Document:

Seventeenth Supplemental Indenture, dated as of March 22, 2012

 Exhibit 4.2 

 
  

 
 AMERICAN INTERNATIONAL GROUP, INC.

  
  

Seventeenth Supplemental 
 Indenture 
 Dated as of March 22, 2012 

 
  

(Supplemental to Indenture Dated as of October 12, 2006) 

 
  

THE BANK OF NEW YORK MELLON, 
 as Trustee 
  

 
  

 SEVENTEENTH SUPPLEMENTAL INDENTURE, dated as of March 22, 2012 (the “Seventeenth
Supplemental Indenture”), between American International Group, Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”), and The Bank of New York Mellon, a New York banking
corporation, as Trustee (herein called “Trustee”); 
 R E C I T A L S: 

WHEREAS, the Company has heretofore executed and delivered to The Bank of New York Mellon, as trustee, an Indenture, dated as of
October 12, 2006 (the “Base Indenture”, and as supplemented by the Fourth Supplemental Indenture, dated as of April 18, 2007, and the Eighth Supplemental Indenture, dated as of December 3, 2010 (the “Eighth Supplemental
Indenture”), the “Existing Indenture”) (the Existing Indenture, as the same may be amended or supplemented from time to time, including by this Seventeenth Supplemental Indenture, the “Indenture”), providing for the issuance
from time to time of the Company’s unsecured debentures, notes or other evidences of indebtedness (herein and therein called the “Securities”), to be issued in one or more series; 

WHEREAS, Section 901 of the Existing Indenture permits the Company and the Trustee to enter into an indenture supplemental to the
Existing Indenture to establish the form and terms of additional series of Securities; 
 WHEREAS, Sections 201, 301 and
901 of the Existing Indenture permit the form of Securities of each additional series of Securities to be established pursuant to an indenture supplemental to the Existing Indenture; 

WHEREAS, Section 301 of the Existing Indenture permits the terms of any additional series of Securities to be established pursuant
to an indenture supplemental to the Existing Indenture; 
 WHEREAS, the Company has authorized the issuance of $1,250,000,000 in
aggregate principal amount of its 3.800% Notes Due 2017 (the “Notes”); 
 WHEREAS, the Notes will be established as a
series of Securities under the Indenture; 
 WHEREAS, pursuant to resolutions of (i) the Board of Directors of the Company
adopted at a meeting duly called on September 14, 2010, and (ii) the Finance Committee of the Board of Directors of the Company adopted at a meeting duly called on October 12, 2011, the Company has duly authorized the execution and
delivery of this Seventeenth Supplemental Indenture to establish the form and terms of the Notes; and 
 WHEREAS, all things
necessary to make this Seventeenth Supplemental Indenture a valid agreement according to its terms have been done; 

  

 NOW, THEREFORE, THIS SEVENTEENTH SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Notes, as follows: 
 DEFINITIONS AND OTHER PROVISIONS

 OF GENERAL APPLICATION 
 Section 1.1 Relation to Existing Indenture 
 This Seventeenth
Supplemental Indenture constitutes a part of the Indenture (the provisions of which, as modified by this Seventeenth Supplemental Indenture, shall apply to the Notes) in respect of the Notes, and shall not modify, amend or otherwise affect the
Existing Indenture insofar as it relates to any other series of Securities or affects in any manner the terms and conditions of the Securities of any other series. 
 Section 1.2 Definitions 
 For all purposes of this Seventeenth
Supplemental Indenture, the capitalized terms used herein (i) which are defined in the recitals or introductory paragraph hereof have the respective meanings assigned thereto in the applicable provision of the recitals and introductory
paragraph, and (ii) which are defined in the Existing Indenture (and which are not defined in the recitals or introductory paragraph hereof) have the respective meanings assigned thereto in the Existing Indenture. For all purposes of this
Seventeenth Supplemental Indenture: 
 All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Seventeenth Supplemental Indenture; and 
 The terms “herein”,
“hereof”, and “hereunder” and words of similar import refer to this Seventeenth Supplemental Indenture. 

