Document:

Exhibit

SEPARATION AGREEMENT AND RELEASE

This Separation Agreement and Release (“Agreement”) is made by and between Gordon C. Brooks (“Employee”) and Aerohive Networks, Inc. and its subsidiaries (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

RECITALS
WHEREAS, Employee is currently employed by the Company as its Senior Vice President, Chief Financial Officer;

WHEREAS, Employee signed an employment letter agreement, dated January 7, 2013] (the “Offer Letter / Employment Agreement”); an At Will Confidential Information, Invention Assignment and Agreement to Arbitrate Disputes and Claims with the Company dated January 16, 2013] (the “Arbitration Agreement”); and a Separation and Change in Control Severance Agreement, dated October 5, 2013 (as amended, the “Separation Agreement”);
WHEREAS, Employee determined and previously informed the Company of his intention to terminate his employment with the Company, and as an accommodation to the Employee the Company agreed that the effective date of termination of Employee’s employment with the Company shall be September 1, 2015 (the “Separation Date”); 
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.Payments.  The Company agrees to employ and pay Employee through the Separation Date, as of which Employee’s employment with the Company will automatically terminate, without further action.     

(i)Employee agrees that he is not eligible or entitled to receive (and shall not be deemed to have earned) any incentive or other bonus payment for the Company’s quarter ending September 30, 2015.

(ii)Employee also agrees that as his employment termination is voluntary he is not eligible or entitled to receive any payment or benefit under the Separation Agreement.

b.Health Coverage; COBRA.  Employee will receive coverage through September 30, 2015 under his existing Company-provided healthcare programs and will receive information on the right to continue group health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) after the Separation Date.  However, the Company will not be obligated to provide or reimburse COBRA premiums for Employee and his dependents with respect to Employee’s current coverage in place.  In will be Employee’s responsibility to timely elect and pay for continuation coverage pursuant to COBRA, and within the time period prescribed pursuant to COBRA.  

c.Equity.  Except to the extent provided in Section 1(e), below, all vesting under Employee’s existing equity awards will automatically cease as of the Separation Date and any option or right to acquire shares subject to Employee’s existing equity awards which are subject to further vesting as of the Separation Date will be automatically cancelled and forfeited. Employee must timely exercise any equity awards vested as of such Separation Date as provided under the terms and conditions of the plans from which such equity awards issued.

d.Withholdings.  Any payments hereunder will be subject to applicable withholdings in effect at the time of such payment. 

e.Consulting Arrangement.  The Company will offer to Employee a consulting arrangement on the terms and in the form attached hereto as Exhibit A (the “Consulting Agreement”).  Provided Employee timely accepts the Consulting Agreement, Employee’s period of service as a consultant shall be deemed not to be a break in service from the termination of Employee’s employment with the Company to the commencement of the continuing service relationship pursuant to the Consulting Agreement.  For this reason, any rights Employee may hold as of the Separation Date with respect to equity awards which existed as of the Separation Date with the Company shall be deemed in full force and effect and continuing through the term of the Consulting Agreement; provided, however, that Employee agrees, in partial consideration to the Company for offering to extend the Consulting Agreement, that the following equity award(s) are canceled and forfeited as of the Separation Date:
	
						
	Grant
	Grant
	 
	 
	 
	Shares Vested

	Number
	Date
	Plan/Type
	Shares Subject to Grant
	Exercise Price
	As of 9/1/15

	5010
	09/30/2013
	AH06/ISO
	16,693
	$9.575 
	16,693

	P1314784__
	09/30/2013
	AH06/NQ
	____3,307____
	$9.575 
	3,307 

Notwithstanding the foregoing, any rights or expectations Employee may have with respect to equity awards which existed as of the Separation Date will at all times thereafter be subject to the terms, conditions and requirements of the respective award agreement and stock plan from which the award issued. 

2.Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement and any salary and vacation/paid time off deemed earned and/or accrued but remaining to be paid to  Employee as of the Separation Date, the Company has paid or provided all salary, wages, bonuses, accrued paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, and any and all other benefits and compensation due to Employee.

