Document:

Exhibit

SEPARATION AGREEMENT AND RELEASE

This Separation Agreement and Release (“Agreement”) is made by and between Pat Collins (“Employee”) and Arlo Technologies, Inc. (“Arlo” or the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

RECITALS

WHEREAS the Company was previously part of a “spin off” from its predecessor company and Employee’s prior employer NETGEAR, Inc. (NETGEAR) pursuant to which effective December 31, 2018, NETGEAR announced a distribution of common stock of Arlo to NETGEAR stockholders of record owned by NETGEAR as of December 17, 2018.  The distribution took place in the form of a pro rata common stock dividend to each NETGEAR stockholder of record on the record date. Based on the shares of NETGEAR common stock outstanding as of the record date, NETGEAR stockholders received a specific number of shares of Arlo common stock for every share of NETGEAR common stock held as of the record date.

WHEREAS, Employee was a NETGEAR stockholder and thus received certain shares of Arlo equity and/or common stock as described in the December 18, 2018 information statement mailed to NETGEAR stockholders which included details on the distribution (the “Distribution”) and as further set forth below; 

WHEREAS, the December 31, 2018 distribution announcement and the December 18, 2019 are a matter of public record and are available on the NETGEAR website;

WHEREAS, Employee was employed by the Company pursuant to the terms of an Employment Letter dated August 1, 2018 (the “Employment Letter”), and Change in Control and Severance Agreement dated August 2, 2018 (the “Severance Agreement”);

WHEREAS, the Company and Employee have entered into a Stock Option Agreement, granting Employee the option to purchase shares of the Company’s common stock and granting Restricted Stock Units (“RSU”s) subject to the terms and conditions of the Company’s 2018 Equity Incentive Plan and the Stock Option Agreement (collectively the “Stock Agreements”);

WHEREAS, Employee separated from employment with the Company effective May 1, 2019 (the “Separation Date”), which the Company, for purposes of amicable closure has agreed to classify as a Qualifying Non-CIC Termination under the Severance Agreement (as such term is defined in the Severance Agreement); and

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company;

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

COVENANTS

1.Consideration.

a.Payment.  The Company agrees to pay Employee a lump sum equivalent to twelve (12) months of Employee’s base salary, for a total of Four Hundred Fourteen Thousand Dollars ($414,000.00), less applicable withholding.  This payment will be made to Employee within ten (10) business days after the Effective Date of this Agreement.  Employee acknowledges and agrees that the consideration provided hereunder fully satisfies any obligation that the Company had to pay Employee wages or any other compensation for any of the services that Employee rendered to the Company, that the amount paid is in excess of any disputed wage claim, if any, that Employee may have.

b.COBRA.  The Company shall reimburse Employee for the payments Employee makes for COBRA coverage for a period of twelve (12) months, or until Employee has secured other employment, whichever occurs first, provided Employee timely elects and pays for COBRA coverage, and as otherwise specified in the Conditions to Receipt of COBRA Coverage indicated in the Severance Agreement (with such conditions incorporated herein by reference).  COBRA reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the Company that substantiates Employee’s payments for COBRA coverage.

2.Stock.  The Parties agree that in accordance with the terms of the Severance Agreement, as of the Separation Date, Employee’s then‐outstanding equity awards of the Company, and NETGEAR, Inc. as provided in the Distribution, will immediately vest as to the number of shares subject to the equity awards that were otherwise scheduled to vest had the Executive remained employed with the Company for twelve (12) months following the Separation Date, as described in Exhibit A.  Employee acknowledges that as of twelve (12) months following the Separation Date, Employee will have vested in the equity only as described in Exhibit A.  The exercise of Employee’s vested options, RSUs, and shares shall continue to be governed by the terms and conditions of the Company’s and/or the NETGEAR applicable Stock Agreements.

3.Benefits.  Employee’s health insurance benefits shall cease on the last day of May 2020, subject to Employee’s right to continue Employee’s health insurance under COBRA and/or Cal-COBRA.  Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, ceased as of the Separation Date.

4.Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, leave, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.  Employee further acknowledges and represents that Employee has received any leave to which Employee was entitled or which Employee requested, if any, under the California Family Rights Act and/or the Family Medical Leave Act, and that Employee did not sustain any workplace injury, during Employee’s employment with the Company.

