Document:

Letter Agreement between VMware, Inc. and Mark Peek

 Exhibit 10.15 
 

 
 June 13, 2007 
 Mark
Peek 
 Dear Mark, 
 I am writing to confirm our understanding
with respect to the 433,216 restricted stock units that were granted to you on June 7, 2007 under the VMware 2007 Equity and Incentive Plan (the “RSUs”). These RSUs were granted to you in lieu of the EMC restricted shares that were to
be granted to you as described in your March 17. 2007 offer letter. Subject to your continued employment with VMware, Inc. (“VMware”) through June 7, 2010, the RSUs will fully vest on that date. However, if VMware meets or
achieves the targets established for the second half of 2007 under the VMware Revenue and Profit Contribution Plan, 1/3 of the RSUs will vest on each of the first three anniversaries of the grant date if you are employed by VMware on the applicable
vesting date. In addition, the RSUs will become immediately vested in full if there is a change in control (as defined on Appendix A) and following such change in control (1) your employment is terminated by VMware without Cause (as defined on
Appendix A) or (2) you terminate your employment because your duties have been diminished such that you no longer serve as a Chief Financial Officer of a public entity. 
 Please indicate your agreement with the terms of this letter by a signing a copy of this letter and returning it my attention. 
  

	
	Sincerely,
	
	 /s/ Diane Greene

	Diane Greene
	 President
 diane@vmware.com

 ACCEPTED AND AGREED TO this 14 day of June, 2007. 
  

	
	 /s/ Mark Peek

	Mark Peek

 Enclosures: 
 Duplicate Letter 
 Appendix A 
 

 

 Mark Peek 
 March 16,
2007 
 Page Two 
  

 Appendix A 
 Change in Control 
 A Change in Control will be deemed to have occurred if: 
 (i) any Person is or becomes the Beneficial Owner (within the meaning set forth in Rule 13d—3 under the Securities Exchange Act of 1934), directly or
indirectly, of securities of VMware, Inc, (the “Company”) representing 35% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in paragraph (iii); 
 (ii) the following
individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board of Directors of the Company (the “Board”) and any new director (other than a
director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by
the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then in office who either were directors on June 7, 2007 or whose appointment,
election or nomination for election was previously so approved or recommended; 
 (iii) there is consummated a merger or consolidation of the
Company or any direct or indirect subsidiary of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such
surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its affiliates representing 35% or more of the
combined voting power of the Company’s then outstanding securities; or 
 (iv) the stockholders of the Company approve a plan of
complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company
immediately prior to such sale. 

 Mark Peek 
 March 16,
2007 
 Page Three 
  

 Notwithstanding anything in the foregoing to the contrary, no Change in Control shall be deemed to
have occurred for purposes of this Agreement by virtue of (i) any transaction which results in Mark Peek (the “Executive”), or a group of Persons which includes Executive, acquiring, directly or indirectly, 35% or more of either the
then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities or (ii) EMC’s distribution of the Company’s shares to its shareholders in the form of a stock
dividend. 
 Person, as used above, shall have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as modified
and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries and affiliates, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or any of its affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities and (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company. 
 Cause 
 The occurrence of any of the following, as reasonably determined by VMware in good faith, shall constitute “Cause,” provided that you have been given notice by VMware of the existence of Cause and, if the
existence of Cause is curable, a reasonable opportunity to cure the existence of such Cause: 
  

	 	(i)	willful neglect, failure or refusal by the you to perform your employment duties (except resulting from your incapacity due to illness) as reasonably directed by VMware;

  

	 	(ii)	willful misconduct by you in the performance of your employment duties; 

  

	 	(iii)	the Participant’s indictment for a felony (other than traffic related offense) or a misdemeanor involving moral turpitude; or 

  

	 	(iv)	your commission of an act involving personal dishonesty that results in financial, reputational, or other harm to VMware and its affiliates and subsidiaries, including, but not
limited to, an act constituting misappropriation or embezzlement of property.Letter Agreement btween VMware, Inc. and Dev R. (Richard) Sarwal