3.Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, parent, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on his own behalf and on behalf of his 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, demand, 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 the laws of the United States, including the laws of the state of California or any other of the United States;

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 international, 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 California Family Rights Act; the California Labor Code, except as prohibited by law; the California Workers’ Compensation Act, except as prohibited by law; and the California Fair Employment and Housing Act;

e.    any and all claims for violation of the constitution of the United States or any other country, or the constitution of any state of the United States;

f.    any and all claims arising out of any other international, federal, or state 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.

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.  This release does not extend to any obligations incurred under this Agreement.  This release does not release claims that cannot be released as a matter of law, including, but not limited to Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against the Company; Employee’s release of claims herein bars Employee from recovering such monetary relief from the Company).  Notwithstanding the foregoing, Employee acknowledges that any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with Paragraph 16, which precludes Employee from filing a claim with the California Division of Labor Standards Enforcement or an equivalent federal or state agency.   Employee represents that he/she 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.

4.Acknowledgment of Waiver of Claims under ADEA.  Employee acknowledges that he/she is waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act of 1967 ("ADEA"), and that this waiver and release is knowing and voluntary.  Employee agrees that this waiver and release does not apply to any rights or claims to the extent that they may arise under the ADEA after the Effective Date of this Agreement.  Employee 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 acknowledges that he/she has been advised by this writing that: (a) he/she should consult with an attorney prior to executing this Agreement; (b) he/she has twenty-one (21) days within which to consider this Agreement; (c) he/she has seven (7) days following his execution of this Agreement to revoke this Agreement, such revocation to be provided in writing to the Company, Attn: C.E.O., via either certified or electronic mail; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by U.S. federal law.  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 he/she has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date.  The parties agree that any changes to this Agreement agreed to by the Parties but made after commencement of the 21-day period, whether such changes are material, do not restart the running of the 21-day period. 

5.California Civil Code Section 1542.  Employee acknowledges that he/she 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 WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

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

6.No Pending or Future Lawsuits.  Employee represents that he/she has no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that he/she does not intend to bring any claims on his/her own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.

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

8.Confidentiality.  The Parties agree 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, the Parties may disclose Separation Information only to (with respect to Employee) his/her immediate family members, the Court in any proceedings to enforce the terms of this Agreement, their respective counsel, accountants, 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, and must prevent disclosure of any Separation Information to all other third parties; provided, however, that the Company shall be permitted to disclose Settlement Information to Company officers, directors, and employees who have a business need to know such information; provided further, that the Company may disclose Separation Information to any third party that has signed a confidentiality agreement, in connection with the due diligence process of a financing, merger, acquisition, sale, or similar business transaction.   The Parties agree that they will not publicize, directly or indirectly, any Separation Information.

Employee acknowledges and agrees that the confidentiality of the Separation Information is of the essence.  Employee hereby agrees to be responsible in liquidated damages, as set forth below, if he/she breaches any of the foregoing terms or in any way divulges any part of the Separation Information to any unauthorized third party, except to the extent that such breach constitutes a legal action by Employee that directly pertains to the ADEA.  Any such individual breach or disclosure shall not excuse Employee from his/her obligations hereunder, nor permit him/her to make additional disclosures.  Employee warrants that he/she has not disclosed, orally or in writing, directly or indirectly, any of the Separation Information to any unauthorized party.

9.LIQUIDATED DAMAGES.  THE PARTIES AGREE THAT THE PRECISE AMOUNT OF DAMAGES FLOWING FROM ANY DISCLOSURE IN VIOLATION OF THE CONFIDENTIALITY PROVISION SET FORTH IN THE PRECEDING PARAGRAPH WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO CALCULATE OR PROVE, AND THEREFORE, THE PARTIES AGREE THAT IF EITHER PARTY BREACHES THE PRECEDING PARAGRAPH, PROXIMATELY CAUSING THE ABOVE-DESCRIBED SEPARATION INFORMATION TO BE RECEIVED, DIRECTLY OR INDIRECTLY, BY ANYONE IN VIOLATION OF THE ABOVE CONFIDENTIALITY PROVISION, THE NON-BREACHING PARTY SHALL BE ENTITLED TO RECEIVE FROM THE BREACHING PARTY AS LIQUIDATED DAMAGES THE SUM OF ONE THOUSAND US DOLLARS ($1,000) PER PROVEN BREACH. 

10.Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, and non-solicitation of Company employees.  Employee’s signature below constitutes his/her certification under penalty of perjury that he/she has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with his/her employment with the Company, or otherwise belonging to the Company.  

