Document:

EX-10.03

 Exhibit 10.03 
 MERU NETWORKS, INC. 
 2013 NEW EMPLOYEE STOCK INDUCEMENT PLAN

 (Adopted on June 6, 2013) 

 Table of Contents 

 

							
		  		  	 	Page	  
			
	 SECTION 1.
	  	ESTABLISHMENT AND PURPOSE.	  	 	1	  
			
	 SECTION 2.
	  	DEFINITIONS.	  	 	1	  
			
	 (a)
	  	“Affiliate”	  	 	1	  
			
	 (b)
	  	“Award”	  	 	1	  
			
	 (c)
	  	“Board of Directors”	  	 	1	  
			
	 (d)
	  	“Change in Control”	  	 	1	  
			
	 (e)
	  	“Code”	  	 	2	  
			
	 (f)
	  	“Committee”	  	 	2	  
			
	 (g)
	  	“Company”	  	 	2	  
			
	 (h)
	  	“Consultant”	  	 	3	  
			
	 (i)
	  	“Employee”	  	 	3	  
			
	 (j)
	  	“Exchange Act”	  	 	3	  
			
	 (k)
	  	“Exercise Price”	  	 	3	  
			
	 (l)
	  	“Fair Market Value”	  	 	3	  
			
	 (m)
	  	“Nonstatutory Option” or “NSO”	  	 	3	  
			
	 (n)
	  	“Offeree”	  	 	3	  
			
	 (o)
	  	“Option”	  	 	3	  
			
	 (p)
	  	“Optionee”	  	 	4	  
			
	 (q)
	  	“Outside Director”	  	 	4	  
			
	 (r)
	  	“Parent”	  	 	4	  
			
	 (s)
	  	“Participant”	  	 	4	  
			
	 (t)
	  	“Plan”	  	 	4	  
			
	 (u)
	  	“Purchase Price”	  	 	4	  
			
	 (v)
	  	“Restricted Share”	  	 	4	  
			
	 (w)
	  	“Restricted Share Agreement”	  	 	4	  
			
	 (x)
	  	“Service”	  	 	4	  
			
	 (y)
	  	“Share”	  	 	4	  
			
	 (z)
	  	“Stock”	  	 	4	  
			
	 (aa)
	  	“Stock Option Agreement”	  	 	4	  
			
	 (bb)
	  	“Stock Unit”	  	 	4	  
			
	 (cc)
	  	“Stock Unit Agreement”	  	 	5	  
			
	 (dd)
	  	“Subsidiary”	  	 	5	  
			
	 (ee)
	  	“Total and Permanent Disability”	  	 	5	  
			
	 SECTION 3.
	  	ADMINISTRATION.	  	 	5	  

  
 - i -

							
	 (a)
	  	Committee Composition	  	 	5	  
			
	 (b)
	  	Committee Procedures	  	 	5	  
			
	 (c)
	  	Committee Responsibilities	  	 	5	  
			
	 SECTION 4.
	  	ELIGIBILITY.	  	 	6	  
			
	 (a)
	  	General Rule	  	 	6	  
			
	 SECTION 5.
	  	STOCK SUBJECT TO PLAN.	  	 	6	  
			
	 (a)
	  	Basic Limitation	  	 	6	  
			
	 (b)
	  	Additional Shares	  	 	7	  
			
	 SECTION 6.
	  	RESTRICTED SHARES.	  	 	7	  
			
	 (a)
	  	Restricted Stock Agreement	  	 	7	  
			
	 (b)
	  	Payment for Awards	  	 	7	  
			
	 (c)
	  	Vesting	  	 	7	  
			
	 (d)
	  	Voting and Dividend Rights	  	 	7	  
			
	 (e)
	  	Restrictions on Transfer of Shares	  	 	7	  
			
	 SECTION 7.
	  	TERMS AND CONDITIONS OF OPTIONS.	  	 	8	  
			
	 (a)
	  	Stock Option Agreement	  	 	8	  
			
	 (b)
	  	Number of Shares	  	 	8	  
			
	 (c)