5.Release of Claims.  Employee agrees that this shall be deemed a negotiated agreement and that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company, NETGEAR, Inc., and each of their current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

a.    any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship;

b.    any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

c.    any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

d.    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Sarbanes-Oxley Act of 2002; the Uniformed Services Employment and Reemployment Rights Act; the California Family Rights Act; the California Labor Code; and the California Fair Employment and Housing Act;

e.    any and all claims for violation of the federal or any state constitution;

f.    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

g.    any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

h.    any and all claims for attorneys’ fees and costs.

Notwithstanding the foregoing general releases, Employee acknowledges that Employee has not made any claims or allegations related to sexual harassment or sexual abuse, and none of the payments set forth as consideration in this Agreement are related to sexual harassment or sexual abuse.   

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  Although this is a general release, it does not apply to:  (i) any unemployment insurance claim; (ii) any workers’ compensation insurance benefits to the extent any applicable state law prohibits the direct release of such benefits without judicial or agency approval, with the understanding that such benefits, if any, would only be payable  in accordance with the terms of any workers’ compensation  coverage or fund of the Company; (iii) continued participation in certain benefits under COBRA (and any state law counterpart), if applicable; (iv) any benefit entitlements vested as of Employee’s last day of employment, pursuant to written terms of any applicable employee benefit plan sponsored by the Company; (v) any claims that cannot be waived as a matter of law; or (vi) claims that arise after Employee signs this Agreement.  Employee represents that Employee has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this Section.

6.Acknowledgment of Waiver of Claims under ADEA.  Employee understands and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Employee understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further understands and acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this 

Agreement; (b) Employee has twenty-one (21) days within which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; and (d) this Agreement shall not be effective until after the revocation period has expired.  In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  The 21-day period identified above, shall not be extended by any non-material edits to this Agreement.  

7.California Civil Code Section 1542.  Employee acknowledges that Employee has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Employee, being aware of said code section, agrees to expressly waive any rights Employee may have thereunder, as well as under any other statute or common law principles of similar effect.

8.No Pending or Future Lawsuits.  Employee represents that Employee has no lawsuits, claims, or actions pending in Employee’s name, or on behalf of any other person or entity, against the Company or any of the other Releasees.  Employee also represents that Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.  Notwithstanding, nothing herein prevents any actions or disclosures expressly allowed by the Permitted Disclosures and Actions provision set forth below.

9.Application for Employment.  Employee understands and agrees that, as a condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.  Employee further agrees not to apply for employment with the Company.

10.Confidentiality.  Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”).  Except as required by law, Employee may disclose Separation Information only to Employee’s immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s undersigned counsel, and Employee’s accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, subject to such parties agreeing to maintain such information as confidential, and must prevent disclosure of any Separation Information to all other third parties.  Employee agrees that Employee will not publicize, directly or indirectly, any Separation Information.  Nothing in this Agreement shall deny Employee the right to disclose information about unlawful acts in the workplace, including, but not limited to, sexual harassment.  Nothing in this Agreement waives a party’s right to testify in an administrative, legislative, or judicial proceeding concerning alleged criminal conduct or sexual harassment when the party has been required or requested to attend the proceeding pursuant to a court order, subpoena, or written request from an administrative agency or the legislature, or as otherwise expressly allowed by the Permitted Disclosures and Actions provision set forth below.

11.Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Company’s At-Will Employment, Confidential Information and Invention Assignment Agreement Employee entered into with the Company (the “Confidentiality Agreement”), specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information.  Employee’s signature below constitutes Employee’s certification that Employee has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company.

12.DTSA Notice.  Federal law provides certain protections to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances.  Specifically, federal law provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret under either of the following conditions: (a) Where the disclosure is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  See 18 U.S.C. § 1833(b)(1)).  Federal law also provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (x) files any document containing the trade secret under seal; and (y) does not disclose the trade secret, except pursuant to court order.  See 18 U.S.C. § 1833(b)(2).  Nothing in this Agreement is intended in any way to limit such statutory rights.