11.No Cooperation.  Employee agrees not to act in any manner that might damage the business of the Company.  Employee further agrees that he/she will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement.  Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he/she cannot provide counsel or assistance.

12.Non-Disparagement.  Employee agrees to refrain from any disparaging statements about the Company or any of the other Releasees including, without limitation, the business, products, intellectual property, financial standing, future, or employment/compensation/benefit practices of the Company, 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. 

13.Breach.  Notwithstanding the provisions provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to cease providing the consideration provided to Employee under this Agreement, to recover such consideration already provided and to obtain damages, except as provided by law. 

14.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.

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

16.ARBITRATION.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, THE CONDUCT OR CIRCUMSTANCES OF EMPLOYEE’S EMPLOYTMENT OR TERMINATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SANTA CLARA COUNTY, CALIFORNIA, BEFORE JAMS, ARBITRATION, MEDIATION AND ADR SERVICES, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES THEN IN-EFFECT (“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 SUCH 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, AND SHALL NOT BE SUBJECT TO APPEAL.  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. THE PARTIES AGREE THAT ARBITRATOR SHALL NOT, AND SHALL BE WITHOUT JURISDICITON OR AUTHORITY, TO AWARD ATTORNEYS’ FEES AND COSTS TO A PARTY (EVEN WHERE SUCH PARTY IS THE PREVAILING PARTY AND EVEN WHERE SUCH PARTY’S ATTORNEY’S FEES AND COSTS BEAR A REASONABLE RELATION TO SUCH PARTIES ACTUAL RECOVERY). 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.  SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN.

17.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 his/her behalf under the terms of this Agreement including with respect to any characterization, benefit or obligation of or under any Option.  Employee agrees and understands that he/she 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.

18.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 he/she has the capacity to act on his/her own behalf and on behalf of all who might claim through him/her 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.

19.No Representations.  Employee represents that he/she 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.

20.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.

21.Attorneys’ Fees.  In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall not be entitled to recover its costs and expenses in such action or proceeding, including such Party’s court fees, and attorneys’ fees incurred in connection with such an action or proceeding.

22.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 Option Agreements.

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

24.Governing Law.  This Agreement shall be governed, enforced and construed 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 and federal courts located within the State of California.

25.Effective Date.  Employee understands that this Agreement shall be null and void if not executed by him within twenty-one (21) days.  Employee has seven (7) days after he/she signs this Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signs this Agreement, so long as it has been signed by the Parties and has not been revoked by Employee before that date (the “Effective Date”).

26.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.

27.Voluntary Execution of Agreement.  Employee understands and agrees that he/she executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his/her claims against the Company and any of the other Releasees.  Employee acknowledges that:

(a)    he/she has read this Agreement;

		
	(b)
	he/she has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his/her own choice or has elected not to retain legal counsel;

		
	(c)
	he/she understands the terms and consequences of this Agreement and of the releases it contains; and

(d)    he/she is fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

        
	
				
	 
	 
	 
	Gordon C. Brooks, an individual

	 
	 
	 
	 

	Dated:
	8/28/15    
	 
	/s/ Gordon C. Brooks

	 
	 
	 
	 

                
	
				
	 
	 
	 
	AEROHIVE NETWORKS, INC.

	 
	 
	 
	 

	Dated:
	8/28/15    
	 
	/s/ Steve Debenham

	 
	 
	 
	 

Exhibit A

Independent Consultant and Contractor AgreementExhibit

Independent Consultant & Contractor Agreement

This Independent Consultant & Contractor Agreement (“Agreement”) is made by and between Aerohive Networks, Inc., a Delaware corporation with its principal offices located at 330 Gibraltar Avenue, Sunnyvale, California,  94089 (which, together with its parent or subsidiary entities shall be hereinafter referred to as, "Aerohive" or the “Company”), and 
	
		
	Name:
	Gordon C. Brooks

	Principal Address:
	[Address]

	Place of Incorporation:
	N/A

(hereinafter, "Consultant").   The term “Consultant” shall refer to and include, collectively, any employees, agents, affiliates, consultants or contractors of or directly engaged by the Consultant performing services for Aerohive hereunder.  

