Document:

exv10w14

Exhibit 10.14

Aruba Networks, Inc.

Change of Control Severance Policy for Officers and Directors

Eligible Employee: You are an eligible employee under this Policy if, on the date of a Change of
Control of the Company (as defined below), you are either a non-employee member of the Company’s
Board of Directors or an employee at the level of Vice President (grade 12) or above. This Change
of Control Severance Policy for Officers and Directors (the “Plan” or the “Policy”) is an “employee
welfare benefit plan,” as defined in Section 3(1) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”). This document constitutes both the written instrument under which the
Plan is maintained and the required summary plan description for the Plan.

Equity Vesting: If there is a Change of Control of the Company and you are an eligible employee
whose employment terminates as a result of an Involuntary Termination (as defined below) without
Cause (as defined below) within 12 months following such Change of Control, then a percentage (as
described in this paragraph) of the then-unvested shares subject to each of your then-outstanding
equity awards shall immediately vest and, in the case of options and stock appreciation rights,
shall become exercisable (for avoidance of doubt, no more than 100% of the shares subject to the
outstanding portion of an equity award may vest and, with respect to an option or stock
appreciation right, become exercisable pursuant to this provision). If you are an employee at the
Vice President level (grade 12) or above, the percentage will equal 50%. If you are a non-employee
member of the Board of Directors, the percentage will equal 100% and termination of service on the
Board will equate to employment termination for purposes of determining if and when vesting of your
equity awards will accelerate.

Cash Severance: In addition, if you qualify for the equity vesting described above and you are not
a non-employee member of the Board, then subject to your signing and not revoking a separation
agreement and release of claims in favor of the Company (the “Release”), you will receive a lump
sum severance payment equal to a percentage (as described in this paragraph) of your annual base
salary as in effect immediately prior to your termination date. No severance will be paid or
provided until the Release becomes effective, which must occur within sixty (60) days following
your termination of employment. Subject to any payment delay necessary to comply with Section 409A
(as defined below), your severance payment will be paid in cash and in full on the 61st
day following your termination of employment. If you die before all amounts have been paid, such
unpaid amounts will be paid to your designated beneficiary, if living, or otherwise to your
personal representative in a lump-sum payment (less any withholding taxes) as soon as possible
following your death. If you are an employee at the Vice President level (grade 12) or above
(other than the Chief Executive Officer), the percentage will equal 50%. If you are the Chief
Executive Officer, the percentage will equal 100%.

COBRA Reimbursement: In addition, if you qualify for the equity vesting described above and you are
not a non-employee member of the Board, then subject to your signing and not revoking the Release
and making a valid election under COBRA to continue your health coverage, the Company will (for a
limited time) pay the cost of such coverage for you and any eligible spouse or dependents that were
covered under the Company’s health care plans immediately prior to the date of your eligible
termination (“Company-paid Health Continuation Coverage”). If you are an employee at the Vice
President level (grade 12) or above (other than the Chief Executive Officer), the period of
Company-paid Health Continuation Coverage will equal six months. If you are the

 

 

Chief Executive Officer, the period of Company-paid Health Continuation Coverage will equal twelve
months. Notwithstanding the preceding, if the Company determines in its sole discretion that it
cannot provide COBRA reimbursement benefits without potentially violating applicable law
(including, without limitation, Section 2716 of the Public Health Service Act), the Company will
instead provide you a taxable monthly payment in an amount equal to the monthly COBRA premium that
you would be required to pay to continue your group health coverage in effect on the date of
termination of employment (which amount will be based on the premium for the first month of COBRA
coverage), which payments will be made regardless of whether you elect COBRA continuation coverage
and will commence in the month following the month in which you terminate employment and continue
for the period of months indicated in this paragraph.

For purposes of this Policy, the following terms shall have the following meanings:

“Change of Control” means the occurrence of any of the following events:

A. Change in Ownership of the Company. A change in the ownership of the Company which
occurs on the date that any one person, or more than one person acting as a group
(“Person”), acquires ownership of the stock of the Company that, together with the stock
held by such Person, constitutes more than fifty percent (50%) of the total voting power of
the stock of the Company; provided, however, that the acquisition of additional stock by
any one Person who is considered to own more than fifty percent (50%) of the total voting
power of the stock of the Company will not be considered a Change of Control; or