	  	Exercise Price	  	 	8	  
			
	 (d)
	  	Withholding Taxes	  	 	8	  
			
	 (e)
	  	Exercisability and Term	  	 	8	  
			
	 (f)
	  	Exercise of Options	  	 	8	  
			
	 (g)
	  	Effect of Change in Control	  	 	8	  
			
	 (h)
	  	No Rights as a Stockholder	  	 	8	  
			
	 (i)
	  	Modification, Extension and Renewal of Options	  	 	9	  
			
	 (j)
	  	Restrictions on Transfer of Shares	  	 	9	  
			
	 (k)
	  	Buyout Provisions	  	 	9	  
			
	 SECTION 8.
	  	PAYMENT FOR SHARES.	  	 	9	  
			
	 (a)
	  	General Rule	  	 	9	  
			
	 (b)
	  	Surrender of Stock	  	 	9	  
			
	 (c)
	  	Cashless Exercise	  	 	9	  
			
	 (d)
	  	Exercise/Pledge	  	 	9	  
			
	 (e)
	  	Promissory Note	  	 	10	  
			
	 (f)
	  	Other Forms of Payment	  	 	10	  
			
	 (g)
	  	Limitations under Applicable Law	  	 	10	  
			
	 SECTION 9.
	  	STOCK UNITS.	  	 	10	  
			
	 (a)
	  	Stock Unit Agreement	  	 	10	  
			
	 (b)
	  	Payment for Awards	  	 	10	  

  
 - ii -

							
	 (c)
	  	Vesting Conditions	  	 	10	  
			
	 (d)
	  	Voting and Dividend Rights	  	 	10	  
			
	 (e)
	  	Form and Time of Settlement of Stock Units	  	 	10	  
			
	 (f)
	  	Death of Recipient	  	 	11	  
			
	 (g)
	  	Creditors’ Rights	  	 	11	  
			
	 SECTION 10.
	  	ADJUSTMENT OF SHARES.	  	 	11	  
			
	 (a)
	  	Adjustments	  	 	11	  
			
	 (b)
	  	Dissolution or Liquidation	  	 	11	  
			
	 (c)
	  	Reorganizations	  	 	12	  
			
	 (d)
	  	Reservation of Rights	  	 	12	  
			
	 SECTION 11.
	  	DEFERRAL OF AWARDS.	  	 	12	  
			
	 (a)
	  	Committee Powers	  	 	12	  
			
	 (b)
	  	General Rules	  	 	13	  
			
	 SECTION 12.
	  	AWARDS UNDER OTHER PLANS.	  	 	13	  
			
	 SECTION 13.
	  	LEGAL AND REGULATORY REQUIREMENTS.	  	 	13	  
			
	 SECTION 14.
	  	WITHHOLDING TAXES.	  	 	13	  
			
	 (a)
	  	General	  	 	13	  
			
	 (b)
	  	Share Withholding	  	 	14	  
			
	 SECTION 15.
	  	OTHER PROVISIONS APPLICABLE TO AWARDS.	  	 	14	  
			
	 (a)
	  	Transferability	  	 	14	  
			
	 (b)
	  	Substitution and Assumption of Awards	  	 	14	  
			
	 (c)
	  	Performance Criteria	  	 	14	  
			
	 SECTION 16.
	  	NO EMPLOYMENT RIGHTS.	  	 	14	  
			
	 SECTION 17.
	  	DURATION AND AMENDMENTS.	  	 	14	  
			
	 (a)
	  	Term; Right to Amend or Terminate the Plan	  	 	14	  
			
	 (b)
	  	Effect of Termination	  	 	15	  
			
	 SECTION 18.
	  	EXECUTION.	  	 	16	  

  
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 MERU NETWORKS, INC. 