13.Permitted Disclosures and Actions.  This Agreement does not prohibit or restrict Employee, the Company, or the other Releasees from:  (i) disclosing information regarding unlawful acts in the workplace, including, but not limited to, sexual harassment; (ii) initiating communications directly with, cooperating with, providing relevant information, or otherwise assisting in an investigation by (A) the SEC, or any other governmental, regulatory, or legislative body regarding a possible violation of any federal law relating to fraud or any SEC rule or regulation; or (B) the EEOC or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws, or as compelled or requested by lawful process; (iii) responding to any inquiry from any such governmental, regulatory, or legislative body or official or governmental authority, including an inquiry about the existence of this Agreement or its underlying facts or circumstances; or (iv) participating, cooperating, testifying, or otherwise assisting in any governmental action, investigation, or proceeding relating to a possible violation of any such law, rule or regulation.  Employee is, however, waiving any right to recover money in connection with any agency charge or agency or judicial decision, including class or collective action rulings, other than bounty money properly awarded by the SEC.

14.Non-Disparagement.  Except to the extent allowed under the Permitted Disclosures and Actions provision, Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Employee shall direct any inquiries by potential future employers to the Company’s human resources department, which shall use its best efforts to provide only the Employee’s last position and dates of employment.   The Company agrees that its directors and executive officers will not make any statement, written or oral, that disparages Employee or that has the intended effect of harming Employee’s personal or business reputation and will not authorize any other employee to make any such statement in behalf of the Company.

15.Breach.  Employee acknowledges and agrees that any material breach of this Agreement, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement, Employee shall also be responsible to the Company for all costs, attorneys’ fees, and any and all damages incurred by the Company in (a) enforcing Employee’s obligations under this Agreement or the Confidentiality Agreement, including the bringing of any action to recover the consideration, and (b) defending against a claim or suit brought or pursued by Employee in violation of the terms of this Agreement.

16.No Admission of Liability.  Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee.  No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party.

17.Non-Solicitation.  To the extent permitted by applicable law, Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement, Employee shall not directly or indirectly solicit any of the Company’s employees to leave their employment at the Company.

18.Costs.  The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement.

19.ARBITRATION.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SANTA CLARA COUNTY, BEFORE JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. (“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”).  THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES.  THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION.  TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE.  THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION.  THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD.  THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.  NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. 

20.Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement.  Employee agrees and understands that Employee is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon.  Employee further agrees to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure to pay or the Company’s failure to withhold, or Employee’s delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.

21.Section 409A.  The payments and benefits set forth in this Agreement are intended to comply with the “short-term deferral” exception to the requirements of section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (“Section 409A”).  If it is determined that Section 409A applies to any payment or benefit under this Agreement, such payment or benefit shall be administered in accordance with Section 409A.  In no event may Employee, directly or indirectly, designate the calendar year of a payment and if a payment that is subject to execution of this Agreement could be made in more than one taxable year, and such payment is subject to Section 409A, payment will be made in the later taxable year.  Employee will be solely responsible for any tax imposed under Section 409A and in no event will the Company have any liability with respect to any tax, interest or other penalty imposed under Section 409A.

22.Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

23.No Representations.  Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

24.Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

25.Attorneys’ Fees.  In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

26.Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement and the Stock Agreements.

27.No Oral Modification.  This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive Officer.

28.Governing Law.  This Agreement shall be governed by the laws of the State of California, without regard for choice-of-law provisions.  Employee consents to personal and exclusive jurisdiction and venue in the State of California.

29.Effective Date.  Each Party has seven (7) days after that Party signs this Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

30.Expiration of Agreement.  This Agreement is executable until the twenty-second (22nd) date after receipt by Employee (the “Expiration Date”).  This Agreement is null & void if the Company has not received a copy of the Agreement executed by the Employee on or before the Expiration Date.

31.Counterparts.  This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

32.Voluntary Execution of Agreement.  Employee understands and agrees that Employee executed this Agreement voluntarily, without duress or undue influence by the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees.  Employee acknowledges that: (a) Employee has read this Agreement; (b) Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Employee’s own choice or has elected not to retain legal counsel; (c) Employee understands the terms and consequences of this Agreement and of the releases it contains; and (d) Employee is fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties executed this Agreement on the dates set forth below.
                            	
				
	 
	 
	 
	PAT COLLINS

	 
	 
	 
	 

	Dated:
	May 2, 2019
	By:
	/s/ Pat Collins

	 
	 
	 
	Pat Collins, an individual

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	ARLO TECHNOLOGIES, INC.