GENERAL TERMS AND CONDITIONS OF THE NOTES 
 Section 2.1 Forms of Notes Generally 
 The Notes shall be in
substantially the forms set forth in this Article with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Existing Indenture and this Seventeenth Supplemental Indenture and may have such
letters, numbers or other marks of identification and such legends or 

  
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endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary thereto, or as may, consistent with the Existing Indenture and this Seventeenth
Supplemental Indenture, be determined by the officers executing such Notes, as evidenced by their execution of such Notes. 

The Trustee’s certificate of authentication shall be in substantially the form set forth in Section 2.4. 

The Notes shall be issued initially in the form of the Global Notes, registered in the name of the Depositary or its nominee and
deposited with the Trustee, as custodian for the Depositary, for credit by the Depositary to the respective accounts of beneficial owners of the Notes represented thereby (or such other accounts as they may direct). Each such Global Note will
constitute a single Security for all purposes of the Indenture. 
 Section 2.2 Form of Face of the Notes 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE OF A DEPOSITARY. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO AMERICAN INTERNATIONAL GROUP, INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CEDE & CO. (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

AMERICAN INTERNATIONAL GROUP, INC. 
 3.800% NOTES DUE 2017 
  

					
	 No.         
	  			
	 CUSIP No.:
	  	$	    	  

  
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 AMERICAN INTERNATIONAL GROUP, INC., a corporation duly organized and existing under the laws
of Delaware (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal
sum of                     Dollars ($        ) on March 22, 2017, and to pay interest thereon from
March 22, 2012, or from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, semiannually in arrears on each March 22 and September 22 (each such date, an “Interest
Payment Date”), commencing on September 22, 2012 at the rate of 3.800% per annum, until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 1
or September 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof which shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on
which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 
 Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 
 In the event that an Interest Payment Date is not a Business Day, the Company shall pay interest on the next succeeding Business Day, with the same force and effect as if made on the Interest Payment
Date, and without any interest or other payment with respect to the delay. If the Stated Maturity or earlier Redemption Date falls on a day that is not a Business Day, the payment of principal, premium, if any, and interest need not be made on such
date, but may be made on the next succeeding Business Day, with the same force and effect as if made on the Stated Maturity or earlier Redemption Date, provided that no interest shall accrue for the period from and after such Stated Maturity or
earlier Redemption Date. 
 Payment of the principal of and premium, if any, and interest on this Note will be made at the
office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts. 

  
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 Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
 Dated: 
  

			
	AMERICAN INTERNATIONAL GROUP, INC.
		
	By:	 	  

  

	
	[SEAL]
	
	Attest:

  
  

Section 2.3 Form of Reverse of the Notes 
 This Note is one of a duly authorized issue of securities of the Company (herein called the “Notes”), designated as its 3.800% Notes Due 2017, issued and to be issued in one or more series under
an Indenture, dated as of October 12, 2006, as supplemented by the Fourth Supplemental Indenture, dated as of April 18, 2007, the Eighth Supplemental Indenture, dated as of December 3, 2010, and the Seventeenth Supplemental Indenture,
dated as of March 22, 2012 (as so supplemented, the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon, as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof. 

The Notes of this series are subject to redemption at any time, in whole or in part, at the election of the Company, upon not less than
30 nor more than 60 days’ notice given as provided in the Indenture, at a Redemption Price equal to the greater of (i) 100% of the principal amount, together with accrued and unpaid interest to, but excluding, the

  
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Redemption Date, and (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion
of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 40 basis points, plus accrued and
unpaid interest to, but excluding, the Redemption Date. 
 The definitions of certain terms used in the paragraph above are
listed below. 
 “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 “Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent as having a maturity
comparable to the remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of
the Notes. 
 “Comparable Treasury Price” means, with respect to any Redemption Date, the average of the Reference
Treasury Dealer Quotations for such Redemption Date. 
 “Quotation Agent” means AIG Markets, Inc. or any other firm
appointed by the Company, acting as quotation agent for the Notes. Any successor or substitute Quotation Agent may be an Affiliate of the Company. 
 “Reference Treasury Dealer” means (i) each of J.P. Morgan Securities LLC, RBS Securities Inc. and a Primary Treasury Dealer (as defined below) selected by Wells Fargo Securities, LLC or the
respective successor of any of them; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall
substitute therefor another Person that is a Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Quotation Agent after consultation with the Company. 