B. Change in Effective Control of the Company. If the Company has a class of securities
registered pursuant to Section 12 of the Exchange Act, a change in the effective control of
the Company which occurs on the date that a majority of members of the Board is replaced
during any 12 month period by directors whose appointment or election is not endorsed by a
majority of the members of the Board prior to the date of the appointment or election. For
purposes of this clause (B), if any Person is considered to be in effective control of the
Company, the acquisition of additional control of the Company by the same Person will not
be considered a Change of Control; or

C. Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the
ownership of a substantial portion of the Company’s assets which occurs on the date that
any Person acquires (or has acquired during the 12 month period ending on the date of the
most recent acquisition by such person or persons) assets from the Company that have a
total gross fair market value equal to or more than 50% of the total gross fair market
value of all of the assets of the Company immediately prior to such acquisition or
acquisitions; provided, however, that for purposes of this subsection, the following will
not constitute a change in the ownership of a substantial portion of the Company’s assets:
(i) a transfer to an entity that is controlled by the Company’s stockholders immediately
after the transfer, or (ii) a transfer of assets by the Company to: (a) a stockholder of
the Company (immediately before the asset transfer) in exchange for or with respect to the
Company’s stock, (b) an entity, fifty percent (50%) or more of the total value or voting
power of which is owned, directly or indirectly, by the Company, (c) a Person, that owns,
directly or indirectly, fifty percent (50%) or more of the total value or voting power of
all the outstanding stock of the Company, or (d) an entity, at least fifty percent (50%) of
the total value or voting power of which is owned, directly or indirectly, by a Person.

“Cause” means (a) unauthorized use or disclosure of the Company’s confidential information or
trade secrets, (b) a material failure to comply with the Company’s written policies or rules,

 

 

(c) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States
or any state thereof or (d) gross misconduct.

“Involuntary Termination” means either (a) involuntary discharge by the Company for reasons other
than Cause or (b) voluntary resignation following (i) a change in position with the Company that
materially reduces Participant’s level of authority or responsibility, (ii) a material reduction in
Participant’s base salary or (iii) receipt of notice that Participant’s principal workplace will be
relocated more than 35 miles.

Section 409A: The Company intends that all payments and benefits provided under this Policy or
otherwise comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as
amended, and any guidance promulgated thereunder (“Section 409A”) so that none of the payments or
benefits will be subject to the additional tax imposed under Section 409A, and any ambiguities
herein will be interpreted to so comply. No payment or benefits to be paid to you, if any,
pursuant to this Policy or otherwise, when considered together with any other severance payments or
separation benefits that are considered deferred compensation under Section 409A (together, the
“Deferred Payments”) will be paid or otherwise provided until you have a “separation from service”
within the meaning of Section 409A. If, at the time of your termination of employment, you are a
“specified employee” within the meaning of Section 409A and the payment of the Deferred Payments
will be delayed to the extent necessary to avoid the imposition of the additional tax imposed under
Section 409A, which generally means that you will receive payment on the first payroll date that
occurs on or after the date that is 6 months and 1 day following your termination of employment.
The Company reserves the right to amend the Policy as it deems necessary or advisable, in its sole
discretion and without the consent of any eligible employee or any other individual, to comply with
Section 409A the Code or to otherwise avoid income recognition under Section 409A prior to the
actual payment of any benefits or imposition of any additional tax. To the extent that any
reimbursements payable pursuant to the Plan are subject to Section 409A, any such reimbursements
payable to you pursuant to the Plan shall be paid to you no later than December 31 of the year
following the year in which the expense was incurred, the amount of expenses reimbursed in one year
shall not affect the amount eligible for reimbursement in any subsequent year, and your right to
reimbursement under the Plan will not be subject to liquidation or exchange for another benefit.

In no event will the Company reimburse you for any taxes that may be imposed on you as a result of
Section 409A. Each payment and benefit payable hereunder is intended to constitute a separate
payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

Parachute Payments.

Reduction of Severance Benefits. Notwithstanding anything set forth herein to the contrary,
if any payment or benefit that an eligible employee would receive from the Company or any
other party whether in connection with the provisions herein or otherwise (the “Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such
Payment shall be equal to the Best Results Amount. The “Best Results Amount” shall be
either (x) the full amount of such Payment or (y) such lesser amount as would result in no
portion of the Payment being subject to the Excise Tax, whichever of the foregoing amounts,
taking into account the applicable federal, state and local employment taxes, income taxes
and the Excise Tax, results in the eligible employee’s receipt, on an after-tax basis, of
the greater amount notwithstanding that all or some portion of the Payment may be subject
to the Excise

 

 

Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary
so that the Payment equals the Best Results Amount, reduction shall occur in the following
order: reduction of cash payments; cancellation of accelerated vesting of stock awards;
reduction of employee benefits. In the event that acceleration of vesting of stock award
compensation is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the eligible employee’s stock awards unless the
eligible employee elects in writing a different order for cancellation. The eligible
employee shall be solely responsible for the payment of all personal tax liability that is
incurred as a result of the payments and benefits received under this Policy, and the
eligible employee will not be reimbursed by the Company for any such payments.