	 
	 
	 
	 

	Dated:
	May 2, 2019
	By:
	/s/ Brian Buss

	 
	 
	 
	Brian Busse

	 
	 
	 
	General Counsel and Company SecretaryExhibit

Exhibit 10.1

TRANSITION AGREEMENT 

This TRANSITION AGREEMENT (“Transition Agreement”) is made effective as of this 6th day of August, 2019 (the “Effective Date”) by and between Care.com, Inc. (the “Company”) and Sheila Lirio Marcelo (“Executive”).

RECITALS

WHEREAS, Executive is the Founder, Chief Executive Officer and President of the Company;

WHEREAS, the Company and Executive have previously entered into an Executive Severance Agreement dated July 19, 2017, which remains in full force and effect except as expressly amended or modified hereby (as amended hereby, the “Severance Agreement”); and

WHEREAS, the Company and Executive wish to enter into this Transition Agreement to reflect Executive’s contemplated resignation as Chief Executive Officer and President of the Company, effective as of the start date of a new Chief Executive Officer of the Company (the “Resignation Date”), and acceptance of the role of Executive Chairwoman of the Company, effective as of the Resignation Date, to memorialize the compensation related to this new position, and to confirm certain matters related thereto.

NOW THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.

1.General; Amendment to Good Reason Definition.  All provisions of the Severance Agreement that are not expressly amended or modified hereby shall remain in full force and effect in accordance with their terms. Any capitalized terms not defined herein shall have the meaning set forth in the Severance Agreement.  For the avoidance of doubt, nothing in this Transition Agreement shall affect the at-will nature of Executive’s employment with the Company, as set forth in the Severance Agreement.  The parties agree that the definition of Good Reason in the Severance Agreement is hereby amended by inserting the following as new clause (vi) immediately before the semicolon at the end of existing clause (v) thereof:  “or (vi) Executive’s resignation as Chief Executive Officer and President of the Company as of the Resignation Date (in accordance with and as defined in the Transition Agreement between Executive and the Company dated August 6, 2019), the Board’s failure to nominate Executive for reelection to the Board at the Company’s 2020 meeting of stockholders or the stockholders’ failure to reelect Executive to the Board at such meeting”, and inserting the following sentence after the last sentence of the “Good Reason” definition:  “Notwithstanding anything to the contrary herein, the voluntary nature of Executive’s resignation on the Resignation Date (in connection with the appointment of a new Chief Executive Officer) shall not affect its treatment as a Qualifying Termination pursuant to clause (vi) above.”  The parties expressly agree that Executive may only become entitled to severance payments and benefits under the Severance 

Agreement in relation to the first Qualifying Termination that Executive incurs on or after the Effective Date.

2.    Executive Chairwoman.  

(a)    The Company and Executive agree that, effective as of the Resignation Date, Executive shall resign as the Company’s Chief Executive Officer and President and accept appointment as Executive Chairwoman of the Company. The job description for the Executive Chairwoman role is attached hereto as Exhibit A.  

(b)    Executive and the Company agree that Executive shall be entitled to her severance benefits under Section 2(a) or 2(b) of the Severance Agreement if she incurs a Separation from Service (x) upon or following a Qualifying Termination prior to the appointment of the new Chief Executive Officer or (y) effective upon or following her resignation as Chief Executive Officer and President of the Company and acceptance of her appointment as Executive Chairwoman effective as of the Resignation Date in accordance with Section 2(a) of this Transition Agreement, in each case, subject to (A) Executive’s timely execution and delivery of the Release in accordance with the Severance Agreement, (B) Executive’s continued compliance with the Confidentiality and Non-Compete Agreement and Section 4 of the Severance Agreement, and (C) Section 6 of this Transition Agreement. Solely for purposes of calculating the cash severance amounts payable under Section 2 of the Severance Agreement, the parties hereto hereby agree that the Base Salary shall be $485,000 and the Target Annual Bonus shall be $485,000. To the extent that Executive becomes entitled to receive such severance benefits, the cash severance payments will be paid as follows: 