2013 NEW EMPLOYEE STOCK INDUCEMENT PLAN 
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
 The Plan was adopted by the Board of
Directors and shall be effective on June 6, 2013. The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees to focus on critical long-range objectives,
(b) encouraging the attraction and retention of Employees with exceptional qualifications and (c) linking Employees directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing
for Awards in the form of restricted shares, stock units, options (which shall be nonstatutory stock options) or stock appreciation rights. 
 The Plan is designed to attract new employees and is intended to satisfy the requirements of NASDAQ Listing Rule 5635(c). This Plan shall be governed by and construed in accordance with, the laws of the
State of Delaware (excluding choice of law provisions). 
 SECTION 2. DEFINITIONS. 

(a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not
less than 50% of such entity. 
 (b) “Award” shall mean any award of an Option, a Restricted Share or a Stock
Unit under the Plan. 
 (c) “Board of Directors” shall mean the Board of Directors of the Company, as
constituted from time to time. 
 (d) “Change in Control” shall mean the occurrence of any of the following
events: 
  

	 	(i)	A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who either:

 (A) Had been directors of the Company on the “look-back date” (as defined below) (the
“original directors”); or 
 (B) Were elected, or nominated for election, to the Board of Directors
with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the
“continuing directors”); or 

  
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	 	(ii)	Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special
circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in
the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s
beneficial ownership of any securities of the Company; or 

  

	 	(iii)	The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of
the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the
continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 

  

	 	(iv)	The sale, transfer or other disposition of all or substantially all of the Company’s assets. 

For purposes of subsection (d)(i) above, the term “look-back” date shall mean the later of (1) the Effective Date or
(2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
 For purposes of
subsection (d)(ii)) above, the term “person” shall have the same meaning as when used in Sections 13(d) and
 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit
plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 

Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose
is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a
Change in Control shall not be deemed to occur if the Company files a registration statement with the United States Securities and Exchange Commission for the initial offering of Stock to the public. 

(e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(f) “Committee” shall mean the Compensation Committee as designated by the Board of Directors, which is authorized to
administer the Plan, as described in Section 3 hereof. 
 (g) “Company” shall mean Meru Networks, Inc., a
Delaware corporation. 

  
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 (h) “Consultant” shall mean a consultant or advisor who provides bona fide
services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor (not including service as a member of the Board of Directors) or a member of the board of directors of a Parent or a Subsidiary, in each case who is not an
Employee. 
 (i) “Employee” shall mean a common-law employee of the Company, a Parent, a Subsidiary or an
Affiliate who is newly hired by the Company, or who is rehired following a bona fide period of interruption of employment. 

(j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(k) “Exercise Price” shall mean, in the case of an Option, the amount for which one Share may be purchased upon exercise
of such Option, as specified in the applicable Stock Option Agreement. 
 (l) “Fair Market Value” with respect
to a Share, shall mean the market price of one Share, determined by the Committee as follows: 
  

	 	(i)	If the Stock was traded over-the-counter on the date in question, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the
OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the
Stock is not quoted on any such system, by the Pink Quote system; 

  

	 	(ii)	If the Stock was traded on any established stock exchange (such as the New York Stock Exchange, The Nasdaq Global Market or The Nasdaq Global Select Market) or national
market system on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable exchange or system; and 

 

	 	(iii)	If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate.

 In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons.

 (m) “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO.

 (n) “Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under
the Plan (other than upon exercise of an Option). 
 (o) “Option” shall mean a Nonstatutory Option granted
under the Plan and entitling the holder to purchase Shares. 

  
 - 3 -

 (p) “Optionee” shall mean an individual or estate who holds an Option.

 (q) “Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of, or
paid consultant to, the Company, a Parent or a Subsidiary. 
 (r) “Parent” shall mean any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
 (s) “Participant” shall mean an individual or estate who holds an Award. 
 (t) “Plan” shall mean this 2013 New Employee Stock Inducement Plan of Meru Networks, Inc., as amended from time to time. 

