct or did not have any particular belief.
In connection with any determination by any Reviewing Party or otherwise as to whether the
Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company to
establish by clear and convincing evidence that Indemnitee is not so entitled.
(d) Notice to Insurers. If, at the time of the receipt by the Company of a notice of
a Claim pursuant to Section 4(b) hereof, the Company has liability insurance in effect which may
cover such Claim, the Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all reasonably necessary or desirable action to cause such insurers to pay, on
behalf of Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of
such policies. The Company will provide to Indemnitee a copy of such notice delivered to the
applicable insurers, and copies of all subsequent correspondence between the Company and such
insurers regarding the Claim substantially concurrently with the delivery or as soon as practicable
following receipt thereof by the Company. Notwithstanding the foregoing, nothing in this Section
4(d) shall limit the Company’s obligation as the indemnitor of first resort pursuant to Section
5(c).
(e) Selection of Counsel. In the event the Company shall be obligated hereunder to
provide indemnification for or make any Expense Advances with respect to the Expenses of any Claim,
the Company, if appropriate, shall be entitled to assume the defense of such Claim with counsel
approved by Indemnitee (which approval shall not be unreasonably withheld) upon the delivery to
Indemnitee of written notice of the Company’s election to do so. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees or expenses of separate
counsel subsequently employed by or on behalf of Indemnitee with respect to the same Claim;
provided that (i) Indemnitee shall have the right to employ Indemnitee’s separate counsel in any
such Claim at Indemnitee’s expense and (ii) if (A) the employment of separate counsel by Indemnitee
has been
previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the conduct of any such
defense, (C) after a Change in Control (other than a Change in Control approved by at least a
majority of the members of the Board of Directors who were directors immediately prior to such
Change in Control) the employment of counsel by Indemnitee has been
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approved by the Independent
Legal Counsel, or (D) the Company shall not continue to retain such counsel to defend such Claim,
then the fees and expenses of Indemnitee’s separate counsel shall be Expenses for which Indemnitee
may receive indemnification or Expense Advances hereunder.
(f) Settlements. The Company will not be liable to Indemnitee under this Agreement
for any amounts paid in settlement of any threatened or pending Claim effected without the
Company’s prior written consent; provided, however, that if a Change in Control has
occurred (other than a Change in Control approved by at least a majority of the members of the
Board of Directors who were directors immediately prior to such Change in Control), the Company
shall be liable for
indemnification of Indemnitee for amounts paid in settlement if the Independent Legal Counsel
has approved the settlement. The Company will not, without the prior written consent of
Indemnitee, effect any settlement of any threatened or pending Claim which Indemnitee is or could
have been a party for Claims pursuant to which Indemnitee is entitled to receive indemnification
pursuant to this Agreement unless such settlement solely involves the payment of money and includes
a complete and unconditional release of Indemnitee from all liability on any claims that are the
subject matter of such Claim. Neither the Company nor Indemnitee will unreasonably withhold its
consent to any proposed settlement for Claims pursuant to which Indemnitee is entitled to receive
indemnification pursuant to this Agreement; provided that Indemnitee may withhold consent to any
settlement that does not provide a complete and unconditional release of Indemnitee. The Company
shall promptly notify Indemnitee once the Company has received an offer or intends to make an offer
to settle any such Claim, and the Company shall provide Indemnitee as much time as reasonably
practicable to consider such offer; provided, however, that Indemnitee shall have
no less than three (3) business days to consider the offer.
5. Additional Indemnification Rights; Nonexclusivity.
(a) Scope. The Company hereby agrees to indemnify the Indemnitee for Expenses to the
fullest extent permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Certificate of Incorporation,
the Company’s Bylaws or by statute. In the event of any change after the date of this Agreement in
any applicable law, statute or rule which expands the right of a Delaware corporation to indemnify
a member of its board of directors or an officer, employee, agent or fiduciary, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits afforded by
such change. In the event of any change in any applicable law, statute or rule which narrows the
right of a Delaware corporation to indemnify a member of its board of directors or an officer,
employee, agent or fiduciary, such change, to the extent not otherwise required by such law,
statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the
parties’ rights and obligations hereunder except as set forth in Section 10(a) hereof.