 Exhibit 10.24 
 

 
 November 30, 2007 
 Richard Sarwal 
 Dear Richard, 
 This letter supersedes
all offer letters dated before November 30, 2007. 
 We are pleased to offer you a position with VMware, Inc. (the “Company”) as Executive Vice
President, Research and Development, commencing on Friday, November 30, 2007. You will report to the Chief Executive Officer of the Company. Your annual salary of $550,000 (“Base Salary) will be paid semi-monthly in accordance with the
Company’s normal payroll procedures You will be eligible to participate in the Company’s benefit plans and programs available to our full-time regular employees. 
 You will be eligible for a performance bonus in accordance with VMware’s bonus programs as they may be amended from time to time. Currently, you will be eligible for a bonus of up to 50% of your Base Salary on an
annualized basis, which will be paid semi-annually on a prorated basis from your date of hire through the end of the bonus period. Eligibility and the amount of the bonus will be based upon VMware’s financial performance and achievement of your
goals and objectives for the bonus period. In addition, you must be in good standing with your performance and employed at the time the bonus check is distributed to be eligible for the bonus. 
 As a key employee of VMware, a recommendation will be made to the Compensation and Corporate Governance Committee of the VMware Board (the “Committee”) that
you be granted a non-qualified stock option to purchase shares of VMware Class A common stock and restricted stock units as detailed below at an upcoming meeting of the Committee following your date of hire. The vesting, exercise price and
other terms of the stock option and restricted stock units, as applicable, will be set by the Committee at that meeting Any stock option and restricted stock units granted to you will be governed by the terms and conditions of the applicable grant
agreement and the VMware 2007 Equity and Incentive Plan. The details of the grant recommendation are as follows: 
 Stock
Options 
 You will be recommended for a non-qualified stock option to purchase 100,000 shares of VMware Class A common stock.
Subject to the terms of the VMware 2007 Equity and Incentive Plan and the stock option agreement, this stock option will vest over four years, with 25% of the shares subject to the option vesting on the first anniversary of the date of grant and
monthly thereafter at a rate of 2.0833% of the shares subject to the option. The option exercise price will be equal to the fair market value of VMware Class A common stock on the date of the grant. 
 Restricted Stock Units 
 You
will be recommended for a grant of 125,000 restricted stock units (the “RSUs”). Subject to the terms of the VMware 2007 Equity and Incentive Plan and the restricted stock unit agreement, these restricted stock units will vest over four
years, with 25% of the restricted stock units vesting on each anniversary of the date of grant (the “Grant Date”). 
 Restricted Stock Units - Annual Top-Up 
 (a) If you remain in continuous employment with the Company through the first
anniversary of the Grant Date and, on the first vesting date of the RSUs you do not realize taxable income in respect of the RSUs of at least $1,250,000, VMware will pay you a cash amount equal to $1,250,000 less the amount of the taxable income you
realized in respect of the RSUs on the first vesting date (a “Top-Up Payment”). 
 

 