(i)    a cash lump sum payment on the First Payment Date (the “Initial Severance Payment”) equal to (A) $560,000 plus (B) an amount equal to 200% of the Base Salary payments (using, for this purpose, a Base Salary equal to $485,000) that Executive would have otherwise received, as determined in accordance with the Company’s ordinary payroll practices, during the two and one-half months following the date Executive’s Separation from Service occurs (the “Initial Severance Payment Period”), and

(ii)    a cash lump sum payment on the day after the day that is six months following Executive’s Separation from Service (the “Second Severance Payment”) equal to 200% of the Base Salary payments (using, for this purpose, a Base Salary equal to $485,000) that Executive would have otherwise received, as determined in accordance with the Company’s ordinary payroll practices, during the period commencing on the first day after expiration of the Initial Severance Payment Period and ending on the date that is six months following Executive’s Separation from Service (the “Second Severance Payment Period”); and

(iii)    a cash payment equal to $1,455,000 less the sum of the Initial Severance Payment and the Second Severance Payment, which shall be payable in installments in accordance with the Company’s ordinary payroll practices on the earliest dates permitted under Section 409A. 

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US-DOCS\109940330.6

3.    Compensation; Equity.  While serving as Executive Chairwoman, Executive will be a part-time employee of the Company and Executive’s compensation for the Executive Chairwoman position will be as set forth on Exhibit B hereto.  Until the Resignation Date, during the term of Executive’s employment, Executive will continue receiving base salary at the same rate that applies on the Effective Date and will remain eligible to participate in Company employee benefit plans (including its annual bonus program) to the same extent as Executive is eligible as of the Effective Date, subject to the terms and conditions of such plans, provided that Executive acknowledges and agrees that, as soon as practicable following the Effective Date, the Company will discontinue its use of Executive’s Starwood American Express credit card and thereafter Executive will only seek expense reimbursements relating to such credit card in accordance with the Company’s business expense reimbursement policies. Exhibit C to this Agreement sets forth the outstanding vested and unvested equity-based awards of the Company held by Executive as of the Effective Date (the “Equity Awards”).

4.    Attorney Fees.  The Company will pay the reasonable fees (not to exceed $40,000) (“Legal Fees”), within 15 days of the receipt of their invoices (which invoices shall be provided by Executive to the Company within 30 days after the Effective Date), of Pillsbury Winthrop Shaw Pittman LLP and Sanzone & McCarthy, LLP with respect to the advice, negotiation, and preparation of this Transition Agreement.  The Company will provide Executive with an additional payment in an amount, if any, equal to the amount of any income or employment taxes incurred by Executive as a result of the payment of Legal Fees and any such taxes incurred as a result of Executive’s receipt of the additional payment, which amounts will be paid to Executive within 60 days following the date Executive incurs the applicable taxes (and in any case no later than December 31 of the year following the year in which the taxes are incurred), subject to Executive’s providing supporting documentation that the Company reasonably requests and submitting reimbursement requests promptly following the date such taxes are incurred.

5.    Release of Claims.  In consideration of the payments and benefits set forth herein, the adequacy of which is hereby acknowledged by Executive, Executive and the Company hereby agree as follows:

(a)     Executive, on behalf of herself and her executors, heirs, administrators, representatives and assigns, hereby releases and forever discharges the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, creditors, agents and representatives, and the employee benefit plans in which Executive is or has been a participant by virtue of her employment with or service to the Company (collectively, the “Company Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which Executive has or may have had against such entities based on any events or circumstances arising or occurring on or prior to 

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the Effective Date, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Executive’s employment by or service to the Company, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Equal Pay Act, 29 U.S.C. Section 206(d); the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.; the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq.; the Massachusetts Fair Employment Practices Act, M.G.L. c. 151B, § 1 et seq.; the Massachusetts Civil Rights Act, M.G.L. c. 12, §§ IIH and 111; the Massachusetts Equal Rights Act, M.G.L. c. 93, § 102 and M.G.L. c. 214, § IC; the Massachusetts Labor and Industries Act, M.G.L. c. 149, § 1 et seq.; the Massachusetts Privacy Act, M.G.L. c. 214, § 1B; the Massachusetts Wage Act, M.G.L. c. 149, § 148; the Massachusetts Maternity Leave Act, M.G.L. c. 49, § 105D; and any similar state or local law, all as amended.  Notwithstanding the generality of the foregoing, Executive does not release the following:

(i)    Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company;
(ii)    All rights under the Indemnification Agreement between Executive and the Company dated January 13, 2014, including claims for indemnity, as well as all rights to indemnification and/or contribution pursuant to the Company’s By-Laws, Articles of Incorporation and/or Charter; any applicable Directors and Officers Liability Insurance policy or other insurance policy; and applicable common and/or statutory law;
(iii)    All rights under the Severance Agreement (as modified hereby) or this Transition Agreement, including any claims for payment; 
(iv)    Executive’s rights to the vested or unvested Equity Awards or to other vested Company equity securities, including all such rights as set forth in the applicable equity agreements and stock plan(s) (the “Equity Documents”); 
(v)    Executive’s earned base salary and vested benefits that are not yet due and are paid in arrears by the Company in the ordinary course; and
(vi)    Any rights that cannot be released as a matter of applicable law, but only to the extent such rights may not be released under such applicable law.
Further, this Transition Agreement does not prevent Executive from reporting possible violations of federal law or regulation to any United States governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other 

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whistleblower protection provisions of state or federal law or regulation (including the right to receive an award for information provided to any such government agencies).
6.    Section 409A.  The provisions contained in Section 7(h) of the Severance Agreement are incorporated by reference into this Agreement mutatis mutandis.

7.    Tax Advice.  Executive acknowledges and agrees that Executive has relied upon the advice of Executive’s own tax advisors in connection with the transactions contemplated by this Transition Agreement.  The Company makes no representation or warranty as to the tax treatment of the matters contained in this Transition Agreement.

8.    Counterparts.  This Transition Agreement may be executed in counterparts, each of which when so executed and delivered shall be considered an original; but such counterparts shall together constitute one and the same document. 

9.    Severability.  In the event any provision of this Transition Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

10.    Governing Law and Venue.  This Transition Agreement will be governed by and construed in accordance with the laws of the United States and the Commonwealth of Massachusetts applicable to contracts made and to be performed wholly within such state, and without regard to the conflicts of laws principles that would result in the applicable of the laws of another jurisdiction. Any suit brought hereon shall be brought in the state or federal courts sitting in Massachusetts, the parties hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by Massachusetts law. 

11.    Entire Agreement; Amendment.  This Transition Agreement and the Severance Agreement, as amended hereby, together constitute the entire agreement between the parties in respect of the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral (and for the sake of clarity, the Indemnification Agreement and Equity Documents remain in full force and effect). This Transition Agreement may be amended or modified only with the written consent of Executive and an authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 

[Signature Page Follows]

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Exhibit 10.1

	
					
	 
	 
	Care.com, Inc.
	 
	 

	 
	 
	By:
	/s/ MELANIE GOINS
	 

	 
	 
	Name:
	Melanie Goins
	 

	 
	 
	Title:
	General Counsel and Corporate Secretary 
	 

	 
	 
	 
	 
	 

	 
	 
	Executive:
	 
	 

	 
	 
	By:
	/s/ SHEILA LIRIO MARCELO
	 

	 
	 
	 
	Sheila Lirio Marcelo
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

Exhibit A

Mandate
The Executive Chairwoman is appointed by the Company’s Board of Directors (the “Board”) with the primary functions of supporting the operations and deliberations of the Board and the satisfaction of the Board’s functions and responsibilities under its mandate, and assuming responsibility for the initiatives outlined below. For clarity, the Company’s Chief Executive Officer will report directly to the Board and not to the Executive Chairwoman. The Company’s Chief Executive Officer will have duties and responsibilities generally associated with the role, including complete operational autonomy (subject to typical Board oversight).

Responsibilities
In addition to the responsibilities applicable to all other members of the Board, and as Chairwoman of the Board as currently performed and provided in the Bylaws, the responsibilities of the Executive Chairwoman — working with the Board, the Lead Independent Director, and the Chief Executive Officer of the Company— shall, in all cases, be subject to the Chief Executive Officer’s approval, consistent with duties of an executive chair position and agreeable to the Chairwoman, and may include such duties as:

Public Engagement and Maintaining Partnerships in the Care Industry
		
	•
	At the Chief Executive Officer’s and/or Board’s request, participate in client outreach, policy initiatives and public engagement

		
	•
	Counseling on critical issues related to government relationships and strategic alliances in the Care space

Supporting Strategic Initiatives
		
	•
	If requested by the Company’s Chief Executive Officer, from time to time, assist in developing and maintaining the Company’s relationships with strategic partners 

Relationship with Management
		
	•
	Advise the Chief Executive Officer to ensure successful transition and consult on Leadership Management Team questions and dynamics at the request of the Chief Executive Officer.

