Document:

Meru Networks, Inc. 2012 Management Bonus Plan

 Exhibit 10.01 
 2012 MANAGEMENT BONUS PLAN 
 All Meru Network, Inc. (the “Company”) executives
who do not otherwise receive variable compensation will be eligible to participate in this cash bonus plan. 
  

	A.	ANNUAL CASH BONUS PLAN 

 The cash bonus available will be calculated annually based on a percentage of an executive’s base salary upon the Company’s achievement of both revenue targets and non-GAAP EBITA targets1, as described below (collectively, the “Annual Cash Bonus”). At the end of the fiscal year, the annual cash
bonus available is calculated based upon the Company’s achievement of both annual revenue targets and non-GAAP
EBITA1 compared to the annual target objectives for annual revenue targets and non-GAAP EBITA. The Revenue Bonus amount will be
awarded based on revenue performance irrespective of whether the Minimum Non-GAAP EBITA threshold has been met, and the Non-GAAP EBITA bonus will be awarded irrespective of whether the revenue target is achieved. The executive may earn more or less
than his or her target bonus based on the extent to which achievement of the specified performance goals; provided, however that the total bonus amount2 shall not exceed 250% of the executive’s targeted bonus value. 
 The following table
provides the percentage of the executive’s base salary that is such executive’s targeted annual bonus value. 
  

			
	 Executive Officer
	  	Percentage of Annual Salary
	 President and Chief Executive Officer
	  	75%
	 Chief Financial Officer
	  	50%
	 Senior Vice Presidents
	  	45%
	 Vice Presidents (General Counsel, VP Business Development)
	  	40%

  

	 	I.	Revenue Bonus 

 80% of
the overall bonus award, is tied to achievement of the revenue target (the “Revenue Bonus”). In order for any amounts to be payable under the Revenue Bonus, the revenue target as approved by the board of directors must be met at a level of
at least 90% of the target. For achievement between 90% and 100% of the revenue target, the Revenue Bonus will start at a payout of 50% of the target Revenue Bonus amount and will increase on a straight-line basis according to the percentage of
achievement up to 100%.3 

The executives are also eligible to receive an increased Revenue Bonus if the Company’s revenue exceeds the revenue target and
the Minimum Non-GAAP EBITA is achieved.4 For revenue achievement in excess of 100% of the annual revenue target an accelerator will be applied to calculate the
Revenue Bonus amount, such that Revenue Bonus will be the target Revenue Bonus multiplied by a multiplier equal to 100% plus the product of (i) the percentage of over-achievement in excess of 100%, multiplied by (ii) the Multiplier Factor
set forth in the table below,5 provided that if Minimum Non-GAAP EBITA has not been achieved the Multiplier Factor shall instead be 1x.6 

 

	1 	The non-GAAP EBITA targets and determination of achievement exclude stock compensation expenses, CEO transition costs, and other items outside the ordinary course of
business such as litigation reserves expense or adjustment to fair value of the warrant liability, but include the impact of any bonuses determined under the cash bonus plan. 

	2 	The total bonus amount equals the aggregate of the Revenue Bonus (as defined below) and the Non-GAAP EBITA Bonus (as defined below), but does not include the Quarterly
Fast Start Bonuses (as defined below). 

	3 	For example, in the event that the annual revenue is achieved at the 95% of target level, the Revenue Bonuses will be paid at 75% of the target Revenue Bonus amount
such that the Revenue Bonus paid to the Company’s Chief Financial Officer would equal 75% multiplied by 80% multiplied by 50% multiplied by the Chief Financial Officer’s annual salary. 

	4 	After giving effect to (i) the Revenue Bonus and (ii) the Non-GAAP EBITA Bonus, each as adjusted for any applicable accelerator. 

	5 	For example, in the event that the Company’s actual revenue is 105% of the annual revenue target, the Revenue Bonus will be paid at 135% of the target Revenue
Bonus amount such that the Revenue Bonus paid to the Company’s Chief Financial Officer would equal 135% multiplied by 80% multiplied by 50% multiplied by the Chief Financial Officer’s annual salary. 