(b) Nonexclusivity. The indemnification and the payment of Expense Advances provided
by this Agreement shall be in addition to any rights to which Indemnitee may be entitled under the
Company’s Certificate of Incorporation, its Bylaws, any other agreement, any vote of stockholders
or disinterested directors, the General Corporation Law of the State of Delaware, or otherwise.
The indemnification and the payment of Expense Advances provided under this
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Agreement shall
continue as to Indemnitee for any action taken or not taken while serving in an indemnified
capacity even though subsequent thereto Indemnitee may have ceased to serve in such capacity.
(c) Primacy of Indemnification. The Company hereby acknowledges that Indemnitee may
have certain rights to indemnification, advancement of Expenses and/or insurance provided by one or
more entities (other than the Company and its affiliates) and certain affiliates of such entity or
entities and that Indemnitee may have other sources of indemnification or insurance, whether
currently in force or established in the future (collectively, the “Outside Indemnitors”). The
Company hereby agrees: (i) that it is the indemnitor of first resort (i.e., its obligations to
Indemnitee are primary and any obligation of the Outside Indemnitors to advance Expenses or to
provide
indemnification for the same Expenses or liabilities incurred by Indemnitee are secondary);
(ii) that it shall be required to advance the full amount of Expenses incurred by Indemnitee and
shall be liable for the full amount of all Expenses to the extent legally permitted and as required
by the Company’s Certificate of Incorporation, its Bylaws or any agreement between the Company and
Indemnitee, without regard to any rights Indemnitee may have against the Outside Indemnitors, and
(iii) that it irrevocably waives, relinquishes and releases the Outside Indemnitors from any and
all claims against the Outside Indemnitors for contribution, subrogation or any other recovery of
any kind in respect thereof. The Company further agrees that no advancement or payment by the
Outside Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has
sought indemnification from the Company shall affect the foregoing, and the Outside Indemnitors
shall have a right of contribution and/or be subrogated to the extent of such advancement or
payment to all of the rights of recovery of Indemnitee against the Company. The Company and
Indemnitee agree that the Outside Indemnitors are express third party beneficiaries of the terms
hereof.
6. No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee
has otherwise actually received payment (under any insurance policy, provision of the Company’s
Certificate of Incorporation, Bylaws or otherwise) of the amounts otherwise payable hereunder.
7. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses incurred in
connection with any Claim, but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.
Attorneys’ fees and expenses shall not be prorated but shall be deemed to apply to the portion of
indemnification to which Indemnitee is entitled.
8. Mutual Acknowledgement. Both the Company and Indemnitee acknowledge that in
certain instances, federal law or applicable public policy may prohibit the Company from
indemnifying its directors, officers, employees, agents or fiduciaries under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the Securities and Exchange Commission to submit the
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question of indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.
9. Liability Insurance. To the extent the Company maintains liability insurance
applicable to directors, officers, employees, agents or fiduciaries, Indemnitee shall be covered by
such policies in such a manner as to provide Indemnitee the same rights and benefits as are
provided to the most favorably insured of the Company’s directors, if Indemnitee is a director; or
of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of
the Company’s key employees, agents or fiduciaries, if Indemnitee is not an officer or director but
is a key employee, agent or fiduciary.
10. Exceptions. Notwithstanding any other provision of this Agreement, the Company
shall not be obligated pursuant to the terms of this Agreement:
(a) Excluded Action or Omissions. To indemnify Indemnitee for Expenses resulting from
acts, omissions or transactions for which Indemnitee is prohibited from receiving indemnification
under this Agreement or applicable law; provided, however, that notwithstanding any
limitation set forth in this Section 10(a) regarding the Company’s obligation to provide
indemnification, Indemnitee shall be entitled under Section 3 hereof to receive Expense Advances
hereunder with respect to any such Claim unless and until a court having jurisdiction over the
Claim shall have made a final judicial determination (as to which all rights of appeal therefrom
have been exhausted or lapsed) that Indemnitee has engaged in acts, omissions or transactions for
which Indemnitee is prohibited from receiving indemnification under this Agreement or applicable
law.