By signing this Agreement, the parties agree to the terms and conditions set forth on this page and on the attached Terms and Conditions.  This Agreement is effective as of September 1, 2015 (“Effective Date”), and will automatically terminate on December 1, 2015 (“Termination Date”), unless renewed, extended or earlier terminated pursuant to Section 5 of the attached Terms and Conditions.  Each person signing this Agreement represents and warrants that such person is fully authorized to execute and enter into this Agreement on behalf of the company or entity named above and below with respect to his or her signature.
	
		
	Gordon C. Brooks, an individual
	AEROHIVE NETWORKS, INC.

	 
	 

	/s/ Gordon C. Brooks
	/s/ David Flynn

	Name: Gordon C. Brooks
	Name: David K. Flynn  

	Title:   
	Title: President & C.E.O. 

	Dated: August 28, 2015
	Dated: August 28, 2015

	 
	 

	Business Contact: 
	Business Contact: 

	Tel: [Phone]
	Tel: 408-510-6142

	E-mail: [E-mail address]
	E-mail: DFlynn@aerohive.com

	Tax ID: [Tax ID]
	 

Confidential Information and Invention Assignment Agreement entered on January 16, 2013 (the “NDA”).
Agreement to Arbitrate Disputes and Claims entered on October 5, 2013 (the “Arbitration Agreement”)

Terms and Conditions

In consideration of the promises contained and consideration provided in this Agreement, Aerohive agrees to retain Consultant to perform certain services subject to the terms and conditions set forth below and in the Statement of Work attached as Exhibit A (which Exhibit A, together with the other exhibits attached hereto, are incorporated into this Agreement in full by reference as material parts hereof).

1.    Statement of Work.   The services that Consultant is to perform and/or deliverables that the Consultant is to provide under this Agreement are identified in the attached Statement of Work (the “Services”).
2.    Compensation.  The compensation to be paid Consultant pursuant to this Agreement shall be in consideration for all Services rendered.  Payment will be made in the amount and manner specifically provided in the payment schedule attached hereto as Exhibit B, and the total amount due or owing Consultant for Services performed hereunder shall not exceed the specified identified maximum amount, unless and to the extent Aerohive and Consultant agree in writing to a greater amount in the form of an amendment to Exhibit B.  Consultant hereby waives, as a material inducement to Aerohive’s agreement to enter this Agreement, any right to assert a claim or cause against Aerohive based on an oral or other modification or amendment of the terms and conditions of this Agreement, the scope of Services or right to payment hereunder, and Consultant agrees that it will not assert any such claim or cause against Aerohive (whether under the law of contract, quasi-contract or otherwise) or introduce into evidence any such oral or other modification or amendment, unless and to the extent such modification or amendment is agreed to in writing 

by Aerohive.  Consultant may not rely on any oral or other modification or amendment of or to the terms and conditions of this Agreement, the scope of Services or right to payment hereunder, unless and to the extent agreed to in writing by Aerohive.
Consultant will submit to Aerohive a written report of work completed and prepare written statements detailing amount of work completed for each invoice period.    
3.    Travel and Other Expenses.  Unless and to the extent expressly provided on Exhibit B, the compensation to be paid Consultant is intended to be an “all-in” fee and Consultant shall be solely liable and responsible for any fees, costs, expenses and liabilities incurred in connection with this Agreement or in the performance of any of the Services, and Consultant waives any right, claim or expectation to recovery or reimbursement, from Aerohive or otherwise, to any such other fees, costs, expenses or liabilities.  
4.    Term.  The term of this Agreement will begin on the Effective Date and will run until the Termination Date, unless renewed, extended or earlier terminated by the parties as provided herein.
5.    Termination.    Aerohive may terminate this Agreement or any of the Services to be provided hereunder without cause at any time, and for any or no reason, by giving Consultant written notice of termination as provided on Exhibit A (“Termination for Convenience Notice Period”), and either party may immediately terminate this Agreement or any of the Services to be provided with cause at any time by giving the other written notice of such cause.  The effective date of such termination for convenience by Aerohive will occur upon expiration of the indicated Termination for Convenience Notice Period.  The effective date of such termination for cause by either party will occur immediately upon delivery of such written notice.  
		