	6 	For example, in the event that the Company’s actual revenue is 105% of the annual revenue target but the Minimum Non-GAAP EBITA Amount is not achieved, the
Revenue Bonus will be paid at 105% of the target Revenue Bonus amount such that the Revenue Bonus paid to the Company’s Chief Financial Officer would equal 105% multiplied by 80% multiplied by 50% multiplied by the Chief Financial
Officer’s annual salary. 

 2012 Management Bonus Plan 

 

							
	 Performance Relative
to Revenue Target
	 	 	  	 Multiplier Factor
	  	 Example

	 > 100 –101%
	 		  	5x Multiplier	  	(i.e. 101% of Plan pays 105% of target Revenue Bonus)
				
	 3 101 – < 103%
	 		  	6x Multiplier	  	(i.e. 102% of Plan pays 112% of target Revenue Bonus)
				
	 3 103 – < 106%
	 		  	7x Multiplier	  	(i.e. 104% of Plan pays 128% of target Revenue Bonus)
				
	 3 106 – < 110%
	 		  	8x Multiplier	  	(i.e. 106% of Plan pays 148% of target Revenue Bonus)
				
	 3 110 – 115%
	 		  	9x Multiplier	  	(i.e. 110% of Plan pays 190% of target Revenue Bonus)
				
	 > 115%
	 		  	10x Multiplier	  	(i.e. 116% of Plan pays 260% of target Revenue
Bonus)7

  

	 	II.	Non-GAAP EBITA Bonus 

20% of the overall bonus award, is tied to non-GAAP EBITA (the “Non-GAAP EBITA Bonus”). In order for the Non-GAAP EBITA
Bonus to be paid, the Company must achieve the Non-GAAP EBITA target as approved the “Minimum Non-GAAP EBITA Amount”)8. Upon achievement of the Minimum Non-GAAP EBITA, the amount of the Non-GAAP EBITA Bonus will be calculated on a straight line basis starting at 50% upon achievement of the Minimum Non-GAAP EBITA Amount
and up to 100% upon achievement of the fiscal Non-GAAP EBITA target (the “Target Non-GAAP EBITA Amount”).9 If the non-GAAP EBITA for the fiscal year
exceeds the Target Non-GAAP EBITA Amount, the Non-GAAP EBITA Bonus will also increase on a straight line basis according to the achievement. 
 The executives are also eligible to receive up to 200% of the Non-GAAP EBITA Bonus if the Company’s non-GAAP EBITA exceeds the Target Non-GAAP EBITA Amount.10 If the Target Non-GAAP EBITA Amount is exceeded, the Non-GAAP EBITA Bonus amount will be calculated on a straight line,
such that the Non-GAAP EBITA Bonus will be the target Non-GAAP EBITA Bonus multiplied by a multiplier equal to 100% plus 5% for each $450,000 of non-GAAP EBITA performance better than the Target Non-GAAP EBITA Amount.11 
  

	B.	SUPPLEMENTAL FAST START CASH BONUS PLAN 

 Executives are also eligible for additional quarterly bonuses in each of the first three quarters of 2012 to be paid in the event that the Company achieves revenues that are in excess of 100% of for the
quarter with partial “make-up” opportunities if the cumulative year-to-date targets for quarterly revenues are achieved, as further described below (each a “Quarterly Fast Start Bonus”): 

 

	7 	Subject to the cap on the total bonus amount of 250% of target annual bonus amount, as discussed above. 

	8 	The Minimum Non-GAAP EBITA Amount shall equal $4.5 million less than the Target Non-GAAP EBITA Amount. 

	9 	For example, in the event the non-GAAP EBITA is achieved at the midway point between the Minimum non-GAAP EBITA Amount and the Target Non-GAAP EBITA Amount, the
Non-GAAP EBITA Bonus will be paid at 75% of the target Non-GAAP EBITA Bonus amount such that the Non-GAAP EBITA Bonus paid to the Company’s Chief Financial Officer would equal 75% multiplied by 20% multiplied by 50% multiplied by the Chief
Financial Officer’s annual salary. 

	10 	After giving effect to (i) the Revenue Bonus and (ii) the Non-GAAP EBITA Bonus, each as adjusted for any applicable accelerator. 