 (b) If you remain in continuous employment with the Company through the second anniversary of the Grant
Date and, if on the second vesting date of the RSUs, the sum of the taxable income you realized on the first and second vesting dates in respect of the RSUs (including the amount of a Top-Up Payment, if any, paid to you pursuant to paragraph
(a) above) is not at least $2,500,000, VMware will pay you a cash amount (a Top-Up Payment) equal to $2,500,000 less the sum of the taxable income you realized in respect of the RSUs on the first and second vesting (which sum shall include the
amount of a Top-Up Payment, if any, paid to you pursuant to paragraph (a) above). 
 (c) If you remain in continuous employment with the
Company through the third anniversary of the Grant Date and, if on the third vesting date of the RSUs, the sum of the taxable income you realized on the first, second and third vesting dates in respect of the RSUs (including the amount of Top-Up
Payments, if any, paid to you pursuant to paragraphs (a) and (b) above) is not at least $3,750,000, VMware will pay you a cash amount (a Top-Up Payment) equal to $3,750,000 less the sum of the taxable income you realized in respect of the
RSUs on the first, second and third vesting dates (which sum shall include the amount of Top-Up Payments, if any, paid to you pursuant to paragraphs (a) and (b) above). 
 (d) If you remain in continuous employment with the Company through the fourth anniversary of the Grant Date and, if on the fourth vesting date of the
RSUs, the sum of the taxable income you realized on the first, second, third and fourth vesting dates in respect of the RSUs (including the amount of Top-Up Payments, if any, paid to you pursuant to paragraphs (a), (b) and (c) above) is
not at least $5,000,000, VMware will pay you a cash amount (a Top-Up Payment) equal to $5,000,000 less the sum of the taxable income you realized in respect of the RSUs on the first, second, third and fourth vesting dates (which sum shall include
the amount of Top-Up Payments, if any, paid to you pursuant to paragraphs (a), (b) and (c) above). 
 (e) Any Top-Up Payment due to
you as a result of the foregoing shall be made to you within five (5) business days following the applicable vesting date. 
 Change In Control

 If there is a Change in Control (as defined below), in lieu of any other severance or termination compensation (unless otherwise required by law),
100% of any unvested RSUs (from the recommended grant of 125,000 RSUs, described above) and 100% of any unvested stock options (from the recommended grant of 100,000 shares, described above) will become immediately vested (“Change-in-Control
Acceleration”) in the event that: 
 1. The Company terminates your employment without Cause (as defined below) during the first twelve months after a
Change in Control, or 
 2. You terminate your employment for Good Reason (as defined below) during the first twelve months after a Change in Control.

 For the avoidance of doubt, in the event of a Change in Control Acceleration, you will not be entitled to receive an additional Top-Up Payment beyond the
last Top Up Payment, if any, you were entitled to on the Grant Date anniversary immediately preceding such Change in Control Acceleration. 
 Involuntary Termination of Employment Prior To Change In Control 
 During your first two years of employment with the Company, in lieu
of any other severance or termination compensation, 50% of RSUs granted (from the recommended grant of 125,000 RSUs, described above), less any RSUs that have already vested from the recommend grant described above, will become immediately vested in
the event (a “Termination Acceleration”) that: 
  

	1.	The Company terminates your employment without Cause (as defined below), or 

  

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	2.	You terminate your employment for Good Reason (as defined below). 

 For
the avoidance of doubt, in the event of a Termination Acceleration, you will not be entitled to receive an additional Top-Up Payment beyond the last Top Up Payment, if any, you were entitled to on the Grant Date anniversary immediately preceding
such Termination Acceleration. 
 The Company agrees to provide assistance to you in securing and maintaining authorization for employment in the U.S. in
accordance with the terms of our Immigration Policy, a copy of which is included with this letter. You will be asked to sign this document on your first day of employment with the Company. Furthermore, given the nature of your particular immigration
situation, the Company retains sole discretion to determine what efforts, if any, it will take to secure or maintain your future authorization for employment in the U.S., if and when your permission to work in the U.S. has otherwise lapsed.

 You should be aware that your employment with the Company is for no specified period and constitutes at will employment. As a result, you are free to
resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. 
 You agree that, during your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related
to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. 
 On your first day of employment you will be asked to submit verification of your legal right to work in the U.S., and to sign our Employee Agreement. You will also be
expected to sign and comply with an Employment, Confidential Information, and Invention Assignment Agreement, which requires, among other provisions, the assignment of patent rights to any invention made during your employment at VMware and
non-disclosure of proprietary information. As a VMware employee, you will be expected to abide by Company rules and regulations. 
 Definitions

  

	1.	For purposes of this offer letter agreement, a Change in Control will be deemed to have occurred if: 

 (a) any Person (as defined below), is or becomes the Beneficial Owner (within the meaning set forth in Rule 13d-3 under the Securities Exchange Act of
1934, as amended (“the Exchange Act”)), directly or indirectly, of securities of the Company representing 35% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s
then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with (b) below; 
 (b) there is
consummated a merger or consolidation of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial
Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its affiliates) representing 35% or more of the combined voting power
of the Company’s then outstanding securities, or 
  