	(a)
	Termination with cause is appropriate in the event (i) of a breach by the other party of a material obligation hereunder or the NDA, (ii) the death or disability of Consultant, or (iii) the insolvency or bankruptcy or a reasonably apparent inability or unwillingness of or by the other party to perform its material obligations hereunder.

		
	(b)
	Upon the termination or expiration of a Statement of Work or of this Agreement, with or without cause and for any or for no reason, the terminating party will not be liable to the other party because of the fact or act of such termination for damages on account of the loss of prospective profits, expected business, good will, or on account of expenditures, leases or commitments in connection with the business of Aerohive or of Consultant, or for any other reason whatsoever flowing from the fact or act of such expiration or termination.

		
	(c)
	Aerohive’s sole obligation and liability to Consultant arising from the fact or act of termination or expiration shall be payment for: (a) Services actually and reasonably performed up to the effective date of termination or expiration (on the part of Aerohive), and (b) reasonable completion of Services actually requested up to the effective date of termination or expiration (on the part of Consultant, provided that Aerohive has made or is capable of making payment due and owing with respect to such Services).  However, the fact or act of termination or expiration shall not otherwise relieve either party from any other obligation, liability or duty to the other, whether expressly provided herein, under the NDA or under law. 

6.    Survival of Obligations.  The following obligations will survive termination or expiration of this Agreement for any reason, except as provided in this Agreement:  
		
	(a)
	Obligations relating to non-use and non-disclosure of Confidential Information, as provided in the NDA;

		
	(b)
	Obligations to make payments of amounts that are due prior to termination or expiration; and

		
	(c)
	Obligations specifically set forth in Sections 5, 6, 8, 12, 13, 14, and 17 through 31.

7.    Inspection and Acceptance.   Consultant’s failure to perform the Services or deliver the deliverables, consistent with the Statement of Work set forth in Exhibit A and reasonable standards therefor, and/or failure to correct identified deficiencies promptly upon Aerohive’s request, shall constitute a material breach of this Agreement and be a basis for immediate termination by Aerohive.    
8.    Warranty and Standards for Performance of Work.  Consultant warrants that Consultant will perform all work under this Agreement in accordance with the standards and practices of professional care, skill and diligence customarily observed by similar service providers under similar circumstances.  

9.    Independent Status.  It is the express intention of the parties to this Agreement that the Consultant is and shall continue to act throughout the Term and in conjunction with the performance of any Services hereunder: (a) as an independent contractor, and (b) not as an employee, agent, joint venturer, or partner of Aerohive.  Nothing in this Agreement shall be interpreted or construed as creating or establishing an employment relationship between Aerohive and Consultant, or any reasonable expectation or basis for reliance on the part of Consultant of such a relationship existing or developing during the term hereof.  Both parties understand and agree that Consultant may perform services for others during the term of this Agreement.    
10.    Performance of Services/Use of Aerohive Resources.  The parties understand and agree that Consultant will have the sole discretion to determine the method, means, and location of performing the Services, and that Aerohive has no right to, and will not, control or determine the method, means, or place of the performance of the Services, except for such Services which, by their nature, require performance at Aerohive’s facilities and in conjunction or cooperation with Aerohive’s employees.  In the event Consultant is authorized to use Aerohive resources to perform Services or provide products hereunder, Consultant agrees to use such resources exclusively in connection with such Services and/or products, and for no other purpose.  
		
	1.
	Employment of Assistants/Insurance/Safety.  N/A

12.    Obligations of Consultant.  
		
	(a)
	Consultant is solely responsible for all taxes, withholdings, and other similar statutory obligations with respect to itself and its employees, agents or affiliates. 

		
	(b)
	Consultant agrees and understands with respect to itself and its employees, agents or affiliates. that it is not entitled to and will not be eligible to receive any of the benefits which Aerohive may make available to its employees, such as group insurance, workers' compensation, disability insurance, vacation, sick pay, profit-sharing, incentive compensation, bonus or commission programs, stock purchase or stock award programs, or retirement benefits.  

13.    Confidential Information.  
		
	(a)
	Consultant understands that during the course of performing the Services hereunder, it may receive or have or obtain access to Confidential Information of Aerohive or its clients.  Accordingly, Consultant understands and agrees that any such Confidential Information disclosed to Consultant, intentionally by Aerohive or otherwise, shall be subject to the terms and conditions of the NDA entered by the parties and identified above, and deemed incorporated in full as a material part hereof. 