	11 	For example, in the event that the Company’s actual non-GAAP EBITA exceeds the Target Non-GAAP EBITA Amount by $900,000, the Non-GAAP EBITA Bonuses will be paid at
110% of the target Non-GAAP EBITA Bonus amount such that the Non-GAAP EBITA Bonus paid to the Company’s Chief Financial Officer would equal 110% multiplied by 20% multiplied by 50% multiplied by the Chief Financial Officer’s annual salary.

  
 2 

 2012 Management Bonus Plan 

 

	 	•	 	 If actual first quarter revenue is at least 100% of the first quarter revenue plan, executives will receive as a first quarter bonus an amount equal to
10% of their annual target bonus (the “First Quarter Bonus”). 

  

	 	•	 	 If actual second quarter revenue is at least 100% of the second quarter revenue plan, executives will receive as a second quarter bonus an amount equal
to 7.5% of their annual target bonus (the “Second Quarter Target Bonus”); provided that the amount of such second quarter bonus will be doubled (to 15% of their annual target bonus) if, while actual first quarter revenue was less than 100%
of the first quarter revenue plan, actual revenue for the first half of 2012 is at least 100% of the aggregate of the first quarter revenue plan and the second quarter revenue plan (the “Second Quarter Doubled Bonus” or, alternatively with
the Second Quarter Target Bonus, a “Second Quarter Bonus”). 

  

	 	•	 	 If actual third quarter revenue is at least 100% of the third quarter revenue plan, executives will receive as a third quarter bonus an amount equal to
5% of their annual target bonus; provided that the amount of such third quarter bonus will be doubled (to 10% of their annual target bonus) if (a) either (i) the First Quarter Bonus was paid but Second Quarter Bonus was not paid or
(ii) the First Quarter Bonus was not paid and the Second Quarter Doubled Bonus was not paid, and (b) actual aggregate revenue for the first three quarters of 2012 is at least 100% of the aggregate of the first quarter revenue
plan, the second quarter revenue plan and the third quarter revenue plan. 

 These quarterly bonus amounts are in addition to
the Annual Cash Bonus amounts described under the “Annual Cash Bonus Plan” above. 

  
 3Advisory Services Agreement between Ihab Abu-Hakima and Meru Networks, Inc.

 Exhibit 10.02 
 MERU NETWORKS, INC. 
 February 29, 2012 

Ihab Abu-Hakima 
 c/o Meru Networks, Inc.

 894 Ross Drive 
 Sunnyvale,
California 
  

	 	Re:	Advisory Services to Meru Networks, Inc. 

Dear Ihab: 
 Reference is made
to that certain Transitional Employment Agreement (this “Transition Agreement”) dated as of October 3, 2011, by and between you and Meru Networks, Inc. (the “Company”). Capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the Transition Agreement. 
 This letter agreement (this
“Letter”) is to confirm our understanding with respect to making yourself available to Meru following the Transitional Period. On behalf of the Company, I would like to thank you for your willingness making yourself available
to the Company following your departure as the Company’s Chief Executive Officer (“CEO”). The Company looks forward to a continued mutually beneficial association with you on the terms below which are hereby made
effective the later of the Planned Termination Date and your Actual Termination Date (the “Effective Date”): 
  

	 	1.	Management Consultations. Following the consultation services contemplated in the Transition Agreement, from time to time, we have agreed that I and other
members of the Company’s Board of Directors and your successor as CEO may contact you to request advice relating to the Company’s business activities while you were CEO. You agree that at times that are convenient to you, that you will
make yourself reasonably available to the Company’s Board of Directors and your successor as CEO for consultations by telephone, email, or if convenient, in person, as your time and other activities permit during the period from the Effective
Date until March 31, 2013. Any such consultations are expected to relate to matters that occurred while you were CEO and not to the Company’s future business activities (including, but not limited to, M&A transactions). Consequently,
it is expected that you will not be subject to the Company’s securities trading policy, and that after the Company’s release of earning for Q1 2012, you will not possess material, non-public information concerning the Company.

  

	 	2.	Reimbursement of Expenses. The Company will reimburse you for reasonable out-of-pocket expenses that you incur in connection with your services at our request
under this Letter, including travel and lodging expenses, provided that the CEO or Chairman of the Board of Directors of the Company approves any such expenses that will exceed $5,000 in advance. 