(u) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon
exercise of an Option), as specified by the Committee. 
 (v) “Restricted Share” shall mean a Share awarded
under the Plan. 
 (w) “Restricted Share Agreement” shall mean the agreement between the Company and the
recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 

(x) “Service” shall mean service as an Employee, subject to such further limitations as may be set forth in the Plan or
the applicable Stock Option Agreement, Restricted Share Agreement or Stock Unit Agreement. Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave
provide for continued Service crediting, or when continued Service crediting is required by applicable law. The Company determines which leaves of absence count toward Service, and when Service terminates for all purposes under the Plan. 

(y) “Share” shall mean one share of Stock, as adjusted in accordance with Section 11 (if applicable). 

(z) “Stock” shall mean the Common Stock of the Company. 

(aa) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms,
conditions and restrictions pertaining to such Option. 
 (bb) “Stock Unit” shall mean a bookkeeping entry
representing the Company’s obligation to deliver one Share (or distribute cash) on a future date in accordance with the provisions of a Stock Unit Agreement. 

  
 - 4 -

 (cc) “Stock Unit Agreement” shall mean the agreement between the Company
and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 

(dd) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50%
of the total combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

 (ee) “Total and Permanent Disability” shall mean any permanent and total disability as defined by section
22(e)(3) of the Code. 
 SECTION 3. ADMINISTRATION. 
 (a) Committee Composition. The Plan shall be administered by the Board or a Committee appointed by the Board. The Committee shall consist of two or more directors of the Company. In addition the
composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the
Exchange Act; (ii) any listing standards prescribed by the principal securities market upon which the Company’s equity securities are traded; and (ii) such requirements as are imposed by applicable laws, regulations or rules.

 (b) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The
Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing (including via email) by all
Committee members, shall be valid acts of the Committee. 
 (c) Committee Responsibilities. Subject to the provisions of
the Plan, the Committee shall have full authority and discretion to take the following actions: 
  

	 	(i)	To interpret the Plan and to apply its provisions; 

  

	 	(ii)	To adopt, amend or rescind rules, procedures and forms relating to the Plan; 

 

	 	(iii)	To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 

 

	 	(iv)	To determine when Awards are to be granted under the Plan; 

  

	 	(v)	To select the Offerees and Optionees; 

  

	 	(vi)	To determine the number of Shares to be made subject to each Award; 

  
 - 5 -

	 	(vii)	To prescribe the terms and conditions of each Award, including (without limitation) the Exercise Price and Purchase Price, and the vesting or duration of the Award
(including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), and to specify the provisions of the agreement relating to such Award; 

 

	 	(viii)	To amend any outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant’s rights or obligations
would be materially impaired; 

  

	 	(ix)	To prescribe the consideration for the grant of each Award or other right under the Plan and to determine the sufficiency of such consideration;

  

	 	(x)	To determine the disposition of each Award or other right under the Plan in the event of a Participant’s divorce or dissolution of marriage;

  

	 	(xi)	To correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award agreement; 

 

	 	(xii)	To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability
to retain any Award; and 

  

	 	(xiii)	To take any other actions deemed necessary or advisable for the administration of the Plan. 

 All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons deriving their rights from an Offeree or Optionee. No member of
the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan. 
 SECTION 4. ELIGIBILITY. 
 (a) General Rule. Only Employees shall be
eligible for the grant of Restricted Shares, Stock Units, or Options. 
 SECTION 5. STOCK SUBJECT TO PLAN. 

(a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The aggregate
number of Shares authorized for issuance as Awards under the Plan shall not exceed (a) 500,000 Shares, plus (b) the Shares described in Section 5(b). The number of Shares that are subject to Options or other Awards outstanding at any
time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. The limitations
of this Section 5(a) and the provisions of Section 5(b) shall be subject to adjustment pursuant to Section 10. 