Determination of Excise Tax Liability. The Company shall attempt to cause its
accountants to make all of the determinations required to be made under these paragraphs
relating to “Parachute Payments”, or, in the event the Company’s accountants will not
perform such service, the Company may select another professional services firm to perform
the calculations. The Company shall request that the accountants or firm provide detailed
supporting calculations both to the Company and the eligible employee prior to the date on
which the event that triggers the Payment occurs if administratively feasible, or
subsequent to such date if events occur that result in parachute payments to the eligible
employee at that time. For purposes of making the calculations required under these
paragraphs relating to “Parachute Payments”, the accountants or firm may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good
faith determinations concerning the application of the Code. The Company and the eligible
employee shall furnish to the accountants or firm such information and documents as the
accountants or firm may reasonably request in order to make a determination under these
paragraphs relating to “Parachute Payments”. The Company shall bear all costs the
accountants or firm may reasonably incur in connection with any calculations contemplated
by these paragraphs relating to “Parachute Payments”. Any such determination by the
Company’s accountants or other firm shall be binding upon the Company and the eligible
employee, and the Company shall have no liability to the eligible employee for the
determinations of its accountants or other firm.

Administration: The Policy will be administered by the Compensation Committee of the Board
Directors or its delegate (in each case, an “Administrator”). The Administrator will have full
discretion to administer and interpret the Policy. Any decision made or other action taken by the
Administrator with respect to the Policy, and any interpretation by the Administrator of any term
or condition of the Policy, or any related document, will be conclusive and binding on all persons
and be given the maximum possible deference allowed by law. The Administrator is the “named
fiduciary” of the Plan for purposes of ERISA and will be subject to the fiduciary standards of
ERISA when acting in such capacity.

Non-Duplication of Benefits: This Policy is intended to be the only agreement between you and the
Company regarding severance payments or benefits to be paid to you on account of a termination of
employment concurrent with, or following, a Change of Control. Notwithstanding any contrary
provision in this Policy or any other document, if you are entitled to any benefits other than the
benefits under this Policy by operation of applicable law or another Company-sponsored plan,
policy, contract, or arrangement, your benefits will be under the Policy will be reduced by the
value of the benefits that you receive by operation of applicable law or under any
company-sponsored plan, policy, contract, or arrangement, as determined by the Administrator in its
discretion.

Withholding: The Company is authorized to withhold from any payments or benefits all federal,

 

 

state, local and taxes required to be withheld therefrom and any other required payroll deductions.

Amendment or Termination: The Company reserves the right to amend or terminate the Policy at any
time, without advance notice to any eligible employee or other individual and without regard to the
effect of the amendment or termination on any eligible employee or on any other individual.
Notwithstanding the preceding, (a) any amendment to the Plan that causes an individual or group of
individuals to cease to be an eligible employee will not be effective unless it is both approved by
the Administrator and communicated to the affected individual(s) in writing at least 6 months prior
to the effective date of the amendment or termination, and (b) no amendment or termination of the
Policy shall be made within 12 months following a Change of Control to the extent that such
amendment or reduction would reduce the benefits provided hereunder or impair an eligible
employee’s eligibility under the Policy (unless the affected eligible employee consents to such
amendment or termination). Any amendment or termination of the Policy will be in writing. Any
action of the Company in amending or terminating the Plan will be taken in a non-fiduciary
capacity.

Claims Procedure. Any eligible employee who believes he or she is entitled to any payment under
the Plan may submit a claim in writing to the Administrator. If the claim is denied (in full or in
part), the claimant will be provided a written notice explaining the specific reasons for the
denial and referring to the provisions of the Plan on which the denial is based. The notice will
also describe any additional information needed to support the claim and the Plan’s procedures for
appealing the denial. The denial notice will be provided within 90 days after the claim is
received. If special circumstances require an extension of time (up to 90 days), written notice of
the extension will be given within the initial 90-day period. This notice of extension will
indicate the special circumstances requiring the extension of time and the date by which the
Administrator expects to render its decision on the claim.