“Reference Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer
at 3:30 p.m. on the third Business Day preceding such Redemption Date. 
 In the event of redemption of the Notes in part only,
a new Note or Notes of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 

  
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 The Notes of this series do not have the benefit of any sinking fund obligation. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Note or certain restrictive covenants and
Events of Default with respect to this Note, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to Notes of this series shall occur and be continuing, the principal of the Notes of this series may
be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 As provided in
and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless
such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Notes of this series, the Holders of not less than 25% in principal amount of the Notes of this series at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal
amount of Notes of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall
not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof or premium, if any, or interest hereon on or after the respective due dates expressed herein. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and premium, if any, or interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

  
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 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and premium, if any, or interest on this Note are
payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Notes of this series are issuable only in fully registered form without coupons in denominations of $2,000 and any multiple of $1,000
in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, the Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the
owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Note which are defined in the Indenture shall have the meaning assigned to them in the Indenture. 
 Section 2.4 Form of Trustee’s Certificate of Authentication of the Notes 
 The Trustee’s certificates of authentication shall be in substantially the following form: 
 This is one of the Notes of the series designated therein referred to in the within-mentioned Indenture. 
 Dated: 
  

			
	THE BANK OF NEW YORK MELLON
	As Trustee
		
	By:	 	  

		 	Authorized Signatory

  
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 Section 2.5 Title and Terms 

Pursuant to Sections 201 and 301 of the Indenture, there is hereby established a series of Securities, the terms of which shall be as
follows: 
 Designation. The Notes shall be known and designated as the “3.800% Notes Due 2017.” 

Aggregate Principal Amount. The aggregate principal amount of the Notes that may be authenticated and delivered under this
Seventeenth Supplemental Indenture is initially limited to $1,250,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes issued pursuant to Section 304, 305, 306,
906 or 1107 of the Existing Indenture. The Company may, without the consent of the Holders of the Notes, issue additional notes having the same ranking, interest rate, Stated Maturity, CUSIP and ISIN numbers and terms as to status, redemption or
otherwise as the Notes, in which event such notes and the Notes shall constitute one series for all purposes under the Indenture, including without limitation, amendments, waivers and redemptions. 

Interest and Maturity. The Stated Maturity of the Notes shall be March 22, 2017 and the Notes shall bear interest and have
such other terms as are described in the form of Note set forth in Sections 2.2 and 2.3 of this Seventeenth Supplemental Indenture. 
 Redemption. The Company shall have no obligation to redeem or purchase the Notes pursuant to any sinking fund or analogous provision, or at the option of a Holder thereof. The Notes shall be
redeemable at the election of the Company from time to time, in whole or in part, at the times and at the prices specified in the form of Note set forth in Section 2.3 of this Seventeenth Supplemental Indenture. Notice of redemption shall be
given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Notes to be redeemed at his address appearing in the Security Register. 

Defeasance. The Notes shall be subject to the defeasance and discharge provisions of Section 1302 of the Existing Indenture
and the defeasance of certain obligations and certain events of default provisions of Section 1303 of the Existing Indenture. 
 Denominations. The Notes shall be issuable only in fully registered form without coupons and only in denominations of $2,000 and multiples of $1,000 in excess thereof. 

Authentication and Delivery. The Notes shall be executed, authenticated, delivered and dated in accordance with Section 303
of the Existing Indenture. 
 Additional Covenant and Amendment to the Base Indenture. The additional covenant of the
Company and amendment to the Base Indenture, each as set forth in Article III of the Eighth Supplemental Indenture, shall apply to the Notes. 

  
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 Depositary. With respect to Notes issuable or issued in whole or in part in the form
of one or more Global Notes, the Depositary shall be The Depository Trust Company, for so long as it shall be a clearing agency registered under the Exchange Act, or such successor (which shall be a clearing agency registered under the Exchange Act)
as the Company shall designate from time to time in an Officers’ Certificate delivered to the Trustee. 
 Section 2.6 Exchanges
of Global Note for Non-Global Note 
 Notwithstanding any other provision in this Indenture, no Global Note may be
exchanged in whole or in part for Notes registered, and no transfer of a Global Note in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Note or a nominee thereof unless (A) such Depositary
has notified the Company that it is unwilling or unable or no longer permitted under applicable law to continue as Depositary for such Global Note and the Company does not appoint another institution to act as Depositary within 90 days,
(B) there shall have occurred and be continuing an Event of Default with respect to such Global Note, or (C) the Company so directs the Trustee by a Company Order. 
 MISCELLANEOUS 
 Section 3.1 Relationship to Existing Indenture