		
	•
	Subject to the terms of the Company’s Bylaws, the termination date of the role of Executive Chairwoman title shall be the one-year anniversary of the start date of the new Chief Executive Officer (the “Executive Chairwoman Term”), unless earlier terminated by the Board or the Executive Chairwoman, at which time the Executive Chairwoman will become the non-employee Chairwoman of the Board, to the extent that Executive has been elected to the Board.

Exhibit B

Executive’s compensation terms for the Executive Chairwoman position are as follows:

		
	1.
	Base Salary. Upon Executive becoming Executive Chairwoman, Executive’s annual base salary shall be equal to $250,000 paid over twelve (12) months in accordance with the Company’s normal payroll cycles. If the Company terminates Executive’s employment as Executive Chairwoman without Cause prior to expiration of the Executive Chairwoman Term, the Board fails to nominate Executive for reelection to the Board at the Company’s 2020 meeting of stockholders or the stockholders fail to reelect Executive to the Board at such meeting, or Executive otherwise undergoes a Qualifying Termination as set forth in the Severance Agreement, as amended, from the Executive Chairwoman role (and for the avoidance of doubt, excluding any Qualifying Termination that occurs solely as a result of the matters described in this Transition Agreement), subject in any case to Executive executing and not revoking a Release within the 30 day period following the date of the applicable event and subject to Section 6 of the Transition Agreement, the Company shall pay to Executive an amount equal to $250,000 less the amount of base salary earned by Executive as Executive Chairwoman through the date of such termination, paid in a lump sum within forty-five (45) days following the date of the applicable event.

		
	2.
	Equity Award. Upon appointment as Executive Chairwoman, Executive shall receive a number of time-based restricted stock units equal to the quotient obtained by dividing (x) $200,000 by (y) the 30-day trailing average closing price per share of Company common stock (“Common Stock”) immediately preceding the date of grant, which restricted stock units will vest over 12 months in four equal quarterly installments, subject to Executive’s continuous service as Executive Chairwoman. Any unvested portion of the equity award will accelerate and fully vest if the Company terminates Executive’s employment as Executive Chairwoman without Cause prior to expiration of the Executive Chairwoman Term, the Board fails to nominate Executive for reelection to the Board at the Company’s 2020 meeting of stockholders or the stockholders fail to reelect Executive to the Board at such meeting, or Executive otherwise undergoes a Qualifying Termination as set forth in the Severance Agreement, as amended, from the Executive Chairwoman role (and for the avoidance of doubt, excluding any Qualifying Termination that occurs solely as a result of the matters described in this Transition Agreement), subject in any case to Executive executing and not revoking a Release within the 30 day period following the date of the applicable event and subject to Section 6 of the Transition Agreement.

		
	3.
	Separation from Service. The parties agree that Executive will incur a Separation from Service as of the Resignation Date.

		
	4.
	Book. During the period beginning January 1, 2019 and ending upon the date of Executive’s cessation of continuous service as a service provider to the Company (the “Relevant Period”), Executive shall be entitled to incur up to $255,000 in expenses for the purpose of Executive authoring a book regarding the care economy to be paid by Company on behalf of Executive or paid by Executive and reimbursed by Company (which amount includes any expenses incurred by Executive and paid by Company on behalf of Executive or paid by Executive and reimbursed by Company in 2019 prior to the Effective Date, as well as reimbursement for taxes incurred by Executive as a result 

of such Company payments or reimbursements, including any reimbursement for taxes); provided that such amount shall be reduced by (a) the value of any expenses incurred by Executive and paid by Company on behalf of Executive or paid by Executive and reimbursed by Company in 2019 prior to the Effective Date, and (b) the value (determined by the Company in good faith) of Company resources and services (e.g., services of public relations professionals) utilized by Executive during the Relevant Period in the authoring of such book.  Any such reimbursements for taxes will be paid to Executive within 60 days following the date Executive incurs the applicable taxes (and in any case no later than December 31 of the year following the year in which the taxes are incurred), subject to Executive’s providing supporting documentation that the Company reasonably requests and submitting reimbursement requests promptly following the date such taxes are incurred.  For the avoidance of doubt, reimbursements and payments hereunder shall be subject to Section 6 of the Transition Agreement, and following Executive’s cessation of services to the Company, Executive will remain entitled to such reimbursements and payments with respect to expenses incurred prior to such cessation.
		