Appeal Procedure. If the claimant’s claim is denied, the claimant (or his or her authorized
representative) may apply in writing to the Administrator for a review of the decision denying the
claim. Review must be requested within 60 days following the date the claimant received the
written notice of their claim denial or else the claimant loses the right to review. The claimant
(or representative) then has the right to review and obtain copies of all documents and other
information relevant to the claim, upon request and at no charge, and to submit issues and comments
in writing. The Administrator will provide written notice of the decision on review within 60 days
after it receives a review request. If additional time (up to 60 days) is needed to review the
request, the claimant (or representative) will be given written notice of the reason for the delay.
This notice of extension will indicate the special circumstances requiring the extension of time
and the date by which the Administrator expects to render its decision. If the claim is denied (in
full or in part), the claimant will be provided a written notice explaining the specific reasons
for the denial and referring to the provisions of the Plan on which the denial is based. The
notice shall also include a statement that the claimant will be provided, upon request and free of
charge, reasonable access to, and copies of, all documents and other information relevant to the
claim and a statement regarding the claimant’s right to bring an action under Section 502(a) of
ERISA.

 

 

Additional Information.

	 	 	 

	Plan Name:

	 	Aruba Networks, Inc. Change of Control Severance
Policy for Officers and Directors
	 
	 	 
	Plan Sponsor:

	 	Aruba Networks, Inc.
	 
	 	 
	 

	 	1344 Crossman Avenue

Sunnyvale, CA 94089
	 
	 	 
	Identification Numbers:

	 	EIN: 02-0579097
	 
	 	 
	 

	 	PLAN: 501
	 
	 	 
	Plan Year:

	 	Company’s Fiscal Year
	 
	 	 
	Plan Administrator:

	 	Aruba Networks, Inc.
	 
	 	 
	 

	 	Attention: Administrator of the Aruba Networks,
Inc. Change of Control Severance Policy for
Officers and Directors
	 
	 	 
	 

	 	1344 Crossman Avenue

Sunnyvale, CA 94089
	 
	 	 
	 

	 	(408) 227-4500
	 
	 	 
	Agent for Service of
Legal Process:

	 	Aruba Networks, Inc.
	 
	 	 
	 

	 	Attention: General Counsel
	 
	 	 
	 

	 	1344 Crossman Avenue

Sunnyvale, CA 94089
	 
	 	 
	 

	 	(408) 227-4500

 

 

	 	 	 

	 

	 	Service of process may also be made upon the Plan
Administrator.
	 
	 	 
	Type of Plan

	 	Severance Plan/Employee Welfare Benefit Plan
	 
	 	 
	Plan Costs

	 	The cost of the Plan is paid by the Company.

Statement of ERISA Rights.

Policy eligible employees have certain rights and protections under ERISA:

They may examine (without charge) all Policy documents, including any amendments and copies
of all documents filed with the U.S. Department of Labor, such as the Policy’s annual
report (Internal Revenue Service Form 5500). These documents are available for review in
the Company’s Human Resources Department.

They may obtain copies of all Policy documents and other Policy information upon written
request to the Plan Administrator. A reasonable charge may be made for such copies.

In addition to creating rights for eligible employees, ERISA imposes duties upon the people
who are responsible for the operation of the Policy. The people who operate the Policy
(called “fiduciaries”) have a duty to do so prudently and in the interests of eligible
employees. No one, including the Company or any other person, may fire or otherwise
discriminate against an eligible employee in any way to prevent them from obtaining a
benefit under the Policy or exercising rights under ERISA. If an eligible employee’s claim
for a severance benefit is denied, in whole or in part, they must receive a written
explanation of the reason for the denial. An eligible employee has the right to have the
denial of their claim reviewed. (The claim review procedure is explained above.)

Under ERISA, there are steps eligible employees can take to enforce the above rights. For
instance, if an eligible employee requests materials and does not receive them within 30
days, they may file suit in a federal court. In such a case, the court may require the
Administrator to provide the materials and to pay the eligible employee up to $110 a day
until they receive the materials, unless the materials were not sent because of reasons
beyond the control of the Plan Administrator. If an eligible employee has a claim which is
denied or ignored, in whole or in part, he or she may file suit in a state or federal
court. If it should happen that an eligible employee is discriminated against for
asserting their rights, he or she may seek assistance from the U.S. Department of Labor, or
may file suit in a federal court.

In any case, the court will decide who will pay court costs and legal fees. If the
eligible employee is successful, the court may order the person sued to pay these costs and
fees.