(b) Claims Initiated by Indemnitee. To indemnify or make Expense Advances to
Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee and not by way of
defense, counterclaim or crossclaim, except (i) with respect to actions or proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other agreement or
insurance policy or under the Company’s Certificate of Incorporation or Bylaws now or hereafter in
effect relating to Claims for Covered Events, (ii) in specific cases if the Board of Directors has
approved the initiation or bringing of such Claim, or (iii) as otherwise required under Section 145
of the Delaware General Corporation Law, regardless of whether Indemnitee ultimately is determined
to be entitled to such indemnification or insurance recovery, as the case may be.
(c) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Exchange Act, as amended, or any similar successor statute; provided,
however, that notwithstanding any limitation set forth in this Section 10(d) regarding the
Company’s obligation to provide indemnification, Indemnitee shall be entitled under Section 3
hereof to receive Expense Advances hereunder with respect to any such Claim unless and until a
court having jurisdiction over the Claim shall have made a final judicial determination (as to
which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee has violated
said statute.
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11. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original.
12. Binding Effect; Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective successors,
assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise
to all or substantially all of the business or assets of the Company), spouses, heirs and personal
and legal representatives. The Company shall require and cause any successor (whether direct or
indirect, and whether by purchase, merger, consolidation or otherwise) to all, substantially all,
or a substantial part, of the business or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. This Agreement shall continue in effect regardless of whether
Indemnitee continues to serve as a director, officer, employee, agent or fiduciary (as applicable)
of the Company or of any other enterprise at the Company’s request.
13. Expenses Incurred in Action Relating to Enforcement or Interpretation. In the
event that any action is instituted by Indemnitee under this Agreement or under any liability
insurance policies maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be indemnified for all Expenses incurred by Indemnitee
with respect to such action (including without limitation attorneys’ fees), regardless of whether
Indemnitee is ultimately successful in such action, unless as a part of such action a court having
jurisdiction over such action makes a final judicial determination (as to which all rights of
appeal therefrom have been exhausted or lapsed) that each of the material assertions made by
Indemnitee as a basis for such action was frivolous; provided, however, that until
such final judicial determination is made, Indemnitee shall be entitled under Section 3 hereof to
receive payment of Expense Advances hereunder with respect to such action. In the event of an
action instituted by or in the name of the Company under this Agreement to enforce or interpret any
of the terms of this Agreement, Indemnitee shall be entitled to be indemnified for all Expenses
incurred by Indemnitee in defense of such action (including without limitation costs and expenses
incurred with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless
as a part of such action a court having jurisdiction over such action makes a final judicial
determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that each
of the material defenses asserted by Indemnitee in such action was frivolous; provided,
however, that until such final judicial determination is made, Indemnitee shall be entitled
under Section 3 hereof to receive payment of Expense Advances hereunder with respect to such
action.
14. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and signed
for by the party addressed, on the date of such delivery, or (ii) if mailed by domestic certified
or registered mail with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.
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15. Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be commenced, prosecuted and continued only in the
Court of Chancery of the State of Delaware in and for New Castle County, which shall be the
exclusive and only proper forum for adjudicating such a claim.
16. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the fullest extent
permitted by law. Furthermore, to the fullest extent possible, the provisions of the Agreement
(including without limitation each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall
be construed so as to give effect to the intent manifested by the provision held invalid, illegal
or unenforceable.
17. Choice of Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed by and construed in accordance with the
laws of the State of Delaware without regard to principles of conflicts of laws.
18. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be reasonably necessary to secure
such rights and to enable the Company effectively to bring suit to enforce such rights.
19. Amendment and Termination. No amendment, modification, termination, waiver or
cancellation of this Agreement shall be effective unless it is in writing signed by both the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed to be or
shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver.
20. Integration and Entire Agreement. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous written and oral
negotiations, commitments, understandings and agreements relating to the subject matter hereof
between the parties hereto.
21. No Construction as Employment Agreement. Nothing contained in this Agreement
shall be construed as giving Indemnitee any right to be retained in the employ of the Company or
any of its subsidiaries or affiliated entities.
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IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the
date first above written.
| ARUBA NETWORKS, INC. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Address:
AGREED TO AND ACCEPTED
INDEMNITEE:
| (signature) |
||||
| Name: | ||||
| Address: | ||||
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