 This Seventeenth Supplemental Indenture is a supplemental indenture within the meaning of the Existing Indenture. The
Existing Indenture, as supplemented and amended by this Seventeenth Supplemental Indenture, is in all respects ratified, confirmed and approved and, with respect to the Notes, the Existing Indenture, as supplemented and amended by this Seventeenth
Supplemental Indenture, shall be read, taken and construed as one and the same instrument. 
 Section 3.2 Modification of the
Existing Indenture 
 Except as expressly modified by this Seventeenth Supplemental Indenture, the provisions of the
Existing Indenture shall govern the terms and conditions of the Notes. 
 Section 3.3 Governing Law 

This instrument shall be governed by and construed in accordance with the laws of the State of New York. 

  
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 Section 3.4 Counterparts 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument. 
 Section 3.5 Trustee Makes No Representation

 The recitals contained herein are made by the Company and not by the Trustee, and the Trustee assumes no responsibility
for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Seventeenth Supplemental Indenture other than its certificates of authentication. 

  
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 IN WITNESS WHEREOF, the parties hereto have
caused this Seventeenth Supplemental Indenture to be duly executed all as of the day and year first above written. 
  

					
	AMERICAN INTERNATIONAL GROUP, INC.
		
	By	 	 /s/ Brian T. Schreiber

		 	Name:	 	Brian T. Schreiber
		 	Title:	 	Executive Vice President and Treasurer

  

	
	Attest:
	
	 /s/ Jeffrey A.
Welikson            

  

					
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By	 	 /s/ Sherma Thomas

		 	Name:	 	Sherma Thomas
		 	Title:	 	Senior Associate

 [Signature Page to Seventeenth Supplemental Indenture]Employment offer letter

 Exhibit 10.01 

 
 

 
 Via Email & Express Mail 
 March 19, 2012 
 Dr. Bami Bastani 

[Address] 
 Dear Bami, 

On behalf of Meru Networks, Inc. (the “Company” or “Meru”), I am pleased to offer you the position of President and
Chief Executive Officer. You will also be appointed to the Board of Directors effective on your first day of employment. 
 We
have strengthened our management team and made significant investments in our business to take advantage of the rapidly growing Wi-Fi market. I, as do the rest of our Board, feel your skills and experience can provide the leadership we need to
accelerate our growth in the coming years. The terms and conditions of your new position with the Company are as set forth below: 
  

	 	1.	Position and Duties. 

 You are being offered the position of President and Chief Executive Officer reporting to the Board, working out of the Company’s offices in Sunnyvale, California. 

You will be employed by Meru as a regular full-time, salaried, exempt employee, provided that we understand that you may concurrently
continue as an employee of Trident Microsystems, Inc. for a limited period, although until not later May 1, 2012 (your “Trident Termination Date”), after which time you will dedicate your exclusive working efforts to Meru. As an
exempt employee, you are required to exercise your specialized expertise, independent judgment and discretion to provide high-quality services. You are required to follow office policies and procedures adopted from time to time by the Company. The
Company reserves the right to change these policies and procedures at any time. You are required to dedicate your full energies, efforts and abilities to your employment with Meru, unless the Board expressly agrees otherwise; provided that the Board
of Directors understands that you may continue to serve on the boards of directors of Petrasolar and Skycross. You are not permitted to engage in any business activity that competes with the Company. 

 

	 	2.	Compensation and Benefits. 

 During your employment the Company will provide you with the following pay and benefits as compensation for all services you performed for the Company and its affiliates: 

(a) Base Salary. You will be paid, in accordance with the Company’s standard payroll policy, a salary based on $450,000 per
year base salary, less regular payroll deductions, which covers all hours worked. Future salary adjustments will be determined by the Board’s Compensation Committee in its sole discretion. It is expected that your base salary will be reviewed
again in connection with the Compensation Committee’s standard review for 2014 executive compensation (anticipated to take place during the first quarter of 2014). 