		
	(b)
	Consultant will not, during the Term, improperly use or disclose any proprietary information or trade secrets of any former or current employer or other person or entity with which Consultant has a duty to keep in confidence, and that Consultant will not bring onto the premises of Aerohive any unpublished document or proprietary information belonging to such employer, person or entity unless consented to in writing by such employer, person or entity.  

		
	(c)
	Consultant recognizes that Aerohive has received and in the future will receive from clients and third parties confidential or proprietary information which is subject to a duty on Aerohive's part to maintain in strict confidence and to use only for certain limited purposes.  Consultant agrees that Consultant owes Aerohive and such third parties, during the Term and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except and to the specific extent necessary to carry out the Services for Aerohive expressly provided hereunder.  Consultant acknowledges, understands and agrees that its improper disclosure of such confidential or proprietary information, intentional or otherwise, will cause immediate, serious and irreparable injury to Aerohive, its clients and third parties, for which inadequate remedy exists at law.  

		
	(d)
	Consultant represents that performance of all the terms of this Agreement, including the performance of Services hereunder, will not breach any agreement to keep in confidence confidential information acquired by Consultant prior to the execution of this Agreement or otherwise, to Consultant’s knowledge, the trade secret, patent, copyright or other intellectual property right of a third party.  

		
	(e)
	Upon the termination of this Agreement, or upon Aerohive's earlier request, Consultant will deliver to Aerohive all of Aerohive's property or Confidential Information that Consultant may have in Consultant's possession or control.

		
	(f)
	In the event Consultant employs assistants Consultant will assure that such employees are bound by confidentiality terms at least as stringent as those set forth herein and in the NDA.

14.    Inventions.    N/A
15.    Employment Eligibility.  Consultant represents and warrants that:  Consultant and all persons it employs to perform Services hereunder are citizens of the United States or holders of a valid and current Alien Registration Receipt Card and eligible to hold employment and perform the Services, under the laws of the United States and the State of California (or are otherwise legally fully able and authorized to perform the Services in the country or geographic area in which such Services are to be provided).
16.    Gratuities/Business Dealings.  Consultant represents and warrants that it has not offered or given, and shall not offer or give, to Aerohive or any its employees, agents or affiliates, any gratuity, payment or benefit (other than the performance of Services expressly provided hereunder) in order to secure any favor or business from Aerohive, or to influence Aerohive with respect to this transaction or business generally between the parties.  Consultant shall promptly disclose to Aerohive in writing any separately existing or previous employment or other work relationship or investment interest of any manner, involving Consultant and Aerohive, and their respective employees, agents or affiliates.  Consultant acknowledges receipt of or an opportunity to review Aerohive’s Code of Business Conduct (“Code”), and agrees to abide in all material respects by its terms and conditions during the term of this Agreement.  The Code is also available for review via Aerohive’s website at www.Aerohive.com.
17.    Stock Trading Policy.       All Aerohive contractors and consultants, including Consultant, are prohibited from trading in Aerohive stock at any time when in the possession of Material, Non-public Information about Aerohive or our business.  Material, Non-public Information is any information concerning Aerohive’s business, prospects, strategic decisions or direction, financial condition, major sales or customer developments, or significant operational or legal  information, developments or liabilities that an investor might consider important in deciding whether to buy or sell Aerohive stock, or which could affect the market price for Aerohive stock.  Examples of Material, Non-public Information include, but are not limited to: actual or estimated quarter-end or year-end financial results or changes in condition; possible mergers, acquisitions or divestitures; purchases or sales of investments in companies; significant customer contract “wins” or losses; significant product discoveries or developments; threatened or actual major litigation or developments in pending cases, for or against Aerohive; threatened or actual actions against Aerohive by regulatory entities or reporting of financial errors or irregularities; and major events relating to Aerohive’s business or changes in business strategies, or key executive departures.  Consultant agrees to abide by this policy.  