  
 - 6 -

 (b) Additional Shares. If Restricted Shares or Shares issued upon the exercise of
Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units or Options are forfeited or terminate for any reason before being exercised or settled, or an Award is settled in cash without the
delivery of Shares to the holder, then any Shares subject to the Award shall again become available for Awards under the Plan. Only the number of Shares (if any) actually issued in settlement of Awards shall reduce the number available in
Section 5(a) and the balance shall again become available for Awards under the Plan. Any Shares withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall again become available for Awards under
the Plan. Notwithstanding the foregoing provisions of this Section 5(b), Shares that have actually been issued shall not again become available for Awards under the Plan, except for Shares that are forfeited and do not become vested.

 SECTION 6. RESTRICTED SHARES. 
 (a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall
be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 

(b) Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may
determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past services and future services. 
 (c) Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted
Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of
thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
 (d) Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted
Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award
with respect to which the dividends were paid. 
 (e) Restrictions on Transfer of Shares. Restricted Shares shall be
subject to such rights of repurchase, rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general
restrictions that may apply to all holders of Shares. 

  
 - 7 -

 SECTION 7. TERMS AND CONDITIONS OF OPTIONS. 

(a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the
Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for
inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with
Section 10. 
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price
of an Option shall not be less 100% of the Fair Market Value of a Share on the date of grant. 
 (d) Withholding Taxes.
As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such
exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by
exercising an Option. 
 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any
installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option. A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or
retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Subject to the foregoing in this Section 7(e), the Committee at its sole discretion shall
determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
 (f) Exercise
of Options. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to
exercise the Option of any executors or administrators of the Optionee’s estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of
the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
 (g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to
such Option in the event that a Change in Control occurs with respect to the Company. 
 (h) No Rights as a Stockholder.
An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as
provided in Section 10. 

  
 - 8 -

 (i) Modification, Extension and Renewal of Options. Within the limitations of the
Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same
or a different number of Shares and at the same or a different Exercise Price, or in return for the grant of a different Award for the same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without
the consent of the Optionee, materially impair his or her rights or obligations under such Option. 
 (j) Restrictions on
Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such
restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
 (k) Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to
cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. 

SECTION 8. PAYMENT FOR SHARES. 
 (a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are
purchased, except as provided in Section 8(b) through Section 8(g) below. 
 (b) Surrender of Stock. To the
extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their
Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation
expense (or additional compensation expense) with respect to the Option for financial reporting purposes. 
 (c) Cashless
Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or
part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
 (d) Exercise/Pledge. To the
extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to
deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price. 

  
 - 9 -

 (e) Promissory Note. To the extent that a Stock Option Agreement or Restricted Stock
Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. 
 (f) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made in any other form that is consistent with applicable laws,
regulations and rules. 
 (g) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option
Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion. 
 SECTION 9. STOCK UNITS. 
 (a) Stock Unit Agreement. Each grant of
Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with
the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical. 
 (b)
Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
 (c) Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock
Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that
all or part of such Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company. 

(d) Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any
Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit
is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend
equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which they attach. 

(e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash,
(b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance
factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. A Stock Unit Agreement may provide that vested Stock Units may be settled
in a lump sum or in installments. A Stock Unit Agreement may provide that the distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date.
The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 10. 

  
 - 10 -

 (f) Death of Recipient. Any Stock Units Award that becomes payable after the
recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the
Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then
any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
 (g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the
Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
 SECTION 10. ADJUSTMENT OF SHARES. 

(a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a
declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares,
a recapitalization, a spin-off or a similar occurrence, the Committee shall make appropriate and equitable adjustments in: 
  

	 	(i)	The number of Options, Restricted Shares and Stock Units available for future Awards under Section 5; 

 

	 	(ii)	The limitations set forth in Sections 5(a) and (b); 

  

	 	(iii)	The number of Shares covered by each outstanding Option; 

  

	 	(iv)	The Exercise Price under each outstanding Option; and 

  

	 	(v)	The number of Stock Units included in any prior Award which has not yet been settled. 