  
 894 Rose Drive |
Sunnyvale | CA 94089 | USA | Main: +1 (408) 215-5300 | Fax: +1 (408) 215-5301 | www.merunetworks.com 

 Dr. Bami Bastani 
 March 19, 2012 
  Page
 2
 of 5 
  

 (b) Executive Incentive Plan. You will also be eligible to participate in the
2012 Management Bonus Plan (the “Bonus Plan”) at a target bonus of 100% of your base salary ($450,000), prorated for the portion of 2012 that you serve with the Company. The Bonus Plan is an annual plan focused on profitable top line
growth. Terms for the Bonus Plan are subject to approval by the Company’s Compensation Committee. 
 (c) Participation
in Employee Benefit Plans; Expense Reimbursement. You will be eligible to participate in all of the employee benefit plans that the Company customarily maintains from time to time for its full-time executive employees, except to the extent that
such plans are duplicative of benefits otherwise provided to you pursuant to this letter. Your participation will be subject to the terms of the applicable plan documents and generally other applicable Company policies. Similarly, the Company will,
in accordance with applicable Company policies and guidelines, reimburse you for all reasonable and necessary expenses directly incurred by you in connection with the performance of services as the Company’s President and Chief Executive
Officer. 
 (d) Equity Awards. An important component of our compensation package includes the opportunity for ownership
in our Company. After your date of employment and upon approval of the Compensation Committee, I will recommend that the Company grant you an option to purchase 600,000 shares of the Company’s common stock. The per-share exercise price of the
options will equal the closing market price of the Company’s common stock on the day the option is granted. These stock options will vest over a four year period at the rate of twenty-five percent (25%) of the shares on the first
anniversary of your employment and then 1/48 of the shares monthly thereafter. 
 Additionally it will be recommended to the
Board of Directors that the Company grant you Restricted Stock Units (RSUs) covering a total of 100,000, half of which will vest according to the following schedule: 
  

	 	(i)	10,000 shares vesting on December 31, 2012; 

  

	 	(ii)	17,500 shares vesting on December 31, 2013; and 

  

	 	(iii)	22,500 shares vesting on December 31, 2014; 

and the remaining half of which will vest based on the following performance criteria: 

 

	 	(x)	10,000 Stock Units/shares vesting on achievement of the performance criteria generally applicable for executive officer performance-based option grants made in 2010
(for performance in the year ended December 31, 2012); 

  

	 	(y)	17,500 Stock Units/shares vesting on achievement of the performance criteria generally applicable for executive officer RSU grants made in 2011 (for performance in the
year ended December 31, 2013); and 

 Dr. Bami Bastani 
 March 19, 2012 
  Page
 3
 of 5 
  

	 	(z)	22,500 Stock Units/shares vesting on achievement of the performance criteria generally applicable for executive officer RSU grants made in 2012 (for performance in the
year ended December 31, 2014); 

 The specific terms and conditions of the equity grants will be set forth in equity grant
agreements to be issued pursuant to the Company’s stock plan that shall supersede the similar terms hereof. 
  

	 	3.	Severance and Change of Control. 

 You will be eligible to enter into the Company’s standard executive Severance and Change of Control Agreement, copy of which has been enclosed herewith; provided that: 

 

	 	(a)	the salary continuation in the event of Involuntary Termination (as defined therein) [§4(a)(i) thereof] and continuation of health insurance benefits
[§4(a)(ii) thereof] shall be eighteen (18) months – or, only in the event you are involuntarily terminated prior to December 31, 2012, twenty-four (24) months; and 

 

	 	(b)	the salary continuation in the event of Involuntary Termination in connection with a Change of Control (as defined therein) [§4(b)(ii) thereof] and continuation of
health insurance benefits [§4(b)(iii) thereof] shall be twenty-four (24) months. 

 The Severance and Change of Control
Agreement also provides for acceleration of vesting of all equity awards, the vesting of which is solely time-based (rather than performance based) [§4(b)(i) thereof]. The specific terms and conditions of such severance will be set forth in an
individualized Severance and Change of Control Agreement that shall supersede the similar terms hereof. 
  