18.    Solicitation of Employment.  Consultant agrees, during the Term and for the period of six (6) months thereafter, (a) not to recruit, solicit or inquire for employment, directly or indirectly, or to advise or assist others in recruiting, soliciting or inquiring for employment, any then-current Company employee, or (b) to advise or assist others, directly or indirectly, in soliciting or transferring Company business to any other party.
19.    Compliance with Laws; FCPA Compliance.  Consultant agrees to comply, at all times during the Term, with all applicable governmental laws, statutes, ordinances, rules, regulations and other requirements, including such pertaining to environmental protection, wage, equal employment, non-discrimination, and workplace health and safety.  Consultant and each of its employees, agents or Affiliates, shall at all times when performing Services, fully comply, in all material respects, with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001.  No part of the proceeds of any compensation, commission or retainer fee, as applicable paid to Consultant under this Agreement, will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.
Upon Aerohive’s reasonable request, Consultant agrees to provide prompt assurance and evidence of Consultant’s active compliance with any and all such governmental requirements. 
20.    Enforceability of Agreement/Venue and Jurisdiction.  The parties agree that any dispute in the meaning, effect, or validity of this Agreement, and any cause, claim or action arising from this Agreement (and any Services or products provided hereunder), shall be governed by, enforceable under and resolved in accordance with the laws of the State of California, without regard to the conflict of laws provisions.  The parties further agree that if one or more provisions of this Agreement are held to be unenforceable under applicable California law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted and given effect as if such provision were so excluded.  The parties consent to Santa Clara County, California, and any United States District Court or Superior Court of competent jurisdiction located within its boundaries, as the exclusive venue and jurisdiction of any litigation or other dispute resolution modality; except that either party may take action in any jurisdiction to prevent disclosure of Confidential Information, or to enforce a judgment or other decision.  

21.    Assignment.  Neither party may assign this Agreement without the express written consent of the other party; provided, however, that Aerohive may assign its rights and obligations hereunder to a subsidiary or affiliated entity, or to a successor entity in the event of corporate merger, acquisition or other form of corporate reorganization, or acquisition of substantially all of Aerohive’s assets or common stock.
22.    Arbitration.  The parties agree that any and all disputes that either party may have with the other party which arise out of this Agreement, or any right or obligation hereunder, shall be resolved through final, binding and non-appealable arbitration in Santa Clara County, California in accordance with the rules and regulations of the American Arbitration Association then in-effect, and as provided in the Arbitration Agreement (which terms are incorporated here in full as a material part by reference).  Both parties understand and agree that the arbitration shall be instead of any civil litigation and that the arbitrator’s decision shall be final, binding and, upon entry by a court of competent jurisdiction, non-appealable to the fullest extent permitted by law and enforceable by any court having jurisdiction thereof.   
Filing a judicial action or recording a notice of pending action, order of attachment, receivership, injunction, or other provisional remedies shall not waive arbitration rights nor is recourse to such judicial relief precluded by the existence or availability of arbitration hereunder.  The parties shall split equally the arbitrator’s fees.
23.    Intellectual Property; Specific Indemnity.  N/A 
24.    General Indemnity.    Subject to the other express provisions herein, including the indemnity provisions above, each party agrees to defend, indemnify and hold the other party (including such party’s officers, directors, employees, agents and affiliates) harmless from and against all Damages, to the extent any such Damages asserted by a third party arise from the indemnifying party’s negligence, misconduct, fraud or breach of any material obligation hereunder (including to the extent a result form the acts or omissions of such indemnifying party’s officers, directors, employees, agents and affiliates), and including specifically, any claim or right to contribution from Aerohive for injury to person or property of any employee, agent or affiliate of Consultant.  Consultant’s indemnity obligations hereunder shall also include any and all claims made by any entity on account of an alleged failure by Consultant to satisfy any such tax or withholding obligations.  
25.    Liability Limitation.      EXCEPT AS PROVIDED IN SECTIONS 12(d), 23 AND 24, NOTWITHSTANDING ANYTHING OTHERWISE TO THE CONTRARY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, EXEMPLARY, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.  
26.    Waiver of Jury/Limitations of Actions; Attorney’s Fees.   Aerohive and Consultant hereby agree, to the fullest extent permitted by law, to waive any right or claim to adjudication by jury of any claim or cause asserted against the other and arising hereunder.  In any judicial proceeding arising out of this Agreement, or Services or products performed or provided hereunder, neither party is entitled to recover its attorneys’ fees or costs incurred pertaining to such proceeding (whether such party is the prevailing party).  
27.    Entire Understanding.  This Agreement contains the entire understanding of the parties regarding its subject matter, and supersedes any and all prior communications, representations and agreements, whether written or oral.  This Agreement can only be modified to the extent by a subsequent written agreement executed by the designated Consultant and Aerohive Notice Contact identified above.
28.    No Obligation to Proceed with Additional Services or Business Relationship.  Except as expressly provided herein, neither party has any obligation by virtue of this Agreement to proceed with any transaction between them, and any proposal, design or similar item presented to either party by the other shall be without obligation or restriction on the party. 
29.    Notices.  All notices required or given herewith shall be addressed to Aerohive or Consultant at the designated addresses and to the attention of the designated Notice Contact identified above, by registered mail, special delivery, or by certified courier service.
30.    Waiver.   Failure by a party to take affirmative action with respect to any breach of these terms and conditions by the other party shall not be construed as a waiver of that breach or of future breaches.
/    /    /
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/    /    /