(b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options and Stock Units shall terminate
immediately prior to the dissolution or liquidation of the Company. 

  
 - 11 -

 (c) Reorganizations. In the event that the Company is a party to a merger or other
reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Subject to compliance with Section 409A of the Code, such agreement shall provide for: 

 

	 	(i)	The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 

 

	 	(ii)	The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary; 

 

	 	(iii)	The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 

 

	 	(iv)	Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 

 

	 	(v)	Settlement of the intrinsic value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. 

(d) Reservation of Rights. Except as provided in this Section 10, a Participant shall have no rights by reason of any
subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Award. The grant of an Award pursuant to the Plan shall not
affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its
business or assets. In the event of any change affecting the Shares or the Exercise Price of Shares subject to an Award, including a merger or other reorganization, for reasons of administrative convenience, the Company in its sole discretion may
refuse to permit the exercise of any Award during a period of up to thirty (30) days prior to the occurrence of such event. 
 SECTION
11. DEFERRAL OF AWARDS. 
 (a) Committee Powers. Subject to compliance with Section 409A of the Code, the
Committee (in its sole discretion) may permit or require a Participant to: 
  

	 	(i)	Have cash that otherwise would be paid to such Participant as a result of the settlement of Stock Units credited to a deferred compensation account established for such
Participant by the Committee as an entry on the Company’s books; 

  

	 	(ii)	Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option converted into an equal number of Stock Units; or

  
 - 12 -

	 	(iii)	Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or the settlement of Stock Units converted into amounts
credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they
otherwise would have been delivered to such Participant. 

 (b) General Rules. A deferred compensation
account established under this Section 11 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a
general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the
deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts
established under this Section 11. 
 SECTION 12. AWARDS UNDER OTHER PLANS. 

The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such
Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5. 
 SECTION 13. LEGAL AND REGULATORY REQUIREMENTS. 
 Shares shall not be issued
under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which
the Company determines is necessary or advisable. The Company shall not be liable to a Participant or other persons as to: (a) the non-issuance or sale of Shares as to which the Company has not obtained from any regulatory body having
jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares under the Plan; and (b) any tax consequences expected, but not realized, by any Participant or other person due to the
receipt, exercise or settlement of any Award granted under the Plan. 
 SECTION 14. WITHHOLDING TAXES. 

(a) General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall
make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such
obligations are satisfied. 

  
 - 13 -

 (b) Share Withholding. The Committee may permit a Participant to satisfy all or part
of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such
Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to
satisfy the minimum legally required tax withholding. 
 SECTION 15. OTHER PROVISIONS APPLICABLE TO AWARDS. 

(a) Transferability. Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly
provides otherwise, no Award granted under this Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions
applicable to Shares issued under such Award), other than by will or the laws of descent and distribution. Any purported assignment, transfer or encumbrance in violation of this Section 15(a) shall be void and unenforceable against the Company.

 (b) Substitution and Assumption of Awards. The Committee may make Awards under the Plan by assumption, substitution or
replacement of stock options, stock appreciation rights, stock units or similar awards granted by another entity (including a Parent or Subsidiary), if such assumption, substitution or replacement is in connection with an asset acquisition, stock
acquisition, merger, consolidation or similar transaction involving the Company (and/or its Parent or Subsidiary) and such other entity (and/or its affiliate). Notwithstanding any provision of the Plan (other than the maximum number of Shares that
may be issued under the Plan), the terms of such assumed, substituted or replaced Awards shall be as the Committee, in its discretion, determines is appropriate. 
 (c) Performance Criteria. The number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the attainment of performance goals. The Committee
may utilize any performance criteria selected by it in its sole discretion to establish performance goals. 
 SECTION 16. NO EMPLOYMENT
RIGHTS. 
 No provision of the Plan, nor any Award granted under the Plan, shall be construed to give any person any right to
become, to be treated as, or to remain an Employee or Consultant. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice. 