	5.
	Executive Assistant. Executive shall be entitled to the support of 0.5 of an executive assistant.

		
	6.
	Travel Budget. Executive shall have a travel budget of $50,000, with travel subject to the Chief Executive Officer’s approval which will not be unreasonably withheld.

Prior Equity Grants

Any and all stock option and restricted stock awards previously granted or awarded to Executive prior to the Effective Date shall continue in full force and effect in accordance with the documents memorializing and/or governing such grants or awards, except as otherwise modified by this Transition Agreement.

Continued Service under Equity Grants
For the avoidance of doubt, Executive’s service as the Executive Chairwoman and/or a member of the Board shall be treated as continued service for purposes of all equity or equity-based awards (including awards that vest in whole or in part based on the attainment of performance vesting conditions) as provided for under the Equity Documents memorializing and/or governing such awards or grants.

* * * * *

Exhibit C

Equity Awards

	
						
	Award Type(1)
	Grant Date
	Exercise Price Per Share
	Number of Vested Shares(2)
	Number of Unvested Shares(3)
	Number of Accelerated Shares(4)

	Option
	12/09/2010
	$2.68
	149,252
	0
	0

	Option
	12/09/2010
	$2.68
	450,748
	0
	0

	Option
	12/09/2010
	$2.68
	37,500
	0
	0

	Option
	03/01/2013
	$6.02
	49,833
	0
	0

	Option
	03/01/2013
	$6.02
	420,167
	0
	0

	Option
	03/05/2014
	$21.03
	4,755
	0
	0

	Option
	03/05/2014
	$21.03
	107,745
	0
	0

	Option
	03/05/2014
	$2.68
	37,500
	0
	0

	Option
	03/11/2016
	$6.70
	227,370
	52,480
	52.480

	Option
	03/16/2017
	$12.01
	82,344
	64,046
	36,597

	RSU
	03/11/2016
	-
	0
	20,989
	20,989

	RSU
	03/11/2016
	-
	0
	4,898
	4,898

	RSU
	03/16/2017
	-
	0
	27,502
	15,715

	RSU
	03/16/2017
	-
	0
	30,523
	30,523

	RSU
	03/09/2018
	-
	0
	38,516
	14,006

	RSU
	03/09/2018
	-
	0
	9,303
	9,303

	RSU
	03/09/2019
	-
	0
	38,280
	10,208

	RSU
	03/09/2019
	-
	0
	9,391
	9,391

	RSU
	06/22/2017
	-
	0
	108,696(5)
	0

	RSU
	03/09/2018
	-
	0
	116,666(6)
	0

		
	1.
	“Option” indicates the Equity Award is an option to purchase the Company’s commons stock.  “RSU” indicates the Equity Award is a restricted stock unit denominated in the Company’s shares of common stock.

		
	2.
	Amounts represent the number of shares of the Company’s common stock subject to the Equity Award as to which the Equity Award is vested and, if applicable, exercisable as of the Effective Date.

		
	3.
	Amounts represent the number of shares of the Company’s common stock subject to the Equity Award as to which the Equity Award is unvested as of the Effective Date.

		
	4.
	Amounts represent the number of shares of the Company’s common stock subject to the Equity Award as to which the vesting of the Equity Award would accelerate as set forth in, and subject to the terms and conditions of, the Severance Agreement if Executive had become entitled to severance payments and benefits pursuant to the Severance Agreement on the Effective Date.

		
	5.
	Vesting of the Equity Award is based on the Company’s achievement of a 120-day volume weighted average price of $23 per share no later than 6/22/2022.

		
	6.
	Vesting of the Equity Award is based on the Company’s achievement of a 120-day volume weighted average price of $30 per share no later than 3/9/2023.

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