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 (c) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company
or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an
entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale. 
 Notwithstanding anything in the foregoing to the contrary, no Change in Control shall be deemed to have occurred for purposes of this offer letter agreement by virtue of
(i) any transaction which results in you, or a group of Persons in which you have a substantial interest, acquiring, directly or indirectly, 35% or more of either the then outstanding shares of common stock of the Company or the combined voting
power of the Company’s then outstanding securities or (ii) EMC Corporation’s (‘EMC”) distribution of the Company’s shares in a transaction intended to qualify as a distribution under section 355 of the Internal Revenue
Code of 1986, as amended. 
  

	2.	For purposes of this offer letter agreement, the occurrence of any of the following shall constitute “Cause,” provided that you have been given notice by the Company of
the existence of Cause and, if the existence of Cause is curable, a reasonable opportunity to cure the existence of such Cause: 

 (a) willful neglect, failure or refusal by you to perform your employment duties (except resulting from your incapacity due to illness) as reasonably directed by the Company; 
 (b) willful misconduct by you in the performance of your employment duties; 
 (c) your indictment for a felony (other than traffic related offense) or a misdemeanor involving moral turpitude; 
 (d) your commission of an act involving personal dishonesty that results in financial, reputational, or other harm to the Company and/or its affiliates and/or its subsidiaries, including, but not limited to, an act constituting
misappropriation or embezzlement of property; or 
 (e) your material violation of VMware’s Key Employee Agreement and/or a material
violation of any other VMware policies including but not limited to the Business Conduct guidelines. 
 The determination of Cause will be made by the
Company in its sole discretion. 
  

	3.	For purposes of this offer letter agreement, “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that such term shall not include (i) EMC, the Company or any of their respective subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its
affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities and (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company. 

  

	4.	For purposes of this offer letter agreement, “Good Reason” for termination by you of your employment shall mean the occurrence (without your express written consent) of
any of the following: 

 (a) any materially adverse alteration in your roles, titles, reporting relationship or in the nature or
status of your responsibilities; 
 (b) a material diminution by the Company in your Base Salary (excluding a reduction that also is applied
to all other executive officers of the Company and that reduces your Base Salary by a percentage reduction that is no greater than the lowest percentage reduction applied to any other executive officer); or a material diminution by the Company in
your aggregate annual bonus target; 
  

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 (c) the relocation of your principal place of employment to a location more than seventy-five
(75) miles from your principal place of employment immediately prior to such relocation; or 
 (d) a material breach of this Agreement.

 Notwithstanding the foregoing, you shall not be deemed to have Good Reason for purposes of this Agreement unless you provide the Company with a written
notice within thirty (30) days following your knowledge of the occurrence of an event constituting Good Reason and provides the Company with an opportunity to cure such occurrence within 30 days of the receipt of such notice from you.

 *  *  * 
 To indicate your
acceptance of the Company’s offer, please sign and date this letter in the space provided below and return it to me. A duplicate original is enclosed for your records. This offer letter, along with the Employee Agreement and the Employment,
Confidential Information, and Invention Assignment Agreement, contains all of the terms, promises, representations, and understandings between the parties, and supersedes any other oral or written agreement or understandings between the parties
regarding these matters prior to the date hereof. This offer letter may not be modified or amended except by a written agreement, signed by an officer of the Company and by you. This offer expires three (3) days from the date of this letter.

 We are looking forward to having you join VMware. 
  

	
	Sincerely,
	
	 /s/ Diane Greene

	Diane Greene
	President and CEO

 ACCEPTED AND AGREED TO this      day of
            , 2007. 
  

									
	 /s/ Richard Sarwal
	  	Start Date:	 	11/30/07	 	
	 (Employee Signature)
	  		 		 		 	

  

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