 Ihab Abu-Hakima 
 Advisory Services Letter Agreement 
 February 29, 2012 

 Page
 2
 
  

	 	3.	Compensation. The Transition Agreement provides that the Company Options held by you will continue to vest until March 31, 2012; provided, however, that if
you (a) terminate your employment voluntarily without Good Reason prior to the Planned Termination Date or (b) are terminated by the Company for Cause, you shall not be entitled to receive any additional vesting after the Actual
Termination Date (such applicable vesting end date the “Last Vesting Date”). Further, the Transition Agreement provides that the post-termination period of exercisability for each of Company Option held by you shall be as
specified in the applicable option agreement and the post-termination period shall commence on the Last Vesting Date. 

 Subject to (x) your not terminating your employment with the Company voluntarily without Good Reason prior to the Planned Termination Date or (y) your employment not being terminated by the
Company for Cause and (z) your compliance with your obligations under the Transition Agreement, in exchange for your services hereunder, the Company hereby agrees to extend the post-termination period of exercisability for each of Company
Option held by you until the earlier of (a) March 31, 2013 or (b) termination of this Letter under Section 5 below. You acknowledge, understand and agree that (i) nothing herein nor your provision of services hereunder shall
extend the vesting of your Company Options and (ii) the vesting of the Company Options shall cease as of the Last Vesting Date, as if your services the Company are terminated on the Last Vesting Date. 

 

	 	4.	Confidential Information. During the term of this Letter, it is possible that you may acquire information and materials from the Company and knowledge about
information of a confidential or secret nature concerning the Company. Please be reminded that all such knowledge, information and materials acquired, are confidential and proprietary information of the Company and may be Company trade secrets
(collectively, the “Confidential Information”). Confidential Information will not include, however, any information which is or becomes part of the public domain through no fault of yours or that the Company regularly gives
to third parties without restriction on use or disclosure. You agree to hold all such Confidential Information in strict confidence, not to disclose it to others or use it in any way, except as necessary or required under this Letter.

  

	 	5.	Conflicts of Interest. You hereby represent that the obligations contemplated hereby do not, in any way, conflict with any other agreement and/or commitment on
your part. You agree to inform the Company promptly and in writing if any such conflict arises. You agree that, following your Actual Termination Date, you will not disclose to the Company any proprietary information that you have obtained, or may
obtain in the future, from any other individual or organization. 

  

	 	6.	Termination. Either you or the Company may terminate this Letter on delivery of not less than ninety (90) days’ written notice to the other party;
provided that if you terminate prior to March 31, 2013 you shall not be entitled to the extension of post-termination exercisability of your Company Options as contemplated in Section 3 above. The provisions of Sections 4, 5, and 6 of this
Letter will survive any expiration or termination of this Letter. 

  
 2 

 Ihab Abu-Hakima 
 Advisory Services Letter Agreement 
 February 29, 2012 

 Page
 3
 
  

	 	7.	Interpretation. The terms contained in this Letter are subject to interpretation under the laws of the State of California, without giving effect to that body of
laws pertaining to conflict of laws, and can be amended only in writing and by joint agreement of both you and the Company. If any provision of this Letter is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such provision cannot be so enforced, such provision shall be stricken from this Letter and the remainder of this
Letter shall be enforced as if such invalid, illegal or unenforceable provision had (to the extent not enforceable) never been contained in the Letter. This Letter, together with the other agreements referenced herein, constitutes the complete and
exclusive understanding and agreement of you and the Company and supersedes all prior understanding and agreements, whether written or oral, with respect to the subject mater hereof. 

  
 3 

 Ihab Abu-Hakima 
 Advisory Services Letter Agreement 
 February 29, 2012 

 Page
 4
 
  

 If the foregoing represents your understanding of your role as an advisor to the Company
following the Effective Date, please sign below and return the executed letter to me. Once again, we appreciate your interest in the Company and look forward to a continuing mutually beneficial association with you. 

 

			
	Very truly yours,
	
	MERU NETWORKS, INC.
		
	By:	 	/s/ William Quigley
	Name:	 	William Quigley
	Title: 	 	Chairman of the Board of Directors

  

			
	ACKNOWLEDGED AND AGREED TO:
	
	 /s/ Ihab Abu-Hakima

	Ihab Abu-Hakima, an individual
		
	Date:	 	February 29, 2012

  
 4

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