EXHIBIT A
Statement of Work

The scope of services to be performed under this Agreement is specifically restricted to the consulting and/or specific services described below (the “Services”):

		
	Services: 
	At the reasonable request and direction of Aerohive, through its C.E.O. and/or C.F.O., Consultant will be reasonably available during the Term to provide assistance and consultation regarding the transition of his former responsibilities as an Aerohive employee, and insight into the Company’s corporate, Finance or functions, including processes, personnel, and resources, and provide assistance and review as reasonably requested through the Company’s Q3 close process.

Consultant will keep a time record and, upon written request provide to the Company a copy thereof, with respect to the Services he provides during the Term.  

Commencement Date: September 1, 2015

Completion Date: December 1, 2015

Termination for Convenience Notice Period

30 days written notice by Aerohive or Consultant for termination for convenience.

EXHIBIT B
Continued Service and Status of Existing Equity 
Performance of the Services shall be deemed not to be a break in service of Consultant, from the termination of Consultant’s prior employment with the Company to the commencement of the continuing service relationship pursuant to this Agreement.  For this reason, any rights Consultant may hold as of the Effective Date with respect to equity awards which existed as of the date of termination of Consultant’s employment relationship with the Company shall be deemed in full force and effect and continuing through the Term.

Consultant understands that any rights to incentive stock options (“ISOs”) which have vested to Consultant as of the date of termination of his employment with the Company must be exercised within 90 days of such date in order to preserve any tax-preferred benefits or status.  Any rights to ISOs which have vested to Consultant as of the date of termination of his employment with the Company but which Consultant does not exercise within 90 days of such date will automatically, and without further action of or notice from the Company, convert to non-qualified stock options (“NQLs”) with the loss to Consultant of ISO-related, tax-preferred benefits or status.  Consultant also understands that any income he may recognize with respect to the exercise during the Term of any rights to stock options vested to Consultant as of the date of termination of his employment with the Company may be subject to surcharges or less-favorable tax treatment, given Consultant’s then-status as a consultant to (and not employee of) the Company.  Consultant will be solely responsible for taxes assessable and payable with respect to the exercise during the Term of any rights to stock options vested to Consultant as of the date of termination of his employment.

Consultant understands and agrees that, notwithstanding the foregoing, any rights or expectations Consultant may have with respect to equity awards which existed as of termination of Consultant’s prior employment with the Company will at all times be subject to the terms, conditions and requirements of the respective award agreement and stock plan from which the award issued.

Payment for Services

Continued vesting, as provided above.

Payment for Services

Consultant understands and agrees that Consultant’s sole consideration for the Services will be the continued vesting during the Term of equity awards, whether in the form of RSUs or stock options (and whether ISOs or NQLs) which existed as of the date of termination of Consultant’s employment relationship with the Company (unless and to the extent Aerohive and Consultant agree in writing to additional compensation and consideration in the form of an amendment to this Exhibit B).

Payment for Expenses

Aerohive shall reimburse Consultant for all out-of-pocket expenses (round trip transportation, hotel, and meals) actually reasonably incurred by Consultant at Aerohive’s reimbursement rate, in connection with any trip made by Consultant at the specific request and with the prior written approval of Aerohive.  If out of town Services are required, all travel will be established by Aerohive’s internal travel operations and policies.  Aerohive will not pay for local travel or mileage between Aerohive and Consultant’s home or office.

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