 

 

If the eligible employee loses, the court may order the eligible employee to pay these
costs and fees, for example, if it finds that the claim is frivolous.

If an eligible employee has any questions regarding the Policy, please contact the Plan
Administrator. If an eligible employee has any questions about this statement or about
their rights under ERISA, they may contact the nearest area office of the Employee Benefits
Security Administration (formerly the Pension and Welfare Benefits Administration), U.S.
Department of Labor, listed in the telephone directory, or the Division of Technical
Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of
Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. An eligible employee may also
obtain certain publications about their rights and responsibilities under ERISA by calling
the publications hotline of the Employee Benefits Security Administration.exv10w21

Exhibit 10.21

September 22, 2011

Michael Galvin

Dear Michael:

Aruba Networks, Inc. (the “Company”) is pleased to offer you employment on the following terms:

	 	1.	 	Position: You will transfer to a full-time position as Chief Financial Officer. By
signing this letter, you confirm to the Company that you are under no contractual or other
legal obligations that would prohibit you from performing your duties for the Company.
	 
	 	2.	 	Compensation: You will be paid an annual salary of $315,000 payable in accordance with
the Company’s standard payroll schedule on a semi-monthly basis. This salary will be
subject to adjustment pursuant to the Company’s employee compensation policies in effect
from time to time. You will be eligible for the Company’s Executive Officer Bonus Plan.
This salary will be effective April 1, 2011
	 
	 	3.	 	Employee Benefits: As a regular employee of the Company you will be eligible to
participate in a number of Company-sponsored benefits, which are described in the employee
benefit summary enclosed with this letter.
	 
	 	4.	 	Stock Award: We will also recommend to the Company’s Board of Directors (the “Board”)
or the Compensation Committee of the Board that you be granted $3,400,000 worth of
Restricted Stock Units (RSUs) subject to the terms and conditions of the Plan, as may be
modified from time to time and the RSU agreement, which will be provided to you as soon as
practical after the grant date. The number of RSUs awarded will be calculated based on the
close price of Aruba Common Stock on the grant effective date. If approved, your RSU will
vest in four equal annual installments beginning one year from March 15, 2011, subject to
your continued service to the Company through each applicable vesting date.
	 
	 	5.	 	Proprietary Information and Inventions Agreement; New Employee Guidelines: Like all
Company employees, you will be required, as a condition to your employment with the
Company, to sign the Company’s standard Proprietary Information and Inventions Agreement.
In addition, you will be required to sign the Company’s New Employee Guidelines.
	 
	 	6.	 	Employment Relationship: Employment with the Company is for no specific period of
time. Your employment with the Company will be “at will,” meaning that either you or the
Company may terminate your employment at any time and for any reason, with or without
cause. Any contrary representations that may have been made to you are superseded by this
offer. This is the full and complete agreement between you and the Company on this term.
Although your job
duties, title, compensation and benefits, as well as the Company’s personnel policies and
procedures, may change from time to time, the “at will” nature of your employment may only
be 

 

 

	 	 	 	changed in an express written agreement signed by you and the Chief Executive Officer of
the Company.
	 
	 	7.	 	Outside Activities: While you render services to the Company, you agree that you will
not engage in any other employment, consulting or other business activity without the
written consent of the Company. While you render services to the Company, you also will
not assist any person or entity in competing with the Company, in preparing to compete with
the Company or in hiring any employees or consultants of the Company.
	 
	 	8.	 	Withholding Taxes: All forms of compensation referred to in this letter are subject to
reduction to reflect applicable withholding and payroll taxes.
	 
	 	9.	 	Background Investigation: This offer is contingent on the Company’s receipt and
approval of the results of a background investigation to which you have already consented.
This offer will expire seven (7) calendar days from the date of this letter, unless
extended in writing by me.
	 
	 	10.	 	Entire Agreement: This letter supersedes and replaces any prior understandings or
agreements, whether oral or written, between you and the Company regarding the subject
matter described in this letter.

We hope that you find the foregoing terms acceptable. You may indicate your agreement with these
terms and accept this offer by signing and dating both originals.

	 	 	 	 	 

	Very truly yours,
	 
	 	 	 	 
	/s/ Aaron Bean	 	 	 	 
	Aaron Bean

Vice President, Human Resources
	 
	 	 	 	 
	I have read and accept this employment offer:
	 
	 	 	 	 
	/s/ Michael Galvin	 	9/23/11   	 	 
	Signature of Michael Galvin

	 	Dated

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