SECTION 17. DURATION AND AMENDMENTS. 
 (a) Term; Right to Amend or Terminate the Plan. The term of the Plan shall be ten years; provided, however, the Board of Directors may amend or terminate the Plan at any time and from time to time.
Rights and obligations under any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s
stockholders only to the extent required by applicable laws, regulations or rules. 

  
 - 14 -

 (b) Effect of Termination. No Awards shall be granted under the Plan after the
termination thereof. The termination of the Plan shall not affect Awards previously granted under the Plan. 
 [Remainder of this
page intentionally left blank] 

  
 - 15 -

 SECTION 18. EXECUTION. 
 To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the same. 

 

			
	MERU NETWORKS, INC.
		
	 By
	 	   /s/ Bami Bastani

	 Name
	 	  Bami Bastani
	 Title
	 	  President & CEO

  
 - 16 -EX-10.04

 Exhibit 10.04 
 MERU NETWORKS, INC. 
 2013 NEW EMPLOYEE STOCK INDUCEMENT PLAN

 NOTICE OF STOCK UNIT AWARD 
 You have been granted the following Stock Units representing Common Stock of MERU NETWORKS, INC. (the “Company”) under the Company’s 2013 New Employee Stock Inducement Plan (the
“Plan”). 
  

			
	Name of Participant:	  	                             
                                         
                                        
              
		
	Total Number of Stock Units Granted:	  	                             
                                         
                                        
              
		
	Date of Grant:	  	                             
                    ,             
		
	Vesting Commencement Date:	  	                             
                    ,             
		
	Vesting Schedule:	  	The Stock Units subject to this Award shall vest as to 1/3 of the Stock Units when you complete each 12 months of continuous Service as an Employee from the Vesting Commencement
Date.

 By your signature and the signature of the Company’s representative below, you and the Company
agree that these Stock Units are granted under and governed by the term and conditions of the Plan and the Stock Unit Agreement (the “Agreement”), both of which are attached to and made a part of this document. 

By signing this document you further agree that the Company may deliver by e-mail all documents relating to the Plan or this Award
(including without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including without limitation, annual reports and proxy
statements). You also agree that the Company may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company. The Company presently posts these documents on the Merrill Lynch
Benefits OnLine web portal. 
  

									
	[NAME OF PARTICIPANT]	 		 	MERU NETWORKS, INC.	 	
					
		 		 	By:	 	  
	 	
	 Print Name
	 		 	Its:	 		 	

 MERU NETWORKS, INC. 

2013 NEW EMPLOYEE STOCK INDUCEMENT PLAN 
 STOCK UNIT AGREEMENT 
  

			
	Payment for Stock Units	 	No cash payment is required for the Stock Units you receive. You are receiving the Stock Units in consideration for Services rendered by you.
		
	Vesting	 	 The Stock Units that you are receiving will vest in installments, as shown in the Notice of Stock Unit Award.

 
 No additional Stock Units vest after your Service as an Employee or a Consultant has
terminated for any reason.

		
	Forfeiture	 	 If your Service terminates for any reason, then your Award expires immediately as to the number of Stock Units that have not vested
before the termination date and do not vest as a result of termination.
  

This means that the unvested Stock Units will immediately be cancelled. You receive no payment for Stock Units that are forfeited.

 
 The Company determines when your Service terminates for this purpose and all
purposes under the Plan and its determinations are conclusive and binding on all persons.

		
	Leaves of Absence	 	 For purposes of this Award, your Service does not terminate when you go on a military leave, a sick leave or another bona fide
leave of absence, if the leave of absence was approved by the Company in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you
immediately return to active work.
  