	 	4.	Relocation and Legal Expenses. 

 Employee agrees to permanently relocate from New Jersey to the San Francisco Bay Area in connection with your duties no later than the first anniversary of your date of hire. In connection with such
relocation, the Company agrees to reimburse to you up to $250,000 of relocation expenses (the “Relocation Expenses”). In order to be eligible to receive the reimbursement of Relocation Expenses, in addition to providing reasonable
documentation thereof, the sale of your home in New Jersey must be completed no later than the second anniversary of your date of hire, and in such case, the Company shall reimburse only the Relocation Expense incurred following your date of hire
with Meru and prior to the second anniversary of such date of hire. In addition, the Company will reimburse you up to $10,000 for attorneys’ fees incurred in connection with the review and execution of this offer letter (“Legal
Expenses”). You agree to repay the Company, within thirty (30) days of a voluntary termination of employment with the Company or a termination for cause by the Company, one hundred percent (100%) of each Relocation Expense and Legal
Expense if such termination occurs during the first year of your employment with Meru following the reimbursement of such expense by Meru, and you agree that the Company can offset such amounts against any amounts then owed to you. 

 

	 	5.	At-Will Employment. 

This letter and your response are not meant to constitute a contract of employment for a specific term. Your employment with Meru is
“at-will,” which means that if you accept this offer, both you and the Company will retain the right to terminate your employment at any time, with or without prior notice or cause. We do ask that you give a minimum of one (1) month
written notice if you decide to resign. 

 Dr. Bami Bastani 
 March 19, 2012 
  Page
 4
 of 5 
  

	 	6.	Miscellaneous Provisions. 

 By accepting this offer of employment, you represent and warrant to the Company that you are under no obligations or commitments, whether contractual or otherwise, that are inconsistent with your
obligations set forth in this letter. You also represent and warrant that you will not use or disclose, in connection with your employment by the Company, any trade secrets or other proprietary information or intellectual property in which you or
any other person has any right, title or interest, and that your employment by the Company will not infringe upon or violate the rights of any other person or entity. You represent and warrant to the Company that you have returned all property and
confidential information relating to any prior employers (other than property and confidential information relating to Trident Microsystems, Inc., which will be returned to Trident upon your Trident Termination Date and will not used in connection
with your service to Meru). 
 This letter and the accompanying Severance and Change of Control Agreement and Employee
Confidential Information and Invention Assignment Agreement set forth all of the terms of your employment with Meru and no prior and contemporaneous communication, agreements and understandings, whether written or oral shall apply, with respect to
the terms and conditions of your employment and the additional matters provided for herein. You agree that there were no promises or commitments made to you regarding your employment with Meru except as set forth in this letter, the Severance and
Change of Control Agreement or in the Employee Confidential Information and Invention Assignment Agreement. 
 The provisions
contained herein shall be construed and interpreted in accordance with the laws of the State of California, without regard to the conflict of laws principles thereof. Each such provision is severable from the others, and if any provision hereof
shall be declared illegal or unenforceable by a court of competent jurisdiction, the remainder shall continue to be enforceable to the fullest extent permitted by law, as if such offending provision had not been a part of this offer letter.

 This offer is contingent upon the successful completion of each of the following: (i) your executing this letter;
(ii) your executing the Company’s standard Employee Confidential Information and Invention Assignment Agreement, a copy of which is enclosed herewith; (iii) your providing documentation of your legal right to work in the United States
within three (3) business days of your date of hire; and (iv) the completion of a satisfactory reference and background check. 

 Dr. Bami Bastani 
 March 19, 2012 
  Page
 5
 of 5 
  

 Bami, we are very pleased to extend this offer and look forward to working with you at
Meru. To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below, and also sign the enclosed Employee Confidential Information and Invention Assignment Agreement, and return both to me
within the next two (2) business days. A duplicate original is enclosed for your records. 
 Sincerely, 

/s/ William Quigley 
 William Quigley 
 Chairman of the Board 

Meru Networks, Inc. 
  

			
	Enclosures:	  	Duplicate Original Offer Letter
		  	Employee Confidential Information and Invention Assignment Agreement
		  	Employee Benefit Summary
		  	Severance and Change of Control Agreement

 Acceptance: 
 I, Bami Bastani, have read and accept the terms of this offer of employment with Meru Networks, Inc. and I agree to the terms set forth above and in the Employee Confidential Information and Invention
Assignment Agreement. 
 I look forward to reporting to work on March 21, 2012. 

 

					
	 /s/ Bami Bastani
	  		  	 March 20, 2012

	Signature	  		  	Date

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