In the case of a security appliance -- such as this -- it should, in my opinion, "fail closed".
The RFC (which if you're implementing TLS, you should have open at all times) explicitly calls out exactly this behavior:
> Note: some server implementations are known to implement version negotiation incorrectly. For example, there are buggy TLS 1.0 servers that simply close the connection when the client offers a version newer than TLS 1.0.
The quality of this vendor's implementation is extremely suspect.