 If you go on a leave of absence, then
the vesting schedule specified in the Notice of Stock Unit Award may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule
specified in the Notice of Stock Unit Award may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

		
	Nature of Stock Units	 	Your Stock Units are mere bookkeeping entries. They represent only the Company’s unfunded and unsecured promise to issue Shares on a future date. As a holder of Stock Units,
you have no rights other than the rights of a general creditor of the Company.

  
 -1-

			
	No Voting Rights or Dividends	  	Your Stock Units carry neither voting rights nor rights to dividends. You, or your estate or heirs, have no rights as a stockholder of the Company unless and until your Stock
Units are settled by issuing Shares. No adjustments will be made for dividends or other rights if the applicable record date occurs before your Shares are issued, except as described in the Plan.
		
	Stock Units Nontransferable	  	You may not sell, transfer, assign, pledge or otherwise dispose of any Stock Units. For instance, you may not use your Stock Units as security for a loan. If you attempt to do
any of these things, your Stock Units will immediately become invalid.
		
	Settlement of Stock Units	  	 Each of your vested Stock Units will be settled when it vests.

 
 At the time of settlement, you will receive one Share for each vested Stock Unit;
provided, however, that no fractional Shares will be issued or delivered pursuant to the Plan or this Agreement, and the Committee will determine whether cash will be paid in lieu of any fractional Share or whether such fractional Share and any
rights thereto will be canceled, terminated or otherwise eliminated. In addition, the Shares are issued to you subject to the condition that the issuance of the Shares not violate any law or regulation.

		
	Withholding Taxes and Stock Withholding	  	No Shares will be distributed to you unless you have made arrangements acceptable to the Company to pay withholding taxes that may be due as a result of this Award or the
settlement of the Stock Units. These arrangements, at the sole discretion of the Company, may include (a) having the Company withhold Shares that otherwise would be distributed to you when the Stock Units are settled having a Fair Market Value equal
to the amount necessary to satisfy the minimum statutory withholding amount, or b) any other arrangement approved by the Company. The Fair Market Value of any Shares withheld, determined as of the date when taxes otherwise would have been withheld
in cash, will be applied as a credit against the withholding taxes. You also authorize the Company, or your actual employer, to satisfy all withholding obligations of the Company or your actual employer with respect to this Award from your wages or
other cash compensation payable to you by the Company or your actual employer.
		
	Restrictions on Resale	  	You agree not to sell any Shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will
apply as long as your Service continues and for such period of time after the termination of your Service as the Company may specify.

  
 -2-

			
	No Retention Rights	  	Neither your Award nor this Agreement gives you the right to be employed or retained by the Company or a subsidiary of the Company in any capacity. The Company and its
subsidiaries reserve the right to terminate your Service at any time, with or without cause.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in Company Shares, the number of Stock Units covered by this Award shall be adjusted pursuant to the
Plan.
		
	Successors and Assigns	  	Except as otherwise provided in the Plan or this Agreement, every term of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, legatees, legal representatives, successors, transferees and assigns.
		
	Notice	  	Any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given upon the earliest of personal delivery, receipt or the third
full day following mailing with postage and fees prepaid, addressed to the other party hereto at the address last known in the Company’s records or at such other address as such party may designate by ten (10) days’ advance written notice
to the other party hereto.
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions).
		
	The Plan and Other Agreements	  	The text of the Plan is incorporated in this Agreement by reference. All capitalized terms in this Agreement shall have the meanings assigned to them in the Plan. This Agreement
and the Plan constitute the entire understanding between you and the Company regarding this Award. Any prior agreements, commitments or negotiations concerning this Award are superseded. This Agreement may be amended by the Committee without your
consent; however, if any such amendment would materially impair your rights or obligations under the Agreement, this Agreement may be amended only by another written agreement, signed by you and the Company.

 BY SIGNING THE COVER SHEET OF THIS AGREEMENT, 

YOU AGREE TO ALL OF THE TERMS AND CONDITIONS 
 DESCRIBED ABOVE AND IN THE PLAN. 

  